Eastbourne and East Kent Granted Higher Fares
Page 39
If you've noticed an error in this article please click here to report it so we can fix it.
AST' week, the South-Eastern -a Licensing Authority granted new ire scales to two operators—Eastourne Corporation and Fast Kent toad Car Co., Ltd. The company perator referred in the course of the earing to an annual rise of £250,000 1 the wage bill and sought to add 0-25 per cent. to existing charges. A 3SS of £8,000 was expected in the curet year, rising to £12.000 next year. Almost every local authority in the oncern's operating area objected to the pplication. It was suggested that the 1 im. reserve maintained by the cornany and the shareholders' dividends of ecent years should be used as means or dealing with any deficit.
"In our view," said Lt.-Col. Gordon 7ucker, concluding the hearing of the rastbourne Corporation application, ' the proposals are eminently reasonble having regard to the level of costs 0-day. The only point we are troubled .bout is whether the proposed fares will troduce sufficient revenue."
Profit Embargo The suggested increases are expected
o bring in another £21,000 a year, and he Licensing Authority placed an ,mbargo on the transference of future )rofits to the general rate fund. In the fear ended March 31, 1950, £10,000 vas thus transferred, but in the current rear a deficit of £19,526 was expected; he reserve fund amounted to £24,000.
The new rates, which _come into dect next Sunday, are designed to qiminate odd -id. fares and limit the tvailability of concession tickets. Two South Wales operators were ;ranted modified rates, last week. The ;ompanies were South Wales Transport 20., Ltd., and J. James and Co., Ltd., Nnrimanford. The South Wales corn,any expected to increase revenue by r75,000 in a full year by the modificaions, which affect town services in iwansea and the surrounding area. Objecting to the increases, Swansea Corporation pointed out that last January the concern had been granted variations which increased revenue by £80,000 a year. Only a few weeks before that the company's ordinary shareholders had received £55,000 in dividends.
For the company, it was stated that costs had risen by £116,000 in the current year. The new proposals eliminated a number of fare stages and increased the rate for longer journeys and workmen's tickets. Additions to the cost of season and weekly tickets were refused.
Uniform Season Rates Decision was reserved when the application of the Rhondda Transport Co., Ltd., for a general fares increase was heard. It was stated by the Licensing Authority, however, that the proposed weekly and season-ticket rates would not be granted, as it was intended to reach some degree of uniformity in these charges in the South Wales Area.
The application called for revised rates based on two-thirds of a mile for Id., with a sliding scale and with an additional Id. for stages up certain steep hills. This year the concern expected a deficit of £53,450, but the new rates were expected to result in a surplus of £37,000 at the end of next year.
Later, the South Wales Authority granted the Western Welsh Omnibus Co., Ltd., permission to reduce fares in five places where anomalies had been created by the variation between the increased fares introduced by local operators. The reductions were between id. and Id.
Crosville Again Plans to produce an additional £268,000 a year as a result of higher charges on 640 fare stages were, last week, placed before the North-Western Licensing Authority by CrosviIle Motor Services, Ltd. The proposals called for Id. additions to tickets costing from 21d.-11 id., with adjustments of return tickets on a mileage basis. '
For the company, it was stated that since the previous application for higher rates, heard last October, costs had risen by £212,000 a year. Revenue was falling. In 1950, stage-carriage receipts were £71,000 less than in 1949. Agreement had been reached by negotiation with most of the 47 local authorities which had objected to the application.
South Shields Corporation has now produced a third fares modification plan. This calls for the abolition of daily return tickets, the reduction of the length of most stages, limitation of the concessions available and new rates for children. A loss of £28,000 is expected this year. Previous proposals of the corporation have been referred back by the Licensing Authority.
Aberdeen and Dundee Corporations. facing deficits of £109,984 and £50,990 respectively in the current year, have
adopted different attitudes towards the problem. At Aberdeen it has been decided to apply for new rates based on stages of 750 yds. on all routes, with a minimum fare of 11d, for two stages. If this plan were put into effect on October 1, it was stated at a recent council meeting, the accumulated deficit of the undertaking could be wiped out in three years.
At Dundee, no provisions for dealing with the financial situation have yet been accepted. A sub-committee has been set up to examine the situation. One suggestion made was that the reduction of 3m. in the number of passengers carried last year could be overcome if conductors were courteous and sought to carry one extra passenger per journey. This would increase revenue by £60,000—enough to cover the deficit.
Northampton Corporation is reviewing the Id. fare question. A deficit of £690 was incurred last year, and it is now proposed to raise fares, with a lId. minimum and half-mile stages.
Economy Measures
Lancaster Corporation is also to apply for higher charges, and Coventry Corporation has asked the transport department to consider the question of higher rates. So far, transport-department e co nomies evolved to deal with the £76,000 deficit in the current year would save only £35,000.
Increases amounting to 2d. on all return fares up to Is, lid. and 3d. on tickets costing over 2s, have been granted to 26 operators of services run to the works of the Austin Motor Co., Ltd., Longbridge. Application had been made for greatet increases (see page 672).
Swindon Corporation, having appointed a committee to investigate means for reducing expenditure and increasing revenue, is to apply for increases on all but the 14d, minimum rate, which will be valid for a much shorter journey.
Portsmouth Corporation introduced modified rates last Sunday. Protective fares granted to Southdown Motor Services, Ltd., were withdrawn on the same day.