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Decision Reserved On B.M.M.O. Fares

15th July 1960, Page 47
15th July 1960
Page 47
Page 47, 15th July 1960 — Decision Reserved On B.M.M.O. Fares
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Keywords : Business / Finance

Traffic Commissioners Throughout the Country Have Another Busy Week : More Cases to Come

DECISION was reserved by the West Midland Traffic Commissioners after hearing the application for fares increases by the Birmingham and Midland Motor Omnibus Co., Ltd., at Birmingham, last week. The company proposed to increase about half their fares, including those of workmen's, miners', stage and express services.

The application, based on the same mileage scale used when the company were granted an increase a year ago, affected thoSe fares which had remained below the mileage scale. A number of local authorities, a political organization and one ordinarypassenger objected.

Mr. S. Herington, for the company, said that an increased wage bill of £649,000 was faced. They made no complaint about the recent wage awards, and hoped that the extra wages would ease the grave shortage of staff. If the application were granted the company would receive additional revenue of £495,000, which would leave £154,000 still to be met.

To help meet this deficit the company were negotiating agreement revisions affecting services operated in the areas of a number of local authorities, The new arrangements would save the cornpany about £105,000. The outstanding £49,000 would be met by the company and possibly by increases in revenue from express services, said Mr. Herington.

Rural Rate Justified He said that the company felt justified in charging a higher rate on rural services because these were not so remunerative. In the last six months of 1959, 70 per cent. of services and 45 per cent, of the company's mileage had proved unremunerative.

The urban scale eliminated the -id. fare and started with a 24d. fare for 0.8 of a mile. Increases would range from not more than 6d. on adult single and scholars' return fares of over 8s., to not more than ld. on those up to Is. llid. inclusive.

The rural scale would start at 3d. per mile with increases similar to those on the urban scale. "Blanket treatment" of workmen's fares would add 2d, to present return tickets between is.is. 11-id., and 4d. to those of 2s. and over.

Mr. Richard Brandon, traffic manager, said that it was hoped that increased traffic would meet the outstanding £49,000 because traffic was no longer declining.

The company were asking rural passengers to pay a little more to reduce the subsidy made by urban passengers. Of workmen's facilities Mr. Brandon said, "Concessionary fares are increas

ingly difficult to justify. The cost of operating this type of service is higher than average."

After hearing objections the Commissioners reserved decision.

Applications for revised fares by Lancashire United Transport, Ltd., and their associated organizations, were granted by the North Western Traffic Commissioners, at Leigh, last week. The amendments will operate from July 25.

Mr. C. C. Oakham, general manager, stated that an estimated increase in revenue of £50,000 per year would result. But this would mean that a balance of £54,000 would still have to be met by the company to offset additional wage payments.

For L.U.T., Mr. J. Booth said that the last fares application had been in 1957. Following this there had been three wage increases which had cost the undertaking a total of £117,508. This amount had been met by economies, but additional increases, earlier this year, involved a further cost of £104,000. It was desirable to increase all out-of-scale concessionary fares, as this was considered to be the fairest way of distributing the burden. Single fares below the standard scale would be increased by Id. Several ordinary return fares would be raised, with a maximum rise of 4d. Workmen's concessionary fares would be increased by up to 3d, and schoolchildren's special fares would be abolished in favour of travel at half the adult rate.

The South Eastern Traffic Commissioners on Monday granted Maidstone and District Motor Services, Ltd., increases in fares ranging from id. to 3d., which will be introduced on July 24.

Eastbourne Transport Committee have recommended application to the South• Eastern Traffic Commissioners for fares revisions to produce estimated additional revenue of £10,000-£11,000. Higher wage payments, which would amount to £15,000 per year, are faced at the moment.

The Northern General Transport Co., Ltd., have applied for fare revisions on services jointly operated with Sunderland Transport Department, who obtained a grant recently. Northern General are also seeking parity with fares of United Automobile Services, Ltd., on the NewcastleWest Hartlepool route.

Shorter Fare Stages

A cut of 10 per cent, in the distance between fare stages and increases in children's fares, when they included an

odd will be proposed by the Thames Valley Traction Co., Ltd., when they apply for fare revisions, at Reading, today.

A proposal to increase Preston bus fares over 34d. by a further id. was rejected by the town council last week, after protests that the increase was unfair to residents living on the town perimeter. The resolution was referred back to the transport committee for further consideration.

Ald, F. Jamieson, chairman, transport committee, said that the proposed increase, which would yield approximately £15,000 a year, would meet higher expenditure on wages. The undertaking faced a deficit of £11,000 instead of a net surplus of £26,000 which had been expected.