CMB_1997 — Page 35

Notes on The Accounts (Continued)

18. CONTINGENCY RESERVES

Major repairs to motor buses

At 1st July

Payments during year Provision for the year

At 30th June

Insurance

Third party claims

At 1st July

Payments during year

Provision for the

year

Written back during the year

At 30th June

Insurance

}

Group and company

1997

1996

$000's

$000's

6,300

5,500

(6,195)

(6,340)

6,195

7,140

6,300

6,300

159,569

147,346

(8,341)

(7,194)

19,417

(7,947)

143,281

159,569

Consequential fire loss

At 1st July

94,500

92,500

Provision for the

year

2,000

Written back as exceptional non cash item (note 4)

(74,500)

At 30th June

20,000

94,500

163,281

254,069

169,581

260,369

19. CONTINGENT LIABILITIES

At 30th June, 1997, there were potential contingent liabilities in respect of third party claims, in connection with the operation of franchised motor buses, amounting to approximately $143 million (1996: $160 million) for which a full provision of $143 million (1996: $160 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, 1997, 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

1997

1996

$000's

$000's

2,749

2,933

150

2,749

3,083

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