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BLACKPOOL TO LEASE BUSES?
Page 38
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WHAT is believed to be a new approach VY to vehicle renewal, so far as municipal passenger undertakings are concerned, has been taken by Blackpool Corporation transport committee. A leasing arrangement in respect of 20 double-deckers has been drawn up and the proposal, backed by the finance committee, was referred back for consideration at this week's council meeting. The buses concerned were •already on order before the arrangement was completed and the council had loan sanction Because the undertaking has not been making any profit, it has not been possible for tax allowances to be obtained in respect of capital investment. Had there been a large surplus, purchase would obviously have been made out of the reserved fund, but under the leasing system considerable advantages can be obtained from allowances in respect of tax rebate received by the finance organization. Thus the long-term benefit to the Corporation should be considerable. In fact, a saving of .£28,000 is expected on the 20 buses in the course of eight years, when costs are compared with purchase by normal loan.
After the conclusion of the eight-year contract a nominal hire charge will be paid by the Corporation to the finance company so long as the vehicles continue in use.