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Higher Fares for Two Operators: Loss of Services Feared

1st July 1955, Page 52
1st July 1955
Page 52
Page 52, 1st July 1955 — Higher Fares for Two Operators: Loss of Services Feared
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Which of the following most accurately describes the problem?

LIIGHER fares have been granted to two small bus companies in South Wales and Yorkshire. United Counties Omnibus Co., Ltd., whose wage bill has increased by £142,000 in .the past two years, are applying for £85,000 a year more. Wolverhampton Transport Committee are to ask the council to propose revisions in fares_ In granting permission to Green's Motors to increase fares on some of their routes by 0.2d. per mile, Mr. C. R. Hodgson, chairman, of the South Wales Licensing Authority, said, at Haverfordwest, that in considering the application they had to take into account the importance of maintaining essential stage services.

Reasonable Increases

" We are always in fear that the operator may surrender his licence and refuse to operate services, over which we have no control," Mr. Hodgson said. "We are quite satisfied that we are carrying out the wishes of the Minister when we look at this and say that the increases are not unreasonable, and it will therefore be granted."

The application was opposed by three local councils.

An unopposed application for higher fares made by Messrs. Croft Motor Services, Croft, Yorks, has been granted by the Northern Licensing Authority.

Revealing ;hat the company's annual wages bill had increased £1.42,000 since June, 1953, Mr. Maurice Holmes, for United Counties, told the East Midland Licensing Authority, last week, that the proposed new fares would yield another £85,000 a year in revenue.

The company were applying for approval for a "fare basis on a logical mileage structure" for all their services.

Mr. Holmes said the £85,000 would be largely derived from an adjustment of single fares, but increases were also envisaged in the rate for concession tickets.

1114,160 Profit With the added revenue, profit before taxation in a full accounting year would be £114,160. That represented a return of 4.87 per cent. on the capital employed. It could not be said that the proposed fares would result in unreasonable profit.

Five local authorities objected.

Faced with an estimated loss of £47,000 in the current year, Wolverhampton Transport Committee are to ask the town council to apply for revised fares that would increase revenue by £67,000 in a full year_ During the year ended March 31 last, there was a net loss of £2,821 caused mainly by higher costs, a recession in traffic and bad weather.

The committee blame wages awards, and their cumulative effect on the wage bill as a result of excessive overtime B26 worked because of staff shortages, for the higher costs.

It is proposed to add id. to the 21d., 31d., and 44d. single fares, to adjust children's rates, and to abolish workers' returns.

Informing the city council that there was a net loss of £4,191 on the transport undertaking for last year, Cllr. L. H. Priestley, chairman of Lincoln City Transport Committee, said last week that a further increase in fares might have to be considered. The undertaking made a net profit of £4,768 in the previous year.

South Shields Transport Committee have rejected a proposal that old-age pensioners should be permitted to travel on the corporation buses at concession rates from Monday to Friday. At present, old people are permitted to travel free in specified hours on one day a week to enable them to collect their pensions.

The committee were informed that it would be necessary to promote a special Parliamentary Bill to extend the concession.

Walsall Transport Committee have been authorized to prepare for promotion in the next Parliamentary session a Bill which would give the council power to grant travel concessions to men over 65 and women over 60.

MORE PAY FOR EXAMINERS

PAY of driving examiners was being increased by about £45 a year and recruitment was being pressed forward, the Minister of Transport told Capt Pilkington last week. About 135,000 people were awaiting driving tests.