SELNEC reduces fares application
Page 21
If you've noticed an error in this article please click here to report it so we can fix it.
• SELNEC Passenger Transport Authority has reduced by £1.5m the application it made this week in Manchester for an increase in bus fares. The revised application it was said would yield only Dm and is in line with the recent Government request for price restraint. The first application was in fact for a 15 per cent increase but this has now been reduced to 10 per cent.
The Authority at the same time has drawn attention to the fact that the increased revenue proposed was barely sufficient to meet the high level of inflation which had already taken place and that strenuous efforts had already been made to economise in operations and to increase efficiency. The Government have been made aware of the fact that any reduction in fare income leads to a substantial loss which could not possibly be met in full internally. The reductions are the maximum which could be offered. The result must, the Authority says, be to produce a substantial loss for 1971 and pose a very serious problem for 1972.
Having decided that it must pay regard to national policy and that the fares application would be reduced, the Authority considers it has no alternative but to make up by rate aid the balance of loss likely to remain in 1971. after utilising all available reserves and making all possible economies. The estimated shortfall for 1971 is £470,000 which represents a rate charge of ip in the €. In general, lp increases are proposed for medium distanced journeys and 2p for longer journeys with appropriate increases to the cheap weekday fares to maintain the differential.