Yorks Appeal Against Fare Increases
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'ARE increases granted to East Yorkr shire Motor Services, Ltd., were contested last week by seven local authorities, the East Yorkshire Urban Councils Association and the Yorkshire Parish Councils Association. Their appeal was heard at Hull by Mr. A. N. C. Shelley, Ministry of Transport inspector.
Mr. W. A. B. Goss, for the local authorities, said the company had sought higher fares on the ground that revenue was falling while costs were increasing. However, the increases would give them a surplus, before taxation, of £91,000 in a full year.
Mr. Goss said he believed allowances for depreciation had been overestimated because the figure for 1958, with 241 vehicles, was £91,524, whereas in 1957 it was £88,766 for 261 vehicles. In recent years there had been no attempt to get additional revenue from excursions, tours, express or contract operation, although the difference between road and rail fares left considerable scope.
The local authorities also thought that a more attractive return fare could have been offered. The present scale gave a Is. I Id. return for single journeys of Is., so the differential had almost gone.
Mr. F. A. Stockdale, for the company, replied that the alternative to higher fares was a drastic pruning of services. The company had suffered three bad years and it seemed that the decline in passengers would continue. The greater the risk, the higher the investors' return should be F.2.4
The company had to pay their way, and in doing so it was necessary to replace obsolete vehicles and pay a reasonable dividend.
Mr. Shelley closed the inquiry to submit his report to the Minister.