Buoyant Tram Revenue

Sun (Auckland), Volume I, Issue 119, 10 August 1927, Page 1

Buoyant Tram Revenue

Councillor Allum Discloses Improvement Over Four Months INCREASE OF £32,000

'TJOR the first four months of 1 the present financial year the tramway undertaking showed an increased revenue of £32,000,” said Councillor J. A. C. Allum, chairman of the Tramways Committee, to THE SUN this morning. ‘‘Last month the increase was £12,000, bringing the percentage of increase to 15 per cent, compared with last year. If last month’s figures are maintained our estimated income will be decidedly improved, and our position should be good.”

/COUNCILLOR ALLUM stated that last week income was £2,500 in round figures, 9r an increase of 23 per cent, compared with last year, while in the previous week £2,550 represented an increase of 27J per cent. A SPLENDID MONTH The first three months, with a 13 per cent, increase, had not been as good as was anticipated, and the reason for this was attributed largely to the effect of the community buses, but the fourth month, which saw the removal of that competition, was so good that it had raised the increase for the whole period to the 15 per cent, mark, on which the management based its estimates. If the traffic last month was an indication of what might be expected for the end of the year, then the position was much brighter. EXPENDITURE INSIDE ESTIMATES The number of cars on the road is substantially the same as last year, and a point of importance is that the expenditure to date is well within the estimates, though a large sum has had to be expended on bringing buses taken over from private companies into a condition complying with the Government regulations. The increase of £32,000 is made up of £21,500 on the trams, and £10.500 on the buses. “There Is a cry for information,” remarked Councillor Allum, "and I can assure you that we have nothing to hide, and will answer anything within our power.” NEW SCHEME FINANCES The chairman was asked to state the exact financial position expected under the new scheme. “As clearly as I can put it the position is this,” he stated: “Had the council adopted a policy of penny sections on the present sections, meaning a reduction of Id on all fares the decrease in revenue for the year would have been £170,000. It is anticipated that by adhering to the through fares, and reorganising the sections, adding one to all but the Onehunga route and cutting out the first section Id penalty, the decrease in revenue, under the new scheme, will be only £50,000.

The management anticipates that increased use of the trams, and increased concession fares, will reduce this by £16,000, so that we sum it up with an anticipated decrease of £34,000 in our income, on the year s estimates. We estimate, however, that our expenses will decrease by £29,000 by the reorganisation of the bus services, so that we arrive at our estimated loss of £5,000. “It is hoped that the fares will increase the popularity of the trams, and that eventually we will find no reduction in revenue has taken place, in which event the position of the undertaking will be obvious.” HENDERSON SERVICE "Is there anything in the rumour that the Henderson service of the G.O.C. Company will be discontinued?” Cr. Allum wgs asked “We don’t know what we are going to do with it yet,” he replied. “The company’s records do not enable us to determine the position, and we will run it for two or three weeks to see how it goes.” PRESENT BUS SERVICES “The policy laid down in connection with the new feeder and express services is that they must pay. and provide a necessary service, or their position must be revised,” said Cr. Alium. “In this regard their effect in providing passenger traffic for the trams will be considered. We believe tins bulk of the services can be made ft pay under the new scheme, though variations may be necessary. We will not run new services unless they either pay or are guaranteed or subsidised. “This does not apply to services where, but for bus competition there would have been trams years ago, but we consider that the people in the areas concerned have a right to the fares we have announced, though their continuance depends on the carrying of the £500,000 loan. “It is stated that enterprise can run these suburban services and make them pay, but no one has yet demonstrated that to be a fact, and the anxiety of the owners to force the council to take them over leaves us to form our own opinions,” concluded Cr. Allum.