CITY TRANSPORT LOSS.

New Zealand Herald, Volume LXIX, Issue 21132, 15 March 1932, Page 10

CITY TRANSPORT LOSS.

DEFICIT OF ABOUT £IB,OOO. SERIOUS REVENUE SHRINKAGE, EVENING TRAFFIC LOWER. A serious decline in tramway revenue has been experienced by the Auckland Transport Bo.'ird during tho past 11 months, and it faces a deficit for the year of approximately £IB.OOO, compared with a profit of £9ls in the preceding year, a piofit, of £BBB c: in 1929-30, and a profit of £1417 in 19:8-29.

The Transport Board's financial year ends on March 31. To March 11 the total revenue of the board's undertaking shows a reduction of £75,000 as compared with that of the ptevious year, while savings totalling £57,0')0 were effected in the expenditure, leaving a net loss of £IB,OOO. The figures ar<> arrived at after allowing approximately £44,000 for sinking fund and £107,000 for interest payments.

The position conforms very closely to that predicted by the manager, Mr. A. E. Ford, in his revised estimates presented to the board v.hen the fall in revenue became acute ha f way through the year. In August he estimated that revenue from all sources would amount to £617,177, as against £660,613 in the preceding financial year, a declin) of £43,466. Expenditure, he expected, vould amount to £635,873, compared with £659,748 during the previous year, a decline of £23,8(5. Ihe estimated defu it was £18,696. In October tho estimates were again revised. The manager then, anticipated that revenue would total .1595,973, representing a decline of £64,670 over the actual revenue for the previous year, and that expenditure would amount to £614,894, a reduction of £44 654, largely effected as a result of planned economies. The anticipated deficit was then £18,921. "Tho reduced business experienced by the board is common to all trading concerns," said the chairman, Mr. J. A. C. Allum, yesterday. "There has been a remarkable falling off in traffic during the ordin'ary slack hours of the day and also in What is known as amusement traffic in the evenings and traffic on Sundays. Although not surprising, the reduction in these classes <>f traffic is greater than anyone could hi.ve anticipated at the cud of last financial year. "Continuous endeavours have been made to reduce expenditure to a minimum. Fewer cars have been run and the employees in oilier branches of the service are being worked short time. It needs to be pointed out that in order to provide the maximum amount of employment within its phwer, the board has put in hand during the year a number of works which, under other circumstances, would have been deferred. The prosecution of these works has resulted, naturally, in additional expenditure."

Mr. Allum said the board was interested in obtaining data which might indicate the possible effect of introducing a penny fare in Quee.i Street. "I can state definitey," he added, "that no drastic alterations in the operation of the services are contemplated, as the board realises that there is; a minimum service below which it is nipossiblo to go."