Board may buy time to revamp services

Press, 7 May 1986, Page 9

Board may buy time to revamp services

By

LEE MATTHEWS,

transport reporter Increasing rates and bus fares, and using a $2 million surplus accumulated in recent years may buy the Christchurch Transport Board a year’s breathing space to revamp bus services. Estimates showed the board’s costs were expected to be $20.25 million this year, up 14.5 per cent on last year, the board’s finance and administration committee was told yesterday. Rates would have to go up 14.5 per cent and bus fares 25 per cent before goods and services tax was implemented, to help cover extra costs, said the board’s assistant general manager, Mr Ross Gibson. This rate increase meant that a typical ratepayer, living in a property valued at $122,000, would pay $169 in Transport Board rates this year, compared with $l4B last year.

A date when bus fares will go up has not yet been set The board’s $2 million accumulated surplus

would also be used this year. Buying new buses to replace uneconomic vehicles would take $1.5 million, and the other $500,000 would be put towards running costs, Mr Gibson said. Increasing rates and bus fares and using the surplus would “buy the board 12 months” to restructure, said the general manager, Mr Max Taylor. Savings possibly could be made this year, but the board had to budget for the worst se that costs could be covered. This year’s estimates would let the board continue as in previous years, but Mr Taylor warned there had to be restructuring. “Twelve months from today we will be looking at estimates for an organisation which may have to be quite different from the one we have today,” he said. Every aspect, from staff to bus routes, would have to be examined to see

what sort of organisation the board would have to become, he said. The increased costs have been brought about

by bigger wage bills, cuts in Government subsidies, and increased costs for goods and services. Wages and salaries are estimated to rise 19.9 per cent to $13,280,000 this year. This would allow for a wage rise of 12 per cent in the November wage round.

Another sundry expense was incurred by local body elections, Mr Gibson said. Holding an election for board members this year would cost $llO,OOO. A board member, Mr lan Rivers, said he hoped the staff and board would work to reduce costs as soon as possible. Mr D. G. Cox said he thought the board should be looking at spending to generate more income, as well as at cutting costs. Aggressive marketing was. needed to sell the board’s charter services, as income from charters was estimated to be about $lOO,OOO less than last year.

The committee decided to recommend using the estimates as the basis for the board’s budget for this year.