Eight More Fares Cases Presented
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State Companies and Municipalities Still Losing Heavily '
11%1 the past week or so, eight appli'cations for higher Fares have been heard by Licensing Authorities all over the country. in most cases, these were second applications, following the granting of higher rates at the end of last year or the beginning of this year. With one exception, all the applicants were either municipal undertakings or Stateowned concerns.
Modified fares scales were introduced by Leicester Corporation last January, but the East Midland Licensing A u th ori t y granted new variations recently. On all routes, tares will be increased by Id. a stage as from next Sunday. At the same time, transfer tickets will be abolished and certain children's concession fares withdrawn.
Fewer Passengers
A steady decline in the number of passengers carried was mentioned by the general manager, Mr. J. Cooper, who estimated that the new rates would reduce the total number of passengers carried in the next year by 2i per cent. This was equal to a drop of 2,600,000. At the same time, bus mileagewould decline by 82,000. in the financial year 1952-53, a deficit of £73,651 was expected, and the new rates were hoped to increase revenue by £75,000, New fares, estimated at the time to increase revenue by £114,000 a year, were put into effect by the Lincolnshire Road Car Co., Ltd. last January. Applying to the East Ltd., Licensing Authority last week for further amendments, it was stated that between that time and May this year costs had risen by £124,000 a year.
Since 1939 the concern's costs had risen by 161 per cent. The increased fares, including those discussed at this hearing, represented an advance of only 24 per cent, on pre-war fares. Last year total costs had been 14.81d. per mile; this year, operating costs alone were expected to be 16.22d. per mile and revenue, 15.65d. per mile.
Profit Possible The application proposed the addition of 4d. to 34d. and 44d. tickets, and of ld.-41. on tickets from 6d. to 4s. lid. Return tickets would not be available where the equivalent single ticket was 10d., whilst others would be modified. It was suggested that workmen's tickets should be established at a rate of single fare plus 25 per cent., with a minimum of 5d. If the proposed rates were granted immediately, it was stated, the • concern would make a profit of £24,000 this year.
An application intended "not to build up a large reserve or so that money could be provided for the relief of rates" was submitted by Hull Corporation last week. It was made to enable the corporation to balance its budget, said the town clerk. Fares which were raised in 1950 were not affected by the new
application, heard by ,the Yorkshire Licensing Authority, who later dealt with a similar application from East Yorkshire Motor Services; Ltd.
Last year, the Hull undertaking had incurred a total loss of £65,328. The reserve fund had contributed £45,631 to meet the deficiency and was now completely exhausted. Unless additional revenue could be obtained from fares, the remaining £19,697 would have to be obtained from the rate fund. Higher charges on both motorbuses and trolleybuses were proposed, although the trolleybuses made a profit and the motorbuses did not. The extension of trolleybus services was impossible because of the capital expenditure entailed.
By the end of the next financial year, Derby Corporation would have a deficit of £46,000, even though increased fares had been put into operation last April. By the end of March, 1951, a loss of £16,000 had been incurred, which had
been met out of the general rate fund. On present fares, the loss expected in the current year would be equal to a rate of 11d. in the pound, compared with 4d. which the previous loss had cost.
This was revealed when the corporation's case for new revisions came before the East Midland Licensing Authority. It was proposed to increase some 21d., 3d, and 3Id. tickets by Id. and Id., to discontinue the issue of 3d. workmen's tickets and to adjust children's fares.
It was decided that concession fares for blind and disabled people should be a charge on the rates and not on the undertaking. If the new rates were granted before October I, it was stated, the loss on the current year's working would still be £28,930. The changes proposed would increase revenue by £36,000 a year.
Sliding Scales Again An interim award has been granted by Sir Arnold Musto, Western Licensing Authority, to the Bristol Tramways and Carriage Co., Ltd., affecting Gloucester city services. By July 1, 1952, the company must submit a revised table of fares based on sliding rates calculated for each 'mile.
The new fares awarded were required to redress an adverse balance of £8,000 which would increase to £13,000 this year. The effect of the new charges will be to add Id. to many single tickets, although 80 per cent. of the Id. fares will be retained.
Operating costs at the moment were 2I.22d. per mile and receipts 19,22d. per mile, it was stated at the hearing. Out of 13 services, 11 were unremunerative. The new rates were calculated to add £13,900 to the annual revenue.
Yorkshire Woollen District Transport Co., Ltd., and Newbury and District Motor Services, Ltd., also were concerned in recent hearings. in the case of Yorkshire Woollen District, proposed increases concerned 24 urban routes and 62 inter-urban services.
Higher charges have been authorized on Blackpool Corporation buses and trams, but the town council has objected to the requirement that no transfer of profits to the rate fund be made without Ministerial consent.
Portsmouth Still Short Portsmouth Corporation, which introduced higher fares on July 8, is to apply for new variations. These will, it is believed, include reductions of stage lengths, as well as fares increases.
Jointly operating with the corporation, Southdown Motor Services, Ltd., has so far increased its fares only in line with the corporation. Now it has applied for a general increase to deal with a decline of £217,000 in profits and increased costs in the past year.
Barrow Corporation expects a deficit of £10,000 on the current year's operation. Costs have risen by £12,600 this year, and a sub-committee has been set up to consider the financial position.