Eastern area Commissioners refuse threshold increases
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APPLICATIONS to increase fares to cover the cost of payments made under threshold agreements were refused by Traffic Commissioners in Cambridge last week.
In similar applications Eastern National and Southend Corporation sought to increase fares by lp and 2p. Presenting the case for both operators, Mr C. R. Kaile, told a joint sitting of Metropolitan and Eastern Area Commissioners that Eastern National had to pay £44,000 for each threshold stage paid. There had so far been six stages and another three were possible. This, with other costs, meant that the company had to raise £651,000 in a full year.
Referring to Southend, Mr Kaile said that in the six months since the last application costs had risen to an additional £63,160 of which more than half was due to threshold awards. It was necessary to raise £128,000 to reverse the situation.
Objecting to both applications on behalf of local authorities. Mr M. McMullan said that both operators had asked for too much — Eastern National by £66,000, Southend by a higher percentage. His clients did not object to the companies recovering their additional costs under the threshold awards but it was against the spirit of the Prices Code to enter into the realms of profits.
Mr McMullan also challenged the companies' policies of phasing out return fares. This, he felt, would hit at a number of people.
Refusing the applications, the chairman of the Commissioners, Mr E. H. Robson. said it was the second application within six months. In view of the present attempts to combat inflation it was felt that the total yield from fares should be limited to something nearer the actual increased costs suffered by the companies. In the case of Eastern National the figure should be in the region of £590,000. The Commissioners would consider a fresh application along the lines indicated.
A second part of the applications, where Mr Kaile had sought authority on behalf of the operators' to raise fares on seven days' notice following the triggering of fresh threshold agreements, was adjourned as "part heard".