The Press WEDNESDAY, APRIL 12, 1933. Tramway Finances.

Press, Volume LXIX, Issue 20829, 12 April 1933, Page 10

The Press WEDNESDAY, APRIL 12, 1933. Tramway Finances.

The Christchurch Tramway Board's financial statement for the year 1932-33 and the seven-year survey of revenue and expenditure printed with it yesterday are in every respect but one very discouraging. So far the board has been able to set off against successive and serious losses of revenue reductions in operating expenses, relatively even larger. The net result is that while revenue last year was 35.2 per cent, less than 1927, expenses were very nearly 40 per cent. less. This vigorous and successful effort to bring down operating costs should be warmly commended; but the anxious question arises whether the board can keep up this particular kind of stern-chase. Certainly the greater part of the revenue fall belongs to the last two years; but it is not at all certain that this can be attributed to the slump, in the confident hope, therefore, of revenue swinging briskly up again with better times. It is more likely that any upward turn will be slight and quickly counteracted; and since the board's expenses will tend to rise with a general recovery in prices, it will probably have to face the broadest questions of policy. The introduction of the trackless trams and the more extended use of oneman cars may ease the board's difficulties, but can hardly end them Even if annual deficiencies are much less startling than that for last year —£17,025 —they cannot continue without forcing the board to decide whether it will strike a rate or whether it will so contract and regulate its services as to make and keep them self-supporting. Obviously. to accept the principle of levying a rate to cover losses on tramway transport would be to call on A to enable B to ride on trams for less than it costs to carry him; and this is a thoroughly unreasonable proposition. Moreover, it would dangerously weaken the existing strong motives to pursue the utmost economy and efficiency, and dangerously favour every tendency to let the past rule the present and the heart rule the head. A single comparison has of course only a limited value; but one that can be drawn from the board's figures suggests a fairly useful approach to the tramway problem. Last year, the number of passengers fell from 19,473,951 in 1931-32 to 16,566,351. The mileage run fell from 2,865,956 to 2,718,378. In percentages these falls are (approximately) 15 and 5. That is, the ratio of passengers carried to miles run is becoming more disadvantageous to the board. Its services remain elaborate, while fewer use them; and sooner or later the system will be insupportable. When that time comes the board will need all its political courage and all "its financial prudence.