DEVONPORT STEAM FERRY

Otago Daily Times, Issue 26641, 11 December 1947, Page 9

DEVONPORT STEAM FERRY

DIFFICULT TRADING PERIOD HEAVILY INCREASED COSTS Dally Times Special Service AUCKLAND, Dec. 10. As a result of further' increased costs the Devonport Steam Ferry Company, Ltd., has advised shareholders that the directors of the company would not be justified in paying an interim dividend until decisions have been given on appeals made for increased fares. It is stated that since August 17, when the company increased its fares in accordance with the findings of a Royal Commission, there have been further heavy wages costs and coal charges in operating the ferry service and increased wages and maintenance charges in its subsidiary, the North Shore Transport Company. In a circular to shareholders the chairman of directors, Sir Ernest Davis, states that although a 20 per cent, increase in ferry fares was approved by the commission in July to cover costs as at that time, it could not be applied until August 17 and the result was that some three and a-half months of increased revenue had been lost in the current year. In addition, since October 1 extra wages and coal and other costs had accrued in connection with the ferry company that were estimated at £15,000 a year. In the case of bus fares the commission adopted a new schedule that provided for the same amount of passenger revenue as had been derived last year. Since then the extra costs of wages and fuel that had arisen were estimated at £9BOO. Sir Ernest added that to meet these exceptional difficulties the directors had approached the Price Tribunal for approval to increase ferry fares to meet the increased running costs imposed since the finding of the commission. An application for an adequate increase in the present fares of the North Shore Transport Company would also shortly be heard by the licensing authority. It must be obvious to shareholders that until the applications had been satisfactorily dealt with the prospects of a profitable year’s trading were not very favourable.