CANTEEN BOARD REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 1947

Appendix to the Journals of the House of Representatives, 1948 Session I, H-19a

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1948 NEW ZEALAND

CANTEEN BOARD REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 1947

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

A report on the operations of the Canteen Board, together with principal accounts and Balance-sheet for the year ended 31st March, 1947, is hereunder submitted. The Board, which was established under the Defence Canteen Emergency Regulations 1939, consisted of the following members - Hon. F. Jones (Chairman). Commander (S) H. W. Sleeman, M.B.E. Lieutenant-Colonel C. J. S. Duff, D.S.O. Air-Commodore Sidney Wallingford, C.B.E. B. C. Ashwin, Esq. R. P. Eraser, Esq. Mr. A. Gr. Hedgman is Secretary of the Board. The activities of the Board have been continued along similar lines to those expressed in previous reports, but pertinent features of general interest are reiterated. The Board is the medium through which canteen facilities are provided for servicemen attached to the Navy, Army, and Air Force in New Zealand, Fiji, and Norfolk Island. Jay Force, as part of 8.C.0.F., is catered for by the Australian Army Canteen Services, but the Board assists the supply position within reasonable limits as the necessity arises. The policy to be followed in all matters relating to the canteen service is determined by the Board for impletion by the Secretary, who, with his staff, are members of the Public Service. The Board's aim has been to provide a reasonable range of popular commodities at prices closely related to those obtaining in chain stores, thus giving to the purchasers the immediate benefits of keen prices, which, though attractive, are such that no incentive exists for goods to be purchased for disposal out of camp. Wet canteens are operated where warranted, and these, being under strict supervision from both hygienic and disciplinary standpoints, have been highly satisfactory, reflecting credit on the operators and evoking praise from distinguished visitors. Cinemas are still being operated in main camps, but activities such as hairdressing, photography, &c., have been discontinued as the need declined. An organization has thus been built up which is regarded most favourably by servicemen of all ranks, past and present, and canteen facilities are now looked upon as integral part of those amenities which are calculated to improve the conditions of camp life. Activities are conducted on fully commercial lines and no privileges exist whereby the Board secures any advantages in the acquisition of supplies or the purchase-price thereof. All operating-costs, including freights, salaries, and wages, are paid by the Board, which is entirely self-supporting. As a consequence of the greatly reduced strengths in our Forces, the number of canteens and the volume of sales are proportionately less, and this trend will be still more evident in the coming year when strengths reach their intended peacetime levels.

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Canteen services are now being provided for those establishments where sufficient patronage exists to meet expenses or where remoteness or other considerations justify a service irrespective of the revenue to be derived. Except in the latter instance, where circumstances do not warrant full-scale canteen services, unit canteens carry on in their stead, these being able to draw supplies from the Board's bulk stores and so permit the men concerned to enjoy the same range of supplies and prices as those obtaining in fully operative canteens. Notwithstanding the greatly reduced sales and the small profit margins, it is gratifying to observe from the accounts that a net profit of £62,000 has resulted from the past year's operations, thereby increasing the accumulated fund to £918,000. The Board has carefully husbanded its resources, having particular regard to its obligations as expressed in the following extract from the regulations under which the Board is established : After such provision has been made as the Board thinks proper for liabilities, whether accrued or contingent, for reserves, and for future activities of the Board, the profits arising from the operations of the Board shall be disposed of in such manner as the Board, with the approval of the Minister, thinks fit, by way of grant to regimental funds or any other manner for the benefit of members past and present of the military Forces serving or enrolled for service during the present war (including the Naval, Army, and Air Forces of the Crown), and their dependants. Consequently, apart from the sum of approximately £289,000 allocated between the three Services from time to time in the past eight years, the remaining profits have been conserved to fulfil the requirements of the above regulation.

