City Corporation is Given Authority to Increase Bus Fares

Otago Daily Times, Issue 27092, 28 May 1949, Page 6

City Corporation is Given Authority to Increase Bus Fares

Special Correspondent WELLINGTON, May 27.

Authority for increased bus fares is granted to the Dunedin City Corporation by a decision of the Transport Charges Committee, Unless an appeal is lodged, the decision will take effect from June 17. In granting increases as set out below, the committee comments that they will only slightly reduce the council’s rate of loss on the bus system. The committee says that Dunedin fares are already higher than those in most other centres and suggests that the chief means of closing the gap between revenue and expenditure could be a reorganisation of the services in the interests of the council, the users and the ratepayers with the object of reducing the amount of empty running and keeping the closest possible control on expenditure.

The council’s application to the committee was based on a desire to remove the present disparity between tram and bus concession fares, which was caused by the increase in tram concession fares granted by the Price Tribunal in November, 1948, and the substantial and growing loss incurred by the corporation in the operation of its motor services over the past five years.

“ Schedule 10, Lookout Point or Cor-storphine-Logan Park:—No representations concerning fares on these services were made to the committee, and the committee had proposed to approve the schedule submitted. Since the hearing the Dunedin City Corporation has applied for a variation in the route to meet the needs of the residents and the committee approves the fares submitted by the corporation for the altered service, the fares being substantially the same as the proposed fares for the old service. " Observation Tours:—The fares which have been charged in these services for some time are confirmed.” The committee announces that the Dunedin City Corporation will be asked to submit fare schedules in line with this decision for formal approval Only Slight Saving

The committee in its decision said: ' “ The corporation submitted that its increasing losses are primarily the result of the increased wages and improved conditions of the workers employed by the Transport Department of the corporation, of the extension of the bus services and of higher maintenance costs. Submissions made by the corporation are confirmed by the accounts for the 1947-48 and 1948-49 years, which were submitted in evidence by the corporations. “At the hearing no objections were raised to the proposed fares on the following routes: — Schedule 1. —Exchange-Kaikorai Valley, via Ross street; (2) ExchangeKaikorai Valley, via City road; (3) Ex-change-Maori Hill-Frederick -street; (4) Frederick street-Maori Hill; (5) Exchange-Maori Hill, via Wright street; (7) Corstorphine-Anderson’s Bay Cemetery, Saturdays and Sundays only; (12) Corstorphine-Hospital, Sundays only; 7 (13) Exchange-Shiel Hill; (14) emergency replacement of tram services; (15) Exchange-Anderson’s Bay, etc., Sunday mornings only; (17) Rattray street-Russell street; (18) St. Kilda-Anderson’s Bay Cemetery, Sundays only; (20) Saturday midnight buses; (22) Mornington-Maryhill. Sundays only; (23) Liberjpn-Glen-leith. The fare tables as submitted for these services are approved except that on route 3, which is a Sunday service, no concession fares shall apply. Disputed Fares “ With the routes on which representations were made the committee has decided as follows: “ Schedule 6, Octagon-Nairn street.— The fares and concessiosn tickets as asked for are approved. “ Schedule 8, Exchange-Kew.—The fares and concession tickets as asked for are approved except that there shall be a transfer ticket between the electric trams and motor buses transferring up or down on a 6d concession ticket which provides for 10 rides for 4s 6d. This decision largely covers users’ representations. “ Schedules 9 and 11, Octagon-Wa-kari (inner and outer circle).—lt would appear that the circular route gives residents a better service than if the buses went as far as McDonald’s and returned by the same route. The fares as applied for are approved ex.cept that there shall be a five return trip ticket for 4s for use between the Octagon and McDonald’s. “ Schedules 16, 19 and 21, Roslyn Mill Services.—The argument concerning these services largely centred on whether the services should be defined as special services or regular services and whether an additional Id over and above the regular fare should be charged. The committee agreed that (1) where mill buses have been running over the route on which a regular bus service is run such service ■is not a special service and the fare table applicable to that regular route shall apply; and (2) where the mill bus provides a service to the mill staff to travel to the mill without changing buses, as they would have to do if no mill bus were run, such service can be regarded as a special service. Likewise, the service running over the route on which no regular services are operated during the working week can be similarly regarded. “Where services to the Roslyn Mills falls within the definition of service under (1), the- above fare schedules are fixed at those now approved for the relative regular services. The fare schedules on the services under (2) above are approved as applied for. “ Schedule 24, Mornington-Elgin road, Mornington-Belleknowcs and emergency service MorningtonMaryhill. The fares as proposed on this service are approved with the provision that between Mornington road and the city, Mitchell avenue and the city and Belleknowes and the city, the 5d concession ticket (12 rides for 4s 6d) can be used as a transfer ticket between the cable car and the bus on the up journey and the 4d concession ticket (10 rides for 3s) on the downward journey. This meets substantially the objection of users to the Id additional cash fare authorised between Mitchell avenue and Mornington road.

The committee states, “In making this decision we have been guided by the fact that the revenue that will accrue from the fare increases will only reduce slightly the estimated loss of £21,565 being made on the bus services. We have compared the working expenses of the motor bus section of the Dunedin City Corporation with those incurred by the motor bus department of other municipal authorities, and, having regard to the nature of the terrain covered by the buses of the Dunedin City Corporation, a comparison shows that the working expenses of the corporation are comparable. “ On the other hand, compared with the working expenses of private city operators throughout New Zealand, even allowing for differences in terrain, the working expenses of the Dunedin City Corporation are very high. . From the following table, which is for one week ended on May 8, 1948, and which, though possibly not conclusive, is the only guide as to the position submitted by the corporation, it would apear that only one of the regular bus services is paying its way:— ' Revenue per • vehicle mile, d. Rattray street-Kaikorai .. 22.14 Maori Hill 22.47 Maori Hill-Frederick street 24.86 Wcfkari 25.22 Kew .. .. 23.03 Lookout Point-Dundas street 19.37 Shiel Hill 18.71 Russell street 32.10 Liberton-Glenleith .. .. 17.56 Mornington 17.77 “ The corporation’s total operating cost for the nine months to December 31, 1948, is 29.45 d per vehicle mile. “ While all the individual services of such an enterprise cannot be expected to pay their way, some must do so,to achieve balance, or relief must be available from other transport services of the corporation or from its general funds,” says the committee. “ Having regard to the fares being charged, the gross revenue figure of 22.31 d per mile submitted by the corporation for the nine months to December 31, 1948, is lower than the' committee would have expected. This relatively low revenue, associated with the high fare level, indicates the probability of a great deal of empty or nearempty running on most of the services Empty or near-empty running may be due to (a) substantial one-way peak loading at particular hours of the day, (b) extension of the bus services to districts which are in course of being developed, (c) duplication of bus services with tram and cable car services over particular routes, or (d) more frequent services than the traffic warrants “ While some of this running may be unavoidable, it appears from the figures that a substantial part of it could be eliminated, and the committee is of the opinion that attention to reorganisation of some of the services would be in the interests of the corporation, the users of the bus services and the ratepayers. This is particularly so for the reason that the committee questions the desirability of further increases in fares because of the danger of the fares having reached the marginal point beyond which any increase would probably result in loss of traffic. “ Reorganisation of the services with the aim of, reducing bus mileage without any material decrease in the overall traffic carried, together with the closest possible control of rising expenditure. appear to be the main avenues by which the gap between costs and revenue can be closed. This decision is to take effect from June 17, 1949, unless before that date an appeal against it is lodged with the Transport Charges Appeal Authority.”