STATE ENTERPRISES

Waikato Times, Volume 102, Issue 17169, 3 August 1927, Page 5

STATE ENTERPRISES

DEPARTMENTAL PROFITS

A SUCCESSFUL YEAR. (Special to the Times.) WELLINGTON, Tuesday. In his review of the operations of the several commercial enterprises run b> the Stale the lion. W. Downie Stewart, Minister of Finance, in his Hu dye I, address last night, claimed that they had had a successful year. The steady progress of the Government Life Insurance Department was well maintained, and the business now comprises GTi,39G policies, assuring £20,2J S, io■ j, including bonuses. The triennial investigation as at December 3J last resulted in a surplus which allowed reversionary bonuses to he. allotted to the extent of £004.400, being the Jorgesl division of profits in the history of the Department.

The income of the State Fire Insurance Office, £233,5-1"), was a record, and although heavier losses wore incurred, and the rate of bonus rebate was increased from 10 per cent, to 124 per cent., the year’s operations resulted in a profit of £51,237. ’flic Accident Department showed excellent increases in the premiums and interest received. The. surplus was £11,332, as against £8390 for the previous year..The value of estates and funds under the administration of the Public Trust Office cu .March 31 last totalled £41,0-13,523, a net increase of £3,03-1,043. In the fast ten years the net increase has been £20,000,000. The net profits were £32,050; and following upon (lie increase in the rates of interest granted last year on money invested in the Common Fund, and the reductions in commission and charges, this result is very satisfactory. The operations of the Native Trust Office arc on a much smaller scale, and activities were somewhat restricted owing to the dearth of funds, but nevertheless a small profit was shown. The output of coal from the State coal mines for 1920 was 179,1 47 tons, an increase of 47,982 tons. The financial accounts disclose a profit. The commercial departments are not run with the idea of amassing large profits, hut, with the exception of the State coalmines and the Native Trust Office, whose profits must he used to build up reserves, they arc all required to pay income tax. In addition to the departments mentioned there are also Hie big State services of the Post Office and the Railways. The Post Office closed the year with a small profit, but the Railway Department was not quite so successful, a relatively small loss being shown on the year’s workings.