Glasgow Earns a £311,000 Surplus
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A LTHOUGH Glasgow's municipal 1-1 transport services carried 21 m. fewer passengers in the financial year ending May 31, 1961, the transport department showed a surplus of £311,000, which is £271,000 more than was estimated last August.
This surplus is the biggest to be returned by the department for several years—last year there was a surplus of £116,124. It also means that there will certainly be no increase in fares this year. The department hopes that there will be no need for an increase before next May.
The motor buses showed a surplus of £849,000—a surplus of £717.000 was estimated—and the Underground made a profit of £36,396. The trolleybuses lost £36,0002-£30,000 more than was expected.
The main reasons for the surplus are: (1) A fares increase last June. which brought in more revenue than was expected; (2) the continuing programme of conversion from trams to buses; (3) the withdrawal of British Railways' suburban electric trains, which compelled many passengers to switch to municipal services; and (4) the reorganization of the department, including the withdrawal of uneconomic services.
Councillor Samuel Hughes, convener of the transport committee, said that this year would be a testing one for the department. The full effects of the recent wage increase to the traffic staff— estimated to cost 1220,000—would be felt, and the higher price of fuel would add to their costs. They were sufficiently confident of the year's prospects, however, to estimate a surplus of £46,000 for the year to the end of May, 1962.
Mr. Hughes said that one particularly pleasing feature was that the department had now completely repaid the loan of £1,500.000 borrowed 10 years ago, Last year the tramway deficit was £538,141, which compared with an estimated deficit of £739,000. There are still 175 trams in service, and these will be withdrawn by October, 1962.