TRADING DEPARTMENTS

Evening Star, Issue 23725, 5 November 1940, Page 8

TRADING DEPARTMENTS

COUNCIL REVIEWS HALF-YEAR SLIGHT DECREASE IN PROFIT Net profit of £57,284, compared with £64,034 for the same period of last year, was earned by the trading departments of the City Corporation for the six months ended September 30, according to the report of the city treasurer. General satisfaction was expressed by councillors, a heavier decrease than the £6,750 shown evidently having been anticipated. General satisfaction with the operations of the City Corporation trading departments for the six months ended September 30 was expressed by councillors. The individual figures were as follows (shillings and pence omitted) :

‘Denotes loss. tDenotes increase. Introducing the city treasurer’s report, Cr Taverner commented on the fact that the bus services had not yet reached that financial stability which was desirable. “ There is not quite a balance,” he said. “In fact, there is a small loss. The bus services are not making that return which we would like to see.” The tramway system, although showing an increase in profit over the period last year of £6,421, had come to the point at which any profit for the future could not reasonably be expected. There was a slight but gratifying decrease in the cost of management, but the probability was that the profit would be more than absorbed during the second half of the year. Some time also the committee must face the question of replacement. The water department was in a satisfactory position, despite the remission of the Id rate. The circumstances of the gas department were different because of increased costs, mainly of imported coal. A decrease in the electricity department’s profit amounting to £13,111 was due to an increase in working expenses of £7,643, and a higher charge made by the Government. However, the profit of £33,000 was satisfactory, and the service rendered to the public very effective.

Referring to the position of the Electricity Committee, of which he is chairman, Cr D. C. Cameron, who seconded the adoption of the report, pointed out that one of the department’s difficulties was that it now had to pay just twice as much for its oil fuel as it paid 12 months ago, “ And,” he added, “we are glad to get it and happy to pay the price.” It had to be remembered," too, that the department had given a considerable rebate in charges. Still, it was showing a satisfactory profit, and it was being efficiently and economically controlled. He congratulated Cr Gibson on his chairmanship of the Transport Committee.

1939. 1940. Decrease. £ £ £ Water 10,048 10,672 t624 Gas 7,827 6,097 1,729 Electric 46,483 33,371 13,111 City transport 306 6,728 t6,421 Motor buses *759 *1,249 490 Cable section 127 1,664 tl,536 £64,034 £57,284 £6,750