Over 20 Councils Await Court Ruling on Free Travel
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0VER 20 municipal authorities await judgment today in a High Court case which has been brought against Birmingham Corporation to decide whether a local authority can legally transfer money from the general rate fund to subsidize certain free travel facilities offered by the city's transport department.
The corporation's free travel scheme for old-age pensioners on their transport services was challenged by a ratepayer before Mr. Justice Vaisey in the Chancery Division of the High Court last week.
Mr. G. V. Prescott, of Edgbaston; asked for declarations that the scheme was illegal, and that the corporation were not entitled to use any part of the general rate fund for such a purpose.
Payment of £90,000 Mr. F. Blennerhassett, for Mr. Prescott, said that the corporation adopted the scheme in January last year and resolved to make a payment of £90,000 from the general rate fund to the transport undertaking. This sum represented the estimated cost of the concession for one year. Pending the result of the present litigation the transfer of the £90,000 had not been made.
Counsel said it was significant that the town clerk had advised the corporation that the scheme—which provided free travel for old-age pensioners between 10 a.m. and 4 p.m. daily, except Saturdays—was of doubtful legality. He also advised that in such circumstances it was the usual practice to obtain powers -by a Bill. At the time of such advice, a Bill for the city of Birmingham was in course of preparation, but no attempt was made to seek such powers in it.
"This scheme was put forward at a time when there was a deficit on the working of the transport undertaking of £700,000," said Mr. Blennerhassett. Local authorities were empowered to charge such fares as they thought fit. Not charging a fare at all was an improper exercise of their discretion.
"Why Not Free Food or Dress?"
"If money can be taken from the general rate fund for a free travel scheme, why should it not be taken to provide pensioners with tickets to the theatre? If free fares, why not free food or free dress?" asked Mr. Justice Vaisey.
Mr. Blennerhassett contended that a local authority must have statutory authority for every form of expenditure.
For the corporation, Mr. Michael Rowe, Q.C., said the case was of great importance not only to Birmingham, • but to more than 20 other authorities operating similar schemes. For many years Birmingham had charged reduced fares to war-disabled people and the blind, and there was no difference between these schemes and the present one.
136 "But when free passes are given to the extent which is measured by 00,000, it is time to look around and see where we are," commented the judge.
There was nothing in any statute to prevent the corporation from remitting part or all of the fares, The transfer of £90,000, said Mr. Rowe. was merely a bookkeeping entry by which money was taken from the general rate fund and credited to the transport account.
Asked by Mr. Justice Vaisey how many people in the area were eligible for free travel, Mr. Rowe replied: "About 70,000. The number of current passes is something over 40,000."
His lordship then asked: "Are the transport activities of the Birmingham Corporation really run at a loss of £700,000?"
Mr. Rowe replied: "Not per annum. That is an accumulated total."
The judge commented that if the corporation paid each of the 70,000 eligible persons I a year instead of giving them free travel it wauld save the rates £20,000. "That," replied Mr. Rowe,'" would be a payment to somebody to whom you were under no liability and is prohibited."
HAULAGE MEN'S PAY UP NEXT, WEEK
HIGHER rates of pay for road haulage workers come into force on October 20. Adult males will receive another 3s. a week, with proportionate increases for juniors.
Subsistence allowance will be increased from 12s. 6d. to 13s. 6d. per night. The weekly rate of subsistence to be paid for second and subsequent weeks during which a worker is temporarily transferred from his normal depot will be 61s. 3d. (8s. 9d. a day).
WAITING BAN: NEW PROPOSALS
AMEETING of the Metropolitan Liaison Committee of the Traders' Road Transport Association and the Road Haulage Association last week decided to submit further proposals to Mr. Hugh Molson, Parliamentary Secretary to the Ministry of Transport, on the question of delivery restrictions in central London. The nature of the proposals is not known.
A.C.V. BOOK E1M. ORDERS
ORDERS taken by A.C.V. Sales, Ltd., at the Commercial Motor Show amounted in value to well over Elm. Home-market demands accounted for £750,000, whilst the remainder were for the export markets, including the Low Countries, Switzerland, Portugal, Argentina, India, South Africa, Nigeria, Turkey and Syria.