TRADING DEPARTMENTS

Otago Witness, Issue 4041, 25 August 1931, Page 72

TRADING DEPARTMENTS

RESULTS FOR THE YEAR. THE FUTURE OF TRAMWAYS. Interesting remarks are made by the town clerk in that portion of his annual report in which he deals with the financial results of the several departments for the year to March, 1931. “ When compared with those of recent pa\ years,” he says, “ the results are disa\>ointing, due in part to the acute trade depression under which the whole world is labouring at the present time: in part, also in so far as the Electrical Department is concerned, to the disastrous shortage of water during the early part of the year.

“ Dealing with the figures of the general account these show the total receipts as £240,590, and the outgo as £241,021, but after allowing for outstandings and when other items are adjusted we can claim to have lived within our means in respect of the ordinary transactions of the city’s maintenance. The total income due to direct rating is shown as £165,585. That includes the general and the hospital rates, and together are equal to 68.82 per cent, of the total income of this account. On the contra side, public works and sanitation absorbed £95.903, or 39.79 per cent, of the total outgo, as compared with £92,664, or 38.57 per cent., for the previous year.

“ When we come to the figures of the trading departments, however, in comparison with those of the immediate past years, we are met with great fluctuations, the final result being a net surplus of £44,802, as compared with £74,467 for the previous year. Briefly stated, the water account —which is, of course, not a trading department in the true sense—shows a satisfactory result, while the gas account has made up a little of the leeway it has shown in recent years, but is still a long way below the result it has shown in the past. The other two departments—the tramways and the electricity—are both considerably down on last year's figures, the latter to an extent that would be serious were it not for the special circumstances by which we were confronted. Added to the prevailing depression, the shortage of water at Waipori made disastrous inroads into the profit producing capacity of the undertaking. The urgent appeals to the consumers to limit their demands on the system met with a most gratifying response, and while this obviated the necessity of cutting off factories and other industrial concerns, thereb.v causing unemployment, it reflected itself in the accounts for the year. Then, to meet the situation so far as it could be met, the recently installed steam plant was run at full pressure. That assistance was timely and exceedingly helpful under the circumstances, but the cost of generation, as compared with Waipori-generated power, was excessive, and it is plain that the plant should be used only on occasions of great emergency, and then only as sparingly as possible.” Tables indicate the movement of the call on the income for working expenses, interest, and provision for renewals and depreciation during recent past years, and a comparison of the declared surplus in relation to the varying loan capital for each year A perusal of the figures in-

dicates the generally unfavourable position as compared with previous years, particularly in respect of the tramways and E.P. and L. branches.

3 he report continues: “There is every reason to hope that the latter of these two will recover its position during the coming year, at least to a great extent, but it -must not be forgotten that the yea fly charges on the heavy capital expenditure on the dam have yet to find a full provision in the account, and with the normal increase in the output considerably curtailed as the result of the depression it is more than probable that a few vears will elapse before full recovery is attained. “ It would seem, however, that in respect of the tramways the position is less hopeful. In common with tramway undertakings the world over, the difficulty seems to be to show any substantial increase

in income, while the costs of the service either keep up or show an inclination to increase. In this connection it is opportune to quote from the report of a recent

commission in England on the future of tramways. The commissioners reported, inter alia, as follows:—‘Our considered view is that tramways, if not an obsolete form of transport, are, at all events, in a state of obsolescence, and cause danger to the public. We recommend, therefore: (a) That no additional tramways should

be constructed, and (b) that, though no definite time limit can be laid down, they should gradually disappear and give place to other forms of transport.’ Commenting upon the contention that in large cities the tram is an essential methocl of transport, the commission continues: — ‘We believe this to be the case at the present moment in London. Glasgow, Liverpool. Manchester, and other large towns, where the volume of passenger traffic at certain hours is very great, but we cannot believe that even in these populous centres the present state of things is likely to be permanent. Improvements have been and are still being made in tramears, but the improvements

in motor omnibuses in recent years as regards comfort, capacity, design, reliability, and economical running have been sa remarkable that we feel certain that the time will soon arrive when the motor omnibuses, supplemented, perhaps, by new tube railways, etc., will be able to carry the public even in London and other big cities as expeditiously and cheaply as the tramcar. For. notwithstanding the advantages possessed by the latter, it possesses disadvantages so serious that we think it possible that had the motor omnibus been invented at the time when tram-

ways were first authorised, not a single mile of tramway would ever have been laid down. We are fully alive to, and do not attempt to minimise, the great difficulties which will be involved (in th<? change from tram to other means of transport). As has already- been stated, we have been informed that at the present time trams are necessary in certain large towns if the traffic is to be carried with any degree of expedition. We are not prepared to dispute this, but we maintain that there are, on the other hand, many other towns where trams are definitely not necessary. A start should be made in these latter places towards the ultimate abolition of tramways and the substitution of trackless cars or omnibuses,’ . _

It is well that expressions of opinion along the lines as set out above should not fall on deaf ears—at least they call for review in their application to our local conditions.”