Bus fares 'could rise and services be axed'

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Thursday, January 19, 2012
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Herald Express

BUS fares in Torbay could rise and services be axed from April if planned cuts to funding go ahead.

Torbay Council is looking to reduce the amount of money it pays to Stagecoach and other bus firms to support the concessionary bus fare scheme for over-60s.

It is understood the payments could be reduced by as much as a third but the council says negotiations are ongoing and would not confirm any figures.

Stagecoach has said if cuts go ahead, together with a rise in fuel costs, then there would be an 'impact on fares and services for all bus users'.

A Stagecoach spokesman said: "We can confirm Torbay Council has initiated discussions with all local bus operators regarding their intent to reduce the current level of concessionary reimbursement from April.

"This will be happening at the same time we are seeing an increase in fuel costs due to the Government's 20 per cent cut to the Bus Operators Fuel Grant.

"Both of these reductions will potentially impact on fares and services for all bus users, not just concessionary fare passengers.

"However, we are optimistic that by pursuing a meaningful dialogue with Torbay Council it may be possible to avert the need for cuts."

Speaking at a meeting of the Torbay Business Forum, Les Crump, Torbay Council's head of spatial planning, told business leaders the move could result in 'serious difficulties' for bus firms.

"It is a problem. The Government doesn't give us enough cash to recompense us adequately for concessionary fares.

"We have just sought to renegotiate the reimbursement rate to save ourselves £400,000. That may put some bus operators in serious difficulties in terms of providing the service they provide now.

He said they needed to get the reimbursement rate right and decide if there were particular route they wanted to subsidise.

A spokesman for Torbay Council said: "The Department for Transport has recently issued revised guidance to all councils about how to calculate the reimbursement rates, for revenue forgone to bus operators.

"This covers the cost incurred by bus operators for carrying concessionary fares passengers free of charge.

"The council has reviewed this guidance and is considering adjusting its reimbursement rate to operators.

"Notice has been given to all operators advising of these new rates, however, the council and bus operators now enter a three-month window for discussion and negotiation before any changes are brought into effect.

"The next stage will be for the council to consider representations from the operators about whether these changes are fair and reasonable and can be supported with evidence, as concessionary fares legislation requires operators to be 'no better or worse off' following the introduction of the scheme."

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22 Comments

  • Profile image for thinbird12

    by thinbird12

    Tuesday, January 24 2012, 2:08PM

    “Shareholders would drop their shares like a lead balloon. Nah, the only way they'll cut fares is if they take on cheap convict labour or rehabilitate people on the mental health register to drive the buses for free. I wouldn't put that past them critters at Stagecoach, mind...”

  • Profile image for mikelister66

    by mikelister66

    Monday, January 23 2012, 1:26PM

    “Heres a thought, how about lowering prices to attract more people onto the buses.

    10 people at £4.70 or 20 people at £2.35? I admit that its not as simple as that but the buses are rarely full and there seems to be plenty of capacity. Perhaps a streamlining of routes is also in order, do we need the 12, 12A (and 12C on a Sunday) all running between Paignton and Torquay. There seems to be a lot of doubling up on routes.”

  • Profile image for Tony248

    by Tony248

    Monday, January 23 2012, 12:02PM

    “Hear hear, Thinbird. But this is the price we pay in this country for putting into private hands what quite plainly should be provided publically. Water is another fine example.”

  • Profile image for thinbird12

    by thinbird12

    Monday, January 23 2012, 11:50AM

    “The reality is that big companies like Stagecoach have high corporate overheads and shareholders to pay. We could do with a couple of small, local independent bus companies starting up in The Bay. Think about it, just one small 20-seater bus could run backwards and forwards between Paignton and Torquay all day and make a sizeable profit at £1 per journey (£1.60 cheaper than the current single journey). That could bring in £250 in one morning, £480 per day, £720 including night runs. That's more than £5 grand a week, £20 grand a month, £242K per year. As well as make someone rich, it could also mean local workers don't pay out most of their surplus earnings on travelling to work!

    Now the buses are 'privatised', we can hardly keep referring to it as 'public transport', can we? We need real price competition in this sector. My God, you can buy a pound of prize beef for less than the price of travelling a couple of stops on the bus! It's time to think outside the institutional box, my friends...”

  • Profile image for Tony248

    by Tony248

    Monday, January 23 2012, 10:46AM

    “In some countries, public transport is seen as part of the infrastructure of the country, is state-run (subsidised if need be) but cheap and efficient: result, full buses and trains.

    Here, a private venture aimed at making profit: result, high prices, largely underutilised, and with the routes constantly being cut back so people have to use cars instead.

    Stupid, really?”

  • Profile image for Tonymore

    by Tonymore

    Monday, January 23 2012, 8:47AM

    “Cherrie54, Tourist without spell check.. Derr..”

  • Profile image for cherrie54

    by cherrie54

    Monday, January 23 2012, 8:16AM

    “Duh tony too thick to get a play on words bye bye”

  • Profile image for Tonymore

    by Tonymore

    Sunday, January 22 2012, 5:40PM

    “"I'll take a seasoned guess your a newby to the bay" newby? You mean "Newbie" ;-)”

  • Profile image for Sinjis_Things

    by Sinjis_Things

    Saturday, January 21 2012, 11:11AM

    “In the 1980s the local bus company used smaller buses which were cheaper to run and did not run around empty like the double deckers are often these days. Therefore why can't Stagecoach run smaller buses in off peak times and on the less popular routes?”

  • Profile image for cherrie54

    by cherrie54

    Saturday, January 21 2012, 2:05AM

    “OH tony aren't you the lucky one you live in the bay you don't care if there are tourist or not so don't care about the unemployed in the bay.You tell tourist to mind their own business in the bay and don't darken the bays doors.But you go out to exeter and london and on line anywhere but the bay to spend your money. So leaving the local shops ect without your custom but begrudge them a living from tourists. I'll take a seasoned guess your a newby to the bay who bought into the bay as your own little bit of the past. Well tony sorry to tell you this is a free forum not your personal one.You don't own the bay. I'm just glad that others don't share your nimby views other wise god help any new business comming to the bay to create jobs and god help any tourist who comes across you in the street. I thought others on the forum was making it up when they said people like you was killing off the bay and stopping all devlopement I was wrong. Who would have thought a open discussion on travel scheme which effects all are areas of the country would bring out such a pompous selfish nimby anti bay lover like you.”

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