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Salient. Victoria University Students' Newspaper. Volume 39, Number 23. September 20, 1976

[Introduction]

A Special General Meeting of this Association has been called for Wednesday 22 September to discuss, among other things, the catering situation.

The first six months of the 1976 year were somewhat of a financial disaster with the loss for the period being $32,568.

This is an entirely unacceptable situation and has not been allowed to continue. Steps taken by the Catering Sub-Committee have begun to take effect and resulted in the loss for June being $507 compared with previous losses of $9000 per month. It was hoped that profit had been made in July but inaccurate stocktaking produced meaningless results which did not give a true view of the situation. The lack of accounts and timely information provided by the catering staff to the committee is a matter of continuing concern.

At the end of June it was decided by Executive and Union Management that the catering operations would "start again" as of 1st July 1976. Thus the financial position of the catering operation as of 30th June was:
1976 loss(six months) 32,568
Previous years' losses carried forward 14,605
Total 47,173
The decision to 'start again' left the Executive with 2 problems:
1.To ensure that a similar situation does not occur again.
2.Recovery of the losses i.e. $47,173

The solution to the first problem lies in a medium to long-term policy rather than in a series of short-term stop-gap measures. Thus the entire catering operation will be reorganised from 1977 to ensure closer control of costs, prices and profitability.

The issue that will be the subject of debate at the SGM is the second problem the raising of $47,173. There are three possible ways or raising this money and repaying the University which is at present financing this loss.

1.Use money from the building fund.
2.The students association raise a bank loan and repay it over a period of years.
3.Allocate a portion of the Studass fee for a period to repay the loan.

The third alternative is that most favoured by the Executive. It does not use money collected for other purposes or jeopardise the Southern Extension to the Gymnasium as would happen if the[ Building fund was raided. Also it does not encumber the Association with a bank loan that will require interest payments of about 8% p.a. and restrict the ability to borrow money in the future.

Consequently, the Executive has decided to approach the university with a proposal to repay the catering losses at a rate of $ 12,000 p.a. over 4 years.

As the Association does not have sufficient reserves or income to make such payments the money must be collected as part of the Studass Fee. Thus the following motion is proposed: