Minister upholds Commissioners
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AT appeal by the County Borough of Gateshead against a grant by the Northern Traffic Commissioners to the Gateshead and District Omnibus Co. Ltd. allowing for increased fares has been dismissed by the Minister of Transport.
There was no dispute between the parties as to the additional costs with which the respondent company was faced. But the Minister had to consider three main points: whether the company had been in the habit of putting unnecessarily large sums to general reserve; whether the profit of £63,500 which was expected as a result of the increased fares was appropriate to the financial position of the company; and whether the method adopted of increasing fares between 2d. and 10d. by Id. was an appropriate one.
In her written decision, the Minister suggested that the Commissioners should consider the justification for the company's reserves in more detail when determining any future fares applications.