FARES : PTEs aim low, NBC high
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THE POLITICAL masters of both the South Yorkshire and West Midlands PTEs have lined up against the Government's intention to make bus operations commercially viable. West Midlands county council Labour group met Transport Minister Dr John Gilbert last Friday to discuss the problem—but a DoE spokesman said that since it was a political engagement they were unable to comment.
A spokesman for West Midlands PTE said fares policy was a matter for the council, and the Executive had to abide by the decisions taken.
But the PTE has in fact jumped the gun by applying formally for a fares increase in case the West Midlands Council is compelled to seek more revenue from fares.
S. Yorks decision
In South Yorkshire, the PTE has decided not to apply for any fares increases for the next financial year except for the Rotherham and Doncaster areas. The controlling Labour group there is seeking a meeting with the Secretary of State for the Environment, Anthony Crosland.
While these two authorities are fighting to keep their fares down National Bus subsidiary Midland General has been thwarted by the East Midlands Traffic Commissioners in its plans to increase fares to produce additional revenue amounting to £660,000. The Commissioners, rejecting the application, said that it "sought to reverse too rapidly the recent decline in the financial fortunes of the company."
On in yield
The Commissioners said that they would be prepared to consider granting an increase calculated to yield additional revenue not exceeding £500,000 in a full year after allowing for passenger resistance. They calculate that in the current year ending December 31 1975 Trent will show an operating deficiency of ovei £200,000 on the basis of existing fares. The Prices Code allows a total increase oi £375,000 on the basis that costs remain static and no furthei fares increases were made in the period.
The Commissioners said that they considered the decreasir4 rate of inflation did not warrant such a large increase as thE one applied for by Trent, whiclwas trying to obtain too large a return on capital.