Heavy opposition for breakthrough
Page 18
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AN independent bid to break into the stage carriage market and provide services in the Stratford upon Avon area, competing with the existing network of Midland Red (South), has provoked heavy opposition before the West Midland Commissioners.
The Best of British (Travel UK) Ltd trading as Shakespeare Country Bus Services, a company formed by Roger Thompson, a director of Guide Friday Ltd and Arthur Smith, a director of Smith's Coaches (Shennington) Ltd, was seeking licence authority for the operation of two services. The first was for an hourly service from the Dove house Farm housing development into the town centre — and the second was for a town service within Stratford. The proposals were opposed by Midland Red (South), David R. Grasby Coach Hire, Warwickshire County Council and Wellsbourne Parish Council.
Mr Thompson said the new company was seeking to provide improved, cheaper and more frequent services than presently existed. Midland Red's Stratford services were said to be heavily subsidised and running at a loss whilst he and Mr Smith felt they could operate profitably.
Four public witnesses gave evidence that they found the existing services to be unreliable and too expensive. It was plain that more frequent use would be made of the buses if fares were cheaper.
Geoffrey Jones for Midland Red and Grasby said that the proposed Dovehouse Farm service traced almost yard for yard the route followed by existing services. The Midland Red service over the route was one of the few providing a surplus for cross subsidisation services. It was estimated that service could lose up to £35,000 as a result of abstraction. This meant it would move into deficit to the tune of around £20,000. Mr Grasby who was a small operator estimated he would lose about £1,000 which he would be unable to absorb.
As the County had no more money available for revenue support, Midland Red saw little alternative but to meet the loss of revenue by cuts in services. Both Mr Grasby and the cornpany had discussed with the County those services which were "on death row" as a result of Best of British's proposals.
Though Jonathan Bayliss, Midland Red's manager, agreed with the chairman Ronald Jackson that the NBC had made an overall profit of £47 million in 1983, he said that on current cost conversion his company had a deficit of £139,000 in that year. No measures could be taken short of cutting services to meet revenue loss as a result of the proposals. The cuts proposed would save 500,000 miles a year on services in the Leamington and Rugby areas.
The Commissioners adjourned the hearing until a date to be fixed.