A DIVIDEND FOR THE PUBLIC

Evening Post, Volume CXVI, Issue 145, 16 December 1933, Page 8

A DIVIDEND FOR THE PUBLIC

If legislative authority is obtained to suspend for three years contributions to the renewal fund accounts the City Council proposes to give the public the.benefit of lower charges for electric power and tram travelling. It was suggested some lime ago that the reserve and renewal funds were so strong that further strengthening might be deferred. This, however, is not a subject on which,a layman can give a final judgment. Difficult times and transport changes are liable to involve heavy calls upon reserve funds. On the surface, however, the tramway finance appears to be sound in this respect. Though the undertaking has shown debit balances aggregating £27,000 in six years (according to Councillor Chapman's statement) payments to reserves and renewals in the same period have been £221,934. We may assume, also, that the advice of the departmental officers has been taken before seeking authority to suspend the payments. If the suspension can be made without imprudence it is undoubtedly sound policy to give the public the benefit of lower charges. When there is ample money small savings are not appreciated; but any relief at this time is welcome. The method of distributing the relief appears to be fair. Domestic lighting consumers have had concessions, and they cannot complain now if an attempt is made to meet the business desire for a lower charge for commercial light. The lower charge for heating and cooking in private residences should give widespread benefit. There may be some objection to the selection of the single section for the new tramway concession, rather than reducing the cost of the universal ticket. But it should be noted that the concession has a twofold purpose: to give the public a benefit and to recover lost revenue. There is a much better prospect of achieving the latter aim by cheapening the cost of one-section rides than by giving the benefit at present to travellers over long distances. The proposed introduction of a shilling ticket reveals a practical understanding of public psychology. A shilling ticket is sold more readily than one' that costs eighteenpence, and the most careful person will travel more when the ride costs a ticket clip than when twopence cash must be paid. Of course, the proposed cut means, that the position of two- and three-section riders appears worse by comparison than that of travellers over short or very long distances. Two-section riders, indeed, are charged at the same rate as1 one-section travellers. When the council is able to distribute a little more largesse these nearsuburb residents should be considered. Most of them pay heavier rates because they live nearer to the city's centre.