COUNCIL DISCUSSION

Evening Post, Volume CXXVII, Issue 92, 20 April 1939, Page 20

COUNCIL DISCUSSION

RESUIIFS S^IdSFAC^ORY

The Mayor, Mr. T«! C A. Hislop, said that, all things considered, the year's . results were very satisfactory. Though, lor the purpose ok accounting, tram and bus operations kept separate, i trains and buses "were part of onej transport system. lApart from general transport problems, the department had had to face very heavy additional; charges and had! had to find some j £8000 in back wages tiirough ante-dat-i ing the rates paid«under the new tram-j way agreement. However, it had to i ,be remembered feat the tramway undertaking still had the advantage of] not having to puttaside the annual contributions to thes renewal fund, about £25,000 a year. '/The present legislation waiving that payment would shortly] lapse, and the council would have toj ' make provision to find £25,000 when that occurred. However, the results were very satisfactory and the management and sfa££ throughout were to be congratulated. He' hoped that the j past good feeing would continue in ■ the future. ; The ElectrJEcity Department had ended the yeapr with a net credit balance of £14,401, continued the Mayor. Though that was not so large a balance as those of ppst years, the Electricity Department had to put aside this year its contribution to the renewal | fund, a little over £.26>{)0®, and a larger j .payment had; been made to the Public Works Department for: power purchased. Considerable reductions had been made 'in charges to consumers, so that today Wellingtpn's domestic rates were |he lowest in New Zealand, and probably in Australia as well. BENEFIT OF RENEWAL ; r FUNDS. Councillor W. Appleton said that a • great part di the success of the tramway system had depended upon the substantial renewal funds which had been built-up, and if the people of Wel-

lington were getting the benefit of comparatively cheap tram travel now, that was largly due to prudence in the past. The system could not go on indefinitely unless adequate provision ■was made for renewals, and the possibility of an increase in fares'could, not be passed over. The wages bill alone had increased by £83,000 since 1936. Councillor A. Black said that in the past councils hadnot had the problem of the competition of the carriage of those who were really paying passengers in private cars.

The Electricity Department had shown a very fine result, said Councillor C. H. Chapman, and the officers and staff deserved the congratulations of the council for the economy exercised and the success of the years' working.

There was not very much margin of, profit, having regard to the large amount of capital involved, for it was no more than £ per cent, alter legitimate charges had been met, said Councillor T. Fbrsyth. While it was hoped that the Exhibition traffic would result in larger revenue, the position would have to be carefully watched.

Councillor P. M. Butler said that there was a tendency to suggest that the 1936 increase was distributed among the individual employees. He asked if <:oj lparative figures could be given showing the number of employees today and in 1936. The Mayor said that could easily be done. Obviously the Corporation had more employees all round under the 40-hour week. Practically the same number of tram miles were being coyered. A chart had been prepared covering the position from 1931. The whole of the expenditure of the Tramways Department every year was divided among these heads: traffic expenses (salaries in traffic), general expenses, general repairs and maintenandee, d the power expenses. The traffic expenses for 1936 were 60.2 per cent, of the total expenses. In 1937 they '■were 60.9 per cent, of the total expenses, in 1938 63.2 per cent., and in the year just ended 64 per cent. In 1931 the traffic expenses were 55.5 per cent, of the total, in 1932 58,2 per cent, in 1933 58.8 per cent., in 1934 58.6 per cent, and in 1935 58.3 per cent. • ,