Changing the way local buses are planned and provided could see cheaper fares for young people, protect against cuts to services and give the taxpayer greater value for money, councillors will be told this week.
The Tyne and Wear Integrated Transport Authority will be told at itys meeting on 24 January that these benefits would come from introducing a publicly-run franchise for buses known as a Quality Contracts Scheme.
Members of the authority are being asked to allow further time for Nexus, which is developing the scheme, to work with neighbouring local councils on the implications and benefits for bus routes which cross in and out of Tyne and Wear.
This will also allow more time for the area’s private bus companies to refine an alternative proposal for a voluntary partnership between themselves and local councils to improve bus services.
Nexus invited bus companies to work together on the partnership proposal, which it says so far falls short of expectations in a number of areas, but which it is hopeful can be improved on through further discussion.
Nexus, a public body whose role is to improve local transport, was asked by the ITA in November 2011 to examine the respective merits of contract and partnership models for better bus services, replacing the current free market.
The benefits of a contract model, in which a single public body lets long-term franchises for bus companies to run services on its behalf, like in London, have been set out for the first time in a report to the ITA meeting on 24 January. These include:
• stability and growth for the existing bus network, with local people having a say in changes while cost to the taxpayer is contained at today’s levels;
• Simple smart ticket travel across all public transport to match that available in London on the Oyster card;
• a simple common fare structure for all public transport which would see overall ticket prices fall to begin with, and future rises capped;
• a new fare deal for 16-18-year-olds equivalent to the concessionary fares for under 16s the ITA already provides;
• More flexibility for older and disabled passengers to travel on bus and Metro when they want by extending the existing Gold Card;
• Contractual measures to reduce bus emissions, improve accessibility, monitor punctuality and provide real-time information.
The report describes a partnership proposal called ‘Better By Far’ made by the North East Bus Operators Association (NEBOA) as offering benefits including:
• A commitment to a stable network for the first year of a partnership, local people having a say in changes;
• On-going dialogue on service developments through new partnership boards.
• A saving of £250,000 for the taxpayer in the first year of a partnership through bus companies taking on some services now publicly-subsidised;
• A commitment to allow transfer to the next available bus, regardless of the company operating it, should a bus break down;
• A new fare deal for bus-to-bus tickets and 16-18-year-olds;
• A common charter for customer service standards.
The current free market in Tyne and Wear sees bus companies decide individually where and when to run and what fares to charge on 90% of services, at their own risk. The remaining 10% are provided through contracts with Nexus to meet social needs.
About £62m a year of public money is paid to bus companies in Tyne and Wear in the form of Government operator grants, payment for the ‘free’ carriage of older and disabled people and Nexus contracts.
The ITA has warned that reductions in public funding and the decline in people using buses will mean cuts to services in Tyne and Wear, as has happened in other areas.
The report by Nexus notes that moving to a contract model would mean the ITA incurring risk because it would set and collect fares directly, paying bus companies a fee for providing services to it.
There are also risks arising from the likely need to transfer bus industry workers from one company to another as contracts are agreed, and because some routes in Tyne and Wear cross in and out of surrounding counties.
It says the current partnership proposal offers few reassurances over the future stability of the bus network or ways to arrest patronage decline, while the £250,000 saving offered to the taxpayer is small compared to the amount put into bus services annually.
However, a partnership proposal, if supported by the ITA could be brought in within six months while long-term contracts would take much longer to set up.
Nexus has recommended councillors allow until later this year for further work both to improve a partnership offer and to discuss further the implications of contracts with neighbouring authorities.
Bernard Garner, Director General of Nexus, said: “At this point in time no recommendation has been made by Nexus, nor decision taken by the ITA, to implement a contract system or partnership.
“Further discussions will take place with NEBOA to develop the best possible partnership offer, and with adjacent local authorities, to ensure any Quality Contracts Scheme proposals provide benefit to their areas.
“It is expected the ITA will now receive a comparison of both proposals in late spring or early summer, carried out by Nexus with the assistance of independent advisors.”