TRAMWAYS FINANCE.

Dominion, Volume 6, Issue 1720, 10 April 1913, Page 11

TRAMWAYS FINANCE.

$ STATEMENT BY THE MAYOR. FURTHER CONCESSIONS PROPOSED In response lo a question as to whether ho,luid any comment to make on tho annual statement of tramways financo presented to tho public yesterday, tho Mayor (Mr. D. M'Laren) said that the report setting out tho working of the tramways service for tho past twelve months had been presented a little earlier than last year. "That is duo to the fact,"' said Mr. M'Laren, "that I called for a statement to bo compiled as early us possible, in order that cit.ir.cus should know tho lull position. It will bo remembered that in June last when I made a statement to the council on the position of tho tramways iiminco, it was tUen estimated that wo would require an additional JiIO.OOO revenuo to plnco tho sorvico oil a sound foundation. It is satisfactory, therefore, to ; iirid that the increase in traffic receipts amounted lo J.'U,L'l7 for the year, and tho increase in total revenue to iC13,129. When changes in sections and fares wsro being discussed, it was contended that I was not giving sufficient attention to the expenditure side of tho business, a contention that I did no admit tho validity of. Throughout tho year I liavo constantly conferred with tho chairmaii and members of the Trnmway Board, and urged tho strong need there was to give close attention in that regard to tho various departments under their control. Tho result is scon in this aspect, of tho accounts. Whereas the balance-sheet of .1911-12 showed an increase of .£4llO for repairs and maintenance, this year's accounts showed a decroaso of J1173G. . There is also a decreaso of ,£262 in general expenses." j "It is very satisfactory to find," con- ■ tinuod tho Mayor, that whilst wo hhve secured large increases in revenue, tho increaso in tho total working expenses, covering all departments,, only amounts to .£1219, and. that is due to expenses caused by the increased traffic. Wherever items had .been mounting up to the extent of becoming dangerous, such as general expenses, repairs, and maintenance, tho amount'has decreased .£1938, as compared with last year's figures. It is also satisfactory to find in connection with the power supply that tho increase in revenue is £323, and that of the working expenses ,£509, so that wo have been ablo. to make extra provision for depreciation, sinking fund, and interest to the amount of <£195, and still leave \£ll9 more net surplus than last year,. % "Tho generally satisiactody stfite of tho tramways finances is further shown in that we have met special expenditure out ; of revenue during tho year to the amount •'of ,£lO9l by appropriations from net surpluses, and in addition there has been expenditure on new works during the year paid for out of revenue to. the amount of ,£8351. Some of these works are not yet completed, but in our estimates for next year due provision will be made for their completion." " "What I mainly desiro to draw attention to is that this year for tho first time we have provided a renewal fund, and ,£IO,OOO has been set aside towards that fund..;; Tlio cash balances at the bank show a credit balance of ,£10,500, available for expenditure on new works during tho current year (1913-14). Having provided for proper depreciation and renewals, and tho reduction of the working expenses (particularly on tlioso items Which were mounting up excessively), and. coming out at the end of the year with a balance sufficient to faco the new year, will, I think, be regarded by the public as a very satisfactory year's operations. "Tho proposal toward granting increased concessions, particularly to suburban residents, is on tho ( lino of an extension of tho principlo which I asked the bpard to adopt when a previous report was under consideration.', That -is, .that the benefit shall bo proportionate to tho distances passengers travelled. My idea in establishing such a basisjwaS'for tho relief of residents in the outer portions of tho" city, and tho benefits could from time to time be increased as circumstanfces allowed, without disturbing out finances. It would ba a much sounder policy than dealing with special concessions for this or that district at various times. Tho' proposal noiv is that on taking out concession tickets passengers will get 16 two-section rides for 2s. (lid. for two sections); 14 three-section rides for 2s. 6d. (approximately 2 l-7d. for threo sections); and 14 four-section rides for 3s. (2Jd. for four sections). This should be a considerable relief to tho residents of Maranui, ICilbirnie, Island Bay, Newtown, and Wadostown. while at tho same time it gives a measure of benefit to the residents of districts not so remote from the centre of the city, such as Aro Street, Wallace Street, Brooklyn, and Oriental Bay. "The' board is captious," said Mr. M'Laren, in conclusion, "in its estimate, when it sets do,wn .£BOOO as the prospective net profit for tramways and power supply; It' is probable that seeing that tho v general state of trade in the city is improving, tho surplus will exceed that amount," but.even with the concessions which I trust will' be given to the citizens, wo will be nblo'\to come out financially on tho level on March 31,. 1914."