TRANSPORT FARES.

Auckland Star, Volume LX, Issue 243, 14 October 1929, Page 19

TRANSPORT FARES.

OBJECTION TO FEAT RATE. WHAT IS THE ALTERNATIVE? "Suburbanite" writes thus: "There . seems to be a general sigh of relief that ; no immediate action need be taken over > the demand for a flat rate for fares. It i is a popular belief that figures can be i made to prove anything, and this is held most fervently by those to whom figures mean little. Some slight discrepancies respecting the date at which figures were taken afforded An excuse to those to whom figures are anathema to reject them all. Meantime the basic facts remain. The board started the year with a debit balance of £80,000. The return of passengers for the 145 days from April 1 of this year shows a decrease in numbers of two millions, two-thirds of the decrease being in the first and second sections. The board's estimates for the year contemplate a deficiency of £22,000, and on the figures to August this is likely to be exceeded. Obviously the system does not pay its way. There is no indication of any shrinkage of population, but there is a shrinkage in the numbers travelling by tram, and this shrinkage has not occurred for the first time this year; it has shown itself for a year or two past. Mr. Hutchison put forward the argument that the shrinkage was due to the slump in business, and that the loss on the service was due to the buses. Mr. Hutchison was the accountant who gave evidence at the inquiry that the allocation of revenue and expenditure between buses and trams was not correct, and the Commission reflected strongly on this. A fresh system has been inaugurated this year, but presumably the figures supplied to March 31, 1929, are based on the old faulty system. Yet Mr. Hutchison accepts those figures as his grounds for saying that it is the buses and not the trams that require overhauling. "Mr. Ford, in the report which he furnished to a city councillor who is also a member of the Transport Board, says a threepenny flat rate would lead to great development at the outside termini of the trams, which he says would increase expenses. Mr. Paterson says that this same flat rate would lead to increased shopping in the city on the part of those who dwell outside. . If Mr. Ford be right, it would appear that he does not regard the tramway system as intended to provide for the requirements of those in the transport area, but rather that it should be continued in its present condition of providing for a limited area. Yet he recommended the loan which was taken a few months since to further extend the trams. There seems to be some inconsistency in this. If Mr. Paterson is right in thinking that a flat rate will cause suburban dwellers to shop in town, it would seem that the traffic required by the trams would be provided. Incidentally it may be doubted whether it would have any effect whatever on shopping. The saving on a flat rate fare would do little to offset the increased prices in town which come about from high rents. "The proposal to increase the price of concession tickets has not been taken seriously by the board. It would in any case be futile to meet the competition of motor care, and would probably increase such competition. It would also be insufficient to meet the estimated shortage of revenue. The flat rate has been derided by the Press, rejected by the City Council, and reported against by Mr. Ford, but no alternative proposals have been made to meet the position, which is growing serious. Many people comfort themselves with the thought that the original loan will be paid off in 1940, but they overlook the fact that subsequent loans are greater than the original loan. The one which was recently carried is considerably larger than the existing sinking fund'. Tram tracks will require a loan. The new tramcars will require another depot and another loan to provide it. It seems likely that a rate will be struck, and this would advertise the fact that a monopoly business with a value of a couple of millions is unable to earn the interest and sinking funds on its cost.! It will be a reflection on our business j capacity which will cause the unregener-1 ate to sneer."