FARES RAISED.

Auckland Star, Volume LX, Issue 256, 29 October 1929, Page 8

FARES RAISED.

TRAM CONCESSION CARD

TRANSPORT BOARD. DECISION

LIVELY DEBATE AT MEETING,

" SUICIDAL INCREASE."

PLEA FOR FULLER CONSIDERATION

The Auckland Transport Board decided this morning to increase the price of tram concession cards. An amendment to refer the proposal back to the board in committee, found only four supporters. The discussion was precipitated by a report setting out information in regard to concession tickets. Mr. F. S. Morton asked what was the loss on the transport undertaking up to September 30 last. The chairman (Mr.' J. A. C. Allum) 6aid that only an approximate position could be given, as at no part of the year could a full statement be given. The power account, for instance, was received at the end of the year. Mr. Morton said that if they insisted on increasing fares, competition would take away the bulk of the passengers and that would be suicidal. He quoted Mr. Allum in a previous report to the board in May last when the chairman said: "Now that the undertaking is brought back on to a profit-earning basis and °with the loan authority recently obtained, there should be no difficulty in rapidly overtaking the leeway of the past few years." Mr. Morton said that the documents now before the board showed a deficit estimated at £22,040. If the concessions were put into operation, the board would be another £10,000 behind, while the ratepayers would be called on to pay a rate. Two-thirds of the ratepayers were in the city area. "Losses on the Buses." Mr. E. H. Potter said private enterprise should control the buses outside the tramways area. The losses were on the buses, and he considered that the figure was somewhere in the vicinity of £30,000. If the board went out of the bus business the loss would be cut out, while private enterprise could keep on extending further and further afield. The only way to popularise the service was to keep down the fares. Mr. Potter asked on what figures they were to base their calculations. Some time ago the members of the board were given to understand that the number of fares taken on the trams in the course of a year was something like 64 millions. Later the total was given as 53 millions, and in a still later report the general manager gave the total as 57 millions. In recent publicity, the total was set forth at 60 millions. Until they had reliable information to go upon, how could they arrive at satisfactory estimates? Electricity Costly. Mr. M. J. Coyle, in supporting the motion, said he did so reluctantly. He did not like the thought of increasing the cost of concession cards, but as their revenue was decreasing they had to take action. The board paid £30,000 a year more for its electricity than was paid in Wellington, Dunedin, or Christchurch. If that cost could be reduced,

they would have a better chance o: making the service pay its way Another factor was that the past fiv< years in Auckland had been as difficuli as any he had known. The effects o: unemploment were reflected everywhere Another factor was that the taxis hac been cutting fares. A good deal hac been said about overhead expenses. Ii was stated that there were 34 inspectors The speaker presented figures to shov that there were never more than liin; inspectors on duty on any one shift. As for penalising the workers, Mr. Coyli said that they were able to take advantage of workers' concessions which wer< available at points of departure up til 8.30 a.m. eacr day. Further Inquiry Advocated. Mr. L. E. Rhodes opposed the motion contending that before such an increasi was made there should be further in quiry. The existing concession had pre vailed for a number of, years, and thi service had been made to pay. Thej should investigate thoroughly the reasoi why the service was not now paying. II might be owing to the present keen com petition by taxi service or it might be due to the depression which had existec in the city for the past year or two If it was due to the taxis, the travelling public would be dissatisfied with the increased cost of. concession cards, anc ,by losing passengers the board would lose the the extra revenue which it was seeking to obtain. As for the depression, he thought that industrial conditions were righting themselves, and that when prosperity returned the board would reap the benefit. He maintained that the proposed increase would affect the workers of the city. While the proposed flat rate might have its faults, it had the advantage of taking the people to live in the suburbs. There must be other ways of arriving at a satisfactory solution, and he appealed for fuller consideration. " "Too Pessimistic." "We are too pessimistic," declared Mr. E. J. Phelan, in opposing the proposed increase. "We have just passed through the most difficult period that- we are ever likely to pass through, and during the hard winter many people who might otherwise have ridden have walked to and from their work. I believe that conditions are improving, and that in the remaining half of the year more people will be using the trams." Mr. Phelan said that rather than consent to an increase in the cost of concession cards he would support the suggested fiat rate. (Hear,hear). It was not true to say that the increase would not affect the workers. Besides travelling to and from their employment the workers wished to visit the city for entertainment and other purposes. They also wished to travel on Sundays, and therefore he opposed the proposed withdrawal of Sunday concessions. Mr. Coyle: You did not say that we have to pay the men double time on Sundays. Mr. Phelan: I am not concerned with that. The board has in the past paid double rates for Sunday work and made the service pay. He added that if the board's omnibus service did not pay it should be scrapped. Mr. A. J. Entrican claimed that when their revenue had decreased in the first half of the year the only thing to do was to seek an increase in revenue. He supported the motion. Mr. J. Wood .adopted the attitude that the user should pay. He had always I maintained that a 25 per cent discount on concession cards was too high. He supported the motion. . : '

Service Must Pay. The chairman (Mr. J. A. C. Allum, in closing the debate, claimed that immediate action was necessary to avoid a loss on the year's operations, which was due to the number of privatelyowned motor cars carrying both owners and friends, the low fares at present charged by taxi cabs, the development of suburban shopping areas and the prevailing unemployment. There was no suggestion. that the working conditions of the staff should be interfered with, while the power charges are governed by the conditions of the agreement with the Power Board. The management expenses compared very favourably with the costs of the former company and those of other transport undertakings. In 1919, the year of taking over from the company, the percentage of administrative staff salaries to the revenue was 9.02, in 1922 it was 1.81, in 1927 1.67, in 1928 1.50 and in 1929 1.56.

It had been decided that the cash fares should not be altered and neither should the workers and school children's concession rates be increased. The concession of 25 per cent discount had been very generous, and this would now be halved. In future more than one rider might travel on one concession card, and it was hoped that this would prove a convenience to the travelling public. The board (or the public) had now a monopoly of transport in the- metropolitan area, with the result that the economic competition had ceased, and the board is expediting the tramway extensions in order that the costly omnibus services should be discontinued at the earliest date.

In some cases omnibus services would be continued and the board, as soon as practicable, would purchase the most modern vehicles in order to reduce the operating expenses to the minimum.. The success of the publicly-owned undertaking operated by the board would depend largely on the use the public made of it. The public could be assured that every penny paid in fares would be returned in providing the best possible service at the lowest cost, and any surplus would be used to improve the service or reduce fares. The amendment was lost, those voting for it being Messrs. Morton, Rhodes, Potter and Phelan. The motion for the adoption of the report embodying the proposed new charges was carried. In reply to Mr. Potter, the chairman said that an order for the printing of the new concession cards had been placed since the proposal came before the board in committee.