CANTEEN BOARD REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 1944

Appendix to the Journals of the House of Representatives, 1945 Session I, H-19a

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1945 NEW ZEALAND

CANTEEN BOARD REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 1944

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

A report on the operations of the Canteen Board, together with Trading and Profit and Loss Accounts and Balance-sheet is submitted hereunder. The following are at present members of the Board, which was established under the Defence Canteen Emergency Regulations 1939 :— Hon. F. Jones (Chairman). Air Commodore Sidney Wallingford, C.8.E., A.D.C. Lieutenant-Colonel C. J. S. Duff, D.S.O. Lieutenant-Commander (S) H. R. Sleeman, M.B.E. B. C. Ashwin, Esquire. R. P. Fraser, Esquire. Mr. J. H. Slater is Secretary of the Board. Air Commodore F. E. T. Hewlett, D.5.0., 0.8. E., and Colonel C. W. Salmon, D.C.M., have been replaced by the appointment of Air Commodore Wallingford and Lieutenant-Colonel C. J. S. Duff. The honorary service rendered by the officers who retired is acknowledged. 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 Board has continued to provide service for Navy, Army, and Air Force units in New Zealand and all areas of the Pacific. The male staff which provides the actual selling service in New Zealand is mainly comprised of returned soldiers or men ineligible for service overseas. Members of the W.A.A.C. and W.A.A.F. are employed in a number of situations and have demonstrated their suitability for this class of work. Full service conditions apply to personnel who serve in the Canteen Board's organization overseas. The Board's policy has been primarily to render service, but from the published accounts it will be noted that substantial profits have been earned. This position arises through it being necessary to fix selling-prices at a level which discourages personnel purchasing goods for resale outside the service. Notwithstanding this, canteen prices are in most cases equal to or lower than those charged in chain stores for similar articles. Official price-lists are prominently displayed for the information of canteen patrons. Close supervision of wet canteens ensures that a well-conducted service is rendered in the most hygienic surroundings. Modern projection and sound-equipment ensures that motion-picture programmes procured are screened to best advantage. The Board continues to enjoy the best of relations with the commercial community and Government Departments. This opportunity is taken to express thanks to the Canteen Staff and to those in the Service Departments who have, outside the scope of their official duties, rendered useful service to the Board. The Board records with regret the death of Lieutenant A. McLuekie on active sp.Tvir.R r>v«ra«aa

i no uuam iwuius vviuii icgict uii« ucauu ui i\. lyicijucKie on active service overseas. The sales figures shown below indicate the expansion of the Board's organization, while percentages to revenue are shown in tabular form for comparative purposes : —

(1) (2) (3) I (4) (5) (6) AdminisI trative Year ended 31st March, Gross Sales. Net Profit. Gross Profit.[All Expenses. Net Profit. Expenses included | in (4). £ £ Per Cent. Per Cent. Per Cent. Per Cent. 1940 .. .. .. 85,626 11,608 26-88 13-32 13-56 3-83 1941 .. ... .. 338,623 51,066 29-08 14-00 15-08 1-97 1942 574,739 87,739 26-67 11-40 15-27 0-95 1943 .. .. .. 1,742,871 278,514 21-99 6-01 15-98 0-40 1944 .. .. .. 2,284,962 307,101 18-69 5-32 13-37 0-36 5,026,821 736,028 Distributed to 31st March, 1944 .. 173,786 Undistributed at 31st March, 1944 .. 562,242

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The whole of the profit disclosed, however, accrues for the benefit of service personnel and the undistributed portion provides the Board with working capital which enables it to operate without assistance from Government or other sources. No portion of canteen profits is paid to Government or other funds. Profits distributed by the Board are allocated by the respective branches of the service for use as regimental, institute, or ship's funds, as the case may be. The Board recently allocated £6,2 50 for repatriated prisoners of war in Great Britain. Out of revenue the Board meets all expenses of operation, including staff salaries, cost of rations and quarters, sea freight, railages, &c., but excluding the rent of canteen buildings, which are provided by the Service concerned. A further reduction in the percentage of administrative expenses to revenue reflects further economy under this heading while maintaining the previous standard of general management. The Board's finances are in a sound position, and it is safe to say that cash to equal the Profit and Loss Appropriation balance could be obtained on a forced realization. F. Jones, Minister of Defence, Chairman.

CANTEEN BOARD Trading Account for Year ended 31st March, 1944 Dr. Per Cent. £ s. d. Or. Per Cent. £ s. d. Stock, Ist April, 1943 .. .. 160,502 18 2 Sales .. .. .. 100-00 2,284,962 8 8 Plus purchases .. .. .. 1,943,003 0 2 2,103,505 18 4 Less stock, 31st March, 1944 .. 245,741 22 Cost price of goods sold .. 81-31 1,857,764 16 2 Gross profit, transferred to Profit and Loss Account .. 18-69 427,197 12 6 100-00 £2,284,962 8 8 100-00 £2,284,962 8 8 Profit and Loss Account for Year ended 31st March, 1944 Dr. Per Cent. „ £ s. d. Or. Per Cent. £ s. d. Canteen salaries and wages .. 3-70 84,643 910 Gross profit .. .. 18-69 427,197 12 6 Canteen freights, cartage, postages, and sundry expenses 1-01 23,021 1 5 Depreciation of assets .. 0-25 5,802 6 7 Administration expenses .. 0-36 8,162 19 4 Net profit to Appropriation Account .. .. 13-37 305,567 15 4 £427,197 12 6 £427,197 12 6 Profit and Loss Appropriation Account for Year ended 31st March, 1944 Dr. £ s. d. Or. £ s. d. Distribution of profits to defence Services 76,354 15 11 Balance, brought forward .. .. 331,496 510 Balance .. .. .. •• 562,242 4 9 Profit and Loss Account .. .. 305,567 15 4 Refund of operating losses and part initial expenditure naval base civilian diningrooms 1,532 19 6 £638,597 0 8 £638,597 0 8 Balance-sheet as at 31st March, 1944 Liabilities £ s. d. Assets £ K - d. Sundry creditors .. .. .. 84,048 11 6 Plant and equipment, furniture and Reserve for power, lighting, and heating 1,692 17 7 fittings, less depreciation .. .. 1,038 10 0 Profit and Loss Appropriation Account .. 562,242 4 9 Stocks on hand and in transit .. .. 245,741 22 Sundry debtors .. .. .. 91,464 9 8 Investments: 3 per cent. Government stock, 1945 .. •. •• 15,000 0 0 Cash in bank, in hand, and in transit .. 294,739 12 0 £647,983 13 10 £647,983 13 10 J. H. Slater, Secretary. I hereby certify that the Trading, Profit and Loss, Appropriation Accounts and the Balance-sheet have been (inly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby. J. P. Rutherford, Deputy Controller and Auditor-General.

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