TRANSPORT LOSS

New Zealand Herald, Volume LXX, Issue 21505, 31 May 1933, Page 13

TRANSPORT LOSS

THE AUCKLAND BOARD DEFICIENCY OF £10,931 REVENUE SHOWS DECLINE REDUCTION IN FIXED CHARGES A loss of £10,931 was made by tho 'Auckland Transport Board during tho vear ended March 31. In tho previous year there was a loss of £15,318, and in 1930-31 there was a profit of £2448. The annual statement of accounts shows that 'the total revenue of the board during tho year was £534,263, a reduction of £44,490 compared with tho previous year. At tho same timo expenditure was reduced by £51,877 to a total of £515,193. In a statement presented to the adjourned annual meeting of tho board yesterday, the chairman. Mr. J. A. C. Alluni, said the year's accounts included £2183 accrued interest on tho converted loan of £IIO,OOO, tho conversion of which set free £7394. Future instalments of the conversion loan were to be paid from tho released sinking fund of £7394, and it was his opinion that the accrued interest of £2IS3 might fairly be regarded as an offset against the sum released, making the deficit for the year £B74S.

Smaller Interest Bill Relief to tho extent of £2593 was obtained during the year by way of interest reduction under recent legislation. At the same time, £18,750 less was paid into the sinking fund as the result of legislation authorising a reduction of the sinking fund from 2J to 1 per cent on the loan of £1,250,000 raised by the City Council to acquire the tramway undertaking, since taken over by the board. A total of £113,470 was actually paid in interest on tho board's debonture issues, and another £25,417 was handed over to the sinking fund commissioners. The interest earned during the year was £31,396, bringing the sinking fund to a total of £700,309. Although the receipts showed a substantial reduction on those for the previous year, the decline had not been eo marked during the closing months of the year, stated the chairman, and there was evidence that they had steadied on the lower basis. The continued unsatisfactory employment situation was reflected in the board's revenue and no material improvement could be expected in the position until the employment situation improved. Track Renewal The gross profit for tho year was £138,445, against which the following payments and appropriations were made: —Interest on loans, £113,470; sinking fund; £25,416; depreciation on omnibuses, £2582; transfer to accident fund reserve, £2303; annual provision for the writing off of track renewals, £2872; motor omnibuses, £1559; alterations to offices, £600; and preliminary expenses a-t the board's formation, £574; total, £119,376. The amount of £2871 allocated on account of the track renewals suspense account was tho seventh appropriation of that nature, and referred to the expenditure under the loan of £IOO,OOO raised by the City Council in 1926 to assist the employment situation. Sinking fund payments were made to redeem the loan at maturity. The sum of £1559 appropriated on account of the motor omnibus goodwill suspense account made the total appropriation to date £10,677. The provision made during, the year for the depreciation of omnibuses was the last necessary for the purpose. The board, continued the chairman, incurred expenditure amounting to £8315 in remitting interest to London, and was now advised by its solicitors that insofar as the original loan of £1,250,000 was concerned, it may only pay in New Zealand currency, whether the interest was demanded in London or in New Zealand. The board, he added, must act in accordance with that advice.

Wages and salaries paid during the year totalled £'269,471. The cost of electricity was £67,844, the price having been reduced to .896 d per unit. Rates totalling £7333 were paid to the various local bodies in the board's district. The accounts were adopted.

ESTIMATES FOR THE YEAR another loss expected EFFECT GF LOWER REVENUE A proposal that the Transport Board should budget fo>- a deficit of £9582 ia the forthcoming year was made at the annual, meeting yesterday by the manager, .Mr. A. E. Ford, who presented a schedule of .estimates anticipating a further reduction of £10,277 in receipts. He estimated revenue would total £526,750, as against an actual revenue during the past year of £537,027. Five years ago the receipts were higher by £189,000. Mr. Ford drew attention to the fact that receipts/over the last few weeks appeared to be stabilising themselves, leading him to believe that any change would bo in the direction of increased receipts, having an improved effect so far as the debit balance was concerned. I 1 urther reductions m expenditure are provided to allofv for the expected further fall in revenue. Some of the items are as follows, last year's payments being shown in parentheses:— Power, £65,558 (£67,814); running r -osts, £211,728 (£211,641); distribution of power, £85.30 (£8925); repairs ®nd maintenance of trains and buses, £44,140 (£45',371); permanent way, £20,100 (£19,540); maintenance of buildings, £750 (£782); car advertisWg expenses, £I7OO (£1648); administration, £12,287 (£13,359); * bank charges, £BllO (£8321); pension fund. £2878 (£3001); rates to local bodies, £7218 (£7338); interest on overdraft ?nd short call loans, £IOOO (£5485); interest on loans, £114,404 (£113,470): sinking fund, £19,958 (£25,416); accident provision, £1261 (£2303); track renewals suspense account, £2871 <£2871); special track reconstruction suspense account. No. 5 scheme, £6274 .<£4205); bus suspense account, £1559 (£1559). The total expenditure is estimated at £536,332.