Operation survival for Midland Red
Page 25
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MIDLAND RED has a plan to avoid the massive financial losses it otherwise faces.
Major economies include redundancies, garage closures and route cut-backs, and an application has been made for a further increase in fares.
Part of Midland Red's problem springs from Hereford and Worcester County Council's decision to meet only part of the company's request for bus grants in 1976/7.
Mr John Hargreaves, director and general manager, said: "This is an exercise in survival. We can expect to receive only £350,000 from the county council, which is only just over 50 per cent of what we require if we are to maintain our existing network. We have, therefore, got to reappraise our network of services in the county and decide how economies can be made."
The company has established a project team with the remit to come back in six weeks with a basic plan of a new service network cutting costs by the amount required. The main details of a plan fares application are: • A revised mileage scale adult single fares which result in fares from 20p to increasing by lp and hig fares by 2p.
• Cheap day returns to be creased from approximat one-and-a-third times single fare to one-and-ti thirds.
• Weekly season tickets be discontinued and the count on season tickets longer periods to be redu by half.
• Children's fares to raised for journeys over th miles during school term c( mencing before 9 am, wi the full fare will be charger • Revised charges scholars' term contract ticls incorporating the increa rate outlined above.
• Cost of day-anywhe tickets to be raised from £1 £1.20 for adults and from to 80p for children.
Mr Hargreaves said: gives us no pleasure what ever to have to make 1 application but in the light the present situation we h no alternative."
Midland Red has sugges that county councils sho act as co-ordinating authorit in convening joint meetit between the company and ( trict councils.
Previously, it has ne proved possible to talk it vidually to each district fore an application is heard the Traffic Commissioners.
Warwickshire, Heref or Worcester, Shropshii Staffordshire and Leices1 shire have already indica their willingness to follow 1 procedure. So Midland I hopes to be able to appear fore the Traffic Commission at the end of October eit with an agreed application, a clear understanding of points on which the compl and individual district coun differ.