Memorandum from Merseytravel (TPT 28)
ABOUT MERSEYTRAVEL
Merseytravel is a public body comprising the
Merseyside Passenger Transport Authority and the Merseyside Passenger
Transport Executive, acting together with the overall aim of providing
a single integrated public transport network for Merseyside which
is accessible to all. While there are seven PTAs and PTEs in the
UK, Merseytravel is unique in that it was the first PTA and PTE
to be fused together and is now a mature operating organisation.
If it would assist Members' deliberations further,
Merseytravel would be delighted to give oral evidence to the Committee.
INTEGRATED TICKETING
Is ticketing sufficiently integrated across different
modes of transport and between different geographical areas?
Generally, ticketing is not sufficiently integrated
either across different modes of transport or between different
geographical areas. Merseytravel believes that the future of transport
ticketing cannot proceed without a fully integrated smartcard
ticketing system and that it is this approach that is needed to
deliver a fair transport system that offers sufficient flexibility
and information for the passenger. The success of this approach
is subject to suitable smartcard readers being implemented across
all modes of transport with operators recognising a diverse but
specific range of smartcards as an appropriate ticketing medium,
regardless of region or transport mode.
Merseytravel is responsible for ensuring that
ticketing systems make public transport easy to use, affordable,
and contribute to attracting and retaining passengers to the network
and on this basis, they have implemented a multi-mode smartcard
travel card for Merseyside. This smartcard has been developed
to ITSO standards, ensuring interoperability with smart-based
travel systems outside the Merseyside region. In addition, Merseytravel
offers multi-operator and multi-modal integrated tickets "Trio"
and "Trioplus". (NB ITSO is the Integrated Transport
Smartcard Organisation dedicated to producing a specification
and operating environment for interoperable smartcards).
Does the Government have an adequate strategy
for developing the integration of ticketing systems?
Merseytravel believes that it is smartcard ticketing,
developed to the ITSO standard that will provide a platform and
structure for developing the integration of ticketing systems—a
concept fully supported by the Government. During the Third Reading
of the Concessionary Bus Travel Bill in the House of Lords, Lord
Davies offered the Government's "firm commitment" to
smart ticketing in compliance with the ITSO standard and gave
support to ensure "the faster and wider spread of smart ticketing".
He further stated that the Government is committed to the use
of smartcards in the transport area and is committed to the ITSO
standard which they see as "vital to ensure the interoperability
of smartcards across the country". Merseytravel believes
that the only way to guarantee interoperability, is to use this
key feature of the Bill to ensure that smartcard ticketing is
ITSO compliant.
The DfT has supported ITSO by giving it Crown
Copyright status, making it available to all and providing a framework
for enabling interoperability and interchange ability of cards,
readers, ticketing equipment and back office equipment.
THE USE
OF SMARTCARD
TECHNOLOGIES
Is the industry taking up modern smartcard technologies
adequately and appropriately?
Although the rollout of the schemes could be
happening faster, the industry is now taking up smartcards. Merseytravel
believes that take-up would be quicker were the scheme funded
in a similar way to the Scottish transport card, which is fully
funded by the Scottish Executive.
The industry is now embracing smartcards, mainly
due to the publication of the ITSO specification. Many of the
business cases need some pump priming, consequently, adding to
the delay in implementing the initial scheme. If the right choices
are made for the English National Concessionary Travel Scheme
(ENCTS) then this will open massive opportunities for smartcard
ticketing. The diagram below demonstrates the possible enhancement
path which could follow an ITSO compliant roll out of Smartcards.
In establishing ENCTS, it is important that
the DfT does not specify the actual type of smartcard to be used
as to do so would stifle the market response. Instead they should
specify their requirements in brief for the functionality of the
card, for example:
— Must be ITSO compliant.
— Must support other applications both
within and alongside ITSO.
— Must be secure enough to support
applications such as E purse on a national basis.
In adopting this approach the DfT will enable
(by effectively a pump priming mechanism) the vision of smartcards
into the future and their potential role as citizen or entitlement
cards.
