Issue details
Transport Operations – continuation of payments for concessionary fare reimbursement, supported bus service contracts and Community Transport grants
* 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 type: Non-key
Decision status: Recommendations Approved
Notice of proposed decision first published: 26/01/2021
Decision due: 31 Dec 2020 by Strategic Director of Infrastructure
Contact: David Carter, Director of Infrastructure Email: david.carter@westofengland-ca.gov.uk.
Consultation process
The issue was referred to in the report on
Transport Operations to the 6 January 2021 Transport Board where no
dissent was received to the continuation of the arrangements during
the ongoing Covid-19 emergency.
Decisions
Background papers