GOODWILL BUT NO PROFIT

Press, Volume XCVI, Issue 28414, 22 October 1957, Page 12

GOODWILL BUT NO PROFIT

Transport Offer Declined

After the decision of the Christchurch Transport Board to extend the Fendalton route along Memorial avenue to Ham road. Midland Motorways offered to sell its service from the city to the Christchurch airport. The works and traffic committee reported to the board yesterday that it could not recommend acceptance of the offer The Licensing Authority advised that Midland Motorways was opposing the board’s application to make the extension to Ham road The company’s offer was to sell its goodwill for £3500. said Mr C C. Holland (chairman) No vehicles were included. The service carrying air passengers was noi 'involved. It was estimated that the revenue would fall short of ’he operating costs. "The actual goodwill sought is rather absurdly high.” said Mr Holland. “Goodwill is paid to a vendor of a profitable undertaking when he is being bought. I have never heard of the company’s goodwill being paid where there was no profit.” The airport was outside the hoard’s area and he was opposed to a service being given it when the board was asking the ratepayers to subsidise the services, said Mr Holland.