Select Committee on Transport, Local Government and the Regions Appendices to the Minutes of Evidence


Memorandum by Thurrock Council (Bus 20)

THE BUS INDUSTRY

1.  SUBSIDIES IN THE UK BUS INDUSTRY, AND THE RESULT OF BUS CHALLENGE INITIATIVES IN RURAL AND BUS COMMUNITIES

  1.1  As pressures on the private bus operators are forcing them to cut registered bus routes and concentrate on highly profitable corridors, a great squeeze is being placed upon the local authority to find more revenue funding to subsidise these gaps.

  1.2  A lack of competing bus operators locally, coupled with rising costs of delivering bus services has meant that those established subsidised routes are costing the Authority more when tendered, causing budgetary pressures.

  1.3  At a time when Thurrock has received an excellent LTP settlement for integrated transport together with successful bids for real time information, there is concern that the availability of revenue expenditure does not compliment that currently being received for capital. Why can't capital expenditure be used for funding subsidised services?

  1.4  Thurrock has received successful bids from both the urban and rural bus challenges which have been in partnership with our community transport provider Trans-Vol. Community transport has been a real success story in Thurrock as it has established itself as a key component of integrated transport. It provides a cost effective mode of affordable travel where both subsidised and commercial routes are not viable. The three year funding also enables time for planning and investment that isn't possible on subsidised routes because of the uncertainties already described.

  1.5  The rural bus grant has also been beneficial as it has been for a fixed period, annually increased to reflect increased cost, and had strict criteria on usage. There is a worry how these services, which are becoming well established and meeting a social need, will be funded once central government funding ceases.

2.  THE RELATIVE MERITS OF BUS QUALITY PARTNERSHIPS AND BUS QUALITY CONTRACTS

  2.1  Thurrock has in the last three years suffered from the poor delivery of its local commercial services dominated by one major private company. The result was a three month scrutiny investigation into the delivery of local bus service in the borough. This report was sent to the DTLR and also taken forward by ATCO (Association of Transport Co-ordinating Offices).

  2.2  Presently the delivery of the service remains poor, and the Authority is, where possible working closely with the regulator to monitor the provision. It is therefore not practical at this stage to be entering into Quality Partnership discussions.

  2.3  A key commercial service of another operator has been highlighted as an ideal QBP however the group concerned is awaiting a new investment of vehicles which is proving difficult to secure.

  2.4  Greater feedback and guidance is required on where successful quality contracts have been achieved.

3.  THE IMPORTANCE OF BUS PRIORITY MEASURES AND THEIR ENFORCEMENT

  3.1  Thurrock has, as yet, no bus lanes, but effective enforcement of such restrictions would seem essential.

  3.2  The Essex wide (including Thurrock and Southend) Bus Telematics project is very encouraging. Priority measures built into traffic control systems are important and increasingly provided. However there are still many areas where it is not possible to give road space over to buses without major capital expenditure.

4.  REGULATION OF THE BUS INDUSTRY

  4.1  As highlighted in 2.2 the Authority has a good relationship with the Area Traffic Office in Cambridge. However there is concern over the lack of resources available from Cambridge to formally monitor services as it is recognised that they have the power over poor performance of commercial bus services.

  4.2  The Authority finds that subsidised routes perform better than commercial ones because of the control we have on them. Unless monitoring is done by the regulator, commercial operators don't feel threatened.

  4.3  With the Authority's policies focusing on greater public transport usage, it is not only frustrating that key components in achieving these are not being delivered adequately by the commercial bus companies, but also that the local authority has no control over them.

  4.4  There is the critical issue of public confidence. The public have no confidence in the level of service and stability of commercially run operations.

5.  THE CONTRIBUTION OF BUS SERVICES TO REDUCING SOCIAL EXCLUSION

  5.1  In October 2001 Thurrock provided a consultation document as requested by the Social Exclusion Unit on "Social Exclusion and Transport" in the Borough. This consultation built upon the work already commissioned by Thurrock to investigate problems surrounding public transport.

  5.2  It was apparent that even despite the statutory concessionary fares scheme, fares levels are still a barrier to social inclusion particularly young persons who are classified as adults by the private operators at 14 years old. The priorities of the commercial operators and the short fall in bus subsidies as explained in section 1 further exacerbate social exclusion.

Nick Roberts

Passenger Transport Co-ordinator

11 April 2002


 
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