Contents

NOTES TO THE FINANCIAL STATEMENTS

43. RELATED PARTY TRANSACTIONS

During the year, Group companies entered into the following transactions with related parties who are not members of the Group:

2010
£m

2009
£m

Sales of goods and services

Lakeside Energy from Waste Limited

0.2

-

Viridor Laing (Greater Manchester) Limited

49.0

-

Purchase of goods and services

Lakeside Energy from Waste Limited

3.8

-

Year end balances

2010
£m

2009
£m

Receivables due from related parties

Viridor Laing (Greater Manchester) Limited

20.7

-

Lakeside Energy from Waste Limited

19.5

10.6

INEOS Runcorn (TPS) Limited

5.7

-

45.9

10.6

Payables due to related parties

Lakeside Energy for Waste Limited

5.0

-

The £5.0m payable relates to consortium relief due to Lakeside Energy from Waste Limited.

The £45.9m (2009 £10.6m) relates to loans to related parties included within receivables and due for repayment in instalments between 2011 and 2033. Interest is charged at an average of 11.3% (2009 15%).

Company

The following transactions with subsidiary undertakings occurred in the year:

2010
£m

2009
£m

Sales of goods and services (management fees)

7.1

7.3

Purchase of goods and services (support services)

0.5

0.5

Interest receivable (loans)

19.4

17.6

Interest payable (short-term funding)

0.1

1.7

Dividends received

80.6

128.6

Sales of goods and services to subsidiary undertakings are at cost. Purchases of goods and services from subsidiary undertakings are under normal commercial terms and conditions which would also be available to unrelated third parties.

Year end balances

2010
£m

2009
£m

Receivables due from subsidiary undertakings

Loans

420.6

339.1

Trading balances

0.9

0.9

Interest on £104.8m of the loans has been charged at a fixed rate of 5.0% and on £104.3m at a fixed rate of 6.0% (2009 £76.2m, 6.0%).

Interest on the balance of the loans is charged at 12 month LIBOR + 1.5% (2009 Barclays Bank Plc base rate +1%). The loans are due for repayment in instalments over the period 2011 to 2014. During the year there were no further provisions (2009 £0.1m) in respect of loans to subsidiaries not expected to be repaid.

2010
£m

2009
£m

Payables due to subsidiary undertakings

Loans

281.2

280.2

Trading balances

16.3

11.1

Payables due to joint venture

Trading balances

5.0

-

The loans from subsidiary undertakings are unsecured and interest-free without any terms for repayment.