Until January to unfreeze grants
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THE DEPARTMENT of Transport has been given until January 1977 to unfreeze bus grants to municipal operators. Otherwise operators may be compelled to press their claims in court, says the Association of District Councils in a letter to the Department last week. The ADC points out that the Transport department has no reason to withhold grants where an "approval in principle" certificate has already been issued. These grants should be paid immediately and the question of where the money comes from sorted out later, it says.
The ADC is claiming th payments for grants alreal approved in principle shou be paid over and above ti £6.29m negotiated for fre bus grant applications 1976-77 (see CM last weel The Department says thi should come out of the £6.291 The Department wanted tl ADC to sort out how to rat( the £6.29m between i members before releasing ti funds to pay grants again. B the ADC letter to the Depai ment says that because max of its members have be( placed in extreme cash-flo difficulty by non-payment grant that those grants ou standing should be paid now Legal opinion taken by ti ADC confirmed that the D partment could not legal withhold bus grant promise It has now specifically ask( the Department for its cor ments on this legal opinion.
If the matter Cannot I sorted out at official ley between the ADC and tt Department, the ADC is I press for a meeting with Tran port Minister Willia Rodgers.