TRAMWAY FINANCE

New Zealand Herald, Volume LXXII, Issue 22005, 11 January 1935, Page 11

TRAMWAY FINANCE

BURDEN OF EXCHANGE INCREASE SINGE 1928 REVENUE AND EXPENDITURE The manner in which exchange on overeas interest payments has become a major item in the expenditure of the Auckland Transport Board was further commented on yesterday by the chairman, Mr. J. A. C. Allum. A statement by Mr. Allum was published in the Herald yesterday, refer ring to the inclusion of exchange in management and office expenses, concerning which statistical information hais been presented in the newly-issued New Zealand Official Year Book.

In his previous statement Mr. Allum pointed out that the Auckland Transport Board had a very much larger total of overseas debt than any other transport authority in the Dominion. Yesterday he quoted figures to show that exchange on interest payments on this debt had increased from £173 in 1928 to £20,599 in 1934. The estimated cost of exchange for the year ending March 31, 1935, he said, was £20,463. This comprised exchange and bank charges on the remitting of interest only and the total would probably remain in the vicinity of that figure for some time. Mr. Allum said the board's revenue had fallen from £710,138 in 1928 to £518,698 in 1934, a decrease of 26.9 per cent. At the same time expendi % ture had been reduced from £751,821 in 1928 to £534,405 in 1934, a decrease of 28.9 per cent. Interest and exchange were both included in expenditure. The former had risen from £93,980 to £114,664 during the period mentioned and the latter from £l7s to £20,599. The amount estimated to be paid in exchange during the current financial year, £20,463, was greater than the estimated excess of expenditure over revenue—£ll,634. The following figures quoted by Mr. Allum show how revenue, exchange costs and expenditure have varied since 1928, the totals for 1935 being estimates:— - Expendi--1 Eevenue Exchange ture 1928 .. £710,138 £173 £751.821 1929 .. 716.151 648 714,734 1930 .. 673.985 / 1,159 665,097 1931 .. 657,688 4,110 656.772 1932 .. 578,752 7,683 597,070 1933 .. 534.263 8.324 545,193 1934 .. 518,698 20.599 534,405 1935 .. 520,200 20,463 531,834