TAXI FARES

Otago Daily Times, Issue 26719, 13 March 1948, Page 6

TAXI FARES

INCREASE IN OPERATION DRIVERS DISSATISFIED As from midnight last night taxi fares in Dunedin were increased by sixpence in all except the central city zones. The increase of fares by this amount was recently recommended by the Metropolitan Transport Licensing Authority. Taxi drivers are, however, far from satisfied with the recommended increase and maintain that the fares are still not high enough for them to conduct their businesses on reasonably economic lines. It was pointed out to the Daily Times yesterday afternoon that the fares now are lower than they were in 1930, when running costs were only a fraction of those prevailing today and that, allowing himself a wage in accordance with the rates payable to employees of taxi firms, an . ownerdriver would still show a loss on his running. , , A specimen profit and loss account for an owner-driver over a period of one year was shown to the Daily Times by the principal of a taxi business and, on the basis suggested, which is reckoned to be as reasonable and equitable as possible, an owner-driver would show a loss of nearly £l4 on his year's operations. The account assumed that the driver travelled 21,000 miles in each year at 14 miles per gallon. Allowance was made for 21 oil changes, a tyre life of 8000 miles for new tyres and 6000 for recaps, servicing, depreciation at 20 per cent, a

year on a £650 vehicle with a useful life of five years, wages at £8 per week and sundry other unavoidable expenses. The wage. rate was justified on the grounds that employees of taxi firms receive £8 a week for a 48-hour week and £9 2s if they work on Sundays. This estimate, which contains no apparent flaws, was prepared by Mr H. W. Newall, and is now in demand by Government departments and other bodies interested in the taxi industry. Some concern as to the position of rehabilitation loan operators was expressed yesterday as the estimate makes no provision for the repayment of loans on cars, many of which are on the basis of repayment at approximately £2O a month.