TRAMWAY FINANCE

Evening Post, Volume CXXXIX, Issue 92, 19 April 1945, Page 9

TRAMWAY FINANCE

A SERIOUS POSITION

REVENUE DOWN, COSTS UP Concern and alarm were expressed by councillors at the meeting of the City Council last night at a report from the general manager of the tramways department (Mr. L. B. Hutton) upon the deteriorating finances of his department. Most of the speakers expressed the opinion that the council must consider increases in fares. Mr. Hutton gave the following figures:— 1944-45. 1943-44. £ £ Revenue 645,302 675,372 Working expenses 470,523 455,045 Depreciation 6,024 7,335 Capital charges 159,623 159,624 Special expenditure ' 5,287 6,572 Total expenditure 641,457 628,576 Credit balance 3.545 46,796 The significant figures are that there has been a drop in revenue of £30,070 and an increase in working expenses of £15,478. By comparison with 1943----44. this gives an adverse total of £45.000." stated Mr. Hutton. "The bus revenue is stable compared with last year, and there has been a 15 per cent, decrease in depreciation, which reduces the bus debit to £6203. « THREE MILLION FEWER FARES. "The number of passengers carried dropped by approximately 3,000,000, which is equivalent to about 8000 per day; and if these are averaged at 2.5 pence per ride it accounts for roughly £30,000, and the extra drop in credit is made up by the £15,000 extra working expenses. "The indications for the future are: (a) Fewer passengers; (b) higher working costs, especially as the figures do not represent a full year under, the award of November, 1944; nor can we forecast what additional costs there will be following on the Arbitration Court's decision on representations made to it by the union on April 18, 1945.'" ELECTRICITY DEPARTMENT. Figures for the electricity department are: — 1944-45. 1943-44. £ £ Revenue 505,023 498,689 Working expenses 338,257 325,060 Capital charges ........ 134,102 133,034 Special expenditure '26,802 *1.944 Total expenditure 499,161 456,156 Credit balance 5,8#2 42 533 ♦Credit. "There has been a slight increase in revenue, due to increased unit sales, but it might be pointed out that, for the extra 3,000,000 units sold, we have received far less than the average revenue. This is largely on account of the statutory restrictions on certain types of business," Mr. Hutton reported,. "Working expenses are up, and this figure includes an increase in the power purchased. The £25.000 appropriated for slum clearance-has further reduced the credit, balance, which stands at £5862." The position was rather alarming, said Councillor F. W. Furkert, chairman of the tramways committee, for the tramway department stood to lose £45,000 through the drop, in revenue and the increase in working expenses In the coming year working expenses must increase still further. The electricity department accounts were "not so bad." but the position there also was going back. It was anticipated that restrictions on the use of petrol would be eased in the fairly near future, and that would further complicate the finances, said Councillor W. J. Gaudin. War workers too, would probably leave Wellington for their own home towns when manpower regulations were eased. The alternative means of public transport which Mr. Hutton had investigated in Australia might be the means of easing the situation. RISE IN COSTS. The drop in revenue was not unexpected, said Councillor.W. H. Stevens, but the council should note the great increase in, working expenses. Last year was a peak year, thanks to the presence of a large number of servicemen, but working expenses Radgßne up as well as revenue, and unfortunately working costs, once risen, tended to remain high; on top of which would be the effect of the Court's order, meaning a further increase of £8000 or £9000. The tramways committee would have to face the question of increasing fares, for they could not po on losing money month- after month. GROSS OVERCROWDING. At certain hours trams and buses were grossly overcrowded, the reason given being that there w»s a shortage 'of rolling-stock, said Councillor M. Fraser. When conditions returned to normal passengers would demand an imnrovement. The Mayor said that the difficulty was the shortage of man-power, not of rolling-stock.' Whatever the reason, said Councillor Fraser. the fact was that trams were grossly overcrowded and that morp facilities must be given, but that would mean that though revenue would, be stable, costs of operation would go up. He felt that citizens as a whole appreciated the great difficulties under which the department had worked in giving them the service that had been given. Councillor R.^A. Wright agreed that Councillor Fraser's forecast was correct, but if the council proposed to increase fares would the Price Tribunal agree? He was certainly not in favour of putti'vlo, trams on +he rates. Councillor Luckie thought that the council must consider increasing the fares: people were earning more money and the v^lue of money "had dropped. Councillor Furkert said he -agreed with e\'erything that had been said "bout giving better transport, but the fart would he that every additional vehicle would mean an additional outpoing. \t had to be realised that when the department had to pay more for every onp of its reouirements and services, natrons must also pay in like proportion. No decision was made as to means of increapincr rpvenu^.