Increased Transport Board Rate

Press, Volume XCI, Issue 27680, 9 June 1955, Page 12

Increased Transport Board Rate

The increase in the Christchurch Transport Board’s special rate levy

from £llO,OOO to £129,000 should not greatly worry ratepayers, who have known all along that, until the old tramway debt is repaid, 'capital charges must be heavy. What will surprise ratepayers is that the board has had to reintroduce the ordinary, or general, rate, apparently to balance an estimated deficit in the working account. Although the amount of the levy, £ 12,000, is small, the necessity for a general rate is disappointing now that the

change from rails to rubber has been completed. Last year's increased, though small, surplus in the working account, for which the board and its officers deserve full credit, had encouraged the hope that the system was getting back on to its feet. Why this surplus should turn into a deficit of the same size should have been better explained at this week’s meeting of the board. It could be inferred from the comments of the general manager (Mr J. F. Fardell) on world transport trends that he expects the process of running more miles to carry fewer passengers—a

stage reached in Christchurch last year—to continue. He is supported in this by the figures for the first month of the current financial year, showing a decline of £ 159 in revenue and an increase of 9000 miles in running. That would account for his prudently budgeting for a £ 5000 decrease in revenue and a £20,000 increase in running costs. But elsewhere in his report Mr Fardell points to the remedy when : be writes of the need to review the 1 timetable and reduce low-revenue mileage. While the board finds it necessary to rate to balance the working account this should certainly be done. The ordinary rate . this year is small; but ratepayers / i

will hope to see it eliminated next year. Although this year’s total rate levy now exceeds by about £lO,OOO the levy three years ago. the average burden will not be much greater because there are many additional ratepayers to share it. Unfortunately, the uneven progress of revaluation means that ratepayers in the citjj will bear a disproportionate part of the, increase. However, it should be remembered that the working deficit would have been much larger if the board were still trying to operate all or part of an obsolete tramway system. The full benefit of modernisation will not be apparent until the old loans, costing some £50,000 this year, are finally paid off in the next few years.