Notes on The Accounts (Continued)
18. CONTINGENCY RESERVES
Group and company
1996
1995
$000's
$000's
Major repairs to motor buses
At 1st July
Payments during year
Provision for the year
At 30th June
Insurance
At 1st July
Payments during year Provision for the year
At 30th June
5,500
5,500
(6,340)
(5,608)
7,140
5,608
6,300
5,500
239,846
220,859
(7,194)
(8,302)
21,417
27,289
254,069
239,846
260,369 245,346
19. CONTINGENT LIABILITIES
At 30th June, 1996, there were potential contingent liabilities in respect of third party claims, in connection with the operation of franchised motor buses, amounting to approximately $160 million (1995: $147 million) for which a full provision of $160 million (1995: $147 million) has been included in contingency reserves. In the opinion of the directors, the amount provided is sufficient to cover any liabilities which may subsequently arise in respect of these claims.
20. OPERATING LEASE COMMITMENTS
At 30th June, 1996, the group and the company had commitments under operating leases for land and buildings to make payments in the next year as follows:-
Group and company
Leases expiring:
Within 1 year
After 1 year but within 5 years
29
1996
1995
$000's
$000's
2,933
2,790
150
10
3,083
2,800