CITY TRADING PROFITS

Evening Star, Issue 25170, 9 May 1944, Page 2

CITY TRADING PROFITS

SURPLUS OF £80,444 NEW RESERVE FUNDS ESTABLISHED Satisfaction with the financial surpluses. ..obtained, in the municipal trading departments during' the last, year was freely expressed by members of the City Council at a meeting last night when the treasurer’s report was tabled. It showed that the departments had earned surpluses totalling £80.444 ,8s Id in. addition to creating reserves for deferred'maintenance totalling £19,00(1. The chairman of the Finance .Committee”, (Cr-AV. B. Taverner) said the amount contributed to the municipal • department represented a saving to tlie ratepayers ot (id in. the £1 on tlio rates. t The report stated that the departmerits had earned .'profits, except the cable cars Which.had shown a loss, as follows in the last two years --r-

The'reduction in the net profits for the past year was due. to the decision of the council to make special reserves | in each department on account of deferred maintenance. It was realised that .owing to the present shortage of labour and materials, it had been impossible to undertake many items ot repairs aud renewals that would normally be carried out, • and as these would become a charge against future years it had been decided to create reserves which would be available to meet that expenditure when it was incurred. The amounts charged against profit and loss for the past year oir account of reserves for deferred maintenance and renewals were as follows: Water department £2,500 Os Od; gas department £1,500 Os Od; electricity department £5,000 Os Od; transport department £IO,OOO 0s Od; a total of £39,000.0s Od. In the case of the water and transport departments the amounts had been dealt with as additional contributions to their renewal funds, while in the gas and electricity departments the amounts Iliad been transferred to a maintenance reserve account and had been invested. Out of the profits of £80,414 these departments had contributed £32,449 to the municipal department in relief of rates and had expended £16,968 on capital account, leaving £31,027 to improve their bank accounts or increase their floating assets. Several councillors expressed gratification with the position disclosed. Cr L. J. T. Ireland said he heartily approved of the creation of reserves from the excess profits for deferred maintenance. Some departments had shown almost fabulous profits which were not true profits. After the war there would be deferred maintenance to, face. The only question was whether the allocation was enough. The move was highly commendable and it was a pity it had not been adopted before.

1942-4.3. 1943-44 . . ■£. *s.' d. £ s. cl. Water 27,562 5 9 22,756 6 V Gas S,994 9 10 8,500 14 7 Jfileetricitv 32,868 17 3 40,727 1 2 City trains 19,41.1 Cable cars 7 9 7.810 10 10 (loss) 21 Motor 10 7. 331 3 7 buses 1,639 7 10, 318 11 9 90,454 17 10 80,444 8 1