Revenue clash is ahead
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REVENUE SUPPORT to West Midlands PTE would increase from 20 to nearly 25 per cent if its three-year plan receives Transport Secretary Tom King's approval.
West Midlands' 1984-87 plan, as required by the 1983 Transport Act to help Mr King set the protected expenditure limit (PEL) beyond which West Midlands will run the risk of being challenged, contrasts with Government guidelines, which would limit revenue support to a fall from 19 to 17 per cent.
The PTE proposes a 10 per cent reduction in its off-peak fares from October this year, but with fares being increased in line with inflation from April next year.
There would be a £2.5m reduction in costs, in line with cuts needed to meet Government guidelines, with 500 jobs being cut and three garages being closed.
The average load factor (passenger miles per bus mile) would remain at 18.4 throughout the three-year period (it was 19.4 in 1979), but passenger trips would fall to 417.5m.
Revenue support would rise from £30.23m in 1984/85 to £41.44m in 1986/87, after applying all general reserves, with the percentage support rising from 20.01 to 24.82. Government guidlines, by contrast, envisage the £29m PEL for 1983/84 being kept for the three-year period.
The plan includes allowances for new electronic ticketing systems, the pilot scheme for guided buses as a possible prelude to rapid transit development, special services for the disabled, and developments to the local rail service.
Plans are also being investigated for a separate coach division to help generate additional revenue.
• Tyne and Wear PTE is proposing to increase its fares in line with inflation over the next three years and to reduce its services by 4.2 per cent.
It has told councillors a fares freeze would take its revenue support bill to £40.2m in 1986/87, £14.7m (46 per cent) above the PEL guidelines.