BLUFF-MELBOURNE SERVICE

Hokitika Guardian, 3 July 1930, Page 6

BLUFF-MELBOURNE SERVICE

LOSS ON RUNNING

DEFICIT OF NEARLY £1.0,000

WELLINGTON, July 1

The vuMning of the subsidised steamer service between ‘South Island ports and .Melbourne lias not so far been a profitable venture, according to information made available, today. From December 11 last, when the Maheno started running, until March 31, the close of the Union Company’s half-year, the ship’s total earnings, included the subsidy received from the Government were £39,278 as against disbursements of £43,571, leaving a deficit of £4283 exclusive of any provision for periodical overhauls, depreciation or interest on capital value. From April ]. to May 20, the final date of the last trip, the reported earnings were £14,789 and the corresponding disbursements were £20.387, leaving a deficit of £5598. Thus the total excess of expenditure over earnings was £9891 for 161 days’ running. The expenditure on periodical overhauls averages between £7OOO and £BOOO per annum, no provision for which has been made in. the above -figures. In view of the foregoing facts those in close touch with those matters say it is highly improbable that serious consideration will in the meantime he given the requests made in the South Island for any extension of the servicer.