SHOULD CUT IT'S LOSSES

Rotorua Morning Post, Volume 2, Issue 342, 1 October 1932, Page 4

SHOULD CUT IT'S LOSSES

GOVT AND ROToi DRASTIC RECOMMENDATim REPORT OF ECONOto COMMISSION ANNUAL LOSS OF £25jj Drastic recommendatinj. economy in ihe touridt actj^ ihe Department of Tourists and Publicity are contain^ij final report of th Nationall diture Gqmmission, which submitted to Parliament, fy mission devotes some spac6W consideration. of the depafuH expenditure in regard to and makes recommendatUJB an almost complete overb^B .the existing Government ation. H Allied with a general recoinfl tion "that the Government en^H immediately to dispose of a]I{| resorts to private enterpriSpB by sale or lease, the; CommisjjS commends,. inter. alia, that^H rua. Boroqgh Gouncil be askedl sume responsibility for the^^B drainagq systems at. present S tered by the Tourist DepartmeH in addition be called upon tfl "some eontribution" as a ■ against the annual loss boraeH Crown in connection with itsfl undertakings in the town. ■ "It will be n'oted," states tM port, before proceeding to afl examination of the position without exception, the tonristB ties in 1930-31 resulted inyejH stantial losses. # S "It is realised that under circumstances, tourist tradil be an important branch of ■ merce, but ifc is open to qu/9 v/hetber the benefits derive/H . New Zealand from tourist ti cpunterbalance the substantl^B incurred by. the Crown in. th| ation of the various touristl sorts. We are of opinion tiu^H cost is far in excess of the| of the additional tourist traS| cured to the Dominion by activities." Losses in Detaii Dealing In detaii with tlie| on tourist resorts, the repoii| the following nett losses onf| undertakings : Baths, £8627 H 28), £8993 (1928-29), £909« 30), £10,689 (1930-31); sanafl £1410 (1927-28), £1700 (isfl £2092 (1929-30), £1172 M Government Gardens, £4201 fl 28), £4167, (1928-29), £473W 30), £4426 (1930-31); -Kateil drainage, £4 6 8 0 (1927-28), I (1928-29), £5111 (1929-30), ■ (1930-31); reserves, £1669^1 30), £1629 (1930-31); wharr« beacons, £321 (19 29-30), /fl (1930-31),.; Waimangu Roundl £388 (1929-30), £5 5 3 (1930-3I As against this, the Rotonui tric system shows the followis^B fit: £4213 (1927-28), £5507M 29), £6980 (1929-30), £5891 ■ 31). Rotorua acclimatisatioa^B ties also show profit as folloi^| (1927-28), £268 (1928-29), ■ (1929-30), £314 (£1930-31)* The total losses on all I^J resorts are esiimated as fo^H £25,874 (1927-26), £29,246 (■ 29), £31,792 (1929-30), ffl (1930-31). *

On the grounds that they^H working loss apart from intei^f depreciation, it is reeomraeBj^B the grounds of economy, vernment cease to operate the^H ing services: Te Aroha Sprii^| torua baths, Rotorua gardeniBH rua water and drainage, Lake^f Waikaremoana, QueenstownG^H and grounds, Glade House ford hostel. H "After carefully reviewi^^H whole of the operations, those which are showing a terest return on capital activities where a profit are definitely of opinion velopment of tourist traffie running of hostels should k^| private enterprise," the repoii|| Rotorua' s Position Dealing In particular witlil^| in the light of the figures discl^H report says : — "In view of the varied activ^H the Department in and arorf^H rua, we draw special attention^B figures appearing in the fm^B table, which disclose that tlie^l in connection with Rotorua during 1930-31 amountedto^H than £25,000, from which dedncted the profit on the elecljHj stem, £5831. "If is eviaent that the suhstanfcially dependent upos^H activities of the GovernmenlHH we are of opinion that sonif^B tribution should be ohtainel^H the Local authority as a against the loss which is honi^H the Crown. 9H "For instance, the water ani^H age system shonld be the ility of the borough, and mend that the system sliot^H handed over to it and that tal invested in the system be to be a loan, on which inter^H sinking fund should be would minimise the loss to and provide for a more tribution of the burden.

"Another point in connectii^H the Department's operations rua is that it is responsible Sanatorium. This function naturally under the adminisW^B the Health Department. tain extent there is duplic^^| facilities, in that the I partment already maintaus«| King George V. Hospital at We accordingly recommendh^B Sanatorium he amalgamat^^H King George Y. Hospital. Lavish Expenditw® Concluding their observatio^H this section of their investif^H the commissiopers state ^H| "As. a result of our inves^^B into the capital expenditur?®^M Public Works Fund in connect^* tourist and health resorts, reviewing the expenditure l^H under this .subdivision out of solidated Fund, covering costs of the various resorts,^* forced to the conclusion tliat^| penditure, both capital ahd: has been too lavish and not by the results. It is assess the total savings accrue from the disposal ious resorts, but the safiP^^| erating costs alone would t siderable." ^|