COUNTING COST

Dominion, Volume 23, Issue 235, 1 July 1930, Page 13

COUNTING COST

Eastbourne Borough FINANCIAL Fvm (TON Making Buses and Ferry Pay Not so long-ago the Borough of Eastbourne was passing through troubled waters. Now it is sailing in quiet waters, with no signs of future storms on the horizon. Alone among the municipalities, Eastbourne has its own ferry service. The heavy charges involved in the running of its most recently acquired ship, the Muritai, and the competition of a privately-owned motor bus service, was crippling the finances of the borough. , To buy out the competitive bus service and run it itself was necessary if the borough would obtain relief from increased rates. This was done, and the wisdom of the step is now apparent v The buses now run, not in competition with the ferry, but in co-operation with it Furthermore, it is the sound policy of the borough council, and carried out by the town clerk (Mr. C. L. Bishop) that the bus and ferry accounts should be kept separate, and that each service should pay its own way. The two services are regarded as distinct businesses. Bus Bmming. Last financial year, April 1, 1925, to March 31, 1930, the buses ran 235.700 miles, or 7000 more than in the previous year. Receipts for ordinary traffic were within a few pounds of those for the year ended March 31, 1929, while receipts from special trips run on behalf of the ' ferry department were responsible for the gross receipts bein§ £3OO in excess of those for the previous year. From the trading and the profit and loss accounts for the past two years, the town clerk has drawn up an interesting comparative statement of costs showing the various items and receipts per busmile together with the gross and net profits earned for each mile run. The figures for 1929 are given in parentheses:— , Receipts per bus mile were 13.67 d. (13.43 d. Wages per bus mile were 3.89 d. (3.95 d. benzine, I.BBd. (1.77 d. oils and grease, .21d. (.19d.); repairs and renewals, 1.17 d. (1.10 d. tires and tubes, .G9d. (,54d.); insurances and licenses, 1.14 d. (l-17d.); sundries, .34d. (.35d.). • The gross profit was 4.35 d. (4.36 d. The profit and loss account for the same years showed the following position:— Administration costs per bus mile, 56d. (,55d.); interest On capital, .50d. (.50d.); depreciation, 2.73 d. (2.74 d. The net profit per bus mile was 56d. (57d.).

The Ferry Service. As the bus service is now firmly established, the gross receipts for 1929-30, being £13,425, the problem confronting the council and the town clerk has been how to reduce the ferry overhead, expenses and at the same time maintain an adequate service for the requirements of people living in the borough. In the Summer the problem simplifies itr-jlf considerably for the reason that t iousands of people flock to Eastbourne and bays for the week-ends, or for the pleasure of the trip on the boat For 1929-30 the gross receipts fell off by £1660, as compared'with 1928-29, and £970 bad to be transferred from' the bus department in order to meet the amount of overdraft at the bank on March 31, 1930. A comparative statement of trading and profit and loss items for the past two years (1928-29 figures being given in parentheses) shows the position of the ferry services as follows:— Totatl receipts, £13,553 (£15,212). , Administrative costs, £1678 (£1930); Cobar, running and overhaul, £5661 (£5278); Duchess, running and overhaul, £3 (£492); Muritai running and overhaul, £4527 (£4185); Wharfage. £33 (£57); berthage, £514 (£547); insurances, £786 (£788); sale of tickets, £l9B (£191); truck, running, £209 (£255); Wharves, £617 (£747); hire of buses, £3OO (—) : miscellaneous, £192 (£147). Total, £14,721 (£14,617). Debenture interest , and sinking fund charges have not been shown in the state- ■ metfts as these are met out of rates. With the introduction of a better timetable this year a definite saving will be effected, and provided the cost of overhauls is not excessive this year, the trading accounts, states the town clerk, should . be more satisfactory. Tile General Account. In the general account of the borough the gross receipts for 1929-30 amounted to £6130 as against £5150 for 1928-29. Rates collected were £350 less, while . heavy traffic fees and Government subsidy were £250 more; £l2O was received from the Croquet Club toward the construction of the croquet green, while an additional £lOOO was realised from the sale of land. The gross expenditure amounted to £6lOO against £5622 for 1928-29. How the additional amount has been expended may be seen from the following comparative statement, 1928-29 figures being in parentheses, (Only the most important items’ are shown.) Administrative: £709 (£709); drainage, £BOO (£250); footpaths, £195 (—*); reserves, £162 (£189); street maintenance, £lOOO (£865); street lighting, £331 (£311); sanitation, £645 (£586); tennis courts, £65 (£120); Muritai Road. £lOO (£100); Marine Parade, £220 (£120); land purchase, £— (£1515); groynes, £llO (—); construction croquet green, £175 (—); children’s play area, £B5 (—); gymnasium, £193 (-*-); chamber fence, £ll5 (—); advance to hospital account, £269 (—) ; sundries, £470 (£540). Reducing Overhead. In order to demonstrate what had been done by way of reducing overhead charges the town clerk has given the following figures for administration costs in the years 1928, 1929, 1930 respectively:— Borough department, £759, £709, £759 Ferry department. £2468, £1948. £1652. Bus department. £674, £6BB. £639. Totals, £3901, £3345, £3050. Tn 1929 £556 was saved, against 1928, and in 1930 the saving was £857, against 1928. The total saving (luring the past two years amounted to £1407. This Year’s Estimates. The council has also considered its estimates for 1930-31, and the estimated receipts are £5050, made up as follow:— General rates, £2500; sanitation fees, £900; Government subsidy, £250; tennis court fees, £200; building permits, £00; royalties* £5O; dog registration, £4O: hire of council chambers, £2O; heavy traffic fees, £360; miscellaneous licenses, £130; rents, £160; 10 per cent- penalty on rates, £6o;'interest on land sales, £180; sundries, £l4O. On the expenditure side the principal Items are:— Administration, £750; reserves (wages, and materials), £175; street maintenance (wages and materials), £800; tractor and truck running, £100; street lighting, £350; sanitation, £675; tennis courts, fees and maintenance, £75; City and Suburban Water Board, £5O; fire prevention. £7O; maintenance Muritai Road. £100; Free Ambulance. £5O; maintenance of groynes and extension of sea-wall, £200; council chambers site, £200; advance to hospital board account. £100; mayor’s honorarium and sundries. £160; preliminary expenses, water and drainage, £200; storm-water drainage, Muritai Road, £350; storm-water drainage, Marama Terrace, £125; kerbing, etc,, Kona and Totara Streets, £150; reforming Pukatea Street, £lOO,