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Why do costs rise? council

25th November 1977
Page 25
Page 25, 25th November 1977 — Why do costs rise? council
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Which of the following most accurately describes the problem?

DUMFRIES and Galloway regions are to fork out £600,000 in bus subsidies next year — a jump of £116,000 on their last bill.

But payments will not be made until the bus companies come up with a good explanation of their own income and why the costs have risen.

The transportation committee heard of the increases from finance director David Booth, who urged them to put aside the £600,000 in the 1978-79 estimates.

On top of that, the public will have to pay up to 15 per cent increases on bus fares in the future.

At a meeting earlier this year, the committee agreed on a £464,000 ceiling for the Scottish Bus Group's bill — but since then have been asked for another £20,000 extra financial support.

Hugh Murray, roads director, pointed out that the group had wanted a further £15,000 for taxation — a figure which arose purely from the particular accounting method chosen by the bus group to provide for depreciation of existing• vehicles and future purchase of new vehicles.

Like most other Scottish regions, he did not think this should be included in the revenue support money.

Mr Murray also stressed that the recent White Paper on transport favoured increased support to public transport.

Mr Booth said that the bus subsidies moved "up and down like yo-yos" and it was impossible to keep track of their amounts.

This was why he agreed with the recommendation that the group be asked for a detailed explanation on their estimated income before the region agreed to any fixed term.