RESERVES & RENEWALS

Dominion, Volume 10, Issue 3179, 1 September 1917, Page 9

RESERVES & RENEWALS

CITY TRADING DEPARTMENTS WELLINGTON BILL BEFORE PARLIAMENT The Wellington City Trading Dcpaitmonts Reserve and Renewal Funds Full, introduced in tho Houso of Representatives by Mr. A. R. "Wright (Wellington Suburbs), has been amended materially by the Local Bills Committee. Tho Bill, as amended, empowers tho Wellington City Council to establish reserve and- renewal funds in coimaotion with certain of its trading, departments, to appoint commissioners in connection with theso funds, and to establish accident funds in connection with the tiadin" departments. Tho committee lias excluded the abattoir from the operation of tho Bill, which now concerns the tramway and power-supply undertaking and the electric light and power-supply undertaking. The tramways nadon March 31, 1917, a renewal fund of &52,0i8 8s 6d„ and the Bill authorises tho touncii to establish reserve and accident 'funds in connection with tho undertakings- the sum mentioned to remain at the credit of the tramway renewal fund. The annual appropriation for renewals is to be 14 per cent, of the value of the depreciable assets. This charge is to be levied after making provision for interest and sinking fund of loans in conneetio nwith tho undertaking, and for neetion with tho undertaking, and for to be controlled by three commissioners who will hand it as required tc the council when the replacement of plant or material has become necessary, lhe commissioners may take tho report of an engineer on tho expenditure proposed by the council, and may decline to pay without an order from the Supreme A provision that the moneys held by tho commissioners may be used to make up any insufficiency ol sinking fund relative to the loan at maturity has been struck out of the Bill. The council is also empowered to maite a charge of li per cent, on tho OepreciabU vaTao of the undertakings, to provide reserve funds for the tramways and electrical undertakings. The reserve funds may bo used to supplement the renewal funds. The council may establish accident funds in connection with the undertaking, but the sums set aside for <-las purpose shall not in any year exceed tho amount that at current rates would havo been - payable for insurance of workers and insurance against public risk The tramway accident fund is not to exceed contributions ceasing