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Council's Finance " Improper " S UNDERLAND'S transfer of t24.000 from

7th May 1948, Page 27
7th May 1948
Page 27
Page 27, 7th May 1948 — Council's Finance " Improper " S UNDERLAND'S transfer of t24.000 from
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Which of the following most accurately describes the problem?

its reserve fund to the relief of rates in March. 1947, came wider lire front Mr. S. V. Nelson chairman of the Northern Licensing Authority.

as hen the Authority held its first Sunderland sitting since pre-war days. 1 he corporation sought permission to increase ill penny bus fares by vkith similar increases on I d and 2d. transfer tickets. At the same time, Mr. Nelson condueted a Ministry of Trans

port in into the corporation's proposal to increase all adult fares on the trams by el,. except the 3d. rate.

After the town clerk f 0, S. McIntire) had explained that N.Norking expenses had doubled since 1937, that there was an estimated loss of f..792 in the past year ;ind that much ne■\ capital expenditure would havc to he mei, including the purchase of buses. Mr. Nelson observed that it scented •• very improper to give a dividend to sonic outside tindertaking. knowing that you would have II1CNc DON\ 170.1se■

buy."

Mr. McIntire pointed out that the ti2-1.000 %%mild have been a " lucre drop in the ocean," compared ai tim the total expenditure which would h:t%e to be inet, and explained how the transfer helped to reduce the 1947-48 rate for the. borough from an " unpruned figure of 22s. 10d. to the actual 19s. 6d.

After consultation with the chairman, Mr. NIcIntire withdrew his request that, if the increased tramcar farcs were approved, the Authority WOUld agree to the necessary increases being made in the fare; of bus cootpa flies operating on tra linear routes.

Before the withdrawal. Mr. Nelson suggested t hit t to increase priMa.Mive fares would have repercussions on fat-eon company bus routes anything up to 15 miles aiiay. The Minister would have to consider, he said, whether it xsoiild not he better, in view of the White Paper proposals On keeping clown costs, to let a loss on :I transport undertaking fall on the rate, rather ihan increase fares all round.

•• 1 think he will have to consider carefully, in conjunction with the -treasury, whether this is the proper method of dealing with the position riationallx." he added.