Capital Advances Made To State Enterprises

Press, Volume CI, Issue 29872, 12 July 1962, Page 13

Capital Advances Made To State Enterprises

(New Zealand Press Association)

WELLINGTON. July 11

Advances totalling £1,700,000 were made to the National Airways Corporation during the year to finance the purchase of new aircraft and other capital expenditure, said the report of the Controller- and Auditor-General (Mr A. D. Bums), which wae tabled in the House of Representatives today.

Calls on shares increased the investment in the New Zealand Steel Investigating Company by £62,500. Additional capital totalling £297,000 wae advanced to the Tourist Hotel Corporation for capital expansion but £115.000 was written off during the year. The report noted that the corporation’s result from the year’s work showed that there was little likelihood of revenue being sufficient to meet interest on capital and

depreciation of assets. Consequently, it was stated, further capital would be required from time to time to replace worn-out assets. The corporation made a final loss for the year ending September 30, 1961, of £160,189. In two years, said the report, N.A.C. had drawn £3,100,000 from the National Development Loan Fund and its capital liability was now £5,850,000. The report observed that the previous year's net profit of £51,483 would not be attained again and that working capital wou'd be insufficient to meet ail outgoings “It is evident that with a steep increase in charges for depreciation on newlyacquired assets and for interest and Joan money, revenue will have to be increased,” said the report.