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Scottish Transport sees daylight after £1.9m loss

28th May 1971, Page 27
28th May 1971
Page 27
Page 27, 28th May 1971 — Scottish Transport sees daylight after £1.9m loss
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Which of the following most accurately describes the problem?

• A £1.9m loss during 1970 was reported by the Scottish Transport Group in its annual report published on Wednesday.

The bus companies, taken together, failed to show a profit in a year which was the worst for strikes in their history. Industrial unrest accelerated the loss of passengers to other forms of transport, while unremuncrative bus services, drivers' working hours restrictions and cost increases generally contributed to the sharp decline in operating results.

Throughout the year, proposals to withdraw or to curtail unprofitable services, mainly in rural areas, were examined in consultation with the Traffic Commissioners and local authorities, but the latter were reluctant to use their powers to provide financial assistance to maintain services.

The report warns that the contraction of demand for public transport will inevitably lead to continuing reductions in the size of bus fleets and the services offered. The level at which this contraction will stabilize is not yet evident. Meanwhile, fares increase; assistance from local authorities, and the relaxation of drivers' hours regulations will be necessary if viability is to be achieved.

In a comment on the report, Mr W. M. Little, deputy chairman and managing director of the group. said: "The bad year is behind us. The group has not, despite the loss, found t it necessary to borrow further moneys from the Government, and the financial position in the first quarter of the current year indicates that the group is moving back to its former position of financial stability."

(Scottish Transport Group annual report andaccounts).

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