CONTRACT BUS SERVICES

Press, Volume LXXXIII, Issue 25239, 18 July 1947, Page 4

CONTRACT BUS SERVICES

COMPANY’S- APPEAL ALLOWED

An appeal by Midland Motorways Services, Ltd., against an order made by the No. 3 Transport Licensing Authority on May 21, 1947, amending the special conditions and schedule of charges on the Company’s contract passenger service, has been allowed by the Transport Appeal Authority (Mr Justice Archer). The order made by the No. 3 Transport Licensing Authority will be amended accordingly. "The substantial issue involved in this appeal relates to the question whether a schedule should be included in the terms of the licence setting out the specific fares chargeable for journeys from Christchurch to a great number of named places both in Canterbury and further afield. The appellant claims, and this appears to be in accordance with the facts, that such a schedule has been attached to its licence in the past and that the schedule which it now proposes is intended and has been calculated merely to provide an increase in the fares for the respective journeys, proportionate to the increase in the basic rate which has been approved by the Authority. If the schedule were calculated strictly in accordance with the basic rate it is clear that it would be of little importance, but it is evident that the schedule has been so drawn as to provide for fares producing somewhat above the basic rate for short journeys and reducing all fares to round figures which, while having little effect upon the charges to individual passengers, may well result in a substantial increase in the aggregate return to the operating company,” stated his Honour in giving his decision.

"The company claims, and this is confirmed by the investigating officer of the Transport Department, that under the conditions as laid down by the Authority and generally by reason of the deletion of the schedule, the company’s gross income from a given quantity of business is likely to be some 2J per cent, less than under the old conditions and notwithstanding the increase of 2d a mile in the basic rate. It is quite evident that the company’s object in applying for an amendment of its licence was to secure an increase in revenue, and I draw the conclusion from the evidence that the Transport Department was satisfied that reasonable increases in ' charges were justified. "Although this appeal has been lodged only by Midland Motorways Services, Ltd., the matter is one which affects the licences of a number of other operators, and I have no doubt that the No. 3 Transport Licensing Authority will take the necessary steps to see that the benefit of the amendments to the licence of Midland Motorways Services, Ltd., is extended to such other operators accordingly.”