WELLINGTON TRAMWAYS.

New Zealand Herald, Volume LXIII, Issue 19320, 6 May 1926, Page 10

WELLINGTON TRAMWAYS.

PROFITS ON THE CARS. BUSES SHOW A DEFICIT. The of the resxilts of the working of the Wellington City Conncil's tramway department for the past year has been issued. 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. The Mayor, I'.ir. Norwood, in an interview, said 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 experience 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 lie 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 'Hiere has recently been considerable building activity in the further suburbs, and I cannot help thinking that.' this 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, lint in reality the cost has worked out ;it, about £IB,OOO. The figures show very plainly that more people have been travellings 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. ''lt. 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 ffie.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 as good a service as possible, while considering at the sarno time the effect upon the city's exchequer."