'Amazing coach quote of £7 a day' claim
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"A RIDICULOUSLY I o w figure" was quoted by the West Riding Automobile Co Ltd when it tendered for a works service contract lost in 1972, in an effort to get the licence back, claimed Selby coach operator, Mr Ian Stockdale.
Mr Stockdale was opposing West Riding's application for a licence for the service, between Selby and the Royal Ordnance Depot at Barlow, before the Yorkshire Traffic Commissioners at Leeds last week. Mr Stockdale was the existing licence holder for the service, and described West Riding's quote of £7 per coach per day as " amazing " in view of the fact it had quoted £7.50 for the same service in 1972.
Mr T. C. Archer, assistant traffic manager of West Riding, said the company had operated the service between 1956 and 1972, when it lost the contract to Stockdale, who at that time submitted a lower tender. Tenders were invited at regular intervals by the Army, and the company had again tendered unsuccessfully in 1974.
The figure of £7 had been arrived at on a marginal cost basis, as the service could be slotted into existing work and crew availability. It would make use of a vehicle which would otherwise be standing idle and make a contribution towards the fixed costs of that vehicle. The only additional costs incurred would be £6 per week for crew time and 3p per mile running costs.
The quotation was based on a figure of 31p per mile, while if a full operational costing basis had been used the figure would have been between 50p and 60p per mile.
Mr Stockdale said he •had tendered £12 per coach for the service, which was a more realistic figure. There had been eonsiderable inflation since 1972, In 1974 he had tendered £9 per vehicle and as his tender had been accepted, it could be assumed that the West Riding tender was even higher.
West Riding's operations from Selby were being subsidised by the ratepayers. If he lost this contract, he would have to make one of his drivers redundant.
Granting the application, the chairman, Maj-Gen V. H. J. Carpenter said in the past the Commissioners had indicated they wished to see better utilisation of vehicles by NBC subsidiaries. Consequently, they could only welcome West Riding's sensible plans to make use of a vehicle and driver at a time they would not otherwise be used.