CHARGES REDUCED.

Star (Christchurch), Volume LXIV, Issue 834, 7 August 1933, Page 7

CHARGES REDUCED.

Refreshment Rooms on the Railways. SALES OVER COUNTER In a statement to-day, Mr H. H Sterling, chairman of the Government Railways Board, said that at its last meeting the board had given very full consideration to the results that had been achieved in the last financial year in the operation of the Department's refreshment branch. The net result showed an increase in the profit on the year’s work of £1247 as compared with the previous year. This had been achieved notwithstanding a drop of £12,728 in the i* venue. While this position could be regarded as reasonably satisfactory, the board had given considerable thought to the question of further improvement- The board was satisfied that on the ex penditure side the achievement of last year left very little to be looked for in the way of further reduction m costs. The fact, however, that such a substantial reduction of expenditure had been obtained last year directed attention to the question as to whether the reduction in production cost might not justify some modification of charges. This question led to the further thought that possibly the revenue side might be improved by a stimulation of business following some adjustment of prices. The board, added Mr Sterling, was fully seized of the fact that in recent times there had developed a body of public opinion which considered that a reduction of prices could be made to advantage. The board was aware that comparatively recently an experiment had been made in the direction of reducing the charges for set meals in an endeavour to stimulate the business. The action that had been taken in this connection had, however, not had the desired result and the original charges had had to be restored as the business of the Department was not in the position to carry the continuing loss. Scale of Reductions. More recently public opinion had been centring around the charges made for refreshments served over the counter, and the board, after consideration of all the factors, felt that it would be justified in making a reduction in the principal items of consumption in this category.

The board had, therefore, decided that the price of tea, coffee and cocoa should be reduced from 4d to 3d per cup, and of sandwiches from 4d to 3d each. This would, of course, involve the Department in some loss at the outset, but the board felt that the experiment was worth while -with a view to exploring the possibilities. It was the board’s policy to endeavour to provide all its services at the very lowest possible cost commensurate with sound business operation. and it hoped that the public appreciation of the board’s decision as now announced would manifest itself in such a stimulation of the business as would maintain and possibly improve the financial return to the Department and at the same time afford a greater measure of service to the public.

The alteration in prices will be brought into operation on Sunday, August 13, 1933.