Storm Over E.Y.M.S. Application: Service Cut in South Wales ?
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• CEEKING their. second increase in ...)-fares this year, East Yorkshire Motor Services, Ltd., were accused at a recent hearing by the Yorkshire Licensing Authority of amassing huge
profits from their passengers.
Nine local authorities and a local branch of the Labour Party objected to the company's application for an additional £61,000 a year, which would be the result if their suggestions to straighten out existing anomalies in their fare tables were approved.
This latest application was a result of the Authority's direction at the time of the last fares increase that the fare tables should be recast and a fresh application lodged. Only partial approval was then given to the company's requested increases.
"Tremendous Reserves" The objectors spoke of 'tremendous reserves" which the applicants had accumulated, the 25 per cent, tax-free dividend which had been maintained for six years, and the "building up of the company's fleet at the expense of passengers."
Mr. E A. Stockdale, for the company, said that the earlier application provided an extra annual revenue of £25,000. Despite the increases imposed in March this year, the company were losing money. Their ultimate target was 06,000—roughly what it was . when the last application was made and partially refused. The allround revision of fares would overcome anomalies and stop what was an increasing loss of revenue caused by sales resistance set up by the previous increases.
One objector said of the company's balance sheet: "This is very good, sound finance, but it is unfair on the general travelling public that they should be expected to subsidize future users of the bus services." ..
He suggested that the reduction of dividends to a reasonable figure and the issuing of additional share capital would enable the company to carry on for years without increasing fares.
No Subsidy Replying, Mr. Stockdale said that the company had been quick to respond to the Authority's request. They had put their tables in order. He denied that present passengers were subsidizing future travellers. They were paying for the use of the transport.
Decision was reserved.
As foreshadowed in The Commercial Motor on July 10, Southdown Motor Services, Ltd., have applied to the South-Eastern Licensing Authority for a further increase in fares on more than 100 services, it is proposed to raise 3111. and 4jd. fares by 0., and return fares and workmen's day return fares—ranging from 4d. to Ili:I.—by an average of id.
a2 Eastbourne Corporation have told Southdown that they will receive no support. from the municipal transport undertaking. Southdown had suggested' to Eastbourne Transport Committee that they should bring their fares into line with the company's proposed increases, but whilst they have no objection to Southdown's actions they do not intend to apply for an increase themselves.
Cuts in bus services as an alternative to increases in fares were hinted at recently by the South Wales Licensing Authority, Mr. H. I. Thom. !` The stage has now been reached where increases in fares are likely to defeat their own object and not produce the expected revenue, and we may have to face the undesirable alternative of cutting down or terminating unremunerative services," he said.
His comments followed a statement by Mr. C. Thomas, Caerphilly Urban District Council's transport manager, that takings on the Nantgarw-Cardiff section of their service to Tredegar had fallen by a third since a fare increase was granted in November to the council and Rhondda Transport Co., Ltd., Western Welsh and Red and White Services. " Judging by this drop, the public will not bear another increase in existing fares," said Mr. Thomas.
It was stated on behalf of Rhondda Transport that since the increase, their passengers had declined by 17 per cent. on this routeand there would he an estimated drop of £2,000 in receipts over the year.