Loss nearly $lm Govt aid for buses urged

Press, Volume CXIV, Issue 33527, 7 May 1974, Page 18

Loss nearly $lm Govt aid for buses urged

The Government’s failure to provide any significant relief for urban passenger transport operators was disappointing, said the general manager of the Christchurch Transport Board (Mr M. G. Taylor) yesterday.

The board’s loss for the year was up $92,741 to $960,514. The Government’s recent decision on diesel prices would raise the board’s fuel bill about $118,600 in the financial year ahead, and the 9 per cent General Wage Order would add at least $150,000 to the wages account for the year, said Mr Taylor. Another significant factor for the board, said Mr Taylor, was that at least s3m was needed to complete replacement of buses 20 years old or more, in addition to the $735,000 now being spent on 23 new buses. Commenting on the annua! finances presented to the board at its monthly meeting, Mr Taylor said that expenses continued to rise above estimates “ending $108,413 above the estimated figure. But this was more than off-

set by total revenue of about $139,716 above estimate, resulting in a net cost of operation of $31,303 lower than was budgeted.” This “pleasing result” resulted largely from a further increase in public patronage — the passenger count for the year was up 496,312. Passenger revenue for the financial year to March 31 rose $90,345, compared with an estimated decrease of $34,176, according to the ' financial report presented by Lady Macfarlane, in the absence of the finance committee chairman (Mr J. Mathison). About $61,382 of this revenue was attributed to the Commonwealth Ga m e s, although revenue had risen since then because of higher fuel prices, shortages of parking in the city, and congested streets. Other revenue earned by the board rose $116,058 or 107.3 per cent. This camel mainly from a rise in rents! revenue of $96,748 from the} new office building in ' Cathedral Square; special bus; revenue increased $14,516. This year the Government increased the urban public passenger transport grant to 200 per cent of heavy traffic fees paid, and consequently the board’s revenue from this rose $71,288. In the same period the board’s overheads increased $368,534 (14.8 per cent) over the previous year’s, mainly because of wage rises amounting to $200,000. In the last five years the wage bill has increased almost 100 per cent, the board was told. The report showed that the net cost of operations for the; year amounted to $744,762—an increase of $90,843 over! the previous year. Loan] charges rose $lB9B tol $215,752. The final financial result was a loss of $960,514 — up $92,741 on the previous financial year. Although, because of inflation, overheads rose $368,534 above the previous year’s, the expected reduction in patronage did not eventuate and so total revenue rose $277,691. During the last year passenger journeys increased 3.2 ner cent, and mileage fell 93,429 miles.