Municipal Transport Could be Priced out of Existence
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FURTHER wage increases could price municipal transport undertakings out of existence, the chairman of Nottingham Transport Committee warned the City Council last week_
Asking the council to approve an application for fare increases, the chairman, Aid. W. G. E. Dyer, said: "The Chancellor's appeal for a wage pause was never more clearly underwritten than it is in the position we are considering_ No question of profit arises in this industry. The latest wage increases bring about conditions which I think are accepted as reasonable_ " The only way, as I set it, in which they can become unreasonable would be to continue the inflationary trend by disregarding the Chancellor's advice. The consequence of that course of action upon this industry, which as I have already said is non-profit making, could be to price it out of existence."
He said that without the increase in fuel tax from the Chancellor's " little Budget" the undertaking had to face increased costs of £114,000 a year. mainly to meet wage awards. The latest increase in fuel duty had added another £8,000.
The vice-chairman of the Committee, Aid. Sidney Hill, chairman, Municipal Passenger Transport Association_ said the increase in the fuel tax was "The greatest smack in the eye we have ever had."
He said that fuel tax alone had cost the Nottingham undertaking £112,000 last year. He also said that during 1960-61 the undertaking lost 3.500.000 passengers or £45.000 in fares. "We have practically reached the limit to which fares can increase." he said, " We have 200 vehicles over 10 years old and 30 new vehicles a year will be needed for the next four years. Unless the cost of living is stabilized I cart see no hope of a settled transport undertaking for years. We are in dire distress."
The Council decided to apply to the East Midland Traffic Commissioners for fare increases of not more than Id. There will be no increases in fares for distances of less than 111 miles.
The Council also approved the purchase of 18 motor buses at a total cost of £121,823. They will be 77and 78seaters and will replace seven buses and 11 trolley buses.
The new buses will have front passenger entrances with driver-controlled doors. This, said Aid. Dyer. would be an added safety precaution. In the past 15 months there had been 413 platform accidents which cost the department £1,275.