North Western Fare Scale for
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THE first joint sitting of Traffic Commissioners in the north-west took place at Buxton on Tuesday, when Mr. F. Williamson and Mr. A. G. Curtis, the respective chairmen of the NorthWestern and East Midland Areas, considered an application by the North Western Road Car Co., Ltd., and joint operators for increased fares on stage services.
Mr. S. D. Hetherington, for the company, said they had examined their 27,000 fares and made an important advance in the direction of rationalization. Services had been divided into two groups-remunerative and unremunerative.
It was proposed to increase single fares, with certain exceptions, by a maximum of Id. In the first group there would be no change from the 2d. single fare up to 0.65 mile and in the less remunerative group up to 0.55 mile. The fare scale then tapered in each case.
If granted, the increases would bring in £165,309 in a full year, of which £112,636 would be from single fares. Increased costs, which the company had been bearing since June, totalled £174,715 in a full year, of which £123,974 was for wages_ 14041,000 Lost The time lag between rising costs and the grant of increases had lost the company £400,000 since 1951.
Net revenue for the year. ended March 31 last was £201,000, equalling 9_8 per cent. on capital. If the preseot fares reinained in force, net revenue in 1958 would fall to £58,328-barely d. per mile-giving 2.9 per cent. return. The return would be 11.1 per cent, if the application were approved.
Stage services produced• £37,000 in 1957, or less than -Id. per mile, and there would be a deficit in 1958 of £72.685 if there was no increase.
Questioning Mr. John Green, North Western's traffic manager, Mr. Curtis criticized the imposition of two fare scales, leaving the company discretion to say which was to apply to any particular route. Mr. Green submitted that if a service later became remunerative or unremunerative, the appropriate scale would be applied.
Asked what justification there was for imposing Id. increase on single fares irrespective of distance, Mr. Green said the average charge was 4.81d. and an increase of 3d. or 4d. on long-distance fares would result in loss of revenue.
The hearing was adjourned.
To obtain an extra £189,000 a year. Ribble Motor Services, Ltd., are seeking a large number of increases. It is expected that their application will be heard jointly by the North Western and Northern Traffic Commissioners at Morecambe on October 1, and by the Yorkshire Commissioners on October 15.