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Government inquiry for Midland Red?
Page 10
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from a special correspondent • A. flood of complaints following Midland Red's third application to increase fares in just over a year has led Mr Dudley Smith, Conservative MP for Warwick and Leamington, to initiate a move for a Government inquiry into the running of the company. Mr Smith has written to Mr John Peyton, Minister for Transport Industries.
Mr Smith said this week that increased wages were the main reasons behind the spiralling fares, but unless something was done before long he felt that the company would price itself out of the market. Many people were already seeking alternative forms of transport because the weekly bill for bus fares was so high. He added that he was not in favour of the Government subsidizing bus companies or the underwriting by local authorities of cheaper fares for pensioners, as that merely shifted the financial burden on to others.
Another NBC subsidiary which applied last September for a fares increase to give it a £426,000 profit for 1971, has now applied for a further increase to bring in an extra £300,000 a year. The company is Maidstone and District Motor Services Ltd which, after a two-day public inquiry had its target reduced by £94,000 by the South Eastern Traffic Commissioners.
Mr A. J. White, director and general manager of the company, has told local councils in a letter that he "sincerely-regrets that a further application is necessary after so short a time". He blames a 10 per cent wage award, which will cost the company £344,000 from March 7, and increased costs of stores, tyres, printing, bank charges, rent, rates and telephones which will amount to another £53,000.
In its application the company seeks to reduce by a third the mileage charged 2d per unit from 0.6 of a mile to 0.4 of a mile. The local councils are examining the proposals before deciding whether to lodge an objection.
Other applications by NBC subsidiaries for increased fares are reported on page 22.