CANTEEN BOARD REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 1943

Appendix to the Journals of the House of Representatives, 1944 Session I, H-19a

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1944 NEW ZEALAND

CANTEEN BOARD REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 1943

Laid on the Table of both Houses of the General Assembly by Leave

A report on the activities of the Canteen Board, together with Trading and Profit Accounts and Balance-sheet, is submitted horeunder. The following are at present members of the Canteen Board, which was established under the Defence Canteen Emergency Eegulations ] 939 : — Hon. F. Jones (Chairman). Air Commodore F. E. T. Hewlett, D.8.O., O.B.E. Colonel C. W. Salmon, D.C.M. Paymaster Lieutenant-Commander H. R. Sleeman, M.B.E. B. C. Ashwin, Esquire. R. P. Fraser, Esquire. Mr. J. H. Slater is Secretary of the Board. Canteen services for the New Zealand Armed Forces in this country and all areas of the Pacific are controlled by the Board. Small units which have not been brought within the scope of the Board's retail organization have the facility of purchasing from bulk stores operated by the Board. Thus all members are assured of having access to available lines. All calls for service have been met, although this has in many cases necessitated unprecedented organization to meet varying needs. The Secretary of the Canteen Board is responsible for giving effect to the Board's policy, including staffing, purchasing, supply, and accounting. These functions are performed by a section of the New Zealand Government Public Service of which the Secretary is the Officer in Charge. The low percentage of administrative expenses to revenue (0-40) assures those concerned that an efficient organization is provided at a cost which will bear any investigation. It is the policy of the Board to stock only those lines for which there is a demand, and articles are not stocked in the hope of creating a demand or on a sale or return basis. Arrangements are immediately made to procure lines which are demanded but which are not in stock. Supply arrangements are made through the Ministry of Supply or direct with manufacturers or New Zealand distributors at wholesale prices. Chain-store selling-prices apply generally, and prices fixed for certain proprietary lines are observed. Special low prices are arranged for a number of essential and popular lines. Official price-lists are published from time to time for the information of canteen patrons. Contact with the Government supply authorities ensures that a proper balance is preserved between civilian and Service requirements outside the scope of the equipment and ration issues. The male staff, which provides the actual selling service in New Zealand, is comprised of returned soldiers or men ineligible for service overseas, while members of the W.A.A.C. and W.A.A.F. are employed wherever practicable. Apart from the rent of buildings, which are provided by the Services concerned, out of revenue the Board meets all expenses of operation, including staff salaries, cost of rations and quarters, sea freight, railages, &c. The Board provides motion-picture services at sixteen locations, where modern projection and sound equipment ensures that the programmes procured are screened to best advantage. The conduct of servicemen in wet canteens is closely watched, and effective picketing ensures that there is no abuse of this privilege. A high, standard of cleanliness, combined with regular inspection, ensures that a most hygienic and well-conducted service is rendered. The Profit and Loss Appropriation Balance which appears below is arrived at as under :—

Year ended Net Profit. Distributed. £ s. d. £ s. d. 31st March, 1940 .. .. .. 11,607 15 5 2,330 0 0 31st March, 1941 .. .. .. 51,060 8 5 16,838 14 1 31st March, 1942 .. .. .. 87,739 5L0 28,50112 9 31st March, 1943 .. .. .. 278,514 10 5 49,761 7 5 428,928 0 1 97,431 14 3 Undistributed, 31st March, 1943 ■■ 331,496 5 10 ..

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The Canteen Board's business is conducted on commercial lines, which permit of the profits indicated being earned. This profit accrues for the benefit of Service personnel, and the undistributed portion provides the Board with working capital, thus enabling it to operate without assistance from Government or other sources. The Board's low-selling-price policy confers many direct benefits in addition to the distribution of profit referred to above. No portion of canteen profit is paid to Government or other funds. It is claimed that the Canteen Board's organization has provided a high standard of service to the Armed Forces in all areas in which it has been called upon to operate, and conventional necessities have been made available at reasonable prices. The Board has established and enjoys the best of relations with the commercial community. This opportunity is taken to express appreciation to those within the Service Departments who, outside the scope of official requirements, have rendered willing and useful service to this organization. F. Jones, Minister of Defence, Chairman.

CANTEEN BOARD Trading Account foe the Year ended 31st March, 1943 Vr Per Cent. £ 8. d. Or. Per Cent. £ s. d. Stock, Ist April, 1942 .. .. 48,733 410 Gross sales .. ..100 1,742,87112 10 Phis purchases .. .. .. 1,471,383 1 2 1,520,116 6 0 Less stock, 31st March, 1943 .. 160,502 18 2 Cost price of goods sold .. 78-01 1,359,613 7 10 Gross profit, transferred to Profit and Loss Account .. 21-99 383,258 5 0 100-00 £1,742,871 12 10 100 £1,742,871 12 10 Profit and Loss Account for the Year ended 31st March, 1943 Dr. Per Cent. £ s. d. Or. Per Cent. £ s. d. Canteen salaries and wages .. 3-98 69,510 19 3 Gross profit, transferred from Canteen freights, cartage, postage, Trading Account .. .. 21-99 383,258 5 0 and sundry expenses.. .. 1-10 19,079 811 Depreciation of assets .. .. 0-53 9,185 13 2 Administrative expenses .. 0-40 6,967 13 3 Net profit, to Appropriation Account .. .. 15-98 278,514 10 5 2L99 £383,258 5 0 21-99 £383,258 5 0 Profit and Loss Aitkofbiation Account for the Year ended 31st March, 1943 Dr. £ s. (1. (Jr. £ S. d. Distribution of profits to defence Services 49,761 7 5 Balance, brought forward .. .. 102,743 210 Balance .. .. .. ■• 331,491) 5 10 Net profit, from Profit and Loss Account 278,514 10 5 £381,257 13 3 £381,257 13 3 Balance-sheet as at 31st March, 1943 Liabilities £ s. d. Assets £ s. d. Sundry creditors .. .. .. 136,329 4 5 Plant, equipment, furniture, and fittings, Reserve for power, lighting, and heating .. 1,692 17 7 less depreciation .. .. .. 2,034 18 5 Profit and Loss Appropriation Account .. 331,496 510 Stocks on hand and in transit .. 160,502 18 2 Sundry debtors .. .. .. 117,287 19 0 Investments : 3 per cent. New Zealand Government stock, 1945 .. .. 15,000 0 0 Cash at bank, in hand, and in transit .. 174,692 12 3 £469,518 7 10 £469,518 7 10 J. H. Slater, Secretary, Canteen Board. I hereby certify that the Trading, Profit and Loss, and Appropriation Accounts and the Balancesheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.—Cyril G. Collins, Controller and AuditorGeneral.

Approximate Cost of Paper.—Vreparation, not given ; printing (048 copies), £4 10s.

By Authority: E. V. PAUL, Government Printer, Wellington. —1944.

Price 3d. ]

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