TRADING DEPARTMENTS

Evening Star, Issue 21232, 13 October 1932, Page 13

TRADING DEPARTMENTS

OPERATIONS FOR HALF-YEAR NET IMPROVEMENT OF £4,400 At the meeting of the City Council last night the town clerk (Mr G. A. Lowin) .submitted the following statement dealing with the profit and loss accounts of the trading departments tor the half-year ended September 30, 1932. The comparison with the figures for the corresponding half of the previous year is as follows (shillings and pence omitted) :

WATER DEPARTMENT. The water department’s revenue from rates has been reduced by £652 for the half-year consequent on the reduction in the rateable values of the city by £45,000 as compared with the previous year. The revenue from special supplies and sundries has also decreased by £BSB, making a total drop in the revenue of £1,420. The working expenses show a decrease of £5lB, but this is almost wholly duo to the fact that there was no expenditure on Deep Stream survey this year, as against £474 in the first half of last year. The charge for interest is increased by £483 consequent on the issue of the balance of the waterworks extension loan last year, and the charges for renewals and depreciation are increased by £391. The total expenditure therefore shows an increase of £356, which, added to the decrease of £1,420 in the revenue, makes a reduction of £1,776 in the net profit. GAS DEPARTMENT.. The revenue of the gas department shows a drop of £2,028 as compared with the first six months of last year. The decreased output of gas accounts for £BB2 of this amount, and the revenue from residuals and sundries also shows a decrease of £1,146. The total working expenses are reduced by £1,445, of which the reduced quantity of coal used accounts for £1,013. The charges for interest, depreciation, and renewal fund have increased by £742. The total outgoings show a decrease of £703. ELECTRIC DEPARTMENT. The revenue of the electric department shows a decrease of £1,838, but against this the working expenses have been reduced by £2,867, and the charges for interest, depreciation and renewal fund have also been reduced by £2,604. The total reduction in the outgoings is therefore £5,471, and this has enabled the department to show an increase of £3,632 in its net profit. The reduction in interest is due to the department’s 6 per cent, loan of £184,000 having fallen due on March 1 last, of which £159.000 was renewed at 5i per cent., and the balance of £25,000 was paid off out of sinking fund. TRAMWAYS DEPARTMENT. The revenue of the city tramways has fallen by £2,007 as compared with the first half of last year, but there have been reductions in the outgoings amounting to £4,988, thus leaving an improvement of £2,980 in the final results. Working expenses have been reduced by £3,272, due partly to the fact that the first half of last year did not have the advantage of the 10 per cent, cut in wages till June. Interest has been reduced by £1,341, due to £27,500 of loan having neon repaid out of sinking fund in March last and the balance renewed at 51 per cent., as against 6 per cent, paid previously. - The payment of £375 per half-year for accident insurance has now been cancelled, as the fund has grown to such an extent as to be selfsupporting. MORNINGTON TRAMWAYS. Mornington tramway revenue shows a decrease of £296, but, on the other hand, the working expenses have been reduced by £241, and the interest charge is reduced by £59. ROLSYN TRAMWAYS. Roslyn tramways revenue has decreased by £156, but the expenditure is practically the same, there being a reduction of only £8 on the total outgoings. The result is a loss of £77 as compared with the profit of £7l for the first half of last year. MOTOR BUSES. The revenue of the motor buses managed to hold its own, there being an increase of £ll for the half-year. On the other hand, there have been substantial reductions under each heading of expenditure, the total reduction amounting to £1,040. This enabled the buses to show a profit for the halfyear of £291 as compared with a loss of £760 for the first half of last year. Amalgamating the figures of the four departments shows that there have been reductions in the total revenue amounting to £7,749, and that there have been reductions in the outgoings as follow: Reduction in working expenses £9,568 Reduction in interest 2,123 Reduction in depreciation and renewals 475 Total reductions £12,166 Tliis leaves a net improvement of £4,417. The report was received.

1931. 1932. £ £ £ Water 10,776 9,000 *1,776 Gas 7,684 6,358 *1,325 Electricity 20,273 23,906 t3,632 City trains (loss) 660 2,319 '(■2,980 Mornington ... 978 981 +3 Roslyn 71 77 *148 Buses (loss) ... 760 291 •11,051 38,362 42,780 14,417 finer ease.