Audit Office investigation clears board’s tourism work

Press, 28 June 1989, Page 9

Audit Office investigation clears board’s tourism work

By

CULLEN SMITH

An Audit Office investigation has cleared the Christchurch Transport Board of any impropriety in the funding of its tourism business. Complaints by the Road Transport Council that the board was using public money to finance its tour and charter work have been rejected in a report by the Auditor-General, Mr Brian Tyler. The investigation, which began in April, found that the transport board acted within its authority in: Running tour and charter services. Buying buses for those services from its asset renewal fund. Applying Urban Transport Council grants towards the cost of timetable bus services.

Addressing the issue of whether the board had the power to run tours and charters, the report refers to the Christchurch Tramway District Act, 1920, and its amendment (1927). “The board has the power to operate tours and charters and has by implication the power to purchase coaches to undertake such work,” it found. Because the board was not increasing the size of its bus fleet and the specialised tour coaches were designed for work previously done by commuter buses, their purchase was part of replacing or renewing the fleet. It was appropriate for the board’s asset renewal fund to be used.

The report noted the board had three main sources of in-

come — the U.T.C. grant, passenger revenue and rates. Administered by the Canterbury United Council, the U.T.C. grant was to provide timetable bus services and was directly related to the cost of running. The United Council required the board to separate the cost of running tours and charters to ensure no grant money was paid for that activity, the report said. “Similarly, passenger revenue is directly related to the cost of operations and should not be used to fund tour or charter costs.”

However, rate money could be spent on any board activity authorised by statute, including tour and charter work.

“An analysis of the board’s financial statements shows that

the appropriations to the renewal fund have indeed come from rates,” the report said. “Passenger revenue and U.T.C. grant monies have been allocated directly against the costs of operations.” The transport board’s chairman,. Mr Patrick Neary, welcomed the report last evening.

"We’ve been audited three times on this. I would hope this will be the end of the matter,” Mr Neary said. Tourism would remain a big part of the proposed new bus company’s business after corporatisation within the next 12 months, but the focus would still be public transport in the city.

The Road Transort Council’s Canterbury representative, Mr Robin King, was unavailable for comment.