The figures appearing in the table which follows clearly indicate the trend of operations over the war and post-war periods, and the percentages for the present year compare favourably with those of previous years :

I desire to express appreciation of the loyal services of the staff of the Canteen Board. Without their co-operation the satisfactory results of the year could not have been achieved. F. Jones, Minister of Defence, Chairman.

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Year ended 31st March, (1) Sales. (2) Net Profit. (3) Gross Profit. (4) All Expenditure. (5) Net Profit. (6) Administration Expenses included in Expenses. 1940 .. 1941 .. 1942 .. 1943 .. 1944 .. 1945 .. 1946 .. 1947 .. Total net p Distributed Undistribut £ 85,626 338,623 574.739 1,742,871 2,284,962 1,810,897 1,151,944 393,732 £ 11,608 51,066 87,739 278,514 307,101 265,865 143,071 62,157 Per Cent. 26-88 29-08 26-67 21-99 18-69 20-57 18-60 23-25 Per Cent. 13-32 14-00 11-40 6-01 5-32 6-09 7-56 13-62 Per Cent. 13-56 15-08 15-27 15-98 13-37 14-68 12-42 15-79 Per Cent. 3-83 1-97 0-95 0-40 0-36 0-39 0-59 1-28 8,383,394 rofit ;ed 1,207,121 288,756 918,365

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CANTEEN BOARD Trading Account for the Year Ended 31st March, 1947 Dr. Per Cent. £ s. d. Cr. Per Cent. £ s. d. Stock, Ist April, 1946 .. .. 113,928 6 4 Sales .. ..100-00 393,732 6 8 Plus purchases .. .. 224,139 0 3 338,067 6 7 Less stock, 31st March, 1947 .. .. .. 35,879 12 3 Cost price of goods sold 76*75 302,187 14 4 Gross profit, transferred to Profit and Loss Account .. .. 23-25 91,544 12 4 £393,732 6 8 £393,732 6 8 Profit and Loss Account for the Year Ended 31st March, 1947 Dr. Per Cent. £ s. d. Cr. Per Cent. £ s. d. Canteens salaries and Gross profit, transferred wages .. .. 9-94 39,155 15 0 from Trading Account 23-25 91,544 12 4 Canteens freights, cart- Commission on shipage, postage, and ments to Japan .. 0-33 1,313 811 sundry expenses .. 1-94 7,657 12 9 Interest on investments 5-05 19,881 0 2 Gratuity payments on Profit on realization of account of overseas assets .. .. 0-78 3,073 510 staff .. .. 0-46 1,795 010 Administrative expenses 1-28 5,046 13 11 Net profit, transferred to Appropriation Account 15-79 62,157 4 9 29-41 £115,812 7 3 29-41 £115,812 7 3 Profit and Loss Appropriation Account for the Year Ended 31st March, 1947 Dr. £ s. d Cr. £ s. d. Distribution of profits to defence Balance brought forward .. 869,398 17 0 services .. .. .. 13,190 810 Net profit from Profit and Loss Balance forward to next year .. 918,365 12 11 Account .. .. .. 62,157 4 9 £931,556 1 9 £931,556 1 9

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Balance-sheet as at 31st March, 1947 Liabilities . £ s. d. Assets £ s. d. Sundry creditors .. .. 31,778 0 5 Plant, equipment, furniture, and Profit and Loss Appropriation fittings, less depreciation .. 493 10 0 Account .. .. .. 918,365 12 11 Stock on hand and in transit .. 35,879 12 3 Sundry debtors .. .. 39,019 711 Investments : New Zealand Government stock .. .. 708,868 1 7 Cash at bank, in hand, and in transit .. .. .. 161,322 12 9 Interest accrued .. .. 4,560 8 10 £950,143 13 4 £950,143 13 4 A. G. Hedgman, Secretary. I hereby certify that the Trading Account, Profit and Loss Account, Appropriation Account, and the Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby. —J. P. Rutherford, Controller and Auditor-General.

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