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Midland faces crisis

5th February 1971
Page 61
Page 61, 5th February 1971 — Midland faces crisis
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Which of the following most accurately describes the problem?

D Midland Red, the largest provincial bus :ompany in Britain, is facing a financial :risis and will soon be compelled to borrow noney from the National Bus Company to lay staff wages.

This was stated in Birmingham on donday when the 'company applied to the Vest Midland Triffic Commissioners to ncrease fares throughout the scale by lp 2.4d).

Objections to the application were made ■ y 43 local councils. 24 of which were epresented in court.

A non-statutory objection was made by dr Leslie Huckfield, Labour MP for ■ luneaton. who delayed the start of the 'caring for 30 minutes when he constantly tterrupted the procedure in an attempt to lave the hearing adjourned. Mr Huckfield laimed that the result of an adjourned iublic sitting held by the Northern Traffic 7ommissioners in Darlington last week iould be of direct consequence to the didland Red application.

In reply to Mr Huckfield's exchanges, Mr ohn Else, chairman of the Commissioners, eminded him that his position was only at of a member Of the public and referred ) a report in last week's CM in which it 'as stated that Mr Huckfield would use rocedural tactics in an attempt to get the earing adjourned.

Finally Mr Else said: "You are being told ) keep quiet unless you are called as a fitness.

Mr E. S. Fay QC, representing Midland :ed, told the Commissioners that for the rst time in its history Midland Red had icurred a financial loss.

In 1970 the company lost £651,463, irthermore there was a fall in revenue rhich represented a net drop of £1,264,946. his did not take into account a £750,000 ay award which is to come into effect on larch 6. If the application was granted the company would still not be able to make a profit in 1971.

Mr Fay went on to outline methods which the company intended to use to cut down costs by £896,000. It was proposed to extend one-man operations so that £157,000 would be saved; by reducing certain services a further saving of £209,000 would also be made. Another method would be to impose certain maintenance economies to the value of £200,000. Mr Else warned the company that they should not pare down maintenance to such an extent as to cause danger to the public or deterioration of the services.

Mr J. K. Isaacs, traffic manager, said that the company was not asking a great deal to be provided by local authorities in subsidies. In all, it was expected that £52,000 would be realized through the councils.

Representing nine local authorities, Mr Charles Dunbar suggested that Midland Red should split its operations into small units, each with its own fares scale.

The Commissioners decided to reserve their decision on the application until Monday February 8.


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