A MOTOR BUS SERVICE

Dominion, Volume 12, Issue 26, 25 October 1918, Page 7

A MOTOR BUS SERVICE

EASTBOURNE BOROUGH COUNCIL UNDER

ULTIMATUM PRESENTED BY

RATEPAYERS

There is trouble on the eastern side ol the harbour over the decision of tho Eastbourne Borough Council to run n motor service in connection with the ferry steamers.' Tho Eastbourne Ifntcpnycrs' Association, which has gona thoroughly into the question, is protesting strongly against the pursuance of tho scheme." and intcrestins correspondence has been passing between the association and tho Mayor of Eastbourne (Mr. l>. Levi) over a period covering the last two months followinz upon ;\ deputation to the council. The first letter (written on August 2) savs :--•

"Sir—Referring to tho deputation from the executive of tho aseocifliion which waited on your council at its last meeting, J am directed lo inquire whether your council is willing to furnish my executive!, cither now or immediately after the settling of the scheme mentioned to the deputation by tho Mayor, witu the following information respecting tho purchase of the motor buses and tho proposed passenger service:— "1. The total capital expenditure- involved, showing separately (a) price of buses; (b) price paid>or proposed to b3 paid for .sparo parts; (c) commission, if any, and any other charges whatsoever, paid ov to be paid, to any person or persons in connection with the purchases of the buses or spare parts; (d) estimated cost of building garage arid the furnishio; and-equipping tho same. "(2) How aro the liabilities to be met? (a)' Purchase of buses, spare parts, and commission (if any)—(l) Is this liability being met at once out of moneys standing to the credit of the borough account? ■ If so, what account,' and if more than one account, the amount lo be contributed by each of such accounts? (2) If tho whole of the liability is not to be met at once out of moneys immediately at tho disposal of tho council, in what manner is if proposed to raise tho balance left impaid for the present? (b) Building, furnishing, and equipping garage. (1) How does the council propose to- meet the capital liability that must be incurred in connection with this work?

"3. (a) If, as seems possible, the whole of the capital liabilities are to be met out of ferry moneys, has the total amount involved been, or will it be, transferred from the ferry account to the general account of tho district fund before payment, or will it be paid di-rect-from the former accounts? (b) Whn.t amount Fill be left to the credit of the foriy account 'after meeting thoso capital liabilities., and will that amount equal tlm s!ims that have been nllowed a.i depreciation ea"h year from tho inception of the ferry service? (c) If the money has been, or is to be,' withdrawn from the ferry account mid paid to. the general account for the purpose of meeting the capital liabilities, is such action u 'permanent transfer or a loan 'o the general account? If the latter, wi;at interest, if any, is .'o be charged for thfi loan, and what means of refating the- Ii an does the council intend to aaont?

■ ''1. What are tho estimated cost per inib of running the buses, including detention, woges of drivers and mechanics,'petrol, vppejrs, etc.?. (b) The ruia: nf. depreciation to be allowed? (c) The estimated total mileage to bo riin in the course of a year? (d) Tho estimated revenue per milo per annum, and estimated number of passengers per

"5. is the service to be established as a depurate one with a separate Account, or is it to bo part and parcel oi Ihe ferry service? .

."(!. If a sepanito service, what fund ■will the council draw upon to mako good any loss sustained in running? "7. If, on tho other hand, the sorvico is to bo part and parcel of. the ferry service: (a) Will the ferry accounts published in the council's balance-sheet givo such information as will enable ratepayers to, ascertain whether the buses are being run at a profit or a loss? (l>) assuming u loss on tho running, and assuming sufficient funds to meet such loss not being available in tho ferry account in any year after payment of interest and sinking fund charges on the ferry loan and depreciation on the steamersj what means will tho council adopt to meet the loss?

"8. What effect does the counoil consider the running of tho buses will have on the streets of the borough ?. If a prejudicial effect, at what amount does tho council estimate the increased cost of upkeep of the streets? "9. Is tho action of the council in purchasing these, buses and establishing tho passenger servico to be taken as an intimation to. the ratepayers that tho council ha 6 adopted the principle that at all times when money is available it ie justified iu committing the borough, without tho consent ot the ratepayers, to capital expenditure for the purpose, of establishing new services of the nature of trading undertakings, and. thereby saddling the ; ratepayers with contingent liabilities without their consent? If so, is the council prepared to fix any limit, expenditure? r "10. If this capital liability is being met out of ferry profits, is the association justified in assuming that the present council has abandoned the policy laid down by previous councijs that ferry profite should not bo used for any purpose other tliau tho extension of the steamei* servico or the establishment of a fund for tho purchase of new steamers? : ".As the matter is one of the greatest importance ito ratepayers generally, and further is one of extreme urgency, I am to. ask that ffiis letter may be 'laid betore His Worship the Mayor and councillors at once, and that we may bo favoured with a reply at your earliest convenience.—Youre faithfully (sgd.), C. &. W. Richards, hon. secretary." Steamers and Buses One Undertaking, In his reply the Mayor (Mr. Leri) refers to the "extraordinary character" of the contents of the letter. He reminds tho association that the burden and responsibility of conducting the affairs of tho borough are vested iu the council, and that the "series of queries" contains veiled criticism of acts or supposed acts of the council in connection with tho motor bus servie which tho council is in the process of establishing. Mr. Levi explained that the council had found that if it did not-establish a bus service it would be left withoutone at all. and that after an exhaustive consideration of the question it was unanimously decided to inaugurate the system. "Ratepayers," wj'otc the Mayor, "can rest satisfied that all such matters Jiavo been considered as fully as is possible before the actual commencement of. the service. In reference to other points raised I may say that the council takes the view that tho ferry service is so closely connected with and dependent, upon a satisfactory bus servico that when both services are in the hands of the council they must be considered as practically ono undertaking. . . . '.I'hn accounts will, however, show fully the financial results of the proposed fe.rvico as distinct from the ferry servico." A Full and Frank Disclosure Wanted. In its reply of September 18, tho association expresses regret that its inquiries should be considered of an extraordinary character, and points out that tho information sought is only what the council would give of its own volition had there been a loan proposal on the question. Reference is made also to tho many questions, «ome of polity, left unanswered by the Mayor. "Some two months have elapsed," says the letter, "since the. original purchase, (of the Auckland buses) was completed, but tho council has not enlightened those whose money it has spent, h this reasonable? i We say 'No,' and if it is answered l.l'mt the council has not. completed its scheme then our reply is that if that ie so it. would appear that, the council could havo had no very clear idea at l.lie time the purchase was made what wore or were not the possibilities of the service proving a financial success." Public Meeting Demanded, Following upon the correspondence (100 lengthy lo publish in full) the association held a meeting on Wednceday even-