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Ticketing and Concessionary Travel on Public Transport - United ...

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Ev 158 <strong>Transport</strong> Committee: Evidence<br />

Are the rights of passengers <str<strong>on</strong>g>and</str<strong>on</strong>g> the powers of ticket inspectors well-balanced?<br />

Yes, for example, rail passengers can <strong>on</strong>ly be charged a penalty fare if ticket facilities were unavailable<br />

where they joined the train. However, it is important that passengers rights are protected by ensuring that,<br />

for example, if a passenger says that they could not buy a ticket an inspector is able to verify whether that<br />

is the case. Inspectors need real time informati<strong>on</strong> <strong>on</strong> whether ticket oYces are open or machines are working<br />

properly so that they can exercise discreti<strong>on</strong> in appropriate cases.<br />

Do operators of public transport take adequate measures to protect fares revenue?<br />

The extent to which operators take steps to protect fare revenues is likely to vary according to their<br />

dependence up<strong>on</strong> “fare box” revenue. Where operators have accepted little or no revenue risk, there is<br />

disincentive to ensure that the correct fares paid or that tickets or passes are valid.<br />

<str<strong>on</strong>g>C<strong>on</strong>cessi<strong>on</strong>ary</str<strong>on</strong>g> Fares—The Right Strategy?<br />

Is the Government’s c<strong>on</strong>cessi<strong>on</strong>ary fares strategy, including the proposed scheme for c<strong>on</strong>cessi<strong>on</strong>ary bus travel,<br />

adequate?<br />

Merseytravel welcomes the introducti<strong>on</strong> of an Engl<str<strong>on</strong>g>and</str<strong>on</strong>g>-wide scheme for free oV-peak bus travel,<br />

applicable to disabled people <str<strong>on</strong>g>and</str<strong>on</strong>g> those over 60 <str<strong>on</strong>g>and</str<strong>on</strong>g> is keen to work with the Government to ensure its<br />

successful implementati<strong>on</strong>.<br />

Merseytravel believes the Government’s mechanism for allocating funding for the c<strong>on</strong>cessi<strong>on</strong>ary fares<br />

scheme presents significant challenges, particularly in Engl<str<strong>on</strong>g>and</str<strong>on</strong>g>’s metropolitan areas.<br />

Government funding, although reflective of the actual cost of the scheme, will be allocated as part of the<br />

Revenue Support Grant (RSG) process meaning that allocati<strong>on</strong>s are not reflective of local passenger<br />

numbers or need. Channelling funds through the RSG is particularly detrimental to metropolitan areas<br />

where passenger numbers are naturally higher, making the cost of implementati<strong>on</strong> higher.<br />

This problem is not reflected in the RSG <str<strong>on</strong>g>and</str<strong>on</strong>g> can <strong>on</strong>ly be resolved by <strong>Transport</strong> Authorities cutting<br />

services or quality. In Metropolitan areas, funding allocated for the scheme does not go directly to PTEs.<br />

It goes to Metropolitan District Councils as part of the RSG process, who are under no obligati<strong>on</strong> to pass<br />

<strong>on</strong> the additi<strong>on</strong>al funding to the PTEs.<br />

Another funding issue arises because the scheme follows Barnett principles, meaning a proporti<strong>on</strong> of the<br />

funding for the English scheme will go to Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>and</str<strong>on</strong>g> Wales—even though those schemes are fully funded<br />

already via their respective Assembly <str<strong>on</strong>g>and</str<strong>on</strong>g> Executive.<br />

One significant area of c<strong>on</strong>cern is the impact of the recent round of Appeals by bus operators against PTA<br />

Participati<strong>on</strong> Notices. All the PTAs aVected have had to make provisi<strong>on</strong> in their budgets for the potential<br />

outcomes. This means that there is uncertainty in the budget, but also that budget plans could be seriously<br />

aVected by the outcome of the Appeals process, eg PTAs have faced increased payments to bus operators<br />

in the regi<strong>on</strong> of £1.5 milli<strong>on</strong> to £5.0 milli<strong>on</strong> per annum. Decisi<strong>on</strong>s by the Secretary of State are potentially<br />

undermining the sovereignty of PTAs to determine their own budgets. However, the reality is that the DfT<br />

funding to the PTAs <str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>C<strong>on</strong>cessi<strong>on</strong>ary</str<strong>on</strong>g> <str<strong>on</strong>g>Travel</str<strong>on</strong>g> Authorities is fixed: so there is <strong>on</strong>e rule for the DfT <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

another for reimbursing Authorities!<br />

ITSO provides a flexible <str<strong>on</strong>g>and</str<strong>on</strong>g> interoperable scheme basis which allows many of the current issues to be<br />

resolved:<br />

— Recognising a valid card.<br />

— As much data as you want.<br />

— Whose scheme is it?<br />

— Issuing the cards at where?<br />

— Local add <strong>on</strong>s.<br />

— Commercial add <strong>on</strong>s.<br />

— Cross Border.<br />

— Future proofing.<br />

Are c<strong>on</strong>cessi<strong>on</strong>ary fares schemes suYciently integrated across diVerent modes of transport <str<strong>on</strong>g>and</str<strong>on</strong>g> diVerent<br />

geographical areas?<br />

— For the <str<strong>on</strong>g>C<strong>on</strong>cessi<strong>on</strong>ary</str<strong>on</strong>g> Fares scheme to be applied <strong>on</strong> a nati<strong>on</strong>al scale, it is essential that eligible<br />

passengers are able to travel with ease, Local <strong>Transport</strong> Authorities (LTAs) are able to gather<br />

reliable data about passenger numbers <str<strong>on</strong>g>and</str<strong>on</strong>g> travelling trends, <str<strong>on</strong>g>and</str<strong>on</strong>g> fraud can be minimised.<br />

Merseytravel recognises the opportunity to ensure that technology supports inter-operator

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