TRAMWAY YEAR.

Auckland Star, Volume LXV, Issue 149, 26 June 1934, Page 8

TRAMWAY YEAR.

LOSS OVER £15,000.

INTEREST AND SINKING FUND.

COMMENTS BY MR. AI.LUM.

In presenting the accounts for the year ended March 31 last to the annual meeting of the Auckland Transport Board this ir-oriiing, the chairman, Mr. ,T A. C. Allum, said the board had just completed the most difficult year in its history. The total revenue of £alß,o9fc> showed a reduction of £15,505 compared with the previous year, and the expenses, £534,405 a reduction of £10 778 After payment of interest amounting to £ 114664 and other charges there was a deficit of £10,7u8 compared with a deficit of £10,931 last year. "In considering the year's loss I feel I should stress the point again that all interest and sinking fund payments have been made, and that an undertaking trading on private capital subscribed by shareholders would regard the interest paid on loans as dividend, and that paid as sinking fund as 'reserve.'" said Mr. Allum. "Aβ the result of the adverse trading circumstances of the last two or three years, a private company, should it luckily find itself in the position of being able to pay a dividend, would without doubt have found it neceseary to reduce euch dividend in comparison with previous years by an amount area tor than the 20 per cent by which interest paid by the board has been reduced in terms of the Local Authorities Intereet Reduction and Loans Conversion Act. The full interest is paid on the loans domiciled iu London. Drop in Receipts. '•The capital works carried out during the year were negligible; in fact, the cost of them only amounted to £4353. The drop in receipts for the last three months when compared with the corresponding three months of last year is approximately £2000, after taking into consideration the transfer of the bus services. As the drop for the full 12 months is £1.3,505, it can therefore be stated there is reason to believe that the volume of receipts is now becoming steady.

"One must say that the employment situation is still most unsatisfactory, and the position its reflected in the volume of the board's receipts, so much so that no material improvement can be expected, until the employment situation n'n-t improves.

At the moment there arc in the Auckland metropolitan area some 5700 meu cither engaged on relief works or on sustenance owing to the fact that work is not available for them. Those who iiro working do so for only, on an average, three days a week., and then receive wages below the standard rate. The board has made available for the use of relief workers tickets at a cheap rate, and its revenue therefore suffers in a dual way, firstly by the reduction in the number of artisans at work, and secondly by the issue of fares at considerably reduced rates.

Bus Services. During the year the board gave serious consideration to the loss occasioned'by the operation of its bus services, tlie result being that it entered into a contract for their operation by contractors on the basis of an annual subsidy payable according to the bus miles run. Under the arrangement made the board retains the bus liconses. The contractors commenced operating under this arrangement on October 7, 1033, :uid it is estimated the saving to the board is approximately. £4000 per annum. Mr. Allum said the board had continued its policy of purchasing practically all its supplies locally. Wages and salaries paid during the year totalled (£260.224. The cost of electricity was £04,938, the price being reduced to •S37d per unit. Eates totalling £7106 Mere paid to various local bodies in the board's district, and of that amount it was interesting to note that £4946 was paid on the tracks and overhead lines in the streets, notwithstanding that practically one-third of the roadways through which the tramlines ran was maintained by the board at its expense.

Audit "Tag." The report and balance-sheet -were adopted. Tho secretary reported that the audit ofliee had written drawing attention to ilie fact that the agreement- entered into between the board and certain persons for tho running- of omnibus services was not within tho powers of the board nuder the Auckland Transport Board Act, and the board was asked to adjust the matter.

The chairman said the board must continue the policy it had adopted in reference to bus services.

Tho adjustment of the matter as between the board and the department was left to tho chairman and the board's solicitor.