Some Fuel Tax Rebates Unclaimed
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FROM OUR POLITICAL CORRESPONDENT
QOME bus operators have been so slow 1,-) in claiming their 6d. a gallon fuel rebate from the Government that the Ministry of Transport last week told the Chancellor to scale down the amount of money required for rebates this year by £250,000.
Operators who have not yet claimed will not miss their rebates. But it has become clear that the £6 m, set aside will be much more than is needed for the time being.
In fact, the total estimate for the first year was £600,000 too much. Apart from the missing claims, it is reckoned that the original estimate itself was £350,000 too much in any case.
This is a good windfall for the Chancellor. He will be needing it because on the other side of the book he is having to pay out an extra £3,850.000 to keep London's buses run
ning without a fares rise. This is because the Government promised to compensate LTB for the revenue lost if it deferred this year's fares increases while the operations of the Board were reviewed.
The £3,850,000 now being sought from the taxpayer, in a supplementary estimate, covers the Board's loss to the end of this year only.
The issue was debated in Parliament last night (Thursday) but before the debate started it was understood that Mr. Fraser would not be in a position to announce the Government's proposals on how to aid LTB's vicious costs-revenue vortex. Also on the debit side of last week's supplementary estimates was a further massive demand for £20 m. to bolster the railways.
Added to the £104 m. already set aside for railway subsidy this year, the total becomes £124 m.—and it is expected that another hand-out will be needed in the spring which may bring the total for the financial year to above £130 m.
The reason for this rescue operation is mainly twofold: falling rail freight receipts and a £3 m. interim wage increase last October.
The falling freight receipts must be causing concern to the Railways Board. Inthe 36 weeks of this year up to September 11 they were just under £192 m.—a drop of more than £4 m. compared with the same period last year.
This means that goods movements are producing receipts 2-1 per cent lower than last year. The continuing rail subsidy, plus the new London bus subsidy, are bound to cause concern in the House of Commons.
Taken overall, the Government is seeking the approval of MPs for an extra £23,500,000 for transport purposes in the winter supplementaries.
A boost of more than £500,000 is being given to the Channel Tunnel exploration_ The survey, which has proved more difficult than foreseen, is also to be extended. Its revised cost is now £2-1 m., of which the British Government is paying half.