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Fares to rise with VED

20th April 1989, Page 19
20th April 1989
Page 19
Page 19, 20th April 1989 — Fares to rise with VED
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Which of the following most accurately describes the problem?

• Rising inflation, increasing fuel costs and the recent massive hikes in Vehicle Excise Duty are forcing many PSV operators to increase fares.

Luton and District is among them: marketing manager Malcolm Collins says that from 1 May fares will increase by between 8% and 9% — and the company will monitor costs in case another increase is needed.

Eastern Counties might also raise fares. The firm says these will at least be in line with inflation, but there are no plans to alter the price of prepaid tickets.

Sovereign Bus and Coach has just announced plans to push up fares for its Roadhopper, Greenline and Hertsiider services, and Lancaster City Transport has also increased its prices above inflation.

Badgerline's marketing manager Jackie Evans says rising costs have forced the WestonSuper-Mare company to rethink fares, despite a fares rise of 7% on 26 February. Its Rovercard prices were due to go up on 1 June by 6%, but Evans says the company will probably be forced into another increase due to the unexpected VED rises.

Managing director of Yorkshire Rider Bill Cottham emphasises that the VED rises have hit hardest: "We did not expect the VED changes and we estimate they will cost us more than a third of a million

pounds. Fares were due to go up in the autumn, so instead of hiking up our increases, we will probably bring them forward to the summer to gain extra revenue."

The Bus and Coach Council says: "Rising costs, especially those incurred by the VED rises, are forcing most operators to increase their fares. They have already cut back overheads to their minimum so fares have to be pushed up and passengers have to suffer."