A YEAR'S FIGURES

Evening Post, Volume CXI, Issue 105, 4 May 1926, Page 8

A YEAR'S FIGURES

TRAMS, BUSES. AND POWER

BUSES SHOW A DEFICIT

BENEFITS OF THREEPENNY FARE.

Figures as to the past year's working of the tramways and electricity departments of the City Corporation were made available for publication by the Mayor (Mr. C. B. Norwood) to-day. Briefly, the reports may be summed up <ag follows: —Tramway finances are considerably affected by the granting of the concession of the universal long distance fare for threepence; the Corporation bus fleet has not so far paid its way; the electricity department is upon a sound footing. As the returns do not set out what amounts have been placed to the reserve and renewal accounts, the full financial results of the year's working are not shown, and therefore, though the net surplus in the case of the tramways department (trams and buses) is shown at £3657 for the year, there are over and above this those sums set aside to reserve and renewal. In the same way solid provision for the future' is made each year in the case of the electricity department. In the first table the figures refer to trams and buses combined, in the second to buses only, including those running to Lyall Bay, and also the service which was given between Bunny street and Pipitea Wharf during the Winter Show and the visit of the American fleet. As the three-shilling concession cards are interchangeable between trams and buses on the Lyall Bay run, the number of passengers travelling with such tickets has been arrived at by calculation based upon a number of test counts made at various times.

It was plain, remarked Mr. Norwood to a "Post" reporter, that the granting of the universal long-distance concession fare had had a considerable effect upon the Tramway Department's finances, but he believed that the ex-' perience to date justified the concession. "Those tramway passengers who come in to the city from the further suburbs enjoy travel at the remarkably low rate of just under one halfpenny per mile," he remarked, "and there surely can be no doubt that such low fares directly encourage the development of the outlying districts. Once the second section is passed every passenger is on an equal footing as regards the fare he pays, and he can build his home on the site that appeals to him without being penalised by the higher cost of getting to and from the city. There has recently been considerable building activity in the further suburbs, and I cannot help thinking that that is very largely due to this concession. "It was estimated when the concession was granted that the result, financially, would be a loss against the Department of something like £15,000 per annum, but in reality the cost has worked out at about £18,000. The figures show very plainly that more people have been travelling, well over two million more passengers having been carried than during the previous year, and the effect of the concession upon the net profit has not in any way been disastrous, for there is still a net profit of £3657. LOSS UPON BUS SERVICES. "It will be seen that the buses to date show a net loss of £1265, but this figure is not a very good guide, as the buses have been running for only a very short, period. Buses have big possibilities in the opening up of sparsely, populated districts, but it is hardly to be expected that they will pay their way at first. Here, however, is a legitimate service for the development of such areas, and the policy will be pursued by the council to the extent of reasonable economic limits. Were the council to. run its buses side by side with its trams the loss on bus services would be turned into a profit, but only by reason of the business taken away from the tramway system. "It is too early to predict just to what extent our bus services will be developed, but the public can rely upon the council doing its duty as regards the giving of ss good a service as possible, while considering at the same time the effect upon the city's exchequer. ON A SOUND FOOTING. "In the Electricity Department considerable progress has been made,, and the change-over is well ahead, but it is a huge undertaking, and even at the present rate of progress it will probably be several years before it can be completed. "The net profit of £18,440 is very satisfactory, for this department, as iv the case of the Tramways Department, has made careful provision for a sufficient Eepairs and Renewal Fund, in addition to the Sinking Fund. I think the public may congratulate itself upon having a very excellent Electricity Department, for, due to the prudent policy of the council in the past, sound provision has been made in regard to reserves, and for that reason the department is not over-capitalised. CHEAPER HOUSEHOLD POWER. "The committee," concluded Mr. Norwood, "will in the near future consider a new schedule of charges for household lighting, heating, and cooking power, and these charges will automatically come into force in those districts changed over, but I am afraid that they will not apply to the areas still supplied under the old system."

TRAMS AND BUSES. 1925-26 1924-25 Increase £- £. £. Revenue 422,057 440,983 11,074 " orking expenses 331,328 314,314 17 014 Special expenditure 5,356 5,477 »i2i Capital charges ... 81,710 78,437 3 ''79 Net surplus 3,657 12,755 »9'o98 Percentage working ' expenses to revenue "••• 78% 7 4% 4% Revenue per mile ..™, 25.18d 28.47d «3.3d Vi orking expenses per mile run .. 19,77d 21.78d »2.01d Total passengers 42,C01,362 40,265,579 2 335 783 Total miles run 4,022,403 3,462,364 560,039 ♦Decrease. MOTOR BUS SERVICES. Receipts £5,851 Operating expenses and depreciation of buses at the rate of 13% per annum £7 _ 116 De°c't £1,265 Average receipts per bus mile 13.15d A^erago operating expenses and depreciation per bus mile 16d ELECTRICAL DEPARTMENT. 1925-26 1924-25 Increase £. S. £. Revenue 260,302 209,611 50,601 Working expenses .. 122,702 116,149 6,553 Special expenditure (charged to Revenue account) .. 52,421 20,520 31,901 Capital charges .... 66,739 52,997 13 742 Net surplus 18,440 19,945 *l,505 •Decrease. THE MAYOR'S COMMENT.