Fewer using buses; costs doubled

Press, Volume CXI, Issue 32789, 14 December 1971, Page 2

Fewer using buses; costs doubled

Patronage of the Christchurch Transport Board’s buses fell 7.8 per cent in the four weeks to November 7, compared with the same period last year, the board was told at its meeting yesterday.

Running expenses rose 14.2 per cent, and the working loss doubled, from $18,258 to $36,663. Considering, the board no longer received a Government grant, the Situation was not as bad as it might have been, said the chairman of the board’s finance committee (Mr J. Mathison) presenting the report. But there was still a growing deficit, he said, “. . . . and I don’t know how we are going to get over it. We must encourage people to use the buses more.” Mr S. E. Boanas said the most distressing thing was the drop in the number of passengers. The report showed the board’s buses carried 100,965 fewer passengers in the four weeks—a 7.8 per cent drop. There was a rise of $11,004, or 9 per cent, in passenger revenue, but this was because of the fare increases which began in May. The $21,998 (14.2 per cent) rise in overheads was largely because of wage increases, the report showed, although increased fuel costs (price rises and the petrol tax) and such items as increased insurance costs also played a part.

The report said the board’s deficiency to date for the financial year was $340,990 worse by $123,902 than the deficiency at the same time in the 1970-71 year. OFFER REJECTED An offer to run the board’s services on contract was unacceptable, the board decided. The finance committee’s report said that Mr R. T. Shiels, who three months ago had offered to buy the board’s undertaking under certain conditions, had now abandoned this scheme and had offered to run the buses on contract. “It is quite unacceptable, and I think Mr Shiels is wasting his time," said Mr Mathison. The board was not interested in disposing of its business. Proposals made by the Local Government Commission were so important that more time was needed to study them, and a special meeting would be held in January to consider the commission’s recommendations, the board was told. The report of the works and traffic committee said the commission’s recommendation that the board eventually be absorbed in the North Canterbury Regional Authority was in line with current thinking on the formation of regional transport authorities. Such authorities would enable public transport in the regional area to be co-ordin-ated and integrated, which would lead to greater efficiency, the report said. It was noteworthy that the

commission had recognised that public transport would not be profitable, and must therefore have a precept on rates.

The committee noted its appreciation of the excellent way the commission had presented its proposals, the report said.