CITY TRANSPORT

Evening Star, Issue 23725, 5 November 1940, Page 11

CITY TRANSPORT

REVIEWED BY CR GIBSON PROFIT MADE WILL DISAPPEAR Or H. L. Gibson, as chairman of the Transport Committee of the City Council, gave at last night’s meeting an interesting resume of the operations of his department for the past six mouths, and, in doing so, made it clear that the substantial- profit made during that period would inevitably disappear during the next six months, and the operations for, the full year show a loss. For the six months ended October 30, 1940 1 said Cr Gibson, the profit on the city ’electric lines was £6,728, as compared with £306 for the same period last year. The respective figures for the cable lines were £1,664 and £l2B, while the bus services showed a loss during both periods; this vear ot £1,250, and last year £(59. The net profit for the six months in 1940 was therefore £7,142, while in 1939 a loss of £325 had been made, an improvement of £7,467. The increased price or concession tickets on the city hues, together with economies effected by # reduced services during certain periods of the day on St. Clair, Anderson’s Bay, and St. Kilda routes had contributed-to this excellent result There were periods, said Cr when the revenue increased considerably in comparison with last year, owing to the rise in the price of concession tickets and from the .fact tha revenue was lost last year owing to the heavy snowfall. The petrol restrictions had also increased the number of passengers who had normally used motor cars. With the increased wages and increased cost of all materials, together with a decrease in revenue occasioned bv the sale of concession tickets on the trams—a loss estimated at £l,2UU—and other causes, the prospects for the remaining six months of the year were not bright. DECREASE IN PASSENGER TRAFFIC. The number of passengers carried from July 20 to September 13, 1939, said the speaker, was 1,564,472, and those from July 18 to September 11, 1940, 1,561,833, a decline of 2,589, which was equal to 16,833 in a year.. A steady decrease had been shown since the exhibition year, and there was. no immediate prospect of any improvement. _ • Costs, too, had increased considerably. Wages had increased by £7,800; materials by £1,700; and present war allowances by £1,500; making a total of £II,OOO per annum. The department had been fortunate to make ends meet, and it would also be fortunate if it could retain the present time-table and meet the added without asking the travelling public to pay additional fares. Had it not been for the extra cost of running, said Cr Gibson, some adjustment in the cost of concession tickets or restoration of the curtailed services would have been considered, but it should be obvious that such a course was not now possible. To reinstate a ten-minute service on the Normanby, St. Clair, Anderson’s Bay routes, and also revert to the ten-min-ute service to St. Kilda throughout the day, .and a half-hour service to Forbury. Pari," "would' 'Urt”'additional * expense to the department of £5,800 per annum. If the restricted service were retained from 8 p.ml to 10 p.m. only, the cost would be £3,946. Allowing for some additional revenue which might result, the loss would not be less than £5,500 and £3JSO per annum respectively.

PROFITS WILL MELT AWAY. Or Gibson estimated a loss of £6OB for the full year. During the next six months, ho said, the loss of revenue could be put down at £I,OOO, on war allowances £750; wages increase would take £4,000, and increased cost of material £2,000. This total of £7,750 more than absorbed the profit of £7,142 shown for the first six months. In order to restore the service generally £5,800 would need to be found, and a partial restoration would cost £3,946. This would necessitate striking a rate. The restoration of the trip ticket cuts would result in a loss of £12,000 for the 12 months. The chairman went on to express pleasure at the substantial increase in revenue from the cable services in spite of the fact that the fares had not been raised this year. No increase had been made in bus fares since the inception of the service in 1925, while several increases had been necessary on all electric and cable lines, xin advance in bus fares would be the means of bringing in extra revenue that would no doubt wipe out any deficiency in bus operation, but as long as the loss was not too heavy it was not considered advisable to make any increase, as the sparsely populated districts served by any form of transport must be run at a loss; arid the buses were providing that transport. In view of the facts set out, said Cr Gibson, it was recommended that, having regard to revenue and expenditure for the next six months, no alteration to the present fares and services be considered. Cr Gibson added that he desired to place on record the committee’s appreciation of the whole-hearted services rendered by the manager, engineer, and members of the departmental staff generally. THE ST. KILDA SERVICE. In reply to a suggestion made by the mayor, Cr Gibson said that to restore the original service to St. Kilda would cost an additional £2,776. The increase in revenue could be estimated at £3OO for all services, and of this at the outside £IOO could be credited to the St. Kilda and Forbury Park services. To restore a service restricted in the evening only would cost £2,166, and against this could be credited perhaps half the anticipated extra revenue. Cr Walls suggested improvements in the time-table. If the St. Kilda car turned round at Knox Church instead of at the Exchange the revenue, he believed, would be improved. Cr M'Crao also put in a strong plea for a revised time-table. “ I think the expense is over-rated and over-stated,” ho said. “ The anticipated revenue is also, in my opinion, underestimated.” The Mavor intimated at this stage that the discussion, an informal one, had gone far enough.