Union Steam Ship Loss $641,106

Press, Volume CVIII, Issue 31586, 25 January 1968, Page 14

Union Steam Ship Loss $641,106

The Union Steam Ship Company of New Zealand, Ltd, Wellington, suffered a loss of $641,106 in the year to September 30, or $60,630 less than the loss in the previous year, according to the annual accounts.

All trades serviced by the company have suffered reduced cargoes after the measures introduced by the Government early in the year to steady the country’s economy, says the chairman (Mr F. K. Macfarlane).

These measures especially affected the Tasman and New Zealand coastal trades. Because of major industries converting from coal to other power supplies, movement of coal from the West Coast is much lower. Fewer import licences has resulted in reduced imports from Australia. Since September 30, the roll-on, roll-off vessel Hawea has entered service. The company now has five roll-on,

roll-off ships in service, says Mr Macfarlane. Only the S2m in cumulative preference shares are listed and the total dividend of 5i per cent again requires $116,000. No ordinary dividend will be paid for the latest year against a dividend of 3 per cent the previous year on the ordinary capital of sl2m, which required $360,000. Mainly because of a surplus of $514,048 on the sale

of properties and other assets, shareholders’ funds fall only $327,981 to $34,626,361 because of the latest loss. Reserves Position Revenue reserves are $276,875 lower at $5,512,939 and the retained profits account $51,106 lower at $99,073. Capital reserves are steady at $15,014,349. The latest profit is after providing $218,896 more for depreciation at $3,403,238 and s3§6o less for tax at $219,952. The fleet at cost was $63,190,852 and depreciation written off this so far amounts to $29,748,516. On contract dates, the first of the two trans-Tasman rollon, roll-off vessels should be in service in September or October, says Mr Macfarlane. A regular time-tabled movement of cargoes between New Zealand and Australia and on both countries' coasts will be achieved with these ships.