Notes to the consolidated financial statements

2. Segmental analysis continued

Other segment information:

	Northumbrian Water Limited			Water and waste water contracts			Total
	31.3.2009 £m	31.3.2008 £m		31.3.2009 £m	31.3.2008 £m		31.3.2009 £m	31.3.2008 £m
Property, plant and equipment additions	229.6	233.8		3.0	1.5		232.6	235.3
Depreciation	95.0	93.0		5.7	5.3		100.7	98.3

3. Operating costs

	Year to 31.3.2009 £m	Year to 31.3.2008 £m
Materials and consumables	23.3	22.3
Manpower costs (see note 5)	103.0	106.9
Own work capitalised	(27.0)	(26.2)
Depreciation of property, plant and equipment	100.7	98.3
Profit on disposal of property, plant and equipment	(1.2)	(1.2)
Amortisation of capital grants	(4.8)	(4.8)
Costs of research and development	1.8	1.8
Operating lease payments	1.6	1.1
Bad debt charge	17.5	13.7
Other operating costs	205.6	180.7
Operating costs	420.5	392.6

4. Auditors’ remuneration

	Year to 31.3.2009 £m	Year to 31.3.2008 £m
Audit of the financial statements†	0.3	0.3
Other fees to auditors: Taxation services	0.1	0.1

† £97,000 of this relates to the Company (2008: £90,000)

5. Employee information

The total employment costs of all employees (including directors) of the Group were:

	Year to 31.3.2009 £m	Year to   31.3.2008   £m
Wages and salaries	85.2	82.8
Social security costs	7.1	7.0
Defined benefit pension service cost (see note 25)	9.9	15.7
Other pension costs	0.8	1.4
Total employment costs	103.0	106.9

Total employment costs were charged as follows:
Capital schemes and infrastructure renewals	23.3	25.9
Manpower costs	79.7	81.0
	103.0	106.9

Included in wages and salaries is a total expense of shared-based payments of £0.9 million (2008: £0.8 million) which arises from transactions accounted for as equity-settled share-based payments.