ACTUAL AND EXPECTED NEW CAPITAL EXPENDITURE


FINANCIAL YEARS AT CURRENT PRICES

The graphs below show the seven estimates of actual and expected expenditure for each financial year. The estimates appearing below relate to data contained in tables 5 and 6. Advice about the application of realisation ratios to these estimates is in paragraphs 25 to 28 of the Explanatory Notes.

The timing and construction of these estimates are as follows:

TOTAL CAPITAL EXPENDITURE

Estimate 5 for 2007-2008 is $84,786 million. This is an increase of 14.7% from the previous estimate 5 in 2006-07. The building asset class was the main driver for this growth, rising 23.1% while equipment rose 7.4% between these two estimates. Mining (23.0%), Other Services (40.4%) and Construction (41.2%) were the industries which have experienced the greatest growth. Manufacturing (-0.1%) and Finance (-4.8%) were the only industries that fell during this time. When estimate 5 is compared to estimate 4 there has been a more modest increase of 0.7%. While equipment rose by 4.1% the building asset class saw a decline of 2.5%. Property and business (-3.5%) and Other services (-6.3%) recorded falls while all remaining industries have forecast modest increases in expenditure between these two estimates.

The first estimate for 2008-9 has risen 23.6% from the corresponding estimate of 2007-08 to be at $78,545 million. Several industries, notably Construction (107.4%), Transport (88.9%) and Other services (61.5%) have seen large rises between these two estimates. The increase in total Capex for estimate one has been consistent across both asset types with equipment increasing by 23.1% and building by 24.0%.

BUILDING AND STRUCTURES

Estimate 5 for 2007-08 at $42,476 million has risen by 23.1% when compared to estimate 5 for 2006-07. While two of the smaller industries Retail (-8.9%) and Transport (-11.7%) have fallen between these estimates the remaining industries have displayed growth. Estimate 5 has fallen by 2.5% from estimate 4. Most industries have shown modest falls in this period to contribute to the decline.

The first estimate for 2008-09 is 24.0% higher than the 2007-08 estimate at $41,955m. All industries with the exception of Transport have risen in this period which reflects the strong commitment to investment for the coming financial year.

EQUIPMENT, PLANT AND MACHINERY

Estimate 5 is 7.4% higher in 2007-08 than it was in the previous year at $42,309 million. Mining (22.2%) and Construction (40.0%) were the drivers of this movement while there were small falls seen in Finance, Manufacturing and Other services between these estimates. Estimate 5 is 4.1% higher than estimate 4. The growth has been broad based with nearly all industries showing single figure growth, with the exception of Retail (15.6%) and Other Services (-2.4%).

The first estimate for 2008-09 is the highest that has been recorded for the equipment asset type at $36,589 million. This is an increase of 23.1% from the previous year.

MINING

Estimate 5 for 2007-08 is at $29,602 million which is 23.0% higher than estimate 5 of the previous year. This growth has been seen across both asset types with equipment increasing by 22.2% and building by 23.2%. Estimate 5 has shown a moderate rise of 1.3% from estimate 4 of 2007-08 (equipment 3.5%, building 0.6%).

The first estimate for 2008-09 for Mining is recorded at $30,042 million and this is 12.6% higher than the corresponding estimate of 2007-08. Equipment, the smaller asset class, has risen by 22.1% while building and structures has risen by 10.2%.

MANUFACTURING

The fifth estimate for 2007-08 at $13,054 million is -0.1% lower than the corresponding estimate in 2006-07. There was little movement in the asset types with equipment falling by 1.0% and building rising by 1.9%. Estimate 5 is 4.3% higher than estimate 4 for 2007-08. This growth has come through in the equipment asset type which rose by 6.6% while building and structures fell by 0.7%.

The first estimate in 2008-09 has risen by 14.6% from the weak first estimate of 2007-08 to be recorded at $10,705 million. Both asset types have risen in this time period (equipment by 9.8% and building by 27.9%).

OTHER SELECTED INDUSTRIES

Estimate 5 for 2007-08 is $42,131 million which is a fall of 0.8% from estimate 4. In asset terms the building class has fallen by 6.8% while equipment has had a rise of 3.5%. Estimate 5 has risen by 14.6% from the previous estimate 5 with equipment growing by 6.8% and building by 29.2%.

Estimate 1 for 2008-09 is at $37,798 million which is a rise of 37.3% from the previous estimate 1. Building has risen by 52.5% and equipment by 28.6%.