A GOOD YEAR.

Auckland Star, Volume LXI, Issue 123, 27 May 1930, Page 5

A GOOD YEAR.

TRANSPORT BOARD. PROFIT ON TRAM SERVICES, HEAVY LOSS ON BUSES. NET BALANCE OF fBBBS.

A net profit of £8888 on the year's operations of the Auckland. Transport Board was disclosed in the statement of the chairman, Mr. J. A. C. Allum, a* the annual meeting of the hoard this afternoon. The gross profit on the tramways service was £193,303, and the loss on the omnibus service was £18,006, leaving for the combined undertaking a gross profit of £175,297. Mr. M. J. Coyle said it was most satisfactory and very pleasing to find that the year had been so profitable. That such was the case was due to the careful and efficient management of the board and its officers. The public had not been penalised one iota, save for a slight rise in the concession card rates. Not so long ago the public was very dissatisfied, and it was predicted by some that there would ibe loss. The figures proved that the board's services Avere satisfactory. Mr. Allum said it was pleasing to find that the hoard's' statement of accounts had heen returned by the Auditor General without any tag. First Complete Year.

The -balance-sheet and accounts placed 'before the meeting covered the first complete year of operation since the formation of the board, said Mr. Allum. Full provision had been made for payment of interest and sinking fund both .on old loans and new capital raised during the year, for authorised extensions, and also for the accident fund reserve, suspense accounts and depreciation. "Early in the financial year the ratepayers approved the board's policy. of development of the undertaking, and the extension -works thereunder were put in hand with the minimum of delay, and their prosecution has had a material influence on the unemployment situation in Auckland," continued the chairman. "It is confidently hoped that the continuance of the work on extensions now authorised, together with further proposals which the board will place before the ratepayers at a later date, will enable the board to continue to relieve the situation by employing labour on reproductive works. It must be pointed out that although the tramway extensions are being carried out with commendable promptitude, none could be completed in sufficient time during the past year to show any material financial relief to the omnibus services which they replace. There will, however, be very considerable relief during the current financial year. Decrease in Traffic Receipts. "The traffic receipts totalled £666,252, which is £42,145 less than the previous year. Omnibus services to Henderson, Glen Eden, Smith Street and Hutchinson Avenue were,discontinued,by the board on March 30y 1-929, and the. Orakei Road feeder' bus' ; was' discontinued on March 2, 1929. The cessation of these services accounts for approximately £15,000 of the reduction in revenue. The weather during many of the week-ends and also during the Christmas 'holidays in the period under review was particularly bad, and had an adverse effect on the receipts. The reduction in revenue has been arrested, and there is every prospect of an improvement."

Wages Total of £247,563. "By exercising economy and 'by readjustment of services there !had 'been a substantial reduction of £40,051 in expenses, which had more than compensated for the reduced revenue. Wages and salaries paid to the traffic staff alone totalled £247,563, while the total wages and salaries paid were £359,674. The bill for electric power amounted to £75,593, and rates totalling £5122 were paid, to the various local bodies in the board's district. The gross profit on the tramway service was £193,303, while the loss on the omnibus service was £18,006, leaving for the combined undertaking a gross profit of £175,297, out of which the following payments and appropriations had been made: —Interest on loans, £98,025; sinking fund, £40,47G; depreciation on omnibuses, £14,830; transfer to accident fund reserve, £5670; annual provision for writing off discount on loans and loan flotation expenses, £1800; track renewals' suspense ' account, £2871; motor omnibus suspense account, £1559; alteration to offices, £600; preliminary expenses, Auckland Trans-. port Board formation, £569; total, £160,408.

Burden of Sinking Fund. "This left a net profit of £8888. Interest and sinking fund showed increases over the previous year of £2294 5/7 and £2501 respectively. These were due to new loan issues for the extension works, and it could be emphasised that all interest and sinking fund were paid out of revenue. No interest or sinking fund whatever was charged to capital account. The sinking fund now totalled £493,055 17/10, the whole of which sum was invested outside the undertaking and would be available to redeem the board's debentures as they fell due. The first debentures £1,250,000) would fall due in 1940, when the undertaking would be relieved of interest and sinking fund amounting to no less a sura than £95,920 annually. "The sum allocated for depreciation of omnibuses provided for the final writing off of 105 vehicles taken over under the provisions of the Motor Omnibus Traffic Act, 1926.