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Nottingham Buses Lose £20,000 in Year

5th September 1958
Page 39
Page 39, 5th September 1958 — Nottingham Buses Lose £20,000 in Year
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Which of the following most accurately describes the problem?

A LTHOUGH revenue increased by 1-1 £77,544 in the last financial year, Nottingham City Transport incurred a loss of just over £20,000. This was stated by Ald. S. P. Hill, chairman of the transport committee, when he reported that , the undertaking had carried 8m. fewer passengers.

He said that, allowing for last year's influenza epidemic and poor summer, it still appeared that some 3m. passengers had been lost. The undertaking was following a familiar pattern of rising costs overtaking additional revenue from fares. In order to increase productivity, the possibility of introducing a bonus scheme for bus crews had been considered.

Traffic revenue went up from £1,863,422 to £1,940,000 but, whereas a surplus of £40,000 had been expected at the beginning of the year, the deficit came to £20,120. Working expenses were up from £1,791.273 to £1,866,739, although loan charges dropped by £16,412 to £199,523. Their only reserve was £2,155.

A small surplus was expected on this year's working, but if costs continued to rise, there might be serious pruning of unremunerative services. The undertaking's finances would have to be carefully considered if a wage increase were granted.