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PTE chief hints at 25 per cent subsidy

18th June 1971, Page 29
18th June 1971
Page 29
Page 29, 18th June 1971 — PTE chief hints at 25 per cent subsidy
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Which of the following most accurately describes the problem?

• In a report released yesterday, Thursday, on public transport in the City of Manchester and Greater Manchester areas to the year 1981, Mr G. A. Harrison, director-general of SELNEC PTE, has called for urgent action to reduce the decline in the use of buses by introducing new traffic and car parking controls, special subsidies or a combination of all three. He claims that a 50p charge for car parking would bring the number of cars in Central Manchester below their present level even in 1981.

In the forecast he has drawn up for the next 10 years, Mr Harrison said that the finances of bus operations in a major city were affected by the same factors as applied to all bus undertakings, particularly road congestion. In addition, the social requirement to meet peak hour demand imposed abnormal distortion. In the Manchester depots 60 per cent of the fleet was required only during the peak hours.

Mr Harrison said that while there was no reason to doubt that some bus services in a major city could continue to be provided on the basis of commercial viability, the question was whether the reductions in service and the increases in fare charge involved would be acceptable to those who had political control, and to the public.

The director-general felt that by the end of the decade, in the absence of any determined traffic measures or parking control, extensive reductions in service would be necessary and the fare increase was likely to exceed increases in the cost of living index.

On the question of.subsidy, Mr Harrison had no doubt that a substantial one, as distinct from a subsidy to maintain loss-making services, was one measure which would have an effect in attracting or at least retaining traffic on buses.

Experience in the United States, said the director-general, indicated that to have any significant effect the subsidy needed to be substantial. To be significant over a period, SELNEC believed this would need to be of the order of 25 per cent of turnover. Taking all bus services in the conurbation, this would imply a minimum subsidy as far as SELNEC was concerned of over £.64m a year, representing a rate in the of 6.6p (Is 4d). Mr Harrison claimed that subsidy at this level would have some effect in slowing passenger decline, particularly if it reduced fares below the cost of car travel.

In the report he said that increased control of car parking could bring about the same result. An assessment of time and cost of peak hour journeys showed that allowing for distribution times at both ends of the journey, bus and train costs and times in many cases compared more than favourably with the car. One difficulty was that people did not perceive the true cost of the car and, even if they did, simply accepted it as an essential feature of life.

Capital investment to produce extensive segregated lanes for buses would be an alternative. However, to do this on any scale would involve substantial funds. Much stricter control of car parking and really major traffic management measures on existing roads to speed up bus services could have the same effect. Alternatively, if a general subsidy to reduce the cost of bus journeys was regarded as an alternative, a rate charge for the subsidy would be unpopular with the majority of car owners.

In assessing the future transportation pattern in the City of Manchester, the phasing of proposed rail investment was of great importance. Mr Harrison pointed out that the earliest date for completion of the Central Tunnel was most likely 1979. Other improvements, however, of a less formidable nature could be completed some years earlier. More priority for rail upgrading might improve dates for some of this work but in the intervening period, Mr Harrison felt, if something substantial was not done in the way of traffic management measures, control of car parking or subsidy, a very serious decline in bus usage to and in the Central area had to be expected with consequent reductions in levels of service.

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People: G. A. Harrison
Locations: Manchester, Greater

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