Vim lopped off Scottish fares bid

10th November 1967, Page 98

10th November 1967

Page 98

Page 98, 10th November 1967 — Vim lopped off Scottish fares bid

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THE Scottish Bus Group has underestimated its net revenue income on five occasions when making application for a fares increase. This factor was taken into consideration by the Scottish Traffic Commissioners when reaching a decision—now published—on the group's latest application—at Edinburgh on October 25.

The application was heard, and considered in two parts, Highland Omnibuses Ltd. being treated separately. The estimated additional revenue for the main section of the group was £1,435,000, while Highland Omnibuses' estimate added £29,000 to this figure. The Commissioners noted that at the last application the main section of the group had underestimated its increased income by £180,000, while Highland had been nearer the mark.

The objectors had argued at the most recent hearing that no allowance should be made for additional expenditure of 2d a gallon on fuel as the Suez Canal closure was temporary. They also argued that the Minister's proposed legislation to subsidize uneconomic services should be taken into account. The Commissioners considered that both of these factors were too speculative to be considered.

The speedy expansion of one-man operation and the efforts of the group to improve operational efficiency were praised by the Commissioners. But they considered that a cut of £250,000 in the estimated increase required would not be unreasonable.

This cut was made with the previous underestimating in mind and in the knowledge that the group would in all probability receive a £120,000 grant from the RTITB.

The Commissioners refused an increase on the 4d fare and made reduced grants on the other applications.

The revised fares take effect from November 19.