10 Capital commitments and operating leases Capital commitments At the balance date there were no capital commitments (2017: nil). Operating leases The future aggregate minimum lease payments to be paid under non-cancellable operating leases are as follows: 2018 $000 2017 $000 311 340 Later than one year and not later than five years 1,244 1,358 Later than five years 1,577 2,041 Total non-cancellable operating leases 3,132 3,739 Not later than one year A significant portion of the total non-cancellable operating lease expense relates to the lease of one floor of an office building in Auckland, part of which is subleased to the Energy Efficiency and Conservation Authority (EECA). The initial term ends in August 2022 with an option to renew for a further six years and final expiry date of August 2028. The Commission has assumed it will exercise the renewal. The remainder of the non-cancellable operating lease expense relates to the lease of a small portion of floor space in the Christchurch Integrated Government Accommodation campus. During the 2018 year the portion of floor space leased was reduced. The lease expires in November 2027. The Commission does not have the option to purchase the assets at the end of the lease terms and there are no restrictions placed on the Commission by any of the leasing arrangements. The Commission also occupies office space in Wellington, on a shared services arrangement with EECA. 11 Contingencies Contingent liabilities Make-good obligations If the Commission does not exercise the option to renew the lease of its Auckland office space, then, upon expiry of the lease, it must make-good the premises. The make-good obligations require all chattels and leasehold improvements be removed and the premises reinstated. The Commission has assumed it will exercise the option to renew (2017: same). Contingent assets The Commission has no contingent assets (2017: nil). Annual Report 2018 73