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While local transport chiefs and politicians welcomed the Chancellor's announcement earlier in the year that concessionary travel for pensioners on buses was to become free from April 2006 there is still considerable concern that the money being allocated to Nexus to pay for this concession will not be enough. Over the last two months the Passenger Transport Authority and Nexus finance experts have been working with civil servants to try and change the formula where the additional money promised by the Chancellor is divvied up amongst all England's local authorities (and PTAs) to allow them to compensate bus operators for the loss in revenue once fares become free. Mike Parker, Director General, Nexus said: "Although the work that has been done has resulted in the vast majority of local authorities now being properly funded it is still apparent that Nexus is the worst affected body in the country and we are still looking at a funding shortfall of some £7m. However the government are just about to embark on a new period of consultation about the issue and we will have the chance to put our case forcibly." David Clelland, MP for Tyne Bridge and Chair of the Northern Group of MPs, said: "We welcome the significant improvement in the amount of grant that Tyne and Wear is to receive under the new formula - an increase of £5m - but it is still not enough to ensure that this very welcome measure for our passengers will not have any unintended consequences on either Council Tax or local bus services." At a meeting on Wednesday with Tyne and Wear MPs we agreed to call for an urgent meeting with Phil Woolas MP, the minister responsible in the Office of the Deputy Prime Minister - I am confident that once we have had the meeting and explained our position that the matter will be sorted out."
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