' Costs over-estimated': Lancs objectors
Page 41
If you've noticed an error in this article please click here to report it so we can fix it.
• Lancashire United Transport Ltd. was granted a fares revision in Manchester last week despite the objectors' claim that the company had over-estimated its costs for the last four years and might be doing so again. The application, heard by the North Western Traffic Commissioners. was objected to by 11 local authorities and one independent councillor.
Mr. F. D. Walker, for LUT, said the 4d minimum fare would remain. Some fares would not be affected, others would increase in 2d steps to 3s 6d. The maximum increase would be 2d. The increase in costs since the last revision was E115,420, said Mr. Walker. The new fares would realize an additional £100,000. There would be a saving of about £70,000 from further introduction of o-m-o services and other economies. The new fares would have effect from December 1 1969 and would bring a return on capital employed of 8.9 per cent.
Counsel for the objectors, Mr. J. Coffey, said that in 1967 LUT had over-estimated its increased costs by £47,000 and in 1968 by £53,000. If this were repeated on this occasion there could be a surplus of £50,000 by the end of 1970. Mr. Coffey also said that in 1968 the applicant company's property had been revalued at an additional £141,000. This amount had therefore increased the capital employed. In reply to this Mr. Bailey, general manager of LUT, said that as the total capital was in excess of £2m the additional amount had little effect.
The Chairman of the Commissioners, Mr. C. R. Hodgson, said he thought the fare scale and the increases were reasonable.