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Cross-subsidization a Manx Problem

18th March 1966, Page 43
18th March 1966
Page 43
Page 43, 18th March 1966 — Cross-subsidization a Manx Problem
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Which of the following most accurately describes the problem?

rrHE first of a series of applications before I. the Isle of Man Traffic Commissioners that started last week and were expected to last 10 days, resulted in a part grant to the Isle of Man Road Services Ltd.

Mr. W. Lamden, general manager of the company, said that action had to be taken to make the services viable. Without increased revenue, the Commissioners would be faced with applications to discontinue unremunerative facilities and to make drastic reductions in winter services as a whole. The need for cross-subsidization in order to maintain year-round facilities was the underlying theme of the application, which was for licences on the Douglas-Ramsey route.

Mr. Lambden said the company had been operating to Ramsey for many years but traffic was falling substantially and money from that service was required to crosssubsidize unremunerative routes in the north of the island.

Co-ordination of services throughout the Isle of Man had been closely examined, the company doing its best to improve connections and vehicle mileage.

Objections to various features were voiced by local coach operators, the Manx Electric Railway and Douglas Corporation.

Lt.-Col. C. Kniveton, chairman of the Commissioners, said that whereas they appreciated that the applicants were seeking revenue to offset losses, the proposal to operate via Queens Promenade, Douglas, would not create traffic and there would be abstraction—especially from Manx Electric Railway, which provided a year-round service. They therefore refused the particular part of the application seeking a diversionary route via Queens Promenade, but granted the remainder.