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Retrieving Data

Note 34

For the Year Ended 31 March 2011

RELATED PARTY TRANSACTIONS
Key management personnel
The key management personnel compensation (including Directors' fees) is as follows:
GROUP PARENT
2011 2010 2011 2010
$000 $000 $000 $000
Salaries and other short-term employee benefits 3,627 4,535 3,627 4,535
Share based payments 28 22 28 22
3,655 4,557 3,655 4,557
       

$464,000 of this amount was unpaid at 31 March 2011 (2010: $598,000).

All key management personnel participate in a cash settled, share based incentive scheme. This scheme was introduced in 2007 and replaces the employee share option scheme (refer to note 35).

Subsidiaries

Advances have been made to/from subsidiaries (refer to note 22) and are payable on demand. These advances are not expected to be repaid in the coming year. Advances to New Zealand based subsidiaries are interest free while interest is charged to overseas based subsidiaries at a market rate. The net advances as disclosed in note 22 include the balances due to/from subsidiaries in respect of the following transactions.

The Parent has a lease contract with its subsidiaries Cobb Power Limited and Tararua Wind Power Limited for the use of the subsidiary companies' generation assets. These commitments cannot be quantified.

The Parent has an insurance contract with its subsidiary TrustPower Insurance Limited which is renewed annually.

The impact of transactions with subsidiaries on the profit of the Parent and Group is shown below.

 

GROUP PARENT
2011 2010 2011 2010
$000 $000 $000 $000
Operating lease costs - - (20,641) (21,247)
Insurance costs - - (2,072) (2,141)
Interest revenue - - 886 1,172
Impact on profit before income tax - - (21,827) (22,216)
         

The Group is controlled by Infratil Limited (incorporated in New Zealand) which owns 50.6% of the Company's voting shares. The Tauranga Energy Consumer Trust owns 33.0% and the residual balance of 16.4% is widely held.

A related entity of H.R.L. Morrison & Co Limited manages Infratil Limited and M Bogoievski, a Director of TrustPower Limited, is the Chief Executive of H.R.L. Morrison & Co Limited. Mr HRL Morrison is an alternate Director of TrustPower Limited and is a Director of Infratil Limited. Infratil Limited is the parent
of TrustPower Limited and $40,000 (2010: $7,000) was paid to H.R.L. Morrison & Co Limited and related entities during the year for consultancy services. As at 31 March 2011 none of this amount was outstanding (2010: nil).

Consultancy fees of $24,000 (2010: $10,000) were paid to Lumo Energy Pty Ltd which is a subsidiary of the Group's ultimate parent. As at 31 March 2011 none of this amount was outstanding (2010: nil).

Mr MJ Cooney, a Director of TrustPower Limited, is a partner in the law firm Cooney Lees Morgan. $18,000 was paid to Cooney Lees Morgan for legal services in the year to 31 March 2011 (2010: $14,000). As at 31 March 2011 none of this amount was unpaid (2010: nil).

Except as noted above, no transactions took place with related parties during the year. All transactions with related parties take place on an arms length basis. No related party debts were forgiven or written off during the year. Except as noted above there are no amounts outstanding at 31 March 2011 (2010: nil).