15.
Deferred liabilities (continued)
(b) Employees' retirement gratuities
Group and company
1986
1985
$000's
$000's
At 1st July
28,625
23,441
Payments during year
(506)
(391)
Provision for the year
4,196
5,575
At 30th June
32,315
28,625
16. Contingency reserves
Group and company
1986
1985
$000's
$000's
Major repairs to motor buses
At 1st July
Payments during year
Provision for the year
5,500
4,500
(7,236)
(5,635)
8,236
6,635
6,500
5,500
At 30th June
Insurance
At 1st July
Payments during year
Provision for the year
At 30th June
17.
Capital commitments
64,000
58,000
(2,485)
(3,008)
2,485
9,008
64,000
64,000
70,500
69,500
Capital commitments outstanding at 30th June, 1986 not provided for in the accounts were as follows:—
Contracted for
Group and company
1986
1985
$000's
$000's
330
3,000
18. Contingent liabilities
At 30th June, 1986, there were potential contingent liabilities in respect of third party claims in connection with the operation of franchised motor buses amounting to approximately $45 million (1985: $46 million) for which provision of $44 million (1985: $44 million) has been included in contingency reserves. In the opinion of the directors, the amounts provided are sufficient to cover any liabilities which may subsequently arise in respect of these claims.
21