Member Article

Transport authority looks to control bus routes

The Tyne and Wear Integrated Transport Authority has opened a consultation on how regional bus services can improve and avoid the impact of cuts.

The ITA is exploring controversial plans to take control of bus services, and have private companies provide specified services for a fee.

Nexus, who administer funds on behalf of the ITA, believe that commercial fares may continue to rise by 3% above inflation on average and bus ridership will decline if no action is taken.

The organisation has launched a formal consultation on a Quality Contracts Scheme proposal, making ITA responsible for a large proportion of bus services in Tyne and Wear over a ten-year period.

It is also inviting bus operators to develop a revised partnership offer as an alternative.

Nigel Featham, Arriva North East regional managing director, said: “In other parts of the country Arriva, other operators and transport authorities are working together on wide ranging partnership schemes to improve bus services, save costs and increase bus usage. Where schemes have been launched they are proving hugely effective in boosting the number of people using buses and successfully generating economic growth.

“Arriva are taking every opportunity to make the case for partnership and believe that the consultation process will eventually favour this outcome. We understand even at this stage, Nexus have not ruled out partnership as the best way to deliver passenger benefits quickly and without excessive risk to local council taxpayers.”

The ITA say their proposals to cap future price rises, make travel cheaper for young people and students and and introduce “London-style” smart travel, could save local taxpayers £70m over ten years.

Cllr David Wood, chairman of the ITA, said: “Local people who make 140 million journeys every year would benefit from simple fares, cheaper tickets for young people, universal smartcard travel, a single source for customer information, a greater say in how routes are planned and improvements in journey quality.

“This is an important step by the ITA which has the potential to transform local bus services. We estimate that to provide this level of service in today’s deregulated bus market would cost the taxpayer at least £70 million more over a decade than if a QCS is introduced.

“If we don’t take action now to re-invest more of the profit buses make widespread cuts are inevitable from 2015, hitting families, bus company staff and the vulnerable hardest.

“Having looked at the options in some detail, the ITA is clear the Quality Contracts proposal as it now stands represents a better opportunity to achieve our aims than the alternative voluntary partnership so far offered by bus companies.

“We have decided to launch a 14-week period of consultation, after which the ITA will look at the proposal again and decide on next steps. At this point in time I want to make clear to bus companies the door remains open if they wish to present a revised partnership proposal.”

Bernard Garner, director general of Nexus, said: “This is a proposal through which the local bus market in Tyne and Wear would be both secured for the future and improved to deliver services in a way familiar to people in London and many European cities.

“The detailed proposal shows how we believe we can make bus services better through a single publicly-accountable body planning and managing routes, setting and collecting all fares, and re-investing a greater proportion of the profit generated.

“This offers a way to maintain and improve bus services while providing significant savings for taxpayers. Local people will have a greater say in reviewing performance and suggesting changes to routes in their communities, improving public accountability.

“The likely alternative is very unappealing – because of the reduction in public spending Nexus cannot afford to provide the range of services it now delivers using funds from local councils provided through the ITA levy. To prevent a budget deficit from 2015 onwards, unless we act now, we will be forced to withdraw a whole range of vital public transport services.”

Speaking in the House of Commons last week, Norman Baker, the parliamentary under-secretary of state for transport, said: “My advice is to consider what is best in the public interest for their constituents, to examine the options available in legislation, to pursue partnership working with bus operators and to try to secure the best possible outcome for the bus passenger.”

Consultation information and documents will be available on the Nexus website from 30 July at www.nexus.org.uk/busstrategy.

This was posted in Bdaily's Members' News section by Tom Keighley .