Auckland Bus Anomaly

Sun (Auckland), Volume 1, Issue 67, 10 June 1927, Page 2

Auckland Bus Anomaly

Bill for City Ratepayers Paying for Outside Transport IT is already clear that the tramways undertaking can be placed in a thoroughly satisfactory position, both as regards public convenience and financial result. It is equally clear that in the case of buses the council is faced with great difficulties, due to the impossibility of giving the public the service it appears to demand, at a fare it is prepared to pay.”

r position of the combined tramway and omnibus operations which showed a loss of £39,118 6s 9d for the year ending on March 31, was thus presented to the City Council last evening by the chairman of the Tramways Committee, Cr. J. A. C. Allum. Cr. Allum presented the annual report of the tramways manager, which showed that last year the buses lost £48,124 Is sd, while trams showed a profit of £9,005 14s Bd. NOT LEGITIMATE CHARGES Commenting on the position on behalf of his committee, Cr. Allum said the accounts had yet to be finally audited. It should be noted that the accumulated sinking fund, with interest, on the tramway undertaking, totalled £311,423, which was a direct set-off to the loan debt of £1,795,000. A sum of £14,766 9s 5d was debited as the third instalment in liquidation of the deficiency when Hobson Street power station was transferred to the Power Board. It was not a legitimate charge against the year’s working, but had to be met. It was recommended that the balance of £28,522 10s lOd be written off in four equal yearly instalments. Amounts of £420 for street rent, and £5,458 10s lid on account of rates, were also met. It was recommended that street rent and Queen Street lighting should not be charged against tramways in future. The amounts went to general fund, and as the depaYtment paid rates and maintained one-third of the roads along tram routes, these charges should no longer be made. For the year £17,995 12s 4d was expended in permanent way maintenance, an amount substantially lower than in previous years. It was, however, all the undertaking could carry. Though the maintenance on trams was high it had to be remembered that many of them ran 60,000 miles a year. THE BUS POSITION Regarding buses, the traffic expanses alone exceeded the revenue. Repairs and maintenance cost £21,407 19s 7d, including cost of alterations to conform with new regulations. The depreciation on buses, £11,401 18s, was high, but was considered necessary in view of the prices fixed by the court being higher than the actual value of the vehicles taken over from the orivate companies. Cr. Allum indicated that the «.ommittee was working hard on a further report on the whole position. POWER BOARD PROFITS Cr. J. B. Paterson said the position was summed up very accurately.

The Power Board had apparently got a good bargain, and He noticed that the board had made a profit ot £64,428. He thought they should give a return. The board had made a profit of £18,928 on power supplied to the council for traction. The council in one department had supplied nearly a third of the board’s profit. He thought the board should receive current at a lower rate. With regard to the buses, the soosv they were out of them the better. £39,000 FOR OUTSIDERS Cr. Eady said the losses on were obviously not due to manag^ e What it got down to now, was that t city ratepayers had to find £»*■ odd to allow of residents ol boroughs to have transport sooner the buses were handed oier a metropolitan body the better. Cr. Ellen Melville said the posnwas a complete answer to any * gestion that the city should no - vices for residents of outside no IN THE COUNTRY “We were all over the week. At one terminus I thin* e were three sheep and a horse efßrifor us. We were right in tne try, and there were neither peov houses. The sooner we st^ p r( - the-city services the better, Cr. Melville. tlfc Several members comphmentw committee on immediately t® very difficult position. Cr. Allum: I would ■*» council to have patience w committee for a few wcck * or t. will then bring down our w # It may not prove will certainly be decisive. mittee is working long hours position. He indicated that the board was at cost. Th # year had been over-estnnai * a result the council haa refund of over £1,788. Tb Board had certainly not £° gain when the city plant , over. Most of it was scrappyNO NEW BUSES A recommendation from '^'^...y. ways Committee was passeo, comment, to the effect tha be taken in connection witn ing of 50 further omnibusesThe tramway mana*«r * w > showed that 22 buses would" f replaced by next March sent circumstances at a cos jjor The decision means tna [ new buses will be constructed

STATISTICAL SUMMARY v c ur*k r ' The following table gives the full position of the tramway taking, and shows, where the figures are available, a comparison year 1925-26:

Capital expenditure .. . Earnings Trams. £1,593,387 Buses. £66,770 Combined£1.6*0.157 £637,782 1JS5--Working Expenses Net earnings . . . . £4271749 £9l!958 £519,701 £118.0.5 Interest £4,197 £839 £11.402 £479 £48,124 6,369,931 1,346,317 16.39d 10.S5d 6S.30 £87.96o tip Sinking fund Depreciation Accident provision Tram surplus .. .. Omnibus deficit .. .. Combined deficit Passengers carried Miles run .. £35,066 £4,976 £9,006 56,781,193 5,962,199 £35.905 £39,118 63,151.126 7,308,516 Earnings Car miles dailv 23.22d 90.74 Expenses a passenger 1.81 2.2C . .. 19,457, D1S, 3.46 * Units of electricity . at 1.22Sd a unit,