Operating profit up 11% yet passengers pay more

Glasgow MSP Bob Doris today criticised First Group's decision to increase its bus fares in Glasgow by up to 25% when they have reported rising profits for the company.

Of the fare increases Bob said: "These bus fare increases this week are unacceptable when First Bus is reporting increased profits. For instance £2 for a parent to buy their child an all day ticket will just be too much for some families.

"With the recent scrapping of the 10p tax rate and  the summer holidays just around the corner this is coming at the worst possible time.
 

Notes:

1. A draft of Mr Doris' motion is as follows:

First Glasgow Fare Increases.

"Parliament believes that the recent bus fare increases of up to 25% by First Glasgow are unacceptable, notes that this includes raising the price of a child all day ticket to £2, that this will just be too much for some families, that with the summer holidays just around the corner this comes at the worst possible time for them, further notes that the fare cap has been lifted by the Competition Commission partly due to rising fuel costs despite First Bus seeing an increase in their operating profits of 11% to £122m, a bigger jump than last year and far higher than First Group as a whole which had a 7.6% increase in operating profits. Parliament believes that with First Group declaring preliminary profits of almost £152m that there is no need to put fares up in this way and that if they have a problem with the level of rising fuel prices they should make representations to the UK Exchequer not pick on hard pressed commuters. Parliament calls on First Bus to have a rethink of its pricing strategy or at the very least guarantee a future price freeze over a number of years".

2. First Group Profits