EFFECT OF WAR ON TRAMWAYS

Press, Volume LXXIX, Issue 23968, 8 June 1943, Page 2

EFFECT OF WAR ON TRAMWAYS

AUCKLAND REVENUE SHOWS INCREASE

DEPRECIATION ACCELERATED (P.A.) AUCKLAND, June 7. The great increase in war-time demands on the tramways was reflected in a rise of £131,563 to a total of £950,621 in the revenue of the Auckland Transport Board for the year ended in March. For the first time for many years the board’s revenue account showed a credit, the amount being £14.768. The chairman (Mr J. Sayegh) said that while it was true that the board was enjoying higher revenue it was unfortunately equally true that in earning it the undertaking was being worn out rapidly, so rapidly that when the war ended very large expenditure would be required to restore the prewar standard. If, as was more probable, the board decided not to attempt fully to restore the ‘tramways but to install a modern system instead, requirements would be the same and the board should have on hand a very substantial sum as a depreciation reserve. Otherwise new transport would be saddled with two sets of loans. The amount in reserve to-day was barely sufficient to cover the accelerated depreciation and deferred maintenance caused by war conditions.