Memorandum Accounts for the Year Ended 30 June 2001
Memorandum accounts are notional accounts to record the accumulated balance of surpluses and deficits incurred for outputs operating on a full cost recovery basis. They are intended to provide a long-run perspective to the pricing of outputs.
| | Opening
Balance
01/07/2000 | Movement
During
2000/2001 | Closing
Balance
30/06/2001 |
|---|
| | $000 | $000 | $000 |
| Memorandum Account | | | |
| Registration and Provision of Statutory Information | 19,628 | 3,248 | 22,876 |
| Management and Enforcement of Radiocommunications Act | 5,152 | 1,506 | 6,658 |
| Administration of Gas and Electricity Regulations - Operations of Electrical Workers Registration Board | 112 | 137 | 249 |
This statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements
Action Taken to Address Surpluses
Registration and Provision of Statutory Information
Following the introduction of revised fees in the Companies Office in July 1999, third party revenue decreased by 10% and a further 2% in 2000/2001. Despite these reductions, the Companies Office still experiences a significant surplus each year due to continuing substantive increases in volumes for company incorporations, company charges, motor vehicle securities registrations, annual return filing and the tremendous uptake of electronic services.
A new fees schedule is being proposed for 1 December 2001 to reduce the surplus in 2001/2002. A 10-year fee-setting strategy paper to reduce the memorandum account balance to nil will be considered by Cabinet in late November 2001.
Management and Enforcement of the Radio Communications Act
The baseline surplus is expected to continue to decline in out years as a result of further spectrum being converted to management (property) rights regime and, in addition, through the introduction of a new fees schedule late in 2001/2002.
Operations of Electrical Workers Registration Board (EWRB)
Reduction in EWRB envisaged volume activity resulted in reduced revenue. Several expenditure items, such as promotional activity, were curtailed causing an increase in the surplus at the end of year. The surplus in the memorandum account will continue to be managed.
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