£2,000,000 SURPLUS

Sun (Auckland), Volume II, Issue 361, 23 May 1928, Page 7

£2,000,000 SURPLUS

HARBOUR BOARD’S BALANCE-SHEET BUILDING UP OF ASSETS “This is most pleasant reading,” said the Hon. E. W. Alison, referring to the report presented at the 56th annual meeting of the Harbour Board yesterday afternoon. ••It reveals a policy of progress on prudent lines,” he added. In the absence abroad of the chairman, Mr. H. R. Mackenzie, the report and statement of accounts were brought down under the signature of the deputy-chairman, Mr. M. H. Wynyard. The statements covered the 12 months ending September 30. 1927. The board’s progress is shown in the fact that whereas in 1894, the year of the application of double-entry bookkeeping, to the board’s accounts, the assets showed a total of £676,100. states the report, and a surplus of £ 308,900, the present figures contained in the Waitemata and Manukau Harbours consolidated account are £5,027.300, and a surplus of £2,217.438 of assets over liabilities. The amount of the surplus is all the more impressive when it is remembered that plant has been well written down, the report continues. Such writing included the sum of £32,893 on account of the sheerlegs at Calliope Rock, which have been discarded by the Admiralty and are unsaleable. Loan works under authority of the 1924 Act have been proceeded with during the year, a sum of £97,512 being represented by new construction. Among the larger works undertaken was the construction of the new wharf at Devonport. A great saving of interest had been effected by making very large advances from General Account to Loan Account. The amount of debenture issue had thus been considerably reduced. CONDITION OF FINANCES The loan indebtedness amounted to £2.837,000 at September 30, 1927; C 100,000 of this was redeemed on January 10, 1928, New loans to date brought the total to £2,875,000. Sinking funds at January 11. 1928, amounted to £448,700, and the board is very appreciative of the attention which the sinking fund commissioners have given to the investment of the funds with such excellent results. Proposals are now before the board for adoption whereby the sinking funds will be greatly strengthened. A definite policy, having as its objective tlie redemption of loans within the reasonable life period of the works, has been outlined. These proposals will beget still greater confidence in the securities, which were already in marked favour with the investing public. Revenue account revealed a very satisfactory position. Operations in Waitemata Harbour yielded a gross revenue of £385.925, which, after providing for general expenditure. £298,022, and depreciation £31,624, allowed transfer of £56,278 to the credit of appropriation account. Sinking fund and insurance reserve, intended to render the board’s position thoroughly stable, absorbed £39,205; there then remained the gratifying surplus of £17,074. The position in regard to Manukau Harbour was somewhat different. The revenue of £7,483 was insufficient by £3,307 to meet the full requirement. The consolidated revenue account, however, still showed a surplus on the year's working of £13,866. The insurance reserve funds totalled ’£59,250, and, in addition, there was the special reserve fund in respect of Calliope Dock equipment, which amounted to £27,392. The superannuation fund was in credit to the amount of £33 898, and the Government actuary had reported the fund was thoroughly sound. The number of employees contributing was 121 at the close of the financial year The following shows the position of the board’s finances for the year ending September 30, 1927: Waite- Manumata. kau. £ £ Assets 5,027,313 104,117 Liabilities 2,822,722 91,270 Surplus 2,204,591 12,847 Revenue 385,925 7,483 Expenditure 298,022 9,449 Depreciation 31,624 1,341 Surplus 56,279 Appropriations to sinking funds and reserves 39,205 Net surplus—carried to reserves 17,074 Deficit ' .. —* 3,307 The report and balance-sheet were fedopted. 30-YEAR LOANS With a view to strengthening the sinking funds of the board’s loans, it was decided to make provision for the payment to the funds of an additional £5,000 on January 10 of next year, and to arrange that all future loans, where practicable, shall be for terms of 30 years, with a sinking fund of li per cent, per annum. It was stated the loans were now for varying periods, and that in the majority of cases the sinking fund was only 1 per cent. CHAIRMAN RE-ELECTED In moving the re-election of Mr. H. R. Mackenzie to the chairmanship, Mr. M. H. Wynyard, deputy-chairman, referred to the excellent service given by the sitting chairman, who had held office for six years. Mr. T. B. Clay, who seconded, also paid a tribute to Mr. Mackenzie's work. The Hon. E. W. Alison said that while he supported the re-election of Mr. Mackenzie for the ensuing year he considered it undesirable that a chairman should hold office for too long a term. While Mr. Mackenzie had given excellent service he should be prepared to retire at the end of the ensuing term. Mr. Wynyard: That is also Mr. Mackenzie’s view. Mr. Mackenzie was unanimously reelected. On the motion of Mr. T. B. Clay, Mr. Wynyard was re-elected deputy-chair-man unopposed. COMMITTEES FOR YEAR Works.—Chairman of Board, Messrs. T. Bloodworth, E. W. Inder, E. A. Hellaby, W. F. McCallum, Campbell Johnson, A. M. Laing. Finance.— Messrs. T. B. Clay (chairman), J. B. Johnston, G. Parr, E. W. Inder. C. G. Macindoe, G. R. Hutchinson, H- R. Mackenzie. Purchasing and Stores.—Messrs. C. G. M&eindoe (chairman). J. B. Johnston, G. R. Hutchinson, J. Hislop, H. R. MackenManukau Harbour.—Messrs. M. H. "Wynyard (chairman), A. M. Laing. W. F. McCallum, F. A. Hellaby, Campbell Johnston, H. R. Mackenzie, G. Parr.