Supplementary memorandum submitted by
West Yorkshire Passenger Transport Executive (Metro) (ST 32a)
METRO'S YELLOW BUS SCHEME—CAPITAL AND
REVENUE COSTS
What is the revenue cost of travel schemes and
(for Metro) was this cost met by Government grant or permission
to borrow?
CAPITAL COSTS
The capital cost of the yellow bus scheme is
£18.7 million. All of the capital elements of the scheme
are being funded through the LTP capital allocation awarded by
DfT in December 2003. Half of the funding is being made available
under Section 56 of the Transport Act 1985 and the other half
is permission to borrow.
The buses are to be purchased on a phased basis
as follows:
2004-05—30 buses
2005-06—60 buses
2006-07—60 buses
REVENUE COSTS
The revenue implications are dependent upon
the success in utilizing the school bus vehicles during the day.
The Annex E bid was based upon the assumption that the scheme
costs would be revenue neutral and maximized at 95 buses.
We aim to achieve the revenue neutral position
in the following ways:
1.
Replacement of a current tendered service—this
will improve the quality of home-to-school transport for secondary
pupils currently using bus. The benefits of which will be improved
behaviour and attendance.
2.
Generation of a second trip to primary schools—a
new trip will then be undertaken in the geographical area of the
secondary school. This journey to serve primary school pupils
will focus on modal shift from car to bus.
3.
Extra-curricular excursions—during the school
day the vehicle will be used to provide education excursions and
links to sports facilities as well as cross site movements as
part of the 14-19 programme.
4.
Sweeper trips—the vehicles will return to school
to provide a journey home for pupils undertaking extra-curricular
activities at the end of the school day.
5.
Evening and weekend use—the vehicle will be
available for use by community groups and interest groups that
provide activities for children.
The Annex E submission recognized that there
are revenue costs estimated at approximately £500,000 per
annum if all 150 buses are introduced into the scheme and possible
revenue streams cannot be delivered. However, the figures on income
generation are very conservative and assume the minimum in terms
of additional usage (ie one trip per day). Metro is working in
partnership with Setpoint and other organisations to maximise
the usage of the vehicles each day. Metro is also actively pursuing
sponsorship from large private sector oganisations.
If all income streams cannot be generated, the
worst case scenario for potential revenue costs are potentially
£200,000 in the first year, approximately £700,000 in
the second year and up to £2 million in year three.
However, the scheme is being closely monitored
by DfT. Once the first phase is implemented the true operating
and revenue streams will be identified. The release of further
capital funding for phases two and three will be on the basis
that phase one has demonstrated the delivery of modal shift within
the costs identified.
May 2004
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