Annual Report and Accounts 2008
6 Operating costs
| 2008 £m |
2007 £m |
|||
|---|---|---|---|---|
| Materials and consumables | 84.3 | 107.2 | ||
| Staff costs (including exceptional cost of £15.3m (2007: £5.0m)) | 894.2 | 816.0 | ||
| Depreciation – Owned assets | 75.6 | 66.6 | ||
| – Leased assets | 20.4 | 13.0 | ||
| Amortisation of leasehold property prepayment | 0.1 | 0.1 | ||
| Amortisation of fixed asset grants | (1.8) | (1.3) | ||
| Operating lease charges | Rolling stock: capital element | 131.8 | 150.5 | |
| Rolling stock: non-capital element | 57.3 | 61.1 | ||
| Public service vehicles | 4.6 | 3.8 | ||
| Other | 9.6 | 10.6 | ||
| – Plant and equipment | 203.3 | 226.0 | ||
| Fixed track access | 304.1 | 330.6 | ||
| Other | 68.8 | 79.6 | ||
| – Land and buildings | 372.9 | 410.2 | ||
| Pre-contract bid costs: UK Trains | 4.6 | 7.5 | ||
| Foreign exchange differences | (2.1) | (0.3) | ||
| Other charges (including exceptional expense of £15.6m (2007: £10.8m)) | 892.5 | 772.7 | ||
| Operating costs before intangible asset amortisation | 2,544.0 | 2,417.7 | ||
| Intangible asset amortisation | 55.2 | 32.9 | ||
| Total operating costs – continuing operations | 2,599.2 | 2,450.6 | ||
The TOCs have fixed track access contracts with Network Rail Infrastructure Limited for access to the railway infrastructure (tracks, stations and depots). The TOCs also have contracts under which rolling stock is leased. The capital element of the rolling stock lease charge is based on the purchase price, capital funded refurbishments and modifications. The non-capital element of the lease charge includes heavy maintenance charges and charges based on mileage.
An analysis of fees paid to the Group's auditors is provided below:
| 2008 £m |
2007 £m |
|
|---|---|---|
| Fees payable to the Company’s auditors for the audit of the consolidated and parent Company accounts | 0.6 | 0.4 |
| Fees payable to the Company’s auditors and its associates for other services: | ||
| The audit of the Company’s subsidiaries | 1.2 | 1.3 |
| Other services pursuant to legislation | – | 0.1 |
| Tax services | 0.6 | 0.5 |
| Corporate finance services | – | 0.2 |
| Other services | 0.1 | – |
| 2.5 | 2.5 |
Included in the above fees paid to the Group's auditors are £nil (2007: £508,000) of fees capitalised with respect to acquisitions. Fees charged to the income statement for other services are £55,000 (2007: £44,000).