NBC to cut 49 million miles?
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Dr JOHN GILBERT, the Minister for Transport, warned Parliament this week that as a result of an unspecified NBC deficit for -the current financial year it would be necessary for the company to increase fares. It would also have to cut at least nine million miles of routes, possibly 49 million, with consequential redundancies and to seek additional financial support from county councils.
Last October NBC reported a £12.3m loss for last year and on March 17 this year it and the DoE set up a joint inquiry to review the company's longterm prospects. It now predicts further losses this year.
Because it is bound by statute to break even annually NBC must now seek additional revenue. Its subsidiary companies have now advised that they are making applications for the highest feasible increases.
Contributions from local authority payments for 1975/ 6 are expected to provide only a third Of what is needed to maintain the existing levels of service. The local authority payments for public transport would normally be eligible for transport supplementary grant from the Treasury.
But the grant for this year has already been made and NBC may now have to resort to the National Loans Fund pending decisions by local authorities about the services they wish to support next year.