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. on 25 March 2020
urging them to continue to pay operators in this way – see
background document.
• This is a decision taken under the Scheme of Delegations
approved by the WECA Committee. 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 Q3 Oct – Dec, irrespective of whether journeys
are taken.
• Pay Community Transport providers their expected grants for
Q3 Oct - Dec.
• Pay operators for the service contracts in place,
irrespective of whether these are operated, again for a limited
period to end of Dec.
• 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 Q4
2020/21.
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: 19/10/2020
Date of decision: 19/10/2020
Accompanying Documents: