Move to stop bus fares rising fails

Press, 13 May 1987, Page 9

Move to stop bus fares rising fails

A move to use $1 million of the Christchurch Transport Board’s profit to stop proposed fare increases failed yesterday. The board had a profit of $1.3 million for the financial year ended March 31, 1986, and a board member, Mr Alex Clark, suggested the money be held over in general funds. “We should carry forward the surplus and make no further fare increases this year,” he said.

Mr lan Rivers said if the surplus was to be held over it should be used to keep the ratepayers’ contribution down, rather

than the fares.

“I fully support the user-pays policy,” he said. The finance committee voted to recommend that the board transfer the $1 million into the asset renewal funds to help pay for the new buses. Twelve more MAN buses are expected to enter service during 198788 at a cost of $300,000 each. The estimates for the coming year already allow for $1.7 million to be paid into the fund.

The committee also recommended an increase of 7.5 per cent in the amount contributed by Christchurch ratepayers. The $9.5 million this will

add to transport board revenue represents the largest single contribution. Passenger revenue is estimated to bring in $8.3 million, and the urban transport grant will add $4.6 million to the total budgeted income of $24 million.

The estimates provide for a 20 per cent fare increase from January, 1988.

Mr Patrick Neary said he sympathised with the idea of no fare increases, but the board could not milk the ratepayer, for ever.

“We don’t want to kill the goose that lays the golden egg,” he said.