12 South Wales Bus Operators Deny Allegati ons by Local Authorities
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TWELVE South Wales bus operators L denied at Cardiff, last week, that they had "feathered their nests" by securing fare increases based on incorrect figures (The Commercial Motor, last week). Mr. F. A. Stockdale, for the operators, told the Ministry of Transport inspector, Sir Maurice Holmes: " None of these companies can be said to be earning an extravagant balance."
He was appearing for The Western Welsh Omnibus Co., Ltd.; Red and White Services, Ltd.; Rhondda Transport Co., Ltd.; South Wales Transport Co., Ltd.; United Welsh Services, Ltd.; S. A. Beb, Ltd.; Edwards Bros.; A. and F. Maisey; Cardiff Corporation; Caerphilly U.D.C.; Pontypridd U.D.C. and West Monmouthshire Omnibus Board. They faced appeals against increases lodged by 15 local authorities, who accused them of underestimating their revenue and making excessive profits.
"Unfair Advantage" Mr. StociC dale claimed that the councils had failed to consider profits as a percentage of the capital employed in the companies, which were commercial enterprises and should not be treated as though they earn a standard revenue. Quarterly season tickets had been abolished because the holders were enjoying an unreasonable advantage over other travellers.
In 1956, Western Welsh made 6.72 per cent. profit return on capital and 7.84 per cent in 1957. All they did was trade at a modest level. No evidence had been put forward of extravagant management, and economies had consistently been practised.
South Wales Transport showed modest yields and dividends for a commercial enterprise, and the remark that their 1956 dividend was the highest in South Wales was untrue. The dividend on ordinary shares, including -an interim. was 10 per cent. before taxation. in contrast, Rhondda Transport's dividend was 6 per cent, free of tax, which was 10.4 per cent. gross.
Wrong Estimates
In his final speech for the local authorities, Mr. Alun Davies repeated his allegations that some of the operators had submitted wrong estimates to the Traffic Commissioners. He said that in one case an item of £30,000 had been put forward for which there was no justification. The public were paying for the running costs of -inefficient buses, and for the depreciation charges for new vehicles which the company did not even possess.
The application to abolish quarterly season tickets was discriminatory against regular travellers who provided the bread-and-butter revenue. The local authorities thought it reasonable that luxury travel, such as tours and excursions, should bear the biggest part of increased costs.
Sir Maurice closed the proceedings to co--gpile his report for the Minister.