MUNICIPAL TRADING

Evening Star, Issue 21077, 14 April 1932, Page 6

MUNICIPAL TRADING

RESULTS OF YEAR'S OPERATIONS NET PROFITS OF £53,445 BULK OF MONEY ALREADY SPENT The figures giving the results of the operations of the various trading departments of the City Corporation for the year ended March 31 wero submitted to the meeting of the City Council last night by the city treasurer (Mr H. H. Henderson), as follows: The comparison of net profits jvith those of the previous year is as follows (shillings and pence being omitted): — Net profit, Net profit, 1930-31 1931-32.

GAS DEPARTMENT. "The revenue of the gas department shows a decline of £2,843, made up as follows: — Reduction in gas sales ... £1,718 Reduction in residuals ... 1,037 Reduction in sundry revenue 88 £2,843 Working expenses are reduced by £4,718 mainly ou account of the reduced output and the general reduction in wages. Interest, depreciation, and renewal fund contributions aro increased by £2,297, mainly on account of the new holder. „ Out of the above profit of £9,348, the gas department has contributed £4,162 to the municipal department in relief of rates, and also £2,425 towards the corporation's cost of unemployment relief, leaving a balance of £2,761 available for the purposes of the department. WATER DEPARTMENT. The revenue of the water department shows an increase of £96, but the working expenses have been reduced by £4,346, tho chief contributing factor being the expenditure on Deep Stream survey £603, as against £2,968 in tho previous year. Other expenditure is reduced approximately by the reduction of 10 per cent, in wages during the year. Interest, depreciation, and renewal fund contributions have increased by £2,814, consequent on the loan expenditure in Leith Valley last year. The department has contributed £6,078 to the municipal department in relief of rates and towards unemployment expenditure. ELECTRIC DEPARTMENT. The electric department's revenue shows a reduction of £2,164 as compared with tho previous year. The working expenses show a reduction of £19,694, but it has to be borne in mind that expenditure during the previous year was abnormal owing to the shortage of water and the necessity of running the steam plant and Diesel engines for a considerable time. Tho charges for interest, depreciation, and renewal fund are increased by £8,773 consequent on the additional capital expenditure. The department has contributed £16,384 to the municipal department in relief of rates, and £6,062 on account of unemployed relief, or a. total of £22,446, which is £1,686 more than the net profit for the year. For the year ended March 31, 1931, the department contributed £16,384 in relief of rates as against its profit of £12,003, or an excess of £4,381. Tins' position appears to call for consideration. TRAMWAYS DEPARTMENT.

The city tramway revenue was £9,436 less than the previous year, while working expenses are reduced by £8,633 ; mainly due to the 10 per cent, reduction in wages and a saving in maintenance. Interest, depreciation, and renewal fund show an increase of £353, leaving a reduction in the net profit of £1,156. The department paid £2,341 to the municipal department in relief of rates for the first half of last year, but nothing for the second half, and it was apparent that it would be unable to do so out of its reduced profits. The Mornington tramways revenue has declined by £956, and its outgoings have been reduced by £772,' leaving a net decrease in the profit of £lB4. Roslyn tramway revenue has declined by £652, and its working expenses are reduced by £653. Interest is reduced by £321, principally on account of the repayment of portion of its loan out of sinking fund when it fell due last year. This has enabled the department to show an increase of £322 in its net profit. The motor bus revenue has decreased by £1,870, and the working expenses are reduced by £1,151. Interest and renewal fund payments are also reduced by £384. POSITION SUMMARISED. Combining the operations of the above departments wo find that out of their profits of £53,445, they have paid £27,753 in relief of rates, and £9,700 towards unemployment relief, leaving £15,992 for their own purposes, INSURANCE FUND. The fire insurance fund shows a surplus of £4,308 for the past year, and its funds now amount to £51,743. The accident insurance fund shows a surplus of £2,619, and its funds are now £30.490. Tno total insurance funds amount to £82,233.

Gas Water Electric 9,771 18,705 12,003 9,348 20,334 20,760 Dec. Inc. Inc. 422 1,629 8,757 TramwaysCity 1,407 251 Dec. 1,156 Mornington Trams Roslyn Trams Motor Buses 2,703 2,519 166 489 76 Loss 258 Dec. Inc. Dec. 184 322 334 £44.835 £53,445 Inc. £8,610