R.H.E. Makes 7-i Per - Cent. Surcharge
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Operators Investigating Cost Increases ' Caused by Budget Proposals
NEXT Monday, when the 16i-per-cent. increase in railway freight "charges becomes effective, the Road Haulage Executive will introduce a surcharge of 7i per cent, on its rates.
Passenger operators are investigating services with the object of deciding whether economies can be effected by reducing some of them, or whether increases in fares will be necessary to offset the higher costs imposed by the. Budget proposals.. Taxi fares have already been raised in several towns.
The R.H.E. announced last Friday that it had been, found necessary to increase rates. A surcharge of 7f per cent, would, therefore, be applied on all general haulage and parcels charges on and after May 15.
This, it was stated, would cover the higher cost of fuel, some element of increase in respect of enhanced replacement costs, and other recent advances in costs not arising from -the Budget. The surcharge to be applied would be "in addition to adjustments already required in cases where the basic rates recently charged have been unduly low and uneconomic in relation to the general level."
Hauliers Add 10 Per Cent.
In the realm of the free haulier, discussions are still taking place concerning the recommendation of the Road Haulage Association to increase rates by 10 per cent. Derbyshire Sub-area of the Association, at a meeting last week, decided, regretfully, to accept the recommendation and to increase its rates accordingly.
Passenger-transport operators, too, are giving the matter m-uch consideration before increasing fares. Mr. R. W. Birch, chairtrian of the South Wales Transport Co., Ltd., and the Yorkshire Woollen District Transport Co., Ltd., said, last week, that both companies would have to examine their whole fares structures and review particularly the many services. now being operated at a loss.
Coach tours organized for the summer months by Lancashire operators will continue to be run at the old fares. Private hire will, however, cost. about 10 per cent, more, it has been stated.
It is understood that the Regional Fares Committees have reached no decision on • fares and that further. meetings are to be held. '
Seeking to Raise Fares
Representing small operators in Northumberland, Durham. Cumberland and the North Riding, the Northern Road Transport Owners' Association decided at a recent meeting at Newcastle to apply to the Licensing Authority for increased fares. Since fares were fixed, the secretary stated, fuel had risen from Is. to 3s. a gallon. Wages had increased by 100 per cent. and tyre costs by 200 per cent. During the war, greater traffic in the rural areas met these increases, but traffic had now returned
to normal and costs had become prohibitive.
Allen's Motor Services, operating town services in the Loughborough district, is another concern which will have to seek to raise fares. Giving an assurance that set-Vices would not be cut, Mr. C. H. Allen stated that the increased fuel price would cost the company an extra £3,500 a year, Halifax Corporation and the Joint • Committee will have to meet additional expenditure. on fuel of 07,100 a year. An alteration in fares could be expected at an early date, stated the chairman of the transport committee.
Derby Corporation expects an annual additional expenditure of 0,00048,000 on fuel. Grimsby Town Council estimates that the changed fuel price will add 1600 to the present monthly loss of £1,500. The council is awaiting a decision on an application for increased fares.
Profit Wiped Out
Southend Corporation's operating costs will increase by £6,000 a year as a result of the new fuel price, which will wipe out most ot the profit of over £6,000 for which the undertaking had budgeted this year. According to the chairman of the undertaking, the policy would be to keep fares at the same level until reserves had. been used up and perhaps a loss made.
Taxi drivers and operators all over the 'country, are taking immediate steps to cover the rise in operating costs• Birmingham Watch Committee has decided to increase fares by 6d. for the first mile and 3d. for each subsequent mile. The day rate for four-seater vehicles wilt be 2s. for the first mile and Is. 4d, for each subsequent mile, the night rate for miles after the first being Is. 10d. Manchester taxi fares were increased by Id. per mile from Monday last. In Wolverhampton and Crewe, taxi fares have also been raised to a level similar to that decided upon in Birmingham. Loughborough taxi drivers have applied for a revision. York taxi fares are also to be increased to Is. 6d. for the first mile and Is. thereafter.
Refuse-collection costs, it has been stated, will go up by approximately 5d. per ton in the case of authorities operat
ing petrol vehicles. .
At a meeting of the.National Fruit Trades Federation (Western branch). it was stated that the Budget would increase the price of fruit and vegetables.