Fare Applications to Follow Elm. Pay Rise?
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MANY municipal undertakings may have to raise fares to meet the award by the Industrial Disputes Tribunal of an extra 5s. a week to bus workers. The total cost to the industry of the award, which was retrospective to November 1, will be over Lim. a year.
Intimation of the need for more revenue has, so far, come from the undertakings at Edinburgh, Leeds and Coventry. Although the award will cost Glasgow Transport Department about £100,000 a year, there is said to be no likelihood of an increase in fares in the near future.
Manchester is not to apply for a further increase, although the pay rise will cost the undertaking more than £95,000 a year.
The cost will be met out of the additional revenue of more than £400,000 a year expected from the last fares increase; which came into operation in July. It is not expected that the award will affect the recently introduced bonus scheme for drivers and conductors.
The pay increase will cost Edinburgh about £35,000 a year. The chairman of the transport committee, CIIr. J. Chalmers Brown, said: "I cannot see how a fares increase can be avoided if we are to continue to make Edinburgh transport pay its way." [At the last meeting of the committee, the treasurer warned them to take action to meet an expected deficit of £142,000.]
At Leeds, the award will raise the estimated loss at the end ofthe current year from £63,000 to £90.,000. Aid. J. Rafferty, chairman of the transport
committee, said last week: " The department cannot possibly go on absorbing increases of this kind."
He had asked the general manager to prepare a report showing what would be required to meet the serious financial situation.
[If no steps are taken to increase revenue, the deficit at Leeds for the year 1957-58 will be about £130,000. This will be additional to the department's accumulated deficit which, at March this year, was £410,309.)
Coventry, to which the award represents an annual increase of £20,000 in costs, was less specific. CHI-. W. Spencer told the city council last week that the transport committee would have to make certain proposals as the result of the award
Walsall may also be obliged to seek more revenue.
The cost to Belfast Transport Department will be £38,000 a year. Luton face an annual bill of £4,500.