PASSENGER DECLINE

Press, Volume XCI, Issue 27679, 8 June 1955, Page 12

PASSENGER DECLINE

EXTRA MILEAGE BY BUSES

GENERAL MANAGER’S REPORT

Christchurch Transport Board buses covered 237,553 more miles in 1954-55 than they did in the previous year, but the number of passengers carried fell by 845,009. Commenting on the decrease in passengers, Mr J. F. Fardell. the general manager, in his report to the board yesterday said that in 1947 it had been forecast that the total passengers would drop to the 1942 level, and that had occurred. Part of the decline could be attributed to a coupling of a number of routes, where a through fare now counted as one passenger; but the main reason was the greater use of motor-cars, motor-cycles, powercycles, ani the rising growth of suburban shopping centres. “It is quite evident that the constant pressure and demand for more trips’and route extensions, if granted, can only result in increased expenditure without an adequate compensating return,” Mr Fardell said. “Mileage is a measure of service rendered, and It is most disappointing to see how poorly patronised are some of the extra facilities provided, in spite of all assurances to the contrary by their advocates. It is noticeable that some of the strongest critics concerning increasing mileage and the deficit on the undertaking’s operations are more often than not the strongest advocate* for route extensions and improved timetables, all of which worsen the matters about which they complain.” Caution about Future

The coming year must be approached with caution in providing extra facilities, he said, and a review must be made of existing timetables to find some means of reducing low revenueproducing mileage. A working profit of £13,251 was an improvement of £10,234 on the previous year, Mr Fardell said, but the “all m” costs exceeded revenue by £127,800. A loss was undesirable, but the year’s deficit was as good a result as could be expected when increased expenditure over which the board had no control was taken into account.

Loan charges increased by £14,910 in 1954 and by a further £15,987 this year. During the year loan repayments amounted to £87,749.

After setting out last year’s receipts and expenditure, Mr Fardell said each £ of expenditure was accounted for by 9s 7d in wages, Is in salaries, 4s in materials and charges, Is ,4d in fuel and power, and 4s Id in standing charges. Wage increases were reflected to a large degree in the cost of operations, said Mr Fardell. Recovery by revenue became difficult, and there was no optimum point in the matter of raising fares beyond which the law of diminishing returns accelerated, and anticipated yields were not achieved. Mr Fardel] said that until 1962-65 the new form of transport had to carry the debt charges of the old tramway system. This was a heavy burden with no return. Chairman’s Comment The chairman (Mr C. C. Holland), drawing attention to the decline in passengers and the extra mileage run, said that working expenses were 2s 6d a mile, so the extra mileage cost £30,000. The loss on the undertaking was regretted, but there was a worldwide pattern. All the three other main centres in New Zealand had shown losses on public transport services, he said. In Melbourne, there was a deficit of a little less than £239,000, in Adelaide £795,742, m Sydney £2,831,074, and in Newcastle £245,906.

He appreciated that the staff had worked hard, and he did not complain against the result, though the deficit was unfortunate, said Mr E. J. Bradshaw. However, there was room for improvement in timetables, and he considered that the coupling of services had been an unfortunate move. The timetable was now run to suit both ends of the service, whereas previously one paying run might have been possible. A review of the timetables must be made soon, because once a passenger was lost, he would not return to the service.