OPERATING COSTS

Sun (Auckland), Volume 1, Issue 115, 5 August 1927, Page 1

OPERATING COSTS

70 PER CENT. HIGHER THAN PRE-WAR FARES COMPARED TT must not be forgotten for a moment that the operating costs of the trams are 70 per cent, higher than pre-war,” says Cr. Allum. The new fares, compared with the

present, cash and concession card, show the following: Existing. New.

NEW ESTIMATES The adoption of the recommendations of the committee required a recasting of the tramways estimates These show an estimated loss of £5,357 for tne year against £39.118 last year. Included, however, is £7.383, being the year’s share of Joss in realisation of power house assets, which must be included, but is not fairly placed against the actual year’s trading. In submitting his figures to the committee the Tramways Manager stated: The proposed scheme cannot be onsidered otherwise than in the nature of an experiment, and its sue cess or otherwise will be indicated in the first week or two. PROSPECTIVE BALANCE SHEET The estimates subm ted to the council show r ed the following: Receipts Traffic £702,300 Advertising 6,400 Sundries 1,860 Scrap 3,000 Debit Balance 5.357 £718,917

Expenditure Power £ 95.012 Running 304,607 i Distribution 11,175 Tram repairs, etc 53.538 Bus repairs, etc, ~ ~ 26,504 Permanent way 35.555 Buildings 650 Advertising 2,100 Administration 24,501 Interest 94,603 Sinking fund 35.540 Discount 1.750 Bus depreciation 13,176 Accident 6.013 Power House 7,3 S 3 £718,917 COUNCIL DISCUSSION Cr. Entrlcan suggested that as the report was so long, and had only been available to most of the council from 2 p.m. yesterday, a special meeting should be held next Tuesday to fully discuss it. Cr. Melville said the report did not propose any of the drastic experiments that she had feared. The reduction of the running of buses on tram routes and their use as feeders in ordinary times and for express services at rush hours was a step that had been long required. The system was more simple, and they could not but give a trial to the recommendations of a committee, supported with all the facts and the knowledge of the officers. "We hope that, having a monopoly, we will give the public a service that It will appreciate,” remarked Cr. Crookes. “People won’t realise that wages, materials, etc., put the undertaking In a position where It costs 70 per cent, more to run than in the days of the old company. The penny fare suggested does away with a lot of anomalies that have always been unfair.” Cr. J. B. Paterson criticised the report, asserting that the rearrangement of the sections meant an increase to concession ticket-holders right from the second section. The council was also defeating the usual object of getting people to live in the suburbs. NOW A HAPPY FAMILY The fact that the committee was by no means a happy family in the early stages of its discussions was mentioned by Cr. M. J. Coyle. Every time there was a dispute the facts were obtained and the committee had Anally come to a very deAnite and unanimous decision on what is thought advisable. The people, with the £500,000 loan

looming In front of them, wanted to know the decision of the council, and he urged that there should be no further delay. Cr. Allum was asked if the parties concerned in the agreement had been approached. Cr. Entrlcan: It was deAnitely stated Cr. Allum: It is because a lot of things were stated and not written that the tramways are in the position they are in to-day. They were not 100 per cent, happy about It, but it was the best the committee and the management could offer. They did not want half-Alled trams and half-Alled buses running together any longer. The council asked for a conArmatlon of the principles. The details must be left to the committee. The amendment was lost, and the report adopted. (Continued on page 9)

Cash. Con. cd. Cash. Con. cd. 1 Section .. 2d 1.33d id 92d 2 Sections .. 3d 2.5d 2d 1.84d 3 Sections .. 4d 2.75d 3d 2.76d 4 Sections .. 5d 3.75d 4d 3.6Sd 5 Sections . . 5d 4.25d 5d 4.6d 6 Sections .. 6d 4.5d 6d 5.52d 7 Sections . . — — 7d 5.52d