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FARES BATTLES CONTINUING

17th May 1957, Page 37
17th May 1957
Page 37
Page 37, 17th May 1957 — FARES BATTLES CONTINUING
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Renewed Car Competition Adds to Bus Operators' Difficulties

BUS operators now face renewed competition with private motoring, with the end of petrol rationing, yet are still combating rises in costs. The general trend in revisions in fares scales continues, with the only bright prospect a cancellation of 'Suez surcharges" in the cost of fuel —thought due to be announced as The Commercial Motor closed for press on Wednesday. This, however, would cut both ways and, in any case, many undertakings did not suffer an advance in fuel prices because of tight contract arrangements.

Swindon Town Council have decided to apply to increase by Id. all fares above 21d. in operation on January 1. The Id. increase on fares containing an odd 4d., introduced at the time of the Suez crisis, has been removed.

The proposed new increase will add £17,000 to,sevenue in a full year. At existing fares levels a deficit of about £7,000 would be likely at the end of the current year's working.

The East Midland and South Eastern Traffic Commissioners have granted an application by City of Oxford Motor Services, Ltd., to raise fares on city and country routes, although there were 17 local authorities among the objectors. Mr. S. D. Herington, for the company, said that they would earn an extra £61,000 in a full year if the application were granted. Increased costs had added £72,000 to expenses.

A warning of the possibility of an increase in fares on the corporation's bus services was issued to Darwen Council last week.

Aid. Mrs. M. Duckworth, chairman of the transport committee, said that although the Suez emergency increase of Id. had been taken off Darwen bus fares, rising costs might soon force a permanent advance.

Dearer Materials Mr. A. B. Findlay, general manager of Leeds Transport Department, gives a warning in his annual report to the transport committee that costs have increased at a "phenomenal rate," Advanced fares would step up revenue by £355,000, but load charges had increased by £52,265, and extra pay, superannuation, spreadover and time charges had added approximately £250,000 to expenses. Materials were also 'dearer, and the total of higher expenses was about £465,370.

Bradford Transport Committee have decided to adopt recommendations made by Mr. C. T. Humpidge, general manager of the undertaking, for fares alterations. The transport department may lose £100,000 in the current year.

When some members of Chesterfield Town Council last week maintained that the -Id, surcharge, added to fares at the time of the Suez crisis, should he retained, air. H. C. Mullett said that since April last year costs had increased and added 132,000 to the annual bill.

In future, buses would be bought out of revenue and not borrowed eapaut on which loan charges had to be paid. In a full year the surcharge would add £47.000 to revenue. Increased wages were in the offing and would cost another, £17,000, if they were of the order of 5 per cent. greater than existing rates.

When Rotherham Corporation applied to the Yorkshire Traffic Commissioners last week to make permanent the advances in bus fares introduced during the emergency last autumn, Maj. F. S. Eastwood, chairman, said that their application was " very modest." The undertaking appeared to try to keep its costs down and the travelling public of Rotherham were very lucky, he said.

£16,000 Deficit?

Mr. J. K. Peace, for the Corporation, said that in 1956-57 there would be an estimated deficit of £16,000. There was an insufficient amount in reserve to meet the depreciation of the fleet at £200,000. The granting of the application would increase revenue by £33,000 a year. • Maj. Eastwood thought that the Corporation should have a bigger financial reserve for fleet replacement. The depreciation was based on the historical value of vehicles and not replacement costs. The department would have to replace a bus costing £3„500 by one which would cost £4,500.

. "You are the only people who .take the historical value of vehicles, and even nationalized undertakings have gone over to replacement costs." he pointed out.

The Western National and Southern National Omnibus Companies last week successfully applied to the Western Traffic Commissioners to introduce revised scales of fares. A third of all single fares have been increased, a sixth reduced, and a half remain unaltered.

Mr. T. D. Corpe, for the companies,

said that the only alternatives to fares rises would be reductions in services. This would be extremely unpopular with the 21 local authorities who appeared as objectors. Last year operating costs rose by £111,000. Of this amount £35,000 was offset by economies. The proposed new scale would yield £50,000-112,000 more than seemed necessary.

Extra Field

Mr. Corpe expressed the hope that no one would quibble about this. It would be a cushion against further increases, Mr. A. C. Coffin, for 10 Cornish local authorities, said that the extra £12,000 was unnecessary. It was estimated that the company would be getting an extra yield of 5,68 per cent.

Mr. S. W. Nelson, chairman, said that this proportion •was not unreasonable, " It is our desire That this company shall be kept strong financially."

Contending that the bus fares in London are above the national. average, the East London Liberal Candidates Association have decided to contest the retention by the London Transport Executive of the 3d. minimum fare. They advocate that competition should he restored to the operation of buses in the capital, and point out that, whereas Londoners can travel for only up to a mile for 3d., people in Middlesbrough, for example, can travel up to seven miles..


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