Pumps turned off, but a chance for buses

Press, Volume CXIV, Issue 33514, 20 April 1974, Page 14

Pumps turned off, but a chance for buses

As if the higher price of petrol were not enough to dismay motorists, yesterday’s decision by many petrol retailers to close their pumps added to the chagrin of consumers. Since the Minister of Trade and Industry (Mr Freer) has promised that the retailers’ claims for a review of their profit margin will be considered, the stoppage in sales seems to have been an unnecessary gesture. It will undoubtedly stir public interest in the retailers’ claims, but that is hardly necessary when the retailers are not bound to persuade their customers of any need for a further rise in petrol prices. As members of a licensed industry the retailers have a statutory’ obligation to sell petrol in normal business hours, and that is what the public expects of them. As in many industrial disputes these days, the law on the matter is of somewhat academic significance. However, the argument of the retailers for a fair profit is more substantial, and it is highly likely that higher costs faced by the retailers will have to be translated into a further price increase for consumers.

Higher charges for transport services must also be expected. For public passenger transport, however, the Government should now consider a plan to restrain an increase in fares. Before it took office, the Labour Party promised that such Government charges as freight rates and electricity and Post Office charges would not be increased during the first term of a Labour Government. Even without such unforeseeable problems as the rise in oil prices this was a risky promise, bound to store up difficulties for later years and certain to produce serious distortions in the economy The promise has held good for the tares on Government-run passenger services and. whatever doubts may be held about its promise, the Government would now be wise to consider holding the fares for ail public transport.

The higher cost of fuel, wages, and equipment to run the trains and the Railways road services will have to be met by the taxpayer. Instead of authorising fare increases sought’ by other bus operators, the Government should subsidise their fuel costs. Given a little luck, the price of oil mav be reduced before the full effect of holding charge's has to be reviewed at the end of the Government’s first term. With few exceptions, subsidies have rnanv undesirable effects In this instance a subsidv tor bus operators — including private operators — would not only keep State and other passenger services fairly competitive- it would make the bus •ervices even more attractive when the cost of private motoring is rising The benefits of maintaining and improving public passenger service' md the need to save fuel are 'ufficiently obvious for the Government to seize this opportunity to help both the bus services and their users — includin'’ motorists, SUB-LEADER