THE TRAMWAYS

Dominion, Volume 12, Issue 247, 12 July 1919, Page 8

THE TRAMWAYS

. $ FINANCIAL POSITION INCREASED FARES FORESHADOWED STATEMENT BY THE MAYOR An increase in fares on the Wellington trauiwuvs was foreshadowed by tho Mayor (Mr. J. P. Luke, M.P.) at last, night's meeting of the City Council. Mr. Luke said ho believed a position had been reached that would necessitate the Tramways Committee at its next meeting bringing down a recommendation for (he revision of fares.

"Tho financial position," said Mr. Luke, Vis one (hat absolutely necessitates the building up ol our finances so that we shall be able to carry on without a. debit balance on future occasions, I am firmly convinced tnal. the council will agree with me that whatever (lift, culties there may bo ahead oi the tramway undertaking it must rest absolutely on its own basis, and not m a cost on any outside source as by way of rates. Taking the lour weeks lo June 23, tho revenue had increased b\- £895, the working expenses increased ,£2504, showing n debit balance of .£SO3, as against, n credit balance for tho corresponding period of last year of JE7OS. The revenue per car mile has increased during that priod from 18.5511.. as against 17.59(1., but the worknig expenses have increased from 12.71 d. (0 15.33 d. The percentage of working expenses lo revenue has gone from 70 per cent, to b'2 per 'cent.

"Taking the twelve weekly period of the current year the credit is JC1613, as against .£2673, and the working expenses have increased from 71 per cent, to 7G per cent. This indicates thai the future movement of tho tramway finance will be in a similar ratio to Hint, which has been affecting the undertaking for some little lime.

"The capital expenditure has reached <£K1(i,230, and after providing interesl (■£21,330), sinking fund (£bW). U per cent, of depreciable assets |.£9.' J . 13), and payment to reserve (.£9312), a total of £15,062. we, havo left a sum of JUIO.HG. That, with a surplus from the power supply of ,£2233, makes a total of ,£12,379 availablo for tho following purposes:—War pay allowances, 1'2763; influenza, pay, £Wvl; horse tramway sinking fund, .£2080; Tramway Hand, .£SO: superannuation, JJI6SO; written off preliminary expenses, .£1385; total, ,£9532, leaving a surplus of ■£2817. It will be seen that the surplus is very little in excess of the surplus from the power supply, and the council cannot carry on the undertaking with such a bare surplus on ihe capital invested—the uet profit of 1| per cent. Of course tho amount set aside for the interest and other charges would be money available for the purpose of dividend had it been a private undertaking." The Mayor added that the present fares were very low. The average fare per miln in the case of the ordinary tickets was .S9d. per mile, concession tickets ,Gd. per mile, workers' tickets less than Id. per mile, scholars' tickets less than Jd. per mile. The council must face the position. He realised that it was the duty of the council lo keep the fares as low as possiblo for the people. Councillor Hutchison: Give them the universal fare.

The Mayor: That is no good. Councillor Hutchison: That is an■ open question.

The Mayor: ''I worked it. out 10-dny, and J can't see any good in it at all!" Mr. Liiko added that he was sure the council would have a very keen regard for the interest* of the public, particularly the people in the outlying districts. Every reasonable facility should be rjiven to the workers to get to their work and back again.

Councillor W. 11. Bennett said ho wished to protest against tho milliner in which tho accounts of the freight car were kept. He had found on inquiry that while receipts of tho freight service wore known, there was no record of tho expenditure. Tho freight accounts were lumped, with tho ordinary accounts. Ho failed to seo why tho freight business should not bo carried on in a. business way. The freight service should bo required to justify itsolf. Councillor Bennett said that the Tramway Committee ought to devote moro attention to its business.

Councillor Luckio asked for an assurance Hint the council would have an opportunity to consider the proposed tram, way from Upper Wiliis Street to The Terrace more fully than it. had yet done before any action was taken. The lino was merely part of a much bigger scheme, and without the whole scheme the venture could not possibly be payable. The whole question should be studied very carefuilly.

The jrayor said the Tramway Department had been very much hampered during the war owing (o sliortago of staff. He realised thai; various points required attention. Tho power accounts, he thought', ought to bo separated from the tramway accounts. The freight car might not lie paying directly, but it was giving very useful service to the public, particularly in tho outlying districts.