Big U.S.S. loss after unrest

Press, Volume CXI, Issue 32797, 23 December 1971, Page 1

Big U.S.S. loss after unrest

The Union Steam Ship Company of New Zealand, Ltd, incurred a loss of $439,762 in the year to September 30, the accounts for the year show. But the directors report says that it is clear that the industry is capable of working profitably given freedom from industrial unrest.

The result was after providing $39,000 more at $289,000 for overseas taxation and $48,810 less for depreciation at $3,702,343. The debit balance carried forward in the profit and loss appropriation account ammounted to $1 535,405. The payroll tax cost the company more than $360,000 for the year. “This imposition in a loss year highlights the iniquity of the charge, especially in a service organisation with high labour costs,” the report says. The dividend on the cumulative preference shares required $ll,OOO. The directors have approved a transfer from revenue reserves to meet this amount. The directors made no recommendation for a dividend on the ordinary shares. Transfers from revenue reserves have been approved for taxation relating to prior years of $132,000, provision for loss in investment in subsidiaries of $77,000, provision for loss on advances to subsidiaries of $291,000, and provision for Australian long service leave relating to prior years of. $400,503. Revenue reserves was $656,086 lower at $21,071,949 at balance date. During the year individual

unrest on a more or less continuous basis caused interruptions to scheduled services by the roll-on roll-off vessels as well as causing delay to ships serving New Zealand, Australia and Pacific Islands ports, the directors’ report says. Since the balance date the company’s loss in the hold-up of ships, in protest against the Shipping and Seamen Amendment Bill is calculated at , $620,000 a large sum to , try and recoup from already fine margins on freight rates and passenger fares, the report says.