COMMERCIAL Bleak Future For Public Transport?

Press, Volume CVI, Issue 31365, 10 May 1967, Page 35

COMMERCIAL Bleak Future For Public Transport?

(New Zealand Press Association)

AUCKLAND, May 9.

Ever-increasing wage costs and a tendency for the public to forsake buses for private cars make the future of public transport look far from encouraging, says the chairman of Auckland Transport Holdings, Ltd. (Mr J. B. Donald) in the annual report.

Drivers’ wages represented 40 per cent of the total costs of operating buses, and since September, 1964, when the last fare increase was granted, the wages bill has increased by £41,000 yearly as a direct result of increases in award pay rates.

I The directors feel they have postponed an application for fare increases long enough, and accordingly one is before the Transport Department now. As announced, the net profit dropped by £9805, or 23 per cent, to £32,852. In addition, there was a capital profit of £BB4O, compared with £9986 last year. In spite of a fall in gross passenger revenue from route licence operations and a re-

duction in revenue from ground transport, it has been necessary to raise the fleet of buses by six to 143.

Now Profitable

The car and truck fleet increased by 54 to 193 during the year and the unprofitable airport taxis and chauffeurdriven tourist limousines were converted to public taxis. These departments are making a significant contribution to revenue

The manufacturing engineering division has been relocated and continued to grow. The company is making representations to the Harbour Bridge Authority to eliminate tolls on buses, as these cost £14,500 a year. Provisions The profit for the year was after depreciation of £75,301, up £5936, and tax of £28,295, down £12,124. As announced, the dividend had been held at 7 per cent and took an unchanged £21,125. The minority interest share of profit fell from £404 to £55. The earning rate on funds falls from 12.4 per cent to 9.5 per cent and on ordinary capital drops from 14.2 per cent to 10.8 per cent.

Shareholders’ Funds

The balance-sheet showed ordinary shareholders* funds up £24,421 to £359,750, including capital increased by £1776 to £303,563.

The interest of minority

shareholders was down from £3138 to £778.

Term liabilities rose by £11,482 to £170,527. Fixed assets showed a rise of £25,250 to £552,702 while investments were up £974 to £15,839. Working capital declined by £7310 to £41,564. Intangibles remained unchanged at £4078.