THE TRANSPORT BOARD.

New Zealand Herald, Volume LXVIII, Issue 20901, 17 June 1931, Page 8

THE TRANSPORT BOARD.

From the various estimates submitted to the Transport Board yesterday, it appears that maintenance of the present services at existing fares and wages would involve a loss on the year's operations of £39,559—due to an increase in expenditure of £5865 and a reduction in revenue of £34,610. The chairman advised the board to remedy this situation by the adjustment of certain special appropriations, by which a saving of £11,365 would be effected, and by a uniform reduction of salaries and wages, representing for the remaining nine months £27,633. By this means, expenditure would have been brought down to the estimate of revenue. Mr. Allum further invited the board to reduce concession fares to the extent of £10,173 for the nine months, "with a reasonable expectation" of meeting the consequent deficiency by some improvement in earnings and further economies. This was at least a comprehensive programme deserving serious consideration by the board. A majority of the members, however, simply brushed aside the estimates, and, without the slightest regard for the state of the board's finances, which is obviously critical, or for the interests of the general public, insisted upon an arbitrarily determined rate of reduction in wages. Its effect would be a saving in nine months of £16,300, leaving a deficit of £23,000. If the board accepts the chairman's proposals in regard to special appropriations, the deficit would be £12,000; if it reduces concession fares, the shortage would be increased to £22,000. The last figure is the decisive one for practical purposes obviously it is too large to be covered by such improvements upon the estimates as may reasonably be expected. By considering only one part of the problem, the board has therefore placed itself in a dilemma. The difference of £11,300 between the uniform cut of 10 per cent, and the partial cut must be provided by reducing expenditure in other directions—by curtailing services, involving staff retrenchment —or by abandoning any idea of reducing fares. If the accounts are not balanced the board must resort to its rating powers to supply the deficiency. Neither solution will command either respect or approval from the general public.