SOUND FINANCES

Gisborne Herald, Volume LXVI, Issue 20017, 16 August 1939, Page 5

SOUND FINANCES

PASSENGER TRANSPORT GROWTH OF INDUSTRY ROAD FREIGHT SERVICES HEALTHY POSITION (Parliamentary Reporter.) WELLINGTON, this day. Financially the road transport passenger industry is in a sound state, according to the annual report of the Transport Department presented to the House of Representatives yesterday.

It shows that a total investment of over £1,000,000 of which vehicles comprise just one half. Additional capital which was utilised during the year, was obtained partly by outside borrowing, which increased outside the liabilities to a total of £255,000, but the greater part of the expansion was done from the resources of the industry itself. The proportion of reserves and capital to the total liabilities are shown at 76 per cent, compared with 71 per cent in the previous year. Increase of Passengers On the operative side, road transport is growing substantially, 23,300,000 passengers (being carried in 1937-38, representing an increase of 8.4 per cent. The revenue totalled £1,147,212. The profits were £117,346. an increase of 6.9' per cent.

What the report terms a healthy position is shown in the balance sheets of the goods transport services which returned, on an average, 13£ per cent on the capital of £3,652,000. Of the revenue, the North Island accounted for £2,533,000. against £1,050,000 in the South Island.

Further steps were taken during the year in connection with the purchase by the State of 54 long-distance mo'tor-freigiht services competing with the railways.

It is anticipated, adds the report, (that in due course the utmost coordination possible between rail and road services over routes affected will be brought about, with beneficial results on tire Dominion’s burden of national transport costs.