Integrated transport authority backs consultation on quality contracts scheme

An integrated transport authority in the North East has backed plans for a consultation on a proposed Quality Contracts Scheme for bus services.

The Tyne and Wear Integrated Transport Authority is the first such body to enter formal consultation on a QCS proposal. Nexus, the Tyne and Wear Passenger Transport Executive, will run the consultation on the ITA’s behalf.

Powers under the Transport Act 2000 would allow the ITA to take public control of bus services and replace the deregulated marked that has existed outside London since 1986.

If the QCS scheme goes ahead, the authority would be responsible for all aspects of almost all bus services in Tyne and Wear for ten years.

Under the proposal the scheme would start in 2015. Private companies would continue to operate bus services, but they would be contracted to provide a specific service to the public for seven to ten years.

The authority claimed that “by reducing direct public funding it would be able to reduce the cost to the taxpayer by £7m a year yet avoid cuts that would see the withdrawal of child concessionary fares, schools buses and other socially-necessary services under threat after 2015”.

The Tyne and Wear ITA said it would also invite bus operators to develop – through the North East Bus Operators Association (NEBOA) – a revised partnership offer as an alternative.

Cllr David Wood, chair of the ITA, said: “Local people who make 140 million journeys every year would benefit from simple fares, cheaper tickets for young people, universal smartcard travel, a single source for customer information, a greater say in how routes are planned and improvements in journey quality.

“This is an important step by the ITA which has the potential to transform local bus services. We estimate that to provide this level of service in today’s deregulated bus market could cost the taxpayer at least £70m more than if a QCS is introduced.”

Cllr Wood added: “If we don’t take action now to re-invest more of the profit buses make widespread cuts are inevitable from 2015, hitting families, bus company staff and the vulnerable hardest.

“Having looked at the options in some detail, the ITA is clear the Quality Contracts proposal as it now stands represents a better opportunity to achieve our aims than the alternative voluntary partnership so far offered by bus companies.”

Bernard Garner, Nexus' Director General, said: “This is a proposal through which the local bus market in Tyne and Wear would be both secured for the future and improved to deliver services in a way familiar to people in London and many European cities.

“The detailed proposal shows how we believe we can make bus services better through a single publicly-accountable body planning and managing routes, setting and collecting all fares, and re-investing a greater proportion of the profit generated.”

Garner described the likely alternative as “very unappealing”, claiming that because of the reduction in public spending Nexus could not afford to provide the range of services it currently delivers using funds from local councils provided through the ITA levy.

He added: “To prevent a budget deficit from 2015 onwards, unless we act now, we will be forced to withdraw a whole range of vital public transport services.”

A partnership proposal from NEBOA presented to the ITA’s meeting last week would offer savings of £360,000 a year.

This would be achieved through commercial companies taking over loss-making routes funded by Nexus, new tickets for people changing between buses including cheaper deals for 16-18-year-olds, a commitment to maintain existing commercial services, an ITA veto on changes, and increased marketing.

The ITA said it would consider a revised and improved partnership proposal if NEBOA wanted to present one.

In a statement on its website, the association said: “NEBOA has urged the ITA to give proper consideration to the partnership alternative, which would see benefits for passengers from as early as spring next year – almost two years earlier than a quality contract scheme.

“Working in partnership offers terrific benefits for bus users and local authorities without the tremendous risks posed by a contracts scheme. NEBOA believes that a contract scheme will inevitably lead to service cuts as local authority budgets are squeezed.”

The association added: “The partnership offering already contains savings for Nexus and savings for passengers amounting to more than £2m. The partnership proposal produces a stable network with changes and improvements being presented to Local Partnership Boards.”