Inefficient subsidy' • eport causes row
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[E Confederation of British Road Passenger Transport is gry over a Road Transport and Road Research Laboratory oort which, it says, implies that bus subsidies have led to Weed efficiency.
[le TRRL report, "Subsidtion of Urban Public Trans-t", although published in tam n last week, was under:en for the European Counof Ministers of Transport discussed by them in July, '9 in Paris.
>ubsidy levels in 59 cities d seven countries are died in the report. It condes that most of the subsidy ulted in reduced fares and proved service, but there Ly well have been some kage into higher unit costs I manning levels.
spokesman for CPT says it the report failed to acowledge that some bus .rators' activities led inevity to more costly operation. treat subsidies as some sort windfall is a misrepresenta1 of the facts.
:PT says that subsidies are ded because operators are asked to provide uneconomic services and local authorities know this will raise unit costs. So subsidies are a necessary part of planning for greater overall transport efficiency.
The report also noted that subsidies for urban buses in Britain accounted, on average, for only 29 per cent of operating costs — the lowest level in the EEC.