Concise Consolidated Cash Flow Statement

For the year ended 30 June 2007

	2007 $m	2006 $m
Cash Inflows (Outflows) from Operating Activities
Interest received	1,928.0	1,881.0
Interest and other costs of finance paid	(1,828.9)	(1,699.9)
Fees and commission received	23.8	22.7
Payments of tax equivalents	(12.6)	(4.4)
Receipt of Goods and Services Tax	1.0	2.4
Payments of general administrative expenses	(23.3)	(19.3)
Loans to Government clients made	(5,568.5)	(6,311.2)
Loans to Government clients repaid	3,958.0	4,395.9
Net cash used in operating activities	(1,522.5)	(1,732.8)
Cash Inflows (Outflows) from Investing Activities
Purchases of plant and equipment	(1.6)	(1.0)
Net cash from (to) securities held	(1,585.3)	2,447.4
Net cash from (used in) investing activities	(1,586.9)	2,446.4
Cash Inflows (Outflows) from Financing Activities
Proceeds from issuance of borrowings	20,085.6	24,311.4
Repayment of borrowings	(16,638.1)	(25,459.8)
Net cash used in the purchase or repayment of short term financial instruments	(288.9)	(163.8)
Dividends paid	(11.0)	(23.8)
Net cash from (used in) financing activities	3,147.6	(1,336.0)
Net  Increase (Decrease) in Cash Held	38.2	(622.4)
Cash and cash equivalents at the beginning of the year	148.3	770.7
Cash and cash equivalents at end of the year	186.5	148.3

The accompanying discussion and analysis, and notes form part of these concise financial statements.

Discussion and Analysis of the Concise Consolidated Cash Flow Statement

The Cash Flow Statement showed an increase in cash as defined by Accounting Standards. 

Net cash used in operating activities was $1,523 million, a reduction on the previous year, reflecting higher cash earnings available to offset the net funding requirement for client loans. 

Net cash used in investing activities was $1,587 million mainly as a result of build up of securities in advance of the March 2008 Benchmark Bond Series maturity.  The compares to the previous year where there had been a run-down of securities held to fund the maturing May 2006 Benchmark Bond Series.

Net cash from financing activities was $3,148 million and arose from increased benchmark borrowings over the year to fund the increase in Government loans and securities.