HIGHER COSTS

Hawke's Bay Herald-Tribune, Issue 18, 5 February 1937, Page 5

HIGHER COSTS

Napier Gas Co. Cbairman's Comment INCOME-TAX AND WAGES Increased expenditure on wages and salaries, on coal brpught, and on in-come-tax, owing to recent legislation was commented upon in the address oi the chairman, Mr G. S. V. Wenley, to the annual raeeting of the Napier Gas Company, Ltd., held in Napier this morning. During the past year, he said, the company had been granted, under a private Bill, extended powers enabling it to connect the Napier and Hastings works. "Our gas and coke saies show an increase cc £1813, and the coal used an increas© of £586," commenced Mr Wenley. ^Renta paid to us are more, and will further increase, as our new buildings were available for part oi last year only. 'dnterest 6hows a credit instead of a Jebit by reason of our Treasup" loan being free of interest for tbe full year and owing to the extended use made of appliances bouaht on time payment. Jt is very pleasing that tbo loan, which runa for 20 years, now bears no interest, but the principal has to be repaid on a table basis during that period, and the advantage will gradually decrease as the annual repayments of principal. become due "Wages and salaries are more by £1069 owing to the Government legislation which came into force on September 1 and to the . restorations of the 5 per cent. cut. As expected, w6 have been abl© to reduce maintenance expenses, but increased income-tax falls very heavily upon ua, The new rate means a provision of £743 more than we reserved in our 1935 balance-sheet, and fQr 1936 an increased allocation has to be made to meet the charge of 7/6 in the pound "As from January 1 we have, with the approval of the Department of Trade, made a elight increase in the net price pf gas which, in the aggregate, will help us to meet the new conditions. Plant and buildings are bigh. er by £9743, being capital invested in our new shop and office additions in Napier and Hastings plus permament additions to plants and mains. less depreciation." Mr 'Wenley ooncluded by expressing thanks for the assistance of the Hon. W. E. Barnard, M.P., in pilotingi tbe private Bill through the eommittee stages in tbe House of Representatives, and for the co-operation of staff anj workers during a somewhat difficult year. The retirjng directors, Messrs F. Thorp and J. E. Gleadow, were reelected, as were the auditors, Mr C. Douglas Wilson, F.I.A., N.Z., and Mr H. Bull, F,P.A. N.Z. The statement of the company's workings for the year ended December 81, 1936, showed a credit balance in tbe profit and ioss account of £9,799 18/6.