Passenger News
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;tagecoach upsta
4NSPORT Secretary Tom King has upheld an appeal by Tayside, impien and Central Regional Councils, British Rail and the Scot.' Bus Group against the Scottish Traffic Commissioners' decision grant road service licences to convert the Stagecoach of Perth isgow-Aberdeen service from express to stage carriage.
kfter considering the appeal at inquiry held in Edinburgh in ;ember the inspector, R. R. ;e, reported that he considd that Stagecoach had not owed the requirements of the ;al Government (Scotland) 1973, Section 31 which made leir duty as bus operators to operate with other bus corn:les, the regional councils and he Stagecoach application 3 clearly counter to the poli; of the councils, which had :ady secured adequate ser
vices on the route in question.
The inspector thought it inconsistent and wrong of the Traffic Commissioners to grant the application when they knew that they were required to take into consideration the council transport policies.
Two SBG services were likely to make a deficit and need protection in the form of crosssubsidy or revenue support.
The loss of SBG revenue to Stagecoach for an unnecessary service would result in a loss of revenue needed to sustain the routes and the transport network as a whole.
The inspector said the Commissioners' failure to consider cross-subsidy was an error of judgment and invalidated their decision. He felt that they had neglected their statutory duties largely by misdirection in law.
Mr King agreed that the Commissioners should have taken cross-subsidy into account in a case where it plays an important role in the transport policies and plans of the local authorities concerned, and where it bears on the transport requirements of the area as a whole.
If the consequences of a new service are likely to be adverse, they should be weighed against the benefits that the new service would bring the public.
He said that in reaching a judgment, the cross-subsidy argument has its place as one of the considerations that should be taken into account, not one that should be given over-riding importance.
For Stagecoach, Brian Soutar told CM that he was disappointed at the decision and would be taking the matter further. A substantial number of Stagecoach passengers travelled less than 30 miles and he forecast mayhem when they discovered that they could no longer travel.
The operator would issue a letter to the passengers to be handed out by the conductors, informing them of the decision. He felt that the public interest had neither been fully considered nor understood by the inspector.
Stagecoach was popular with passengers and as it charged lower fares than the rival services its operation was in the public interest.