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Minister Drops Bomb in Decision on South Wales Fares Appeal

16th September 1960
Page 92
Page 92, 16th September 1960 — Minister Drops Bomb in Decision on South Wales Fares Appeal
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THE Minister of Transport has told the South Wales Traffic Commissioners that they must reconsider fares increases granted to South Wales Transport Co., Ltd., and Western WelSh Omnibus Co., Ltd. This is the effect of the Minister's decision on an appeal' by 30 local authorities against the grants. The inquiry was heard id Cardiff on April 5, 6, 7 and 8.

The grounds on which the appeals were made were four-fold. First that the grants involved "excessive, unreasonable and inequitable" increases. Second that the levels of income and profit of the companies were such that the additional income from the increases was not reasonably required. Third that the estimates submitted by the companies in support of the applications were "unrealistic, erroneous and inconsistent with the prevailing level of income and profit and the reasonable expectation thereof." Fourth that the increases destroyed the fares structure which had.previously prevailed in the South Wales area.

In his decision, the Minister said he found no basis in the third or fourth grounds of appeal.on which to reverse the Commissioners' decision. There was no evidence to• show manipulation of the companies' accounts, or that there were

errors that might have misled the Commissioners. Nor, said the Minister, would he consider that a fares increase, if. it were otherwise warranted, should be refused because it entailed a departure by a company from a previously established structure.

The inspector who took the inquiry, the late Mr. A. N. C. Shelley, had recommended that the appeals be allowed because the increases applied for would give the companies a higher rate of return on capital than in recent years, and because comparable companies in South Wales had not found it necessary to apply for increases.

The Minister reiterated his decision of July 13, 1954, in a similar fares appeal from South Wales, when he said that he would expect a company to bring 'Erin evidence in support of its views on the level of return on capital. In the present case, said the Minister, the evidence from the companies was altogether too general to justify the conclusion that the rates of return claimed were not unreasonable. He had therefore concluded that. the Commissioners had not before them sufficient evidence to justify their conclusion. He did not want to imply, that he regarded increases in the rates of return of bus companies as being unacceptable. He considered, however, in this instance that the applicants failed to demonstrate satisfactorily that the returns claimed and the increased fares would not be unreasonable.

In accordance with the inspector's recommendation, therefore (butfor the different reasons indicated), the Minister said he had decided the 'Commissioners were wrong to grant the fares increases. . However, the fares sCales which wee -the subject of the appeals had in any case been superseded by new scales. The -decisions on these new scales were not 'on appeal, but it was clear that they 'shmild be reconsidered in the light of the. Minister's decision on the earlier fires. increases. 'Therefore, said the Minister,' he had made' an .order on the Commissioners that they should.formally 'Propose the revisibn of fares scales -granted' to South WaleS Transport and Western Welsh.

The local authorities on 'Monday raised the question of what was to happen to about £58,000 collected' from

increased fares. "

Mr. . Geoffrey. Hockin, clerk of Llantrisant (Glamorganshire) Rural District Council, who helped arrange the appeal on behalf of the Meal authorities, said that the money might be given back in a fares rebate. A meeting of local authorities is to be held in Cardiff today to discuss the implications of the Minister's decision.

A Western Welsh spokesman said that any decision would be subject to consultation with the company's legal advisors.

A.E.C. ORDERS QIX Reliance coaches have been ordered by Samuelson New Transport Co., Ltd., London, to make their fleet completely A.E.C. The new vehicles will have Duple bodywork. Stanley Hughes and Co., Ltd., Bradford, have ordered eight Reliances, and Black and White Motorways, Ltd., Cheltenham, six. , East Kent Road Car Co., Ltd., have ordered another 16 A.E.C. Regent double-deckers which will have 72-seat front-entrance Park Royal bodies.

INDIA SERVICE TAKE-OVER A COACH service from Leicester to -t-1. India, operated by T. Broughton and Dalin Singh (trading as B. and S. Coaches), will be taken over by Dalip Singh, who will operate as D. and S. Coaches, if applications for him to take over the licences are approved.

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Organisations: Rural District Council