This approach will require a smartcard which
is at the higher end of the technology range and therefore will
come at a higher price. This additional cost is however marginal
within the entirety of ENCTS and will be far outweighed by the
future benefits. Indeed it may be possible to recoup that cost
(and more) by "renting out the card real estate" to,
say, a national E-purse. The DfT should allow, even encourage,
the market to be creative in this respect.
Does the ITSO system cater for the needs of all
passengers and travel providers?
Merseytravel believes that the ITSO system is
a living document and as such is versatile, valuable, cost efficient
and user friendly. ITSO does not discriminate between suppliers,
is not manufacturer specific and does not restrict travel to the
conceptual boundaries put in place by local administration or
the structure of ownership and operation of transport modes. The
ITSO specification allows smartcards to be issued across a range
of partners, using any form of co-branding while at the same time
offering certainty about the interoperability of the card in other
areas.
ITSO offers a highly secure ticketing system.
The Department for Transport commissioned a report into the relative
security levels of TfL's Oyster card system and ITSO that showed
that, while Oyster was sufficiently secure in a closed environment,
only ITSO provided the security levels needed for national interoperable
activities.
Merseytravel continues to remain active in a
number of UK working groups on the development of national standards
for smartcards. This important development work will ensure that
smartcard technology is not limited to specific geographical areas
and transport operators. ITSO offers a unique opportunity to help
create the necessary standards to allow smartcards to become the
main ticketing medium in the UK, so that a smartcard issued in
Liverpool could be read in London and elsewhere.
Looking to the future, Merseytravel believes
that the ITSO concept could be taken a stage further with excellent
opportunities to follow the principles, the organisation and to
some extent the technology that ITSO uses to begin addressing
interoperability of Road User Charging schemes across the country.
ITSO was designed by all the players in the
Transport industry (Operators, Manufacturers, Transport Authorities
etc) and whilst in the design stage this was a weakness (design
by consensus) it is now a strength in that ITSO has become the
Industry Standard, this is illustrated by:
— The number of suppliers who are submitting
cards, point of service or back office equipment for ITSO certification.
— The number of schemes implementing
ITSO including 6 of 21 of the rail franchises.
— The indication that London will move
towards ITSO ticketing.
— The international interest and adoption
of ITSO.
ITSO provides for interoperability—indeed
this was the driver for ITSO along with interchangeability. ITSO
allows the scheme provider a choice of smartcards from throw away
single journey tickets to sophisticated life style or entitlement
cards. ITSO provides whatever data elements are required to allow
complex ticketing between operators or on a geographical basis
by capturing the on card data and secure data transfer to the
back offices. This same wealth of data on who travelled where,
on what etc will allow the DfT to monitor ENCTS and to tune or
revamp the scheme, in essence it will futureproof ENCTS.
The need for smartcard ticketing and the security
it brings has again been demonstrated in recent days by the press
articles on alleged fraud.
What can be learned from the experiences of areas
such as London and Scotland where smartcard technology is already
in place?
The Scottish transport card has public sector
investment, being fully funded by the Scottish Executive and because
of this take-up of the system happened at a faster rate than can
be expected across the English system.
ITSO and Oyster are now compatible however,
as this was not the case when it was initially set up the costs
of doing this "after the event" were greater. Merseytravel
believes that smartcards systems should be ITSO compliant in the
first place to save the expense of making them compatible later
on.
Smartcards are very acceptable to customers
because of the convenience and benefits normally associated with
them. This is particularly so where the "entitlement"
card approach has been taken. Whilst existing schemes are still
in their infancy it would appear that the drivers behind ITSO
are achievable:
— Better Data (Customer habits, Reimbursement).
— Automated Validation (More sophisticated
ticket types).
— Fraud Prevention (Forgery, Pass back).
— E money (Reduced theft & operational
costs, Attractive customer facility).
— Faster Processing (Customer convenience,
Operational savings).
— Standards (Interoperability, Interchangeability).
REVENUE PROTECTION
AND THE
POWERS OF
TICKET INSPECTORS
Is the legal framework within which ticket inspectors
function appropriate?
Yes. Ticket inspectors on both bus and rail
services need adequate powers to fulfil their primary role of
revenue protection; identifying the minority of passengers who
deliberately seek to evade paying their fare or fraudulently use
travel permits.
