NBC makes £26m after big savings
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AN EIGHT per cent overall fall in passenger levels did nothing to prevent the National Bus Company from making a £26m profit on Its bus and coach operations in 1981. This was an improvement of £23m on 1980.
Measures to improve profitability resulted in withdrawal of 43m bus miles during 1981 — a service reduction equivalent to the closure of a 1,000-strong bus undertaking. Staff levels were reduced by almost 5,000 and the vehicle fleet reduced by six per cent to 14,712.
NBC achieved its annual target set by the Transport Secretary which was for a three per cent reduction in real terms in operating costs. Operating costs per mile were reduced from 102.8p in 1980 to 98.4p in 1981. The number of vehicle miles and passenger miles per employee also increased during the year.
The annual report shows that the operating profit, which was achieved on a turnover of £618.4m, was almost all taken by interest payments of £20m to the Government, which arose from NBC's commencing capital debt and long term loans. The report argues that these long term debts are an unfair burden on NBC's operations.
Although NBC bus operations declined, the long distance coach operations continue to increase in business, and express coaches carried 14m passengers, a 50 per cent increase in traf fic. National Express and National Holidays made a total contribution of £4.3m to the NBC subsidiary companies.
NBC companies have been making a common use of resources for both local and-long distance services, and, aiming a broadside at the Government's privatisation plans, N BC says this "provides a considerable contribution to total group profitability, achieves the maximum use of resources, and obtains the public services at the lowest charges possible."