Full paper text [PDF 3515k] - New Zealand Parliament

64
18. Related party transactions and
key management personnel
Related party transactions
All related party transactions have been
entered into on an arm’s length basis.
The Health and Disability Commissioner is
a wholly owned entity of the Crown.
The Health and Disability Commissioner
has been provided with funding from
the Crown of deemed $9.170m plus an
additional $294k one-off funding (2011
$9.170m) for specifi c purposes as set out in
its founding legislation and the scope of the
relevant government appropriations.
In conducting its activities, the Health and
Disability Commissioner is required to pay
various taxes and levies (such as GST, PAYE,
and ACC levies) to the Crown and entities
related to the Crown. The payment of these
taxes and levies, other than income tax, is
based on the standard terms and conditions
that apply to all tax and levy payers.
The Health and Disability Commissioner
is exempt from paying income tax.
The Health and Disability Commissioner
also purchases goods and services from
entities controlled, signifi cantly infl uenced,
or jointly controlled by the Crown.
Key management personnel compensation
Purchases from these government-related
entities for the year ended 30 June 2012
totalled $0.1m (2011 $0.1 m). These purchases
included the purchase of electricity from
Meridian, air travel from Air New Zealand,
and postal services from New Zealand Post.
The Health and Disability Commissioner
is a wholly owned entity of the Crown.
The government signifi cantly infl uences
the role of the Health and Disability
Commissioner in addition to being
its major source of revenue.
The Health and Disability Commissioner
enters into transactions with government
departments, state-owned Commissioners
and other Crown entities. Those
transactions that occur within a normal
supplier or client relationship on terms and
conditions no more or less favourable than
those that it is reasonable to expect the
Health and Disability Commissioner would
have adopted if dealing with that entity
at arm’s length in the same circumstances
have not been disclosed as related
party transactions.
Actual Actual
2012 2011
$ $
Salaries and other short-term employee benefi ts 1,094,740 899,313
Post-employment benefi ts 33,942 33,247
Other long-term benefi ts 0 0
Termination benefi ts 0 0
Total key management personnel compensation 1,128,682 932,560
Key management personnel include the seven Executive Leadership Team members.