D—6
traffic will probably tend to increase at a more rapid rate after the bridge is completed. The subjoined Table II illustrates the effect on surplus earnings of variations in traffic volume: —
Table II.—Surplus Revenue calculated on Basis that the Net Capital Cost is £2,500,000 as above, that Annual Expenditure is £145,000 as above, and that Traffic Volumes vary as shown hereunder
This table ignores increased costs of administration (toll-collection, &c), resulting from increases in traffic volume. The most important item in the annual expenditure is the interest to be charged on capital cost. For the reasons we have already given, we consider that the rate should be fixed at 4 per cent, per annum. The subjoined Table 111 shows the effect on annual expenditure of variations below and above that rate : Table 111. — Effect on Annual Financial Results of Variations in the Interest-rate charged on Net Capital Cost, where Net Capital Cost is taken as £2,500,000 and Annual Revenue is £146,000 as shoum above Interest-rate, Operating Results, per Cent. , £ 3 .. .. .. .. .. 26,000 surplus. 3| .. .. .. .. .. 13,500 surplus. 4 (rate recommended by Commission) .. 1,000 surplus. 41 .. . .. '.. .. ;':•' .. 11,500 deficit. 5 .. .. :.. .. : ... 24,000 deficit, We append a further table —Table IV—of comparative toll charges, from which it can be seen that the rates recommended by us, which we regard as initial rates only, compare favourably with those charged in other cases that we have cited. We recommend also that, as and when the revenue position permits, the Government reduce the toll charges as suggested earlier in this report, either directly or by the provision of return and other concession rates, or both.
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Daily Traffic Volume. Toll-paying Vehicles. Tollpaying Passengers. Non-toll-paying Buses. Total Vehicular Traffic. Revenue from Sundries. Annual Operating Result. Total. Cars. Trucks. 3,750 *5,000 3,000 4,000 750 1,000 12,000 16,000 375 500 4,125 5,500 £ _8| £ 35, ! 470 deficit 1,000 surplus 6,250 7,500 8,750 10,000 5,000 .= • 6,000 7,000 8,000 1,250 1,500 1,750 2,000 20,000 24,000 28,000 32,000 625 750 875 1,000 6,875 t8,250 9,625 11,000 m m m 161 37,470 surplus 73,939 surplus 110,409 surplus 146,878 surplus * Toll-paying traffic assumed by Commission for 1956. f Estimated traffic in 1965.