TRUST PROFITS

Otago Daily Times, Issue 26199, 9 July 1946, Page 4

TRUST PROFITS

DISTRIBUTION OF HALF PROVINCE TO BENEFIT DECISION CONTESTED AS PREMATURE (P.A.) INVERCARGILL, July 8. Up to half its annual net profits are to be distributed by the Invercargill Licensing Trust to suitable organisations. This decision was made after a long discussion at a meeting of the trust to-day. All the members agreed that the province should be given the immediate benefit of the trust’s profits, but the financial basis on which the trust is being operated was the subject of considerable criticism. The following motion to allocate the profits was passed: “ That the trust dispense up to one-half of the annual net profits to such suitable organisations as the trust thinks fit within the scope of Chapter 29 of the Invercargill Licensing Trust Act.” The meeting also rescinded an earlier motion dealing with the distribution of profits and unathorised expenditure. It was pointed out by the chairman. Mr Hugh Ritchie, after the motion had been carried, that only donations to provincial bodies could be considered. It was never the intention of the trust to meet appeals by individual concerns. He had in mind such projects as the art gallery and playing areas. “We already have an overdraft of £236,000, and it is increasing,” said Mr T. F. Doyle. M.L.C. “In these circumstances I am opposed to giving away the profits. If the overdraft were showing a downward trend it would be different.” Objection to the system of financing the trust was raised by Mr W. H. Boyes. He said he thought the allocation of profits was a good plan, but the idea of continuing with an overdraft’ rankled with him. Would it not be possible for debentures to be raised? " I think we should continue with the overdraft until our next substantial hotel is built,” said Mr Ritchie. “ We should consider a debenture issue only when we are in full working operation and able to set out compltely our assets and liabilities. Wc are not at that stage yet.” The motion was carried on a show of hands. Mr Boyes and Mr Doyle voting against the proposal. It was decided that the allocation of profits should be discussed in a fortnight. '