Decision details
Transport Operations – continuation of payments for concessionary fare reimbursement, supported bus service contracts and Community Transport grants
Decision Maker: Strategic Director of Infrastructure
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Purpose:
* Bus operators and transport providers are at
real risk of going out of business before normality is resumed due
to significantly reduced revenue income from fare box, grant
awards, payments for contracted services and/or concessionary fare
reimbursement for an extended period.
* Services may be reduced below an acceptable minimum level for the
duration of the crisis potentially leaving some key workers unable
to access work.
* Permanent loss of operators/providers would mean it would be
virtually impossible to reinstate the full network coverage of bus
operations and transport services after the Covid-19 crisis.
* Continuation of concessionary fare reimbursement and contracted
service payments would cost no more than is currently budgeted
within the Transport Levy (approx. £5m for these three
elements for each quarter) but would provide immediate certainty of
cash flow to all operators on a business as usual basis.
* In order to ensure the continued funding delivers appropriate
services and support a number of conditions have been devised which
operators will be required to accept before the funding is released
– see background document. These conditions align well with
other Combined Authorities across the country.
* This action would provide reassurance that operators have the
support from the Transport Authority for their long-term survival
and future role in the region.
* The Department for Transport has been actively encouraging Local
Transport Authorities to take this step and subsequently wrote to
local authorities again stating that the CBSSG restart payments had
been calculated on the basis that LTAs continue providing the
reimbursement and contract payments.
* This is a decision taken under the Scheme of Delegations approved
by WECA Committee in June 2020. This decision has been taken under
this provision.
Decision:
* Pay operators from the 2020/21 concessionary
travel budget the same as they would have expected to receive for
Q4 Dec 2020 – Mar 2021, irrespective of whether journeys are
taken.
* Pay Community Transport providers their expected grants for Q4
Dec 2020 – Mar 2021.
* Pay operators for the service contracts in place, irrespective of
whether these are operated, again for a limited period to end of
March 2021.
* Payments to be offered immediately to provide certainty of cash
flow, subject to the acceptance of conditions set out in background
document.
* Review further payment position ahead of Q1 2021/22.
Alternative options considered:
Option 1 – This is the option delivered
through the decision set out in this decision record.
Option 2 - Only make payments for claims against actual travel
– this is considered likely to leave operators/providers
vulnerable to business failure.
Option 3 – Make targeted payments based on a judgement of
vulnerability to failure – this is considered to risk
challenge as financial information necessary to make such a
decision is likely to be commercially sensitive and difficult to
access in the time needed to ensure the decision has the desired
effect.
Publication date: 26/01/2021
Date of decision: 31/12/2020
Accompanying Documents: