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Glasgow's 1d. Fare Application

2nd November 1951
Page 34
Page 34, 2nd November 1951 — Glasgow's 1d. Fare Application
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

Heard : Deficit Now E2m.

I N former years, the prosperity of Glasgow Transport Department had been built up on cheap short-distance travel, said Cdr. L. S. Blanche, convener Of the transport committee, in putting the corporation's proposed fare revisions before the Scottish Licensing Authority, last Friday.

. It was suggested that a minimum fare of Id. should be introduced on trams and trolleybuses and on motorbuses operating in housing estates, allowing passengers to travel one stage. The minimum fare on the motorbuses would normally be 3d. for one to three stages.

Cllr. Blanche declared that his committee had rejected the or;ginal proposals of the general manager of the undertaking, Mr. E. R. L. Fitzpayne, because it wished to share the burden of higher charges equally among all passengers.

New Proposals

The originally suggested scale of fares would bave increased revenue by 1.740,000 a year. This would be reduced to £600,000 by substituting a Id. for a 2d. minimum, and by replacing the proposed 12-journey 3s. fid. ticket by a, 3s. one. Details of the financial position of the undertaking were given by Mr. Fitzpayne.

The deficit for the current year would £520,000, which would be added to the accumulated deficit of 12.308,000. The undertaking was currently losing £13.500 a week.

For the corporation, Mr. John Cameron, K.C., stated that the undertaking had been obliged to borrow £1,500,000 from the city loads ilepart: merit to meet current expenditure: This sum -had to be.c,ollected out of -revenue. 1 here was nofalling off in traffic or a reduction in mileage; traffic was expanding, he said, as was revenue, but costs were increasing even more rapidly.

Outstanding Loans of •£3m. , Loans now outstanding amounted to £3m. In the year end,ed May last, operating costs had gone up by

£237,238. Now the -department had. to find another £405,000 to meet the cost of the recent staff -wage award. Material costs had, also gone up by £250,000, of which £48,000 had been incurred since the closing of last year's accounts.

Mr. D. Jeffrey Aitken, representing Scottish Omnibuses, Ltd.. Western S.M.T. Co., Ltd., Central S.M.T.' ltd., W. Alexander and Sons, Ltd..; and Messrs. Baxter's Bus Services, Airdrie, out the case for the objectors. in September, 1950, he said, the corporation had claimed higher fares, saying a 1-1d. minimum was essential if the undertaking was to survive at all. Now Id. fare was proposed, which the only expert witness produced by the applicants, the general manager, rejected as impractical.

The objecting operators, he said, might be asked to co-ordinate their charges wish those of the Corporation. He asked why they should be requested to reduce their rates at the whim Of the A32 corporation. Furthermore, the corporation had never previously offered a weekly 12-journey ticket. Now they wished to inaugurate one so as to make a little more money. If the Licensing Authority allowed this there would he a flood of applications. The objectors had had these tickets for many years. at authorized levels.

The Eastern Licensing Authority has now given a final decision on the application of the Eastern National Omnibns Co., Ltd., reported in "1 he Commercial Motor" dated October 5. A partial grant s-vis then made; and now the concenlis authorized to add Id. to 2ld.-5.A. tickets and to revise weekly, return, season and other concession rates on an agreed scale.

Giving decision, the, Authority has stated that the new revisions avoided anomalies which would have been accentuated had the earlier proposals been granted. The decision also allows the company to increase revenue by almost £90,000 a year, the amount the Authority was prepared to permit,. although the company had asked for increases amounting to £107,000.

Wallasey Deals With Loss Wallasey Corporation now proposes to raise the price of all tickets, apart from the Gd. and 4d. ones, by Id., to reduce services and to permit adver

tising on buses. These changes areproposed to deal with a deficit of £67,000 which would be incurred in the next financial year. The proposed changes would increase revenue by £44,000 a year..

. Two Midland operators, Trent Motor Traction Co.' Ltd. and Barton TransPort, Ltd.. have decided to apply for revised charges following the grant of higher .pay to staff. The annual cost Of the new pay scales to these companies is stated to be 150,000._ and £33,000 respectively.

Season and Weekly tickets issued by the Ulster Transport Authority wilt cost more from November 12. A 10-percent.. increase is to be levied, so as to augment the annual revenue by £70,000.

Because their previous applications for fares increases took no account of the rise of 41d. in fuel tax in this year's Budget, Ribble Motor Services, Ltd..

and the North Western Road Car Co., Ltd., are considering seeking further

advances in ,charges.• The recent increasein wages has !also aggravated the position. This will cost Ribb:e £150,000 a year and North Western £69,000.

£52 FINES FOR SPEEDING

SIX coach drivers were fined a total of £52 for speeding at Holwell last week.

Two of the drivers were stated to have overtaken all vehicles on a twomile stretch of road upon which they were checked by the police. They were lined £10 each. The other four, one of whom said that he was making up for time lost because of a puncture, were fined £8 each.


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