Reading to Pay Cash for Buses
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FOR the first time in their history.
Reading Transport Department are to pay cash for new vehicles. Ten buses are to be bought this year from revenue instead of by capital loan.
Reporting this to the council, alr. David Stoddart, chairman of the transport committee, said that in AprilDecember last year the undertaking made an operating surplus of £54,000.
" Our policy will be to get rid of outstanding loan charges on vehicles as far as possible. We believe that vehicles are stock-in-trade and should if possible be bought from revenue. This is a milestone in our history.
" We should be able to finance our replacement programme without borrowing and I hope this policy will continue over a long period until all outstanding loan charges on vehicles are eliminated," said Cllr. Stoddart.
Cllr. J. S. Woodrow pointed out that during the period referred to, which followed .a fares award, the number of passengers carried fell by 23m. to 241m., but receipts rose from £353,000 to £408,000. Thus the undertaking were carrying about 10 per cent. fewer passengers at 25 per cent, greater cost.
He suggested that it would be better to give passengers some consideration and reduce some fares.
Commenting on the decision to lease the Bennet Road bus depot to the Southern Gas Board for 25 years, air. Stoddart agreed that the depot was a "white elephant," but said that the income in 25 years would be £160.000.
The department would still own a capital asset at the end of that term; the most they would get by selling it outright was £100.000.