Higher Fares to Follow Rise in Fuel Costs?
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B.M.M.O. Review Fares Again: How Birmingham Corporation, Scottish Omnibuses, Edinburgh, Manchester, Bristol Tramways, Leicester, Darlington and Other Operators are Affected HIGHER fares are likely to be sought by a number of bus operators following the recent increase of id. a gallon on the price of oil fuel. To some undertakings, left with a fine margin of profit after the recent wage awards, the change in the price of fuel has been the last straw.
The Birmingham and Midland Motor Omnibus Co., Ltd., who will have to find about £30,000 a year more, had decided earlier this month to apply for higher fares because of the wages award, which has added £300,000 to their costs. Now the company are to review fares again.
Mr. D. M. Sinclair, general manager, said that the increases for which they had budgeted would not cover the extra £30,000.
" We hope that this latest increase will make the Chancellor give us a reduction in the tax on fuel oil," added Mr. Sinclair.
Mr. W. H. Smith, general manager of Birmingham Transport Department, said the transport committee would certainly have to consider increased fares. But they were hoping there would be a reduction in tax to offset it.
Commenting on the increase, which will cost Scottish Omnibuses, Ltd., £68,000 a year, the chairman, Mr. James Amos, said that it must inevitably be taken into account in fixing fares.
Edinburgh Faces Loss
Edinburgh Corporation, who have already applied for permission to reduce the number of stages covered by the 3d. fare, will have to find another £8,000 a year. Even if the current application is granted, Edinburgh faces _ an expected deficit of £28,000 at the end of the : current financial year, apart from the additional cost of fuel.
Manchester Transport Department, which expects a surplus of £40,000 this year, will lose £50,000 next year through higher wages and the fuel increase. alr. H. Sharp, chairman of the transport committee, said that they would not apply for higher fares unless wageswere again increased.
As foreshadowed in The Commercial Motor on January 14, Bristol Tramways and Carriage Co., Ltd., are to apply for permission to raise fares. Proposals to increase return fares on country services are expected to be submitted to the Licensing Authority soon.
Next Friday, Bristol Joint Transport Committee (Bristol Tramways and Bristol Corporation) will consider a proposal to abolish workers' fares on city services. Bristol Tramways will have to find an extra £17,000 for fuel.
Leicester Transport Department's fuel costs will increase by between £3,500 and £4,000 a year. Mr. J. Cooper, general manager, said that as with the recent wage increase, the undertaking would endeavour to absorb. the extra cost by internal economies.
Following the recent wage increase, Darlington Transport Committee have recommended the addition of id. to all single fares over lid. They have also suggested the withdrawal of transfer tickets. The increase in the price of fuel will cost the transport department £707 in a full year.
A minimum fare of 2.d., and an increase in the price of workers' tickets, is being sought by Morecambe Transport Committee to offset £6,000 a year in higher wages. A reserve fund of £12,000 to buy new buses is also necessary.
Hull Transport Department will have to find an extra £1,900 a year for fuel.
Nottingham Transport Committee are hoping to " carry " the higher costs imposed by increases in wages (09,000 a year) and the price of fuel (£4,000).
The "strongest possible" representations on the oil fuel tax are to be made to the Chancellor of the Exchequer, Mr. Butler, by Glasgow Transport Department, according to Councillor R. McAllister, convenor of the transport committee. The department recently made its annual purchase of oil fuel costing £500,000, of which £378,000 represented tax. The price increase will cost the department 110,000 a year.
Bristol Tax Campaign
Bristol Trades Council are to organize a campaign against the fuel tax. They are to ask Bristol Tramways and Carriage Co., Ltd., Bristol City Council, and local M.P.s to urge Government action.
Following fare increases granted recently to United Automobile Services, Ltd., the Northern Licensing Authority has given permission to Newcastle upon Tyne Transport Department, Wakefields Motors, Ltd., and the Tynemouth and District Transport Co., to bring their fares into line. Tynemouth Corporation objected unsuccessfully.