Surplus In Tunnel Operation Likely

Press, Volume CIII, Issue 30530, 27 August 1964, Page 14

Surplus In Tunnel Operation Likely

An operational surplus of £22,000 for the current financial year was estimated by the Christchurch-Lyttelton Road Tunnel Authority’s annual meeting yesterday. The chairman (Mr R. A. Witbrock) and members agreed that the estimated revenue was conservative, as it was based on the actual figures for May, June and July, which were not good months.

Interest due to stockholders amounting to £139,602 would be met from loan money, Mr Witbrock said. Estimated income was put at £114,000, with £102,000 coming from vehicle tolls and the remainder from goods tolls. Estimated expenditure was given as £54,715 for toll collection and traffic. control, £21,005 for maintenance, and £16,280 for administration. With no previous operational year as a guide, the estimates could vary considerably, Mr Witbrock said. It was impossible to estimate the effect of the opening of the new berthage at Lyttelon. It had been expected that vehicle tolls would pay for the cost of operating the tunnel but would be insufficient to meet interest and capital repayments, and this pattern appeared to be developing, he continued. It had also been forecast that goods tolls would make the major contribution to interest and loan repayments required to make the undertaking freehold when Lyttelton berthages became fully available to road transport. Because the project was still under construction and considerable sums had still to be paid to contractors out of loan money, no capital estimates had been made.

To Mr L. G. Amos, Mr Witbrock said the estimated costs were nearly £20,000 below the original estimates. Interest From Loans

The authority was allowed to pay interest out of loan money until the middle of 1966, said Mr Witbrock. The original estimate had been for a deficit for 10 years. The biggest part of the loan money was not due for repayment until 2001.

In his annual report, Mr Witbrock said the general account had received £445,238 in the year and paid £1,366,008. The project account showed that the undertaking had cost £2,473,857 up to the end of March, reduced to £2,448,642 after deducting capital gains on the sale of Government stock.

“The year ■ has been a momentous one. with the planning and striving over many years bearing results and providing achievement.” Mr Witbrook said. “Gradu-

ally all will come to realise what a great asset has been added to Canterbury’s facilities, and this must create pride and confidence in the future;

“The advantages of using the tunnel are likely to become more apparent as time goes on, and many factors tie in with one another. Until the port is fully operating as a vehicle-access port, the full impact of using the tunnel will not be felt.” July Traffic Mr L. H. Wilson, the general manager, reported that although the total number of vehicles last month was 1296 more than for June because of the extra day, the daily average was down by 20 vehicles. The tonnage carried increased by 197, and goods toll revenue by £44. Mr Witbrock said that for August so far the takings were up by £34 a day on the July revenue.