FUTURE PROBLEMS

Otago Daily Times, Issue 25069, 10 November 1942, Page 2

FUTURE PROBLEMS

CITY TRANSPORT SYSTEM A SERIOUS POSITION The fact that serious problems would have to be faced by the City Council after the war in the maintenance of its transport services was stressed during a discussion by the council last night on the profit and loss accounts of the trading departments for the halfyear ended September 30. Cr M. C. Henderson, after referring to the reduced profit of the Electricity Department, said that this was due to the abnormal times through which it was passing. For the same reason the Transport Department's profit had increased. When normal times returned the positions would be reversed. Electricity would boom, and transport revenue would go down. The Mornington tram system was holding its own...but the other two cable lines were definitely going back, and the plant and the track were calling for more and more repairs. “ There are difficult times ahead for both the cable lines and the city tramway system,” he concluded.

‘‘The Transport Department must give all of us cause for considerable uneasiness,” said the Mayor (Mr A. H. Allen). The increased income was due to artificial conditions, but, unfortunately, the department was not showing a "proportionate increase in net income owing to its steadily increasing expenditure. “ What we have to visualise.” the Mayor added, “is that when the war is over we shall have a heavy shrinkage in income, but we shall be left with a high level of expenditure. I have been looking into the department's renewal fund and find that it is in credit to the extent of £59,617, against a capital cost of £468,522. Councillors must admit that this is a wholly inadequate credit, and it is unfortunate that at this time the department cannot earmark more of its income for maintenance expenditure.

“We must also admit,” the Mayor added, “ that the cars themselves are obsolete and are becoming more and more expensive. Yet we And that against a capital cost of £159,391 the renewal fund for the trams is £19,417. That amount is not sufficient to purchase two cars. I am drawing attention to this because the future position of the Transport Department seems very unsatisfactory.”