YEAR'S LOSS OF £45,000.

New Zealand Herald, Volume LXV, Issue 19947, 16 May 1928, Page 13

YEAR'S LOSS OF £45,000.

PROFIT FROM TRAMWAYS. HEAVY DEFICIT ON BUSES. DEPARTMENT'S ACCOUNTS. A loss of £45,086 on the operation of the Auckland municipal tramways is shown by the accounts for the year ended March 31, which were presented to the Transport Commission yesterday. With this addition, there is an accumulated deficiency in the tramways account of £83,360. The separate accounts show a profit on the tramways alone of £18,943, as against about £9OOO in the previous year, and a loss on buses of £64,029, as against a loss of £48,000 in 1926-27. Following is a summary of the combined accounts, in comparison with those for the two preceding years 1925-26. 1926-27. 1927-28. Revenue . . £593,092 £637,782 £710,031 Expenses . . 373,287 416,441 443,618 Maintenance . . 106.133 103,266 140,355 Gross profits . £113.672' £118,075 £126,058 Interest . . . 78,970 87.9C5 93,980 Sinking fund . 34,905 35,905 37,735 Accident reserve 2,000 5,455 6,008 Buses depreciation 9.823 11,402 19,807 Realisation a/c. 14.766. 14,766 7,383 Other charges . 1,500 3,322 6,231 £141.964 £158.815 £171.144 Loss . . . . £28.292 £40,740 £45.086 The item "realisation account" refers to the provision for writing off the loss on the sale of the Hobson Street powerstation assets to the Auckland Power Board. "Other charges" comprise discount on loans and expenses, £1800; written off track renewals suspense, £2871, and written off motor-omnibus suspense, £1559. The Tramway Account. Comparison of the separate tramway account with a similar statement issued last year shows that the gross revenue was £616,350, an increase of £39,419. Power purchased cost £98,954, a reduction of £582; traffic expenses, £232.950, were £5622 higher; repairs and maintenance cost £101,862, an increase of £20,000, which was almost entirely in respect of expenditure on permanent way; while administration and general expenses were £22,006, an increase of £2980. The gross receipts were equivalent to 24.47 d per car mile (23.23 d in 1926-27), and the expenses 18.10 d (17.29 d). Against the gross profit of £160,577, capital and other charges amounted to £141,634, leaving a profit of £18,943. With this addition, the balance to the credit of the tramways is increased to £62,145. Bus Receipts Below Expenses. Revenue credited to buses amounted to £93,680, as against £60,850 in 1926-27. Traffic expenses were £83,661, an increase of £19,938, including increases of aboat £13,000 in wages, over £3OOO in petrol, and a new item of £4844 for licences. Repairs and maintenance cost £38,493, an increase of £17,085, and administration £6045, an increase of £2lB.

The revenue is calculated as equivalent to 11.15 d per bus mile (10.85 d in the previous year), and the expenses at 15.26 d (16.40 d). Working expenses exceeded receipts by £34,518—in the previous year the loss on operation was £31,107 —and capital including depreciation, amounted to £29.510, making the total loss £64,029. With this addition, there is a debit balance in the bus account of £145,504. Presenting the accounts to the commission, the general manager, Mr. A. E. Ford, said the year had been a difficult one in respect of bus services, owing to the many changes that had been made. At times 80 buses were on the road, and for a long period it had been necessary to run 77 or so.' Now the number was reduced to 58, and it was expected that the ensuing year would show a very different position.