"Higher Fares Urgent and Essential"
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Scottish Group Puts Case for Industry : Corporation and Company Fares Up
j\,DD1TIONAL expenses amounting to £2,160,648 a year, as compared r-k with the previous year, were stated as the principal reason for the _ applications for higher charges made by members of the Scottish . Omnibuses group to the Scottish Licensing Authority, last week.
Other applications were presented last week by Oldham and Bury Corporations, and this week by Leeds and Sheffield Corporations. Revised rates were granted to certain West Midland coach operators, Newport, Chester and Lytham St. Armes Corporations, and Aldershot and District Traction Co., Ltd.
• In the face of objections from 47 local authorities, the four principal .1nts companies in Scotland— Scottish Omnibuses, Ltd.. Western S.M.T. Co., Ltd., Central S.M.T. Co.. Ltd.. and W. Alexander and Sons. Ltd.—applied last week for an all-round increase in fares. .it was stated that to meet their obligations, they required an extra £1.562,683 a year. Since the previous application for higher fares in September. 1950, there had been a succession of increases in the principal items of expenditure. A general increase of fares was an absolute and urgent necessity, it was stated. In 1950, wages had cost 7.81d. per mile. In 1952. the figure had become 9.122d. Although the cost of fuel had also gone up, economies had resulted in a reduction in the amount of fuel used. The average fuel-consumption rate of the fleet had been improved from 10.78 m.p.g. to 10.83 ni.p.g, The high cost of new vehicles had made it necessary to curtail expenditure on this count.
Net Revenue 1875,45S In 1952. it was estimated, the net revenue from the buses, on present fares, would be £875,455. representing only 2.95 per cent, of the invested capital. This was insufficient to meet the 3 per cent. required for stock-. holders.
The new fares scales envisaged an addition of Id. to single fares up to 6d., Id. to fares up to Is., 2d. to fares in the Is. ld.-2s. range and of Id. in the ' shilling up to a maximum of 6d, in the case of fares over 2s. Return charges would be similarly affected.
For the objectors, Mr. J. 0. M. Hunter. K.C., said ".My impression is that Scottish buses are contributing more than their fair share to the central
authority." In reply. Mr. James Amos, chairman of the gwup. said that his intention was to use the extra money for the improvement of services, the provision of new garages and bus stations, and for building up a reserve fund of £3m. to £4m. in 10 years. ,
The higher fares would create astirplus of £2,439,138 in a full year, equal to 8 per cent. of the capital invested in the group. The British Transport Commission was entitled to ' 3 per cent. on the £29m. stock, or
£870,000 •a year Another •£780,000 would have to be found for income tax
In 1952. There was no• truth in the Suggestion that the group subsidized lie R.T.C. Another representative of the objectors, Mr. D. S. Anderson, declared that in 1950 the group had contributed £3.389,000 to the B.T.C. accounts, almost il per cent. of its total income.
Mr. R. P. Morison. K.C. for the group, pointed out that all capital for expansion had to be obtained from revenue. Under private enterprise, the companies had a reserve of £2m. There were now no reserves.
Glasgow Corporation, which introduced higher charges only two weeks ago, is con• sidering further fares changes. Higher wages in the engineering industry have increased the undertaking's expenses by £75,635 a year. the new scale of pay for the department's staff has added £33,450 a year to costs.
Leeds Seeks 2d. Minimum
Leeds Transport Department will have an estimated cumulative deficit of more than £500,000 by the end of March, 1953, if its application for 2d minimum fare— ^ and other increases—be turned down. This was stated at Leeds on. Monday, when Major F. S. Eastwood, Yorkshire Licensing Authority, heard the department's application for revised charges.
This proposed that the 5d. workmen's return bus fare should become 9d., the 6d. fate 11d., the 7d. fare Is„ and the 8d. and • 9d. fares Is 2d Other changes in concession fares were also suggested.
The deputy town clerk Said that Leeds was not alone in seeking fare increases twice within a year. The reason, was because of the rising costs of wages and material. At the end of last March, the undertaking had a deficit of £139,393. and the estimated deficit for the current financial year would be £182,930.
By March 31. 1953, it would be £537,393. If the 'proposals were granted, annual revenue would be up by £215.000.
Mr. A. B. Findlay, general manager, said that tram fares had gone up by 64 per cent. since the war and bus fares by 43 per cent., whereas wages had risen by 125 per cent., and materials anything from 200-1.000 per cent. Power costs alone for electric' traction would IX £50,000 up in the coming year
The proposed increases were the absolute minimum for which the corporation could apply. Constant research was going on in the undertaking to reduce operating costs. Objectors declared that higher charges would reduce traffic and revenue.
Decision was reserved, but an catty announcement was promised.
Although some fares were raised last April, Oldham Corporation applied again. last week, to the North-western Licensing Authority for revised charges. It was suggested that all single fares should cost Id. more, except the 1,Id.. and that workmen's fares should be increased to single tare plus 50 per cent. These changes were estimated to increase revenue by £82,592 Higher fuel costs had imposed an extra, £78,156 a year on the undertaking's expenses. Even without considering some of the latest advances in costs, there would • be a deficit of £44,070 next year, compared with one of £36,690 this year. The reserve fund now totalled £24,616. Higher fires introduced last year had been estimated to increase revenue by £85,938 a year; in fact, traffic had dropped to such an extent that only £47,092 extra would accrue.
Reserving decision, the • Licensing Authority said that the application was well founded.
A similar state of affairs was revealed in the hearing of the application by Bury Corporation. Since fares went up six months ago, the general manager of the undertaking stated, between 60,000 and 70.000 fewer passengers had been carried. A loss of £35,900 was expected next year.
New Aldershot Returns
The South-eastern Licensing Authority.sitting last week to hear applications by some small • operators to bring their charges into line with those applied for by Aldershot and District Traction Co., Ltd., announced that, with the exception of the proposals concerning return fares. the Aldershot concern's application had been granted in full. The company had suggested raising return fares to single fare ' plus 75 per cent. The new charges authorized equal the single fare plus half.
Newport, Chester. West Hartlepool and Lytham St. Annes Corporations have received permission to vary fares. In the case of the Newport application, no decision has yet been given on the question of workmen's charges. At Chester, fares went up last week by Id. and Id. The new rates are estimated to add £16.000 to the department's revenue. •
Similar advances will be introduced shortly at West Hartlepool, where the transport department's estimated loss for this year would have been £22.132 on the old fares. At Lytham St. Annes, the id. ticket has been abolished and certain other tickets now cost Id. more.
Four Rugby operators who declared that they were satisfied with existing rates, were excluded from the decision of the West Midland Licensing Authority, permitting coach operators in the area to increase charges by 15 per cent,
An application for augmented charges has now been lodged by the Bristol Tramways and Carriage Co.. Ltd. Details were given in "The Commercial Motor" dated December 14.
• Snuthend Trolle3,buses Going
Suggestions that the workmen's mini, mum charge should go up from 2d. to 5d„ that the children's minimum ticket should be ltd., and other measures are being considered by Southend Corporation, which faces a deficit of £19,000 this year. Additional revenue of £16,300 would derive from these changes, some of which would be required to enable new motorbuses to be bought, as the undertaking wishes ultimately to abandon trolleybuses.
All-round additions of Id.-4d. to, existing single and return fares are suggested by Notts arid Derbyshire Traction Co. in a new application.
An additional £82,000 a year is expected from new measures proposed by Walsall Corporation. A reserve fund of £52M00, held a year ago, is now exhausted. It is proposed to raise some workmen's charges by 4d. and to increase .other rates by amounts varying from 1,c1. 10 3d.