Buses Lose £38,131

Sun (Auckland), Volume II, Issue 576, 31 January 1929, Page 6

Buses Lose £38,131

WEST ROUTES JETTISONED Private Enterprise Invited WHEN the chairman of the Auckland Transport Board, Mr. J. A. C. Allum, moved at a meeting of the board-in-eoinmittee last evening that bus services now operating in the districts of Henderson, New Lynn, Glen Eden and Hutchinson Avenue be discontinued from March 31, and that the areas be offered to private enterprise,, he opened a debate which clearly indicated that members were sharply divided as to the right of the board to jettison services which had been placed in its hands by vote of the people. One member described the proposal as an admission of incompetence. He said the board was making a laughing stock of its work.

The question came up when the board considered a comprehensive report by the manager, Mr. A. E. Ford, recommending a revision of fares, sections, terminals, and time-tables on various routes. After stating its policy with regard to the services to the western districts, the board deferred consideration of the report for three months. “The City Council, when it had to take over, dW its best to make the services pay,” said Mr. Allum in speaking to his motion. “The Transport Board, as its successor, has reluctantly come to the conclusion that the routes would be better left to private enterprise.” HEAVY LOSS DISCLOSED “What have the buses lost in the last nine months?” asked Mr. E. H. Potter. “For the nine months endina December 31 the deficiency on all bus routes was £38,131,” Mr. Allum stated. “That means all charges, including interest, sinking fund and depreciation.” “That is evidence we should discontinue all services outside our own area,” said Mr. Potter. To do that the bus services should have a unit outside, Mr. Potter continued. They must be given Avondale. It was not fair to ask bus owners to take up the running unless a certain amount of well-populated area was included. Mr. M. J. Coyle: We must be very cautious about this. We are giving away very lightly populated districts, dnd I don’t see that we aj*e going to find it easy to induce private enterprise to take over. It is the first time I have heard it publicly stated that private owners could not make these services pay their way. Mr. L. E. Rhodes: I agree that the routes must be abandoned, but it would be pretty rough on residents to discontinue at such short notice. “Mr. Chairman, your motion is a most remarkable admission,” said Mr, F. S. Morton. “I do not know how the public will view it. This is surely an admission of incompetence. There is something wrong when this board, with all •£* cannot make a success ot these services. We are making a laughing stock of the whole job.” “OBSOLETE METHODS” Mr. E. J. Phelan: We should continue to make losses. I am not in favour of allowing private enterprise on our streets. The board’s services cannot be expected to pay if we use obsolete methods and foreign oil (Dissent.) Mr. Potter: Let private enterprise serve that area, Avondale included,

until Avondale gets electrified railways or tram extensions. Mr. Allum: I know private enterprise can live on us. The G.O.C. Company admitted -in Court that it made its services pay by reevnue earned on tram routes. The board’s clear duty is to maintain the position it had paid for, and paid for dearly. The City Council has paid for the western routes, but in my view the council was not justified in going outside the city area. Mr. Allum, continuing, said that neither the City Council nor the Transport Board could run the services the local bodies outside its area required and make them pay. “If private enterprise can, then let them have it,” he said. It will relieve us of a lot of criticism. There is of course nothing to prevent the local bodies concerned from meeting us and coming to an arrangement.” Mr. Potter: Private enterprise does not want our sympathy. They only want a reasonable opportunity. The services must come right into the city. The manager’s recommendation to make the terminal at Pitt Street is nonsense. If these people can take up th© services run previously by private enterprise they will make them pay. Mr. J. Wood: The community has asked for the establishment of a board, which has been given a certain area to control. Beyond that area the board should not go. The chairman’s motion was then carried, and the services will cease. REPRESENTATION WANTED Writing conjointly', the Henderson, Glen Eden and Hew Lynn Town Boards asked for a statement of the board’s policy with regard to granting their districts direct representation on the board. The inquirers deemed that imperative.. Mr. Allum said that, while no obstacle should be placed in the way of outer areas joining the transport district, there should be no increased representation for a time. He suggested the board should reply that it would not favourably consider an increase of membership at present. “There wflll only be an agitation to amend the Act if we are unreasonable,” said Mr. Potter. Mr A. J. Entrican questioned whether the board was entitled to discuss the matter at all. Applications for inclusion in the district should be first made to the Governor-General, and until then the board had no power to deal with the question. An amendment on those lines failed. The chairman’s motion was carried on a division by six votes to four, the opponents being Messrs. Potter, Morton, Rhodes and Entrican. On another point the board replied that unless special arrangements are made with any area for services any loss would fall on the board’s w r hole area.