No NBC dictation, say Commissioners
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• Dictation by the National Bus Company to its subsidiaries, laying down what profit each company should make, was strongly rejected by Mr Ronald R. Jackson, chairman of the South Wales Traffic Commissioners, at a recent fares hearing. Mr Jackson was presiding at an application by Western Welsh and Rhondda Transport for increases of Id to 3d on single fares.
Mr John Main. for the applicants, said a letter had been sent out by the chief finance officer of NBC stating that the Minister of Transport had given guidance on the financial duty of the company and its subsidiaries. Their target was to enable them to earn £8m before taxation and depreciation. The minimum requirement for Western Welsh was a surplus of £170,000 in 1970 and a similar amount in 1971.
Mr Main told Mr Jackson that the letter put an end to speculation. It was not open to him or to the company to question the sum; it was in the nature of a precept which they simply had to find.
Replying, Mr Jackson told him: "What it amounts to is that you are inviting us to accept dictation by the National Bus Company and accept the figure laid down.
"May I say this here and now that we will not accept such dictation under any circumstances? My impression at the moment is it is merely a figure someone has picked out with a pin.
"We consider this letter of little value and we shall ignore it and base our decision on whether these fares are not unreasonable."
At the end of the hearing Mr Jackson granted the application, and again referred to the circular letter. He added: "I think the local management of the companies concerned should be congratulated because they have put forward proposals to keep themselves viable but in both cases falling far short of the minimum amount which has been specified by NBC."
If they had stuck to the NBC target Mr Jackson was sure that it would horrify everyone, "not least of all the companies concerned because the recession that would accrue from that would be horrifying".