Tramway Finances

Press, Volume LXXII, Issue 21972, 22 December 1936, Page 10

Tramway Finances

The latest figures supplied to tne ennstcnuren Tramway Board arc an interesting commentary on the theory, frequently expressed by Labour speakers during the recent campaign, that the recovery in revenue, as it continued, would overtake the deficit and do away with the need for a rate. During the four weeks up to November 8 revenue increased by £SOB over that for the corresponding period last year, and 60,667 more passengers were carried. But operating expenses fc were £1159 higher; and the operating surplus fell from £4020 to £3369, which was turned into a deficit of £2255 by the debit of £5624 for standing charges. The corresponding deficit last year was £955. Although a month's figures are not an absolutely reliable guide, it will not be disputed that these broadly represent the trend of the tramway finances; and they reject, of course, any such optimistic interpretation or expectation as the one mentioned rbove. That, it is necessary to remember, was offered to the public although it was already known that the new labour and wage conditions were adding to operating costs something like £SOO a week or £26,000 a year. In the month's figures quoted, the increased deficit was attributed to this cause. Obviously enough, the board will not make any progress towards a balance of costs and revenue by continuing to undercharge passengers. Yet the indications have been, during the present board's tenure of office, that it is shy of this problem and will look a dozen ways before facing the fact that it is wrong to charge 3d for a ride that costs 4d and make up the penny with a rate. It is to be hoped that the newly elected board will be more courageous. Its decision to wait for 1937 before considering the general manager's revised schedule of fares may be mere procrastination; it may signify that the board is screwing itself up to the proper height of new year resolution. Unless the public is, against all reasonable estimate, careless whether the tramway system runs into insolvency or is lifted to financial stability, the result will be keenly watched. A full and frank discussion would do much to inform public opinion on such questions, for instance, as the sale of concession cards at losing rates, and the sale of weekly passes, the revenue from which is known but the trip-value and tripcost of which are not; and it will be useful if the board will ask itself, and tell the public, why the fixed section principle of selling rides is maintained when a more flexible one is more attractive and convenient.