Western Welsh Seek Fares Increases
Page 37
If you've noticed an error in this article please click here to report it so we can fix it.
WAGE increases for bus workers which W were awarded in April will cost the Western Welsh Omnibus Co., Ltd., £134,600 a year, the South Wales Traffic. Commissioners were told on Tuesday at Newport. Fares increases proposed by Western Welsh throughout South Wales would yield an amount which, in fact, was nearly £3,000 less than this figure, said Mr. E. S. Fay, Q.C., representing the company.
He hoped that the objectors would give the company credit for this and also for the fact that the application did not take into account the fuel tax in the Chancellor of the Exchequer's supplementary Budget, which would cost the company £25.000 per year.
Mr. Fay said the forward estimates of the company were "almost by custom liable to attack varying in degree from time to time." On the last occasion an application was made, the ability of the officials to make estimates was questioned. In fact, he said, the officials had erred against the company. Their forecast had. been "unduly optimistic."
" Last time we came before you," he told the Commissioners, "we were estimating that the financial year ending in March would produce a balance of £167,300 before tax giving a percentage of 7.39 in relation to capital employed. The actual figure was £153,063, giving a return before tax of 6.57 per cent."
If the present fares were not increased. the balance at the end of a full year would be no more than £44.850, slightly under 2 per cent. return on invested capital.
" With the full implementation of the proposals, and this includes those for raising of the cheap-day fares, a balance at the end of a full year would be £176.850, representing 7.59 per cent."