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NEXUS is attempting to address a shortfall in Government funding for reduced fare travel, the Tyne and Wear Passenger Transport (PTA) will be told next week. (THURS) Nexus, (the Tyne and Wear Passenger Transport Executive) will seek a change in Government funding allocations with regard to cheaper travel for the elderly and the disabled. Currently Nexus spends £22.4m each year funding and administering subsidised travel on buses and Metro in Tyne and Wear. However, an announcement by the Chancellor Gordon Brown in his March 2005 budget statement revealed the Government's intention to provide free travel on local bus services for the elderly and disabled from 1st April, 2006. While Nexus and PTA Chair, Cllr. David Wood, have both welcomed the injection of the additional £350m to fund the change from half fare to free travel in England and what Cllr. Wood calls 'the major improvement for pensioners in Tyne and Wear', the amount earmarked for Tyne and Wear out of this pot falls well short of what is required to fund the scheme here. Using the best possible data and research available, forecasts suggest that free travel for the elderly and disabled may cost Nexus an extra £15m-£20m per annum. If free travel was extended to Metro, local rail and the ferry, this sum would increase by an extra £2m. Mike Parker, Director General of Nexus, said: "It seems that it is proposed to distribute the extra funds on the basis of population not level of public transport use. Our costs, which are basically compensating the bus operators for the fares they would have got, relate to use. And public transport use by pensioners in Tyne and Wear is amongst the highest in the UK. “If we were compelled to pay for this new concession ourselves we would have to make substantial cuts across the board, i.e. reducing those very services which pensioners use and depend on which is patently absurd." Cllr. Wood added that if services weren't to be cut then "the PTA would have to call upon the District Councils to foot the bill, but that could mean up to 4% increase in Council Tax which I am sure was not the government's intention." Nexus directors are in discussion with civil servants and the relevant Government departments to resolve this and will be mounting a major campaign involving local politicians, MPs and trade unions to try and ensure that Nexus services and staff are protected. The current concessionary travel scheme operated by Nexus on behalf of the Tyne and Wear PTA provides for travel for the elderly and disabled at half fare or 50p whichever is the minimum, on bus, and a flat fare of 50p on the Tyne and Wear Metro, local rail services and the ferry. Concessions are available post 0900 Mondays to Fridays, all day Saturdays, Sundays and Bank Holidays. In addition, flat fare concessions are available to children on Mondays to Fridays up to 7pm and reduced price traveltickets for 16-18 year olds in full-time further education. The Transport Act 2000 requires an authority to provide at a minimum half fare travel for elderly and disabled persons on local buses within their area post 0930 Mondays to Fridays, all day weekends and Bank Holidays. Authorities are free to offer more generous schemes which Tyne and Wear provides through the 0900 commencement, the cap of 50p and allowing concessions on modes other than bus. The total estimated cost of the scheme to Nexus in 2005/06 is £22.4m.
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