End Fare Concessions First, Say Western Traffic Commissioners
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BEFORE bus companies increase ordinary fares, concessions should be . abolished. This view was expressed last week by Mr. S. W. Nelson, chairman of the Western Traffic Commissioners, when fare revisions designed to yield a total of £31,800 were granted to Hants and Dorset Motor Services, Ltd., and Wilts and Dorset Motor Services, Ltd.. Both companies pointed out that the extra revenue would not cover their increased costs, but said they intended to bridge the gap by economies in operation.
For Hants and Dorset, Mr. T. D. Corpe said costs had increased by £38,000 since their last fares increase in September, 1957. Estimated profit for 1958 was £124,868, a yield of 4_9 per cent. on the capital employed. There would be a drop in 1959 to £123,750 profit, a yield of 4.86 per cent., unless the revisions were allowed. These should bring a profit of £141,550, a 5.56 per cent. yield.
It wasP proposed to gain £17,800 by reducing stages, which would affect fares between Is. Id. and 2s. 5d., and by increasing the charges for children's returns. These would become half the adult rate, meaning increases ranging from 2d. to is. The scholar age limit would he lowered from 18 to 17 years.
Children's Concession Mr. Stanley Bartlett, traffic manager, said that in 1950 children were given a special concession of return fares at half the adult single rate. Most of the £900 which the company would gain would fall on the education authorities.
The company operated 24 one-man buses and it was proposed to use more of these besides cutting Mileage.
Putting forward the case for Wilts and Dorset, Mr. Corpe said their costs were up by £24,000, and they wanted to recover £14,000. The yield on capital for 1958 was estimated at 2.26 per cent., which would drop to .63 per cent. in 1959. A grant would push this up to 1.63 per cent,
More One-man Buses
Mr. H. W. Mills, traffic manager, said stages would be shortened, affecting fares between Is. and 3s. 8d. It was hoped that they would shortly have 33 one-man
buses in regular use. •
Mr. Nelson said the Commissioners thought both companies had done their hest to minimize hardship. Yield on capital ought to be at least 3 per cent., so the applications would be granted, subject to adjustments where other operators served common routes.
He added: "Anyone who thinks bus operation is a gold mine would change his mind after seeing these companies' figures."
At Glasgow, fare increases are expected early this year, coupled with the elimination of some uneconomic services. The undertaking faces a deficit of about £620,000, and it is likely, that fares on trolleybus, tram and underground routes —which can be adjusted as required—will rise first.