CHEAPER CHARGES

Dominion, Volume 27, Issue 70, 15 December 1933, Page 10

CHEAPER CHARGES

Electricity and Fares REDUCTION APPROVED Decision of City Council Because of the sound position of the electricity and tramways departments a recommendation was approved by the City Council last night that, providing that legislation obviating the necessity of renewal funds was passed, reduction should be made in certain of the electricity charges to consumers. A similar recommendation for a cheaper short-distance tramway fare was also approved. The proposed cheapening of electricity involves a reduction in the commercial lighting tariff of 33 1-3 per cent. Domestic cooking and heating charges are expected to be reduced by 25 per cent. The tram fare reduction consisted of a cheapening of the single section concession tickets by 20 per cent. The Jlayor considered that the legislation required before it is considered economic to make the reduction would be passed shortly. Details of Proposals. The recommendation, which was presented by Mr. JI. Cable, general manager of tramways, was as follows:— “In anticipation of the legislature before the close of the present session sanctioning the council’s application for the suspension of the provisions in the Wellington City Trading Departnients Reserve and Renewal' Fund Act 191 t and its amendments. ... I consider the time now opportune to formulate proposals whereby the relief obtained to the finances of the two undertakings can best be passed on to the public. After giving the whole matter the very fullest consideration, I have to recommend strongly the following proposals:— “Concerning the electricity department, that the commercial lighting demand tariff adopted by the council in August last . . . fixing the price for the low rate units at a penny halfpenny instead of a penny per unit as being the highest concession then considered prudent to grant, should be improved by bringing the price of the low rate units down to one penny. This would be in conformity with the demand tariff in force in the two southern centres. “Also that, with a view to promoting the greater use of electricity for beating and cooking purposes in private residences, the domestic tariff should be improved by reducing the one penny rate units to three farthings. “It is estimated that these two reductions in the tariff will represent a concession to the public of Wellington of about £20,000 per annum. I recommend that these alterations should apply to all accounts rendered on and after February 1 next Tramways Department. “A thorough investigation of the tramways passenger traffic reveals the fact that the greatest falling off in the number ■ of passengers carried during the past three years has been in the one-section riders. In order to bring about a revival of the department’s business it is desirable that a more attractive fare_should be adopted to stimulate a greater use of the cars by short-distance riders. I have to recommend the following proposal:— “The introduction of a 10-trip onesection concession ticket at the price of one shilling, which represents a 20 per cent, reduction on the existing concession rate and Is equivalent to about £15,000 per annum. “This ticket, which would be sold on all cars, would take the place of the present 1/6 12-trip ticket and as the rate per section would work out slightly more favourably to the twosection users than the 2/6 12-trlp blue ticket, it is therefore proposed to withdraw the sale of these two tickets when the new ticket can be made available, which would be about the middle of January. ' “With the adoption of the new fare the concession fare scale.available on the tramway system will be as follows; Average

“The above proposals are put forward on the clear understanding that the renewal fund legislation will be obtained by the council.” Reductions Justified. In moving the adoption of the report the Jlayor Jlr. T. C. A. Hislop, said the question of reductions in the charges had been engaging the attention of the Tramways and Electricity Committee for some time past. The two departments concerned had been put in such a sound position that it had been considered that ' there .was full justification in asking that the provision for renewal funds should 'be removed for a period/of years. It was anticipated now that the necessary legislation would be shortly given effect to, and then it would not be necessary to put aside sums for 'renewals, and then, a considerable, sum would be freed. The reductions recommended in electricity charges would stimulate d.mand very considerably. Regarding the tramways reductions in single section tickets he thought the experiment would be well justified. Cr. R. JlcKeen, in seconding the motion, said he considered it a very good move for the City Council. He thought the time was now nearer when penny tram sections would be used. Cr. P. JI. Butler also congratulated the committee on the report, saying that the reductions had been long needed. “Action Overdue.” Cr. C. H. Chapman said that it was past time for the electricity charges to be reduced, and citizens were justified in . demanding cheaper rates. Cr. R. Semple said he was not complaining about the money taken out of the electric lighting fund for unemploy-i ment, but he was glad that the consumers were about, to be given some benefit. He advocated the selling at reasonable terms by the department of equipment, which would be an incentive to the using of electricity. ' A differetn view was taken by Cr. Forsyth, who said that he did not think revenue would be increased by cheaper fares. The 3/6 concession was excellent value, he contended. The report was adopted unanimously.

Per section. per mile. 1 section 1.2d 2 sections . .... 2.4d .96(1 3 sections . .... 3.5(1 .93d 4 sections . 3..5<i .70d 5 sections . .... 3.5d .55(1