MUNICIPAL PROFITS.

New Zealand Herald, Volume LXV, Issue 19927, 21 April 1928, Page 12

MUNICIPAL PROFITS.

TRAMWAYS AND LIGHTING. RESULTS IN WELLINGTON. WINDFALL FROM MANGAHAQ, Increased not profits from the operations of both tramways and electricity departments are shown in the accounts of the Wellington City Council published this week. The net surplus in the tramways department, after payment of all capital charges and meeting the loss on bus services, was £10,475, as against £6518 in 1926-27, The electricity department realised a net surplus of £50,960, as against £23,941 in the previous year. A summary of the tramway accounts, telegraphed by the Press Association, was published yesterday. The full statement shows that after meeting all capital charges and providing £39,556 for renewal and reserve funds, the tramways alone produced a net profit of £24,171, as against £16,338 in the previous year. The working profit was equivalent to 6.76 d per tram mile, an increase of 0.55 d. The increase of 1,449,325 passengers, equivalent to 3.3 per cent., was reflected in an increase of £17,708 in gross revenue—slightly more than 4 per cent. Traffic returns indicate that about 1,000,000 of the additional passengers travelled long distances on the threepenny universal fare, this being regarded as evidence that the concession has induced people to move into the suburbs. The withdrawal of the service to Lyall Bay caused a reduction in traffic revenue from bus services. The total revenue was £20,396 and the operating expenses £34,092, so that there was a loss of £13,696, as against £9820 in the previous year, without counting capital charges, which were apparently debited against the separate tramways account. While the receipts wore just over 13d per bus mile, the operating expenses were 16.78 d arid, including depreciation, 21.75 d. The combined result for the transport department was a net profit of £10,475. The electricity department has had an abnormal year, for, owing to depletion of the dams at Mangahao during the dry summer, the municipal department has supplied a great amount of power to the Government upon mutually acceptable terms, which have worked out to big figures. From January 3 until April 7 the city plants were running continuously and there were a number of other fairly long runs to assist Mangahao in meeting demands. A heavy rain on April 7 filled the third dam and eased the position, so that the city plants were shut down. The department's accounts show that revenue increased by £53,158 to £339,979, while purchase of electrical energy from the Government cost only £5229, as against £36,204 in the previous year. The net profit increased from £23,941 to £50,960 and as this expansion was chiefly due to the abnormal profits on the business with the Government, the City Council has deciUed to transfer £20,000 to its general account, thus avoiding ail increase in the rates.