What appeal mechanisms exist for passengers, and
are they adequate?
Appeal rights are important but, first and foremost,
revenue protection measures must be applied fairly and consistently
so that unfair penalisation and other incidents giving rise to
appeals are kept to a minimum. Any appeals mechanism must deal
with cases fairly and consistently against specified criteria
and passengers need to have confidence in the process, which must
be seen to be independent of the commercial interests of operators
and funded on a basis which is unaffected by the outcome of appeals.
In respect of rail penalty fares, passengers have access to the
Independent Penalty Fares Appeals Service (IPFAS) which meets
those criteria.
Are the rights of passengers and the powers of
ticket inspectors well-balanced?
Yes, for example, rail passengers can only be
charged a penalty fare if ticket facilities were unavailable where
they joined the train. However, it is important that passengers
rights are protected by ensuring that, for example, if a passenger
says that they could not buy a ticket an inspector is able to
verify whether that is the case. Inspectors need real time information
on whether ticket offices are open or machines are working properly
so that they can exercise discretion in appropriate cases.
Do operators of public transport take adequate
measures to protect fares revenue?
The extent to which operators take steps to
protect fare revenues is likely to vary according to their dependence
upon "fare box" revenue. Where operators have accepted
little or no revenue risk, there is disincentive to ensure that
the correct fares paid or that tickets or passes are valid.
CONCESSIONARY FARES—THE
RIGHT STRATEGY?
Is the Government's concessionary fares strategy,
including the proposed scheme for concessionary bus travel, adequate?
Merseytravel welcomes the introduction of an
England-wide scheme for free off-peak bus travel, applicable to
disabled people and those over 60 and is keen to work with the
Government to ensure its successful implementation.
Merseytravel believes the Government's mechanism
for allocating funding for the concessionary fares scheme presents
significant challenges, particularly in England's metropolitan
areas.
Government funding, although reflective of the
actual cost of the scheme, will be allocated as part of the Revenue
Support Grant (RSG) process meaning that allocations are not reflective
of local passenger numbers or need. Channelling funds through
the RSG is particularly detrimental to metropolitan areas where
passenger numbers are naturally higher, making the cost of implementation
higher.
This problem is not reflected in the RSG and
can only be resolved by Transport Authorities cutting services
or quality. In Metropolitan areas, funding allocated for the scheme
does not go directly to PTEs. It goes to Metropolitan District
Councils as part of the RSG process, who are under no obligation
to pass on the additional funding to the PTEs.
Another funding issue arises because the scheme
follows Barnett principles, meaning a proportion of the funding
for the English scheme will go to Scotland and Wales—even
though those schemes are fully funded already via their respective
Assembly and Executive.
One significant area of concern is the impact
of the recent round of Appeals by bus operators against PTA Participation
Notices. All the PTAs affected have had to make provision in their
budgets for the potential outcomes. This means that there is uncertainty
in the budget, but also that budget plans could be seriously affected
by the outcome of the Appeals process, eg PTAs have faced increased
payments to bus operators in the region of £1.5 million to
£5.0 million per annum. Decisions by the Secretary of State
are potentially undermining the sovereignty of PTAs to determine
their own budgets. However, the reality is that the DfT funding
to the PTAs and Concessionary Travel Authorities is fixed: so
there is one rule for the DfT and another for reimbursing Authorities!
ITSO provides a flexible and interoperable scheme
basis which allows many of the current issues to be resolved:
— Recognising a valid card.
— As much data as you want.
— Issuing the cards at where?
Are concessionary fares schemes sufficiently integrated
across different modes of transport and different geographical
areas?
— For the Concessionary Fares scheme
to be applied on a national scale, it is essential that eligible
passengers are able to travel with ease, Local Transport Authorities
(LTAs) are able to gather reliable data about passenger numbers
and travelling trends, and fraud can be minimised. Merseytravel
recognises the opportunity to ensure that technology supports
inter-operator ticketing not only across types of transport but
also over areas and regions. Schemes using ITSO-compliant smartcard
technology ensure complete interoperability and efficient management
of the movement of people and, if applied nationally, would ensure
a "seamless journey" for the traveller regardless of
mode or LTA boundary.
March 2007
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