SMALL BALANCE

Evening Post, Volume CXXVII, Issue 92, 20 April 1939, Page 20

SMALL BALANCE

SURPLUS ON POWER AND LIGHTING

RESULTS OF PAST

YEAR

A report presented to the City Council last night by the general manager of the tramway and electricity department, Mr. M. Cable, stated that both transport and electricity operations for the year ended March 31 had resulted in credit balances, of £1429 for tram and bus transport, and of £14,401 for power and lighting. Mr. Cable indicated the probability of necessary extensions to the electricity distribution system in the comparatively near future.

The tramway revenue amounted to £430,501, compared with £418,038 in the preceding year, stated Mr. Cable. After meeting all working expenses and capital charges, there was a credit balance on the tramway operation for the %year of. £7275. After meeting working expenses and depreciation there was a loss on bus operation for the year of £5846. Compared with the preceding year, bus revenue increased by £3423, and expenses increased by £3300. Of the latter amount £1125 represented increased depreciation charges due to the addition of new vehicles. TRAMWAYS AND BUSES COMBINED. The net financial result of the operation of tramways and buses for the year was a credit balance of £1429, • compared with £9509 in the preceding year. The saving effected by the repayment of No. 1 renewal loan in March, 1937, whereby capital charges were reduced by £8601 annually, and . the increase in revenue for the year just ended, amounting to £15,886, had been heavily offset by increased working expenses, mainly due to general increases in wages, which were accentuated by retrospective pay granted by the council, amounting to £8233. ELECTRICITY DEPARTMENT. The electricity department's revenue lor the year just ended amounted to £382,438, compared with £375,286 in the preceding year; an increase of £7152. The total working expenses, special charges, and appropriations, amounted to £368,037, compared with £360,921 """'in 1937-38; an increase of £7116. Working expenses increased by £11,865, principally 'due to increased cost of electrical energy supplied by the Public Works Department, and to some extent to increased wages. Capital charges increased by £28,209, due to the revival of the annual charge for renewal fund, and an increase in the charge for reserve fund. Special expenditure and appropriations were reduced by £32,958, the net increase in total expenditure being £7116. The net result of the year's operations was a credit balance of £14,401. FUNDS FOR ELECTRICAL DEVELOPMENT. Mr. Cable made a special note as to extensions which would be necessary in the near future. "The amount shown to the credit '""'"tttsthe electricity department on the yeaSrs working is £14,401, approximately the same as last year," he stated. "This sum, together »with all Jhe profit the department; cari; earn*.' will be needed for extension to distribution services. The past year lias been a heavy one, and the coming one will be heavier still, it is not always apparent that the department is being called upon continually to extend, not only its service, but its ability to serve, and that if the full benefits of electricity are to be made available to citizens, fee department must be ahead of the demand, not behind it. !The outlying areas are being quiclcly built upon and it becomes imperative that substations and cables be carried--fur-ther afield at 11,000 ,volts. /In many places, we already find ourselves unable satisfactorily to cope -with the demand, and this applies particularly to Government housing settlements, where we have, been successful in obtaining mote than 50 per cent, of allelectric houses.- The increase in unit sales, due to the low domestic tariff, has been phenomenal. "The department's programme of extensions for the coming, two years iis already defined, and it wtfuld appear that all funds available should be devoted towards carrying ojut this programme. INCREASED STANDBY PLANT. "Another major aspect pt the future of the department is to,be found in the necessity for making provision in some way for increased standby or " emergency plant for thejcity. At this stage of our investigations, we have not reached a decision as to what proportion of any increased cost should fall on the city. /The matter is one which demands most ciareful analysis from, several points of jview. It seems essential, however, thsfifc every endeavour; should be made to? conserve what- . evec funds become available from time to time, so that a nucleus, at least, might:be available vjfcen the need arises."