HOPE FOR BUS REBATE SCHEME ON FUEL TAX THIS WEEK
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FROM OUR INDUSTRIAL CORRESPONDENT Bus operators were due to meet in London yesterday (Thursday) to hammer out a practicable scheme for repaying the 6d. a gallon rise in the petrol duty. imposed in Mr. James Callaghan's emergency Budget. Their meeting at the London Transport Board headquarters followed a conference, fOreshadowed in the Budget speech, at the Ministry of Transport last Friday.
In the absence of the Minister, Mr. Tom Fraser (at the House of Commons), the Permanent Secretary, Sir Thomas Padmore, conveyed the Government's, intenti•Jqt to make up the full cost of the extra cost on stage carriage services, if a scheme could be agreed.
The operators left the meeting well pleased with the discussions so far. They had . expected to hear Of some partial repayment, since Mr. Callaghan had men-, tioned no more than early discussions
with a viOev to finding means of reliev ing the additional cost The decision to make up the Whole of the cost came, therefore, as a pleasant surprise.
ft enabled Mr. Maurice Holmes, vicechairman of the Public Transport Association and a director of the Tilling Group, to say as he left: " We can con fidently say that the assurances given ha
us by the Permanent Secretary are quite sufficient to ensure that there will be no increase, at any rate on the local stage carriage services.
Mr. Holmes added that they had been assured that any arrangements which were made would be retrospective to Budget Day. After looking at posSible machinery—and there were several Methods open to them—they would go back to the Ministry for a joint working party to go further into details. "The Ministry has been extremely helpful and sensible ", he concluded.
Mr. C. T. Humpidge, President of the Municipal Passenger Transport Association and general manager of Sheffield Corporation transport department, was
equally cheerful.We are very satisfied indeed. It has been most encouraging he said.
An official statement issued after, the meeting read: "At the request of the Minister of Transport. Mr. Tom Fraser, representatives of the bus operators' associations and the London Transport Board today met Sir Thomas Padmore, Permanent Secretary, to discuss the effect on bus services of the increased fuel tax. The operators' representatives expressed grave concern at the likely effect on the industry of the tax increase. They were informed of the Government's willingness, provided that suitable arrangements can be worked out, With the industry's co-operation, that relief should be given corresponding to the extra cost of the 6d. tax increase on stage carriage services. The operators.' representatives agreed to take part in further discussions to work
out arrangements." • • The organizations represented at the talks were the Public Transport Associatian the Municipal Transport Association, the Passenger Vehicle Operators' Association, the Scottish Road Passenger Transport Association and the L.T.B.
Precise "figures are not available how much the extra tax would have cost the bus companies. • But London Transport alone reckoned that it would have cost them an extra 000.000 a year. Sums Of such magnitude could not have been absorbed by most bus undertakings and inevitably would have led to increased bus fares.
That may well be the reason for the Government's change;of mind -if it was indeed a Change—to repay the whole of the tax, Bus fares count towards the cost of living index and the Government will he anxious to do everything to limit any rise in living costs ,during the next few months.
There is one proviso, however, to the Government proposals". They apply only to stage carriage services. This excludes long-distance coach services, which rnay well have to put their fare g up, and also services operated on a contract basis. such as school or work buses. These latter exclusions will no doubt be taken up with the Ministry at the further discussions.
A by-product of the tax may well be to encourage greater use of buses in place of private cars. Mr. Fraser said at the week-end that he had been planning more attractive public transport to encourage passengers to leave their cars at home and take to buSes and trains,