"Rake's Progress" Attitude Puts Manchester in Serious Difficulties
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" THErake's progress' attitude of putting things off until to-morrow
• has landed us where we are to-day,"
• said Mr. J. Lythgoe, Manchester city treasurer, when application by Manchester Corporation for increased fares was heard last week by the NorthWestern Licensing Authority. "We arelikely to have the same inevitable situation in a month or two's time, because of the fuel-cost increase," he added.
Reasonable reserves were necessary, and it was likely that, unless the present application were granted, the Corporation would be faced with a deficiency of about £550,000. The rates might have to be increased by Is. 10d. in the pound to meet the loss.
The application was for consent to increase fares on motorbuses and trolleybuses. The effect, said Mr. P. B.
• Dingle, town clerk, was that certain 3d. fares would rise to 4d., 20. fares to 3d., and there would be a reduction of one stage for fares of 4d. and over These changes should bring in an additional £280,000 a year. The Corporation was also asking fix workmen's fares on the 53 bus route to be relaxed.
• The total estimated deficit for 1949-50 was £145,455, but this was reduced as the result of steps taken last January. At March 31 last, there was an actual deficit of £86,120. A decision to adopt advertising would bring in £15,000 for the current year and £30,000 for a full year.
It was nothing short of madness to try to run an undertaking on this hand-to-mouth basis, without any reserve whatever, said Mr.. Dingle. The fuel tax would impose a farther burden of £185,000 in a full year and £175.000 this year, but that impost had not been taken into account in deciding io make the present application. Unless there was a further large increase in fares, there was no hope of building a reserve fund.
Because it took nearly eight months to introduce an increase, it was hoped that the corporation could receive an immediate decision. Even if the application were granted, the corporation would have to review the position later in the year. If the transport department started now to put in an application to cover the £175,000 of extra cost, and eight months elapsed before a decision was reached, there would be a loss of £123.000 on account of fuel tax alone.
This year was the first occasion in the history of the undertaking that -there had been no renewals, said Mr. A. F. Neal, general manager. Revenue had not kept pace with expenditure, there having been a rise in labour costs of 89 per cent, and in material costs of 93 per cent. since 1939. During this period fares had increased by only 46 per cent
No major economies could be made if the undertaking were to meet its obligations to the public and to give a reasonable standard of service. The transport committee regarded it as essential that a renewal fund should be accumulated.
Two substantial wages applications, covering many employees, were now under consideration at national level.,
In answer to objectors, Mr. Neal said that there was a good case for the abolition of workmen's cheap returns.