£16,000 LOSS.

Auckland Star, Volume LXVII, Issue 140, 15 June 1936, Page 8

£16,000 LOSS.

CITY TRANSPORT. HIGH EXCHANGE RATI INCREASED EXPENDITURE. IMPROVEMENT IN REVENUE A deficit of £10,187, compared with . deficit of £83.31 last year, is shown ii the balance-sheet for the year endei March 31 of the Auckland Transpor Board, which was presented at tli annual meeting of the board to-day There were large increases in botl revenue and expenditure. £20,03G wa paid as currency exchange. The chairman, the Hon. H. G. R Mason, said in his rejvort that the revenue for the year ended March 31 193."), had shown a slight improvement over that of the previous two years, anc he was pleased to report that tin revenue had continued steadily tc improve. The total revenue for the year, £344,824, was an increase oi £22,130 over the previous year. The year's expenses at £5G1,010 showed ar increase of £29,974. After payment of interest, £112,111 sinking fund £25,532, and other payments, there was a deficit of £16,187 compared with a deficit of £8351 lasf year. This deficit .of £10,187 included the sum of £4042 payable by way of redemption of portion of the board's loan indebtedness. Of the £397,800 oi debentures included in the A.T.B. Loans Conversion Order, 1934 (No. 2), issued in July, 1934, £25,200 matured and were paid 011 April 1, 1935, and proision was made by tho board jointly with the sinking fund commissioners to redeem another £15,800 maturing on April 1, 193 G. Overseas Exchange. Overseas exchange, which very seriously affected this local authority, remained throughout the year at approximately £24 10/ against New Zealand. The sum of £20,030 was paid as currency exchange last year in meeting the board's London interest bill of £81.103. The report then reviewed the position regarding the board's liability to pay in sterling the interest on the 5 per cent and 5i per cent London domiciled debentures of the Auckland City Tramway Loan, 1919 ( £1,250,000), and mentioned that an appeal would be made to the Privy Council. Early in the present financial year a committee was appointed to investigate the costs of administration of the board and also any other costs which in the committee's opinion required investigation. To this end the whole expenditure of the board was under the committee's consideration in detail. Evidence was taken from members of the staff of all ranks and grades, and in addition inspections were made of the working of any departments in which any evidence gave hope that room for economy might be found. After exhaustive examination the committee reported that the economies exercised before and during the depression had left little room for making further economy with, prudence, and that the efficiency apparent to board members in the presentation of all problems and information at board meetings was matched by and was the result of efficiency in the general administrative mechanism of the undertaking. Unemployed Relief. The board continued its policy of taking an active part in the relief of unemployment by employing considerable bodies of men 011 track reconstruction.- Until August, 1935, this work was carried on as '/rationed relief work." On that date the conditions were altered, and the men employed on a new subsidised system for a full 40hour week, with payment at standard ! rates. The reconstruction of the tracks.continued steadily, and it was anticipated that within a few weeks all reconstruction of this nature would be completed. The year had also been marked by the removal of the last of the centre poles from the streets and the commencement of the removal of the centre partitions from the cars. This last work was being .done inexpensively as each car came into the repair shops for its periodical overhaul. The attention of the board Mas directed during the year to the fact that the permanent way department had undertaken the fabrication of certain sets of special work for use at tramway junctions, making a very satisfactory job and at a great saving of expense as compared with imported work. On October 21, 1935, the board decided to restore all "cuts" 011 wages below the 1931 standard 011 the first £300 of each man's wages or salary-, this restoration taking effect as from November 2, 1935.,, The wages and salaries paid during the year amounted to £250,G71.

' Rates totalling £7200 were paid to various local bodies in the boards district, .of which £5191 represented rates levied on the valuation of the tiacks and overhead lines laid in the stieets. The area of the. streets occupied by the tracks was wholly maintained at a large expense l>v the board alone. The board had not yet been able to secure a share of the petrol tax, but the question had not been lost sight of. A deputation on the matter recently waited on the Prime Minister, whose reply was wholly sympathetic. Traffic Receipts. The manager, Mr. A. E. Ford, in a supplementary report, said the tiafflc receipts amounted to £540,1(1.3, an increase of £22,572, or 4.30 per cent over the previous year. Sundry receipts showed a decrease of £433, or 5.5 pet cent. On the expenditure side there were increases in working expenses (£21,984, or 5.(52 per cent), interest and sinking fund (£BI3B, or 0.28 per cent), and provision for redemption of debentures (£9O, or 2.01 per cent). There was a decrease in the suspense account of £738, or 47.34 per cent.

The miles run during the year totalled - 5,927,400, an increase of 49,364, and the passengers carried 47,299,120, an increase t of 2,429,423. The board had 221 trams, v with a total accommodation, seated and il standing, of 19,542. Total wages and et salaries paid were £280,071, as against f £200,544 last year. Estimates for the Year, 0 r Estimates for the current year were j submitted by Mr. Ford in another . report, and these will be considered at . the next meeting of the board in eom--5 mittee. Mr. Mason said he would then make a re'port. He mentioned that the estimates were more simple this year. , The estimates provide for traffic receipts of £581,070 and total receipts of £589,420. Expenditure is estimated at £580.860, leaving a favourable balance L of £2554. The estimates are based on ? wages and conditions existing on June ' 1, and make no provision for any extra expense as the result of a shorter work--11 ing week than that obtaining on that date. Ii r ' Members' Discussion. Mr. J. A. C. Allum, in moving the e adoption of the report, said the 1 year had been no easier than previous 1 ones. Xo reasonable person would disapprove of what the board .had done. B The board had always endeavoured to 1 treat its staff as well as circumstances 1 permitted. He had never been ashamed a during his 17 years' association with the - city's transport of any action taken by 2 the controlling authority. There had been comment by the public on the efficiency of the board, but the findings of the special committee gave the f answer to that.

J Mr. Alhnn. after referring to the "tryi iiijr times" during bis term of office, congratulated the board on the harmonious relations that existed. He did not agree entirely with the policy of all the members, but he considered his duty was to assist in making the board's policy a success. The policy was to deal fairly with those whose interests the board represented—the travelling public, the staff, ratepayers and debenture-holders. Mr. E. J. Phelan, in seconding the motion, said that politics were unnecessary. They had all joined the board with the intention of doing something. He mentioned the possibility of the board not being held liable to pay rates. This, he said, would be of great assistance to the board. Mr. W. J. Jordan, M.P., said that in considering the deficit attention should be called to the amount spent in relief work. Although there had been an introduction of party, there was not much between members when thev were sorted out. He would like to thank personally Mr. Allum and Messrs. W. H. Nagle and R. E. Ferner. Mr. .J. Sayeglr said he had always disagreed with the findings of the special committee of which he had been a member. The board was like a top-lieavy ship. It was a little lopsided in the number of administrative officers and economies could be effected. The chairman said the result was as good as the board could possibly hope to achieve. He mentioned that £13,000 had been spent on subsidised works.