1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Notes to the Consolidated Financial Statements continued

for the year ended 31 December 2007

24 Obligations under finance leases

  Minimum lease payments   Present value of minimum lease payments
    2007   2006   2007   2006
        as
restated1 		      as
restated1
    €m   €m   €m   €m
Amounts payable under finance leases                
Within one year
– 2006 as previously reported		   280.3   288.9   273.0   283.2
Prior year adjustment1   –   6.9   –   6.9
Within one year – 2006 as restated   280.3   295.8   273.0   290.1
Between two and five years   0.7   2.1   0.7   2.0
    281.0   297.9        
Less: future finance charges   (7.3)   (5.8)        
Present value of finance lease obligations   273.7   292.1   273.7   292.1
Analysed as:                
Current liabilities (due for settlement within one year) – 2006 as previously reported           273.0   283.2
Prior year adjustment1           –   6.9
Current liabilities (due for settlement within one year) – 2006 as restated           273.0   290.1
Non-current liabilities (due for settlement after more than one year)           0.7   2.0
            273.7   292.1

It is the Group’s policy to fund certain of its vehicles (including some vehicles held under repurchase arrangements) and some plant and equipment under finance leases. The average lease term is less than one year. For the year ended 31 December 2007, the average effective interest rate was 4.5% (2006: 3.2%). All finance leases are on a fixed repayment basis and interest rates are fixed at the contract date. No arrangements have been entered into for contingent rental payments.

The fair value of the Group's obligations under finance leases approximates to their carrying amount, and is secured by the lessors either having legal title or charges over the leased assets. In addition, collateral is held against certain of the leases (see Note 15).