RICCARTON TRAMWAY ACCOUNT.

Press, Volume LV, Issue 16703, 11 December 1919, Page 10

RICCARTON TRAMWAY ACCOUNT.

abguments tor DISCONTINUANCE.

Tlie Hon. J. Barr, M.L.C., chairman of the Christchurch Tramway Bward. has, w'.tli a view to the poll to be take.i J next Monday on the question of the dscontinuance of the separate account for tbo lticcarton-isoc-kburn tramway loan area, issued a circular advancing several reasons in support of the proposal j»i discontinuance. He explains that tlie keeping of the separate account entails much extra bookkeip.ng. The acc.dent reserve fund was be6t car r|£" * >n . j spread over a wide area. The Christchurch Tram-w ay Accident Reserve I' un.t was created bv sotting aside i per cent, of takings, mid Kicearton luid accunmla ted 1897 7s in this way. The Heathen to accident would cost the • Board about £14,000 in compensation. If this had happened on the Riccartou line, and the consequent deficiency had necessitated a roitc, it would liavo ninountcd to 3id in the £, but if Kiccarton was merged with the main area, and a rate was necessary, it would -be only 1-otn or | a penny. However, the re.ative strrngta of the main area's financial p.'S'Jtion dn* i not necessitate tho levying of a rate to meet compensation payments. Improvements ana extensions totalling about £237,000 were contemplated, and for this a loan would bo raised on which the rate would be about l-sth of a penny for the Christchurch tramway district, R.iccarton'6 share of tho security being about £800. If, however, RLrcar.ton decided to continuo its separate account, it would be asked to vote separately for tho proposed improvements and extensions in its area, totalling ab<;ifl £39.000. for which the rate for interest and sinking fund would be flboirt 3-otTi of a penny in the £. If merged with the main area, Riocnrton's share of the new loan security wruld be about £800 per annum, but if it kept to its separate account it would be about £2-100 per annum. Rent for use of trailers and for tlie proposed new double track between tho hospital and the West Belt, and for the pro|»oscd now Lichfield strcot track, would also hare to bo _ provided _ for. When to these "increases in expenditure are added tho additional standing charge® on liicearton's part of the double track programme, and the increase in operating expenses, Riccarton'H revenue account would show a deficiency of over £5000 a year, as against a surplus last year of £1700. It is also pointed out by Mr Barr that if the separate account is discontinued Riccarton's concession tickets will I>e available for use on other lines, and Christchurch concession tickets will be available for use on tho liiccarton line.