‘Fare charge will cover expenditure’

Press, 19 May 1982, Page 6

‘Fare charge will cover expenditure’

Passengers on the proposed Christchurch Transport Board routes formerly run by Midland Coachlines, will not be subsidised by Christchurch ratepayers, according to the board’s general manager, Mr M. G. Taylor. Mr Taylor said at a Transport Licensing Authority hearing yesterday that the fares planned for the three routes to Rangiora, Kaiapoi, and Southbridge would cover expenditure. People using the Transport Board buses in Christchurch are subsidised by ratepayers by 50 per cent. For the financial year to March 31. 1983, the board is seeking $7.4 million in rates and has an estimated expenditure of $l5 million.

Mr Taylor said’ the new routes would be a separate accounting exercise and as such, Christchurch ratepayers would not have to subsidise passengers on the three routes. “Money from rates are credited to people in the board area, whereas government grants will be given to all services because users are taxpayers,” Mr Taylor said.

Mr A. A. P. Willy, representing Travelfar Coaches, which is objecting to the proposed transfer of licences to the Transport Board, cross-examined Mr Taylor for several hours.

“Does it not concern you that Midland couldn’t run the service without a loss?" Mr Willy asked.

Mr D. W. Mcßeth, the New Zealand manager of the transport division of' Midland, had earlier told the hearing that his company had been running the services at a loss for several years and a loss

of $200,000 had been predicted for this year. Mr Taylor said the reason the Transport Board could take over Midland's runs was that it did not need to buy any new vehicles and that it could extend its running fleet from 159 to 166 buses with vehicles already belonging to the board.

“For several years, and since the finish of earless days, the situation we have arrived at today was on the cards and this is one reason we kept so many buses and therefore require no extra vehicles for this operation," he said.

Mr Taylor said that apart from an extra 22 drivers, no other staff would be required. Although the board would be buying three garages at Rangiora, Kaiapoi, and Springston, all repairs would be done in Christchurch. “We intend to maintain at least as good a service as the present operator does, if not better." Mr Taylor said. At the start of the day the Transport Licensing Authority (Mr D. L. Hogan) ruled against a submission by Travelfar Coachlines that the Christchurch Transport Board could not legally take over the three runs because it had to work inside its own district.

Mr Hogan said that Section 50b of the Christchurch Tramway District Act “specifically stated that the board could operate both inside and outside its district but that it could not strike a rate outside its district."

Mr Willy said that he accepted the Authority's ruling but reserved any rights to test the matter at a higher level if so instructed. The hearing enters its third day today.