CONTRACT BUS RATES

Press, Volume LXXXIII, Issue 25227, 4 July 1947, Page 3

CONTRACT BUS RATES

APPEAL UPHELD An appeal by Midland Motorways Services against a decision of the No. 3 Transport Licensing Authority (Mr S. V. Raines) fixing the rates for contract passenger vehicles, was upheld by Mr Justice Archer, - at his first sitting yesterday, as Transport Appeal Authority. Mr R. A. Young appeared for the appellant company, and Mr C. D. Pedersen represented the Transport Department. Mr Young said that until December 18 last year, contract passenger rates were Is 6d a mile for a minimum of 20 passengers, with extra passengers, pro rata, extra. An increase to Is 8d in the basic rate was decided on by the Transport Licensing Authority on December 18, but he had cut out a £2 a night allowance for buses standing idle and removed the schedule of minimum rates for places listed. Instead of increasing, appellants revenue had dropped by 2J per cent. While an appeal by Midland. Motorways was pending, the Authority had thought out an amended decision on May 21, but it was really a rearrangement and was substantially the same as the previous one. The appellant company’s business had been built on the basis of charging only reasonable fares, and the company had charged the rates proposed since December. No complaints had been made by the public. Other transport operators in and about Christchurch, although not parties to the appeal, could have their licences amended so that the same schedules could apply to them. The proposed rates were always much cheaper than first-class railway fares, and sometimes below second-class railway fares. The appellant company t wanted to retain the night allowance and the minimum rate to places listed.

At the request of the appellant company, its submissions had been scrutinised by Mr R. J. Polaschek. an investigating officer for the Transport Department, Mr Pedersen said. His inquiries indicated that the z alterations desired by appellant would not increase the charges made to individual passengers by any substantial amount, and the fares would stand comparison with charges made for other types of passenger work when such a high degree of service could not be given., As it was estimated that the total revenue derived from contract work under . the proposed alteration would not be very greatly in excess of that derived from the level of rates fixed in the decision against which the appeal was being made, the defendant did not oppose the alterations. It was not, however, in full agreement with the retention of the schedule of specific rates. If the company wished to contract on a mileage rate it should do its work on that basis, Mr Pedersen • said? If the minimum charge was not satisfactory, the company should arrange for an increase in that rate rather than increase to a list of specific places to which most of its work was done.

In giving his decision his Honour said he was satisfied that it was reasonable for the schedule to be included.