NBC drives into profit
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BOTH State-owned bus companies — the National Bus Company and the Scottish Bus Group — are hoping to make a profit in the current financial year.
This was revealed to the House of Commons Select Committee and Nationalised Industries last week.
These profits are after receipt of local authority support and interest payments, and allow for depreciation.
However, National Travel has been incurring a large loss on excursions, tours and private hires, which has to be absorbed into the rest of the group.
This loss reached over £4m last year and "National" passenger carryings are at present in decline. Express services also lost a small amount.
Support from local authorities for NBC in the current year would total about £25,000 — about £11,000 less than requested — the Select Committee was told.
The shortfall in Scotland was about £2.4 million, with £5.2 million in support cash coming to the SGB.
Move into profit was said to be largely a result of higher fares charged by NBC corn panies. Passenger losses varied between 4.7 and 18 per cent in different operating companies.
The chairman of both companies commented on the disadvantages of carrying an ever-increasing capital debt, which had to be re-borrowed year after year and continued to mount up.
Uncertainty of obtaining continuing support for unprofitable services was also alarming.