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Rises in Costs• Outstrip Fares Increases : Operators' Losses

6th July 1951, Page 26
6th July 1951
Page 26
Page 26, 6th July 1951 — Rises in Costs• Outstrip Fares Increases : Operators' Losses
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Which of the following most accurately describes the problem?

CLOSING the hearing of the application of Halifax Corporation for higher charges recently, the Yorkshire Licensing Authority promised an early decision. The undertaking was losing £1,400 a week at present rates; and at the end of the current year would have an estimated deficit of £56,580.

It was therefore proposed to increase single tickets by id. or Id., thus eliminating all odd id. units in the fares tables, except for the minimum children's fare which would be 10. "the minimum adult fare would be 2d. Workmen's rates, it was suggested, should he on the basis of 11 times the single fare, and ordinary returns abolished.

The effect of the changes. if graitted. would be to produce a .surplus of £47,000 in a full year. Since 1939 stated the general manager of the undertaking,. the basic payrates of drivers and conductors had gone up 99 per cent. Tyre costs had quadrupled. At present rates, revenue from workmen's buses was only is. per mile.

Cumberland Rates Up Again Similar increases in costs were mentioned when the Northern Licensing Authority heard the application of Cumberland Motor Services, Ltd.. for higher fares. "I he concern, which was granted new rates last November. succeeded in the application except in the case of the proposal to abolish multiple-journey tickets. In consequence. tickets costing 7d. or over go up by Id., returns up to 5d. are abolished, those over 6d. also being raised by hl.

Since the most recent variation in fares, costs had risen by £55.000 and the new charges were expected to add £50,000 to the annual revenue. In 1950, the concern had made a profit of £9,820; this year a loss of £880 was expected. Unremunerative works se r v ices accounted fur 41 per cent. of the stagecarriage operation.

Second B.M.M.O. Hearing Hearing of the application of the Birmingham and Midland Motor Omnibus Co., Ltd.. for fares variations in the East Midland Traffic Area has now taken place. Mr. S. D. Herington. appearing for the company, said that between 1938 and 1951, revenue had risen from 11.3d. per mile to I9.82d. per mile, whilst operating costs had gone up from 9.8d. per mile to 20.55d. per mile. A pre-war surplus of 11d. per mile had become a loss of nearly ld. per mile. In the first four months of this year, the concern had a deficiency of 00,000. Some services were operating at a loss of Is. a mile and the traffic manager revealed that 44 per cent. of the total mileage run was covered at a loss.

In the South Wales Traffic Area, United Welsh Services, Ltd., a Stateowned concern, like Cumberland Motor A24 Services, Ltd., applied recently for a further advancement in fares. The first was granted last January. The effect tit the last grant was to increase revenue by £40,000; since then costs had risen by the equivalent of £50,000 in a full year.

It wits therefore suggested that lid. tickets. except those which were increased to that figure from Id. last January, should become 2d., tickets costing 2d.-41d. should go up by id., those between 5d.-I Id. by Id. and so on, giving a maximum advance of 7d. Identical changes were proposed and granted to two operators in the United Welsh area—Rees and Williams, Ltd., and West Wales Motors, Ltd., both of Ammanford.

Removing Odd Fares

Wolverhampton Corporation is to submit to the Licensing Authority and Ministry of Transport a plan to raise fares. The undertaking's charges went up last July, but now a deficit of £64,000 is estimated for the current year. It is suggested that 20., 4id., 51d., 61d. and 71d. tickets should go up by 4d., whilst the intermediate even fares and those up to lid, would rise by Id. An addition of 2d. to the Is.-Is. 5d. tickets is suggested. Working costs would go up by £98,000 in the current year, it was stated recently.

Doncaster Corporation. which has not yet altered its pre-war fares, is to consider an application for variations to offset a drop of £20,000 in the corporation transport department's balance.

Two Yorkshire operators. Hebble Motor Services, Ltd., and Messrs. S. Ledgard, have applied for variations on existing fares. These range from id.-5d. on tickets between Id. and 5s. 3d.