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B.E.T. Must pay £360,000 More Tax

1st August 1958, Page 41
1st August 1958
Page 41
Page 41, 1st August 1958 — B.E.T. Must pay £360,000 More Tax
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Which of the following most accurately describes the problem?

AS a result of changes in profits tax in the Finance Bill, the B.E.T. bus companies expect to have to pay an extra £360,000 a year. Hitherto, statutory undertakings, including bus companies, have paid 3 per cent, on all their profits. The rate is now to be raised to 10 per cent.

Mr. H. C. Drayton, chairman of the British Electric Traction Co., Ltd., who gave this information to the shareholders last week, said that B.E.T. buses paid 4.31d. per mile in taxation.

He pointed out that. many passengers had been permanently lost by the bus strike of a year ago. Further traffic had been lost as a result of having to increase fares to meet higher wages. Despite higher fares, traffic revenue had fallen.

To meet this situation, serious consideration had had to be given to the B.E.T. companies' unremunerative route mileage, which amounted to about 40 per cent. The loss on such services had increased, and the surplus from profitable routes had decreased. Unless the tax on oil fuel were alleviated the effects would be unfortunate for the public, bus employees and companies.

Canadian Motorways, owned by B.E.T., last year increased their haulage fleet from 1,700 to 1,875 units. They did well until last autumn, when the trade recession caused a sharp drop in profits. Adversity compelled re-organization of the business, and it was now on a sounder footing and was working at a monthly ,profit.

Three increases in wages had been granted to employees of Jamaica Omnibus Co., Ltd., since the concern's formation four years ago. The higher costs had been absorbed without raising fares, but the unions were now demanding a fourth increase so large that there was no basis on which it could be negotiated, and the matter would go to arbitration.

In • Jamaica arbitration awards were made retroactive, which, said Mr. Drayton, was most unfair. Any further increase in costs would involve raising fares.

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