A BIG DROP

Dominion, Volume 14, Issue 232, 25 June 1921, Page 8

A BIG DROP

IN ELECTRIC LIGHT PROFIT

FROM £24,000 TO £3600 IN A YEAR

The profit on electric light and power lias in one year dropped from nearly J_ r 23,925 15s. to J 13596 15s. 9d. The report of the independent auditor ('Mr. A. E. Clarke) to the chairman of the Electric Lighting Committee was handed tx> a reporter by the Mayor (Mr. R. A. Wright) yesterday. It. reads as follows: — "The result of the twelve months’ working of the electric lighting department to March 31. 1921, shows a net balance of ,£3596 15s. 9d. 5 as against a not balance of <£23,925 15s. as at March 31. 1926.

"Various appropriations have been made during the year consisting of: —

s. d. Retiring allowances 41 14 0 Contributions to superannua-

tion fund 358 9 10 Annual amount of 4 per cent, written off preliminary expenses 115 3. 5

Leaving a net balance of .£3OBl Bs. 6d. "If it were not for the interest of -£5lBO there would have been a. loss on net revenue for the year, after charging interest on loans, sinking funds, and the usual amounts carried to reserve and renewal funds. These latter two accounts have been credited with the usual amount allowed by statutory authority, namely, £3471. "The accident insurance fund amounts to £2804 9b. 9d.. as at March 31, 1921, as against £2438 7s. 3d. as at. March 31, 1920.

“I have not verified the sinking fund securities, but have compared them with the amounts in the books of the Sinking Ftwid (Commissioners. All the sinking fund securities are verified by the Government auditor and myself at a later date.”

On being consulted re the above report the Mayor said that the alarmingly large decrease in profits made during the 1920-21 year was causing some anxiety among the members of the Finance Committee. The reason for this rather extraordinary difference in tho credit balance as compared with that of last year was largely due to the very high price they had to pay for coal and the large quantity bought, at that high price (about £4 per ton). Until they had used that coal—ond they still had commitments to come to hand —and could get back to the cheaper coal from, the AVest Coast, the decrease in profit would continue. If cheaper coal could not then be obtained the council would reluctantly have to consider the raising of the price of electricity. It was hoped that such an undesirable contingency would not arise. As the auditor noted, if it were not for the £5lBO earned in interest by the £70,600 nest-egg of the department’s, a loss of about -£2OOO would, have been recorded. AVith cheaper coal and materials, however, the situation would improve, he felt sure.