GISBORNE TRAMS.

Hauraki Plains Gazette, Volume XXXVII, Issue 4955, 24 March 1926, Page 2

GISBORNE TRAMS.

HUGE LOSS SHOW. MAY BE'SCRAPPED. Installed in 1911 under a scheme (submitted by .the .then Mayor. (Mr. W. D. Lys,nar), the outstanding feature in connection with the operation of the Gisborne municipal tramways during the past 15 years has been a loss on working amounting to no less than £4'4,991 5s lOd. This fact was disclosed by a financial statement presented to the last meeting of the Borough Council by Mr A. T. Clark, of Wellington, whose services had been engaged by the Council to draw up a full 'report on the s(ate of the tramway finances. . The statement showed that for the period from March, 1916, to March 31, 1925, the loss on the tramway service! amounted to £21,305 IBs lOd, whilfe depreciation over that period amounted to> £23,685 10s, making a total! loss over 15 years of £44,991 5s 16d..

The storage-battery trams in use in Gisborne have for some yeans been a source of uneasiness to the public by reason of .the consistent loss they ’have shown, and subsequent to last municipal elections the question was raised in the Borough Council ap: to the advisability of scrapping .them a& •a losing proposition. This movement has, gained impetus sin'ce a recent suggestion that .the council should borrow £36,000 for trapiwaj* extensions was rejected by a small majority of the council. In order to provide a basis for discussion of the “scrapping” project, with a view ito arriving at a definite decision on the matter, the council de'cided to get a full report as to the financial position from Mr Clark, who is acting as valuer to the council in connection with the sale of the borough power plant tp the Poverty Bay Power Board.

The council decided to defer discussion.