LOSS ON BUSES

Sun (Auckland), Volume IV, Issue 1067, 3 September 1930, Page 7

LOSS ON BUSES

RAILWAY DEPARTMENT AND ROAD SERVICES EFFECT OF “PIRATE” TAXES THE SUN’S Parliamentary Reporter WELLINGTON, Today. Road motor services cost the Railway Department £11,416 last year. The total revenue amounted to £105,702 and the expenditure to £117,118. There was a loss of £7,926 on the Napier-Hastings service, but the general manager of railways. Mr. H. H. Sterling. explains that against this must be set an estimated saving of £2,500 in train services. The loss on the service was due to a continuance of the "pirate” taxi services, which competed with the railway service on the run. This department holds a licence for the running of buses between Napier and Hastings, and, if the licence is to mean anything at al, it should mean protection against any other similar form of transport which has not been licensed in the same way, says Mr. Sterling’s statement. The system of licensing was designed to prevent exactly the position that has arisen on the Napier-Hastings Road—namely, that, by uneconomical competition, the services should be reduced to such a state of financial weakness as to prevent their carrying on a satisfactory service under economic conditions. I would urge that in any future legislation that might be promoted dealing with the transport question, definite steps should be taken to control such a situation in the direction of making the licence what it really purports to be. I would repeat that were it not for tho circumstance of this irregular competition our bus services this year would be showing in their total result a very satisfactory improvement on last year’s results. The loss this year in the Hutt Valley service was only £Bl5. compared with £7,212 last year. There was a loss of £2,560 on the Christchurch-Midland service, .‘in increase of £ 1,447 over last year. "During the year we scrapped two buses in this fleet which were beyond the period of useful service, and we added three new buses to the fleet, making a total number of four buses, says the report. "The increase in the loss on this service is due to the heavy fixed charges —namely, depreciation, interest, and insurance, but more particularly to maintenance. Maintenance costs increased by £l,lOO due to the fact that heavy overhaul of the buses had to be undertaken during the vear under review.” The Oamaru - T okarah i service showed a loss of £ll4, against which is shown an estimated saving of £BOO a year in the curtailed train services. "By way of general comment on the bus services, I would say that we have undertaken a good deal of reorganisation work during the year in an endeavour to profit by our experience,” continues Mr. Sterling. "The unfortunate position on the Hastings-Napier route distorts the view of the position.”