Diesel rise-$140,000 more for buses

Press, Volume CXIV, Issue 33514, 20 April 1974, Page 16

Diesel rise-$140,000 more for buses

Diesel price rises in the last three months will mean an extra running cost of about $140,000 a year for the Christchurch Transport Board’s fleet of buses.

Yesterday’s increase of 7.12 c a gallon for diesel will add $72,000 to the board’s fuel bill and the “oil crisis surcharge” approved by the Government on January 24 added about $68,000. This hefty combined increase, however, will be comparative “peanuts” to the amount of extra expenditure the board will have to face in meeting the 9 per cent general wage order announced yesterday. About 70 per cent of the board’s outgoings is on wages; the fuel bill is a relatively minor expenditure. Just how the board willj meet the extra demand for income will not be known until after its budget review.! just getting under way at the! moment.

an increase in support from ratepayers. Both will be distasteful to the board. An increase in fares always results in a drop of about 7 to 10 per cent in passenger loadings, and it has been only over the last six months that the board has been able to report any significant increase in public use of the buses. Obviously, if fares can be held while the running of private vehicles continues to become more costly through increased petrol prices, passenger loadings will increase on the Buses even further, to the board’s benefit. But the alternative—an in-! creased rating—is unlikely to I find much favour with board! members in an election year.. The ■ solution, unless a Gov-1 ernment subsidy is forthcom-j ing. its likely to be a mixture! of both.

There are two options—an increase in passeriger fares or