SBG's turnover falls
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• Scottish Bus Group made a Loss of £2.3m in 1989, compared with a £7. 8w profit the previous year.
According to the Scottish Transport Group annual report, SBG's turnover fell 6% to 148.8m, and passenger numbers fell by 11% to 261.1m. The Group blames the downturn in the economy, last year's 14-week strike and the continuing growth of new competitors.
The long strikes at Central cut profits by more than £4m, according to the report, and led to the closure of the important East Kilbride and Wishaw depots. Another consequence was the inevitable growth of independent operators throughout Lanarkshire.
STG chairman Ian Irwin says: "It has been estimated that during 1989 private operators introduced an additional 350 vehicles in the local bus and express service market competing against Group corn panics. This represents a 50% increase in their competitive activity."
Other factors which adversely affected SBG profits were the Budget increase in Vehicle Excise Duty, the cut in rural bus grant, spiralling fuel prices, and cuts in the level of concession fare reimbursement.
Irwin says: "1989 was a difficult year for STG, while the bus subsidiary companies were preparing for privatisation. The limits placed on capital investment in the pre-privatisation period prevented us from carrying out our normal purchases of new buses, and this has had a detrimental effect on engineering costs."
Two SBG companies, Lowland and Midland, have been sold, and Citylink, Eastern and Kelvin Central are on the market. Five more companies remain to be offered for sale.
STG, which also included the Caledonian MacBrayne ferry company, made a reduced profit of £4.4m on a turnover of £175.1m in 1989.