TRAM DEFICIT.

Star (Christchurch), Volume LXVI, Issue 20296, 4 May 1934, Page 4

TRAM DEFICIT.

Members Warned of Their Liability. j FINANCIAL STATEMENT. If they wilfully budgeted for a deficit, members of the Christchurch Tramway Board, according to the ruling of the Audit Office, would be personally liable for the deficiency, explained Mr E. J. Howard, M.P., at a special meeting of the board held last evening to consider the rating question. Mr Howard said that the General Manager (Mr Frank Thompson) had communicated with the Audit Office and had submitted a series of questions, to which the auditors had replied showing clearly that unless they carried out the rating suggested, every member of the board was in danger of having to make up any deficiency in the coming year’s finance. If they wilfully budgeted for a deficiency for the year ending March 31, 1935, then the board members would be liable under certain penal clauses of the Acts of Parliament. The reply from the Audit Office showed that they had no option in the matter. If they foresaw a deficiency for 1935 then every member was personally liable if they wilfully budgeted for a deficiency, having levied a rate to meet the liabilities of the previous year’s work, work that was not theirs.

Gap to be Bridged. An estimate of expenditure for the .period frcm April 1, 1934, to March 31, 1935, was approvtd at the meeting, and it was resolved that the information be publicly notified. Including the deficit of £19,978 as at March 31 last the estimated expenditure was shown to be £216,875. Estimated revenue for the year was £179,303, and after allowing for £8505 as part of special rate fcr interest and sinking fund the additional sum required was £29,067. The capital valuation of the Christchurch Tramway District was stated to be £38,160,564, on which a general rate of 3-16 d in the £ would produce the £29.067, after the deduction of collection expenses. The items of expenditure were submitted to the board as follows:

Traffic expenses, including wages of traffic staff, cleaning and oiling cars, uniforms, railway signalmen’s wages and contract services 67,761 Repairs and maintenance of permanent way and rolling stock 27,346 Power expenses 17,369 General expenses, including rates and taxes, printing and stationery, advertising, accident compensation, fire and other insurances, heavy traffic fees for buses, road fees fcr trolley buses, employees' superannuation, office salaries 16,905 Interest 40,220 Sinking fund 9,129 Renewals fund 18,167 Including the deficit of £19,978 the total was £216.875.