LOSS OF £18,000.

Auckland Star, Volume LXIV, Issue 74, 29 March 1933, Page 5

LOSS OF £18,000.

CITY FEEDER BUSES.

ABOLITION OF SERVICES?

BOARS TO DECIDE.

With tramway revenue down to a low ebb, members of the Auckland Transport Board are concerned at the heavy losses being made by the board's bus services, and the whole question, which has been investigated by a special committee, will be considered at the next meeting of the board. A suggestion was made recently that the feeder buses should be withdrawn and applications invited from drivers and others to take over "the services. Figures have since been prepared showing on the present year's working that the buses are making a loss of £18,128. The operating expenses amounted to £17,930 and the capital charges to £8616, a total of £26,546. Beceipts were only £8418.

In the event of the board dispensing with its bus services capital charges amounting to £5922 would still have to be met. The fares on the bus routes are low, so as to provide an inexpensive through fare by tram and bus. Although there have been various increases in taxation and the price of petrol, there has been no corresponding increase in fares. It is stated that the recent increase in the price of petrol and the tax on power kerosene will increase the annual cost of the bus services by approximately £1276.

Value of Fares. The approximate value of fares carried to and from the trams by-all feeder buses is £5806, but the buses themselves get no credit for this in the accounts. Should the feeder service fares be substantially increased or the service rendered less efficient the above amount would be adversely affected. "With reference to the board's bus services generally," states the manager, Mr. A. E. Ford, "although they are part and parcel of the board's tramway undertaking, they arc expensive to operate. However, it is doubtful whether a private operator could be found who would agree to carry on the Blockhouse Bay, Rosebank Road, Waterview or Waikowhai services at anything approaching the present fares, without in some way being assisted by the board.

"Regarding the two remaining routesPoint Resolution and Shore Road —their earning capacity on present fares is 11.09 d and 10.72 d per bus mile respectively. If the board decides to relinquish their operation, on present taxation, petrol charges, etc., it is extremely doubtful whether an operator would continue the services without raising the fares or without getting further revenue by securing passengers from parallel tramway services. These remarks apply particularly to the Shore Road service.

"With regard to the Shore Road service, suggestions have been made that it be extended to an appropriate point (about one mile). The Shore Road service comprises at present some 15 trips per day, and the extension could be undertaken without much additional cost.

"The residents served by these buses will no doubt expect continuity of transport facilities," says Mr. Ford. "So long as all the bus services at present operated by the board arc taken up by private enterprise at not materially higher fares, I would recommend the relinquishing of these services by the board. I wish to make it clear, however, that if some only of the services are run by private enterprise (the board being left with the more unprofitable one) the board's position would consequently be unsatisfactory, as the garage would have to be kept open and maintenance costs on a higher scale per bus mile would still have to be met."