Raw Deal for East Midland
Page 36
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UNLESS the company was allowed to increase fares or receive some sub
stantial relief such as abolition of bus fuel tax, East Midland Motor Services Ltd., would have to prune services drastically.
This warning was made by Mr. R. J. Ellery, chairman, last week.
Mr. Ellery was addressing the 37th annual general meeting, and said that the company would be most reluctant to take this step, but, having taken all other measures of economy consistent with efficient operation, may be driven to it.
Following the rejection by the Traffic Commissioners last June of an application for higher fares to meet greatly increased labour costs, the company's operating balance had shrunk by no less than £66,000 (27 per cent) to its lowest level for many years.
The "bitterness of the pill" was increased by the statements of the Traffic Commis sioners for one of the areas in which the company operated that, in reaching their decision, they had taken fully into consideration the White Paper on Prices and Incomes Policy.
Mr. Ellery asked: Was it not a bit onesided for the Prices and Incomes Policy to be prayed in aid of a rejection of an application for higher fares when obviously it had not been applied to the pay claim which gave rise to the application?
The prime duty of the Traffic Commissioners in relation to fares was to see that they were not unreasonable, he said. East Midland's fares were among the lowest in the industry, very largely because of the efficiency and economy of operation, and any relaxation of effort on the company's part would quickly alter its economy.
The number of passengers carried during the year had fallen by 1,150,000 compared with a drop of 0.75m. last year and an average drop of 0.5m. in recent years.
Press discussion of the problem of traffic congestion and official expressions of good intent certainly had not been lacking, but so far virtually nothing had been done. The situation was aptly described the other day as one of "dynamic inaction", added Mr. Ellery.
Nine new 36 ft. single-deck buses and seven large capacity Leyland Atlantean double-deckers were added to the fleet during the year and 18 small capacity single-deckers were disposed of in the same period.