15. Deferred liabilities (continued)
(b) Employees' retirement gratuities
Group and company
1988
1987
$000's
$000's
At 1st July
37,451
32,315
Payments during year
(650)
(409)
Provision for the year
5,101
5,545
At 30th June
41,902
37,451
16. Contingency reserves
Group and company
1988
1987
$000's
$000's
Major repairs to motor buses
At 1st July
Payments during year
Provision for the year
6,500
6,500
(5,810)
(6,091)
5,810
6.091
6,500
6,500
At 30th June
Insurance
At 1st July
Payments during year Provision for the year
At 30th June
64,000
64,000
(2,377)
(1,971)
20,377
1,971
82,000
64,000
88,500
70,500
17. Contingent liabilities
At 30th June, 1988, there were potential contingent liabilities in respect of third party claims in connection with the operation of franchised motor buses amounting to approximately $56 million (1987: $47 million) for which provision of $56 million (1987: $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.
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