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

Ev 192 Transport Committee: Evidence
1.3 In the Chester area, the County Council’s Chester <strong>Travel</strong>card scheme has been operational since July
2002 <strong>and</strong> provides a unique, commercially interoperable smartcard-based bus ticketing scheme. This allows
passengers access to the services of four main participating operators through a range of zone-based pass
products, in addition to a stored value purse. The scheme was derived in response to a heavily sectorised
bus network which disadvantaged cross-city trips implying more than one operator, <strong>and</strong> was established
under Transport Act 2000 powers, utilising the Public Transport <strong>Ticketing</strong> Schemes Block Exemption Order
2001 in its reconciliation basis. As it oVers a stored value purse, the scheme also holds a small e-money issuer
certificate under Financial Services <strong>and</strong> Markets Act 2000 (Regulated Activities) Order 2001.
2. Does the Government have an adequate strategy for developing the integration of ticketing systems?
2.1 The technology basis for the integration of ticketing systems, including between modes via the ITSO
st<strong>and</strong>ard, is clearly comprehensive <strong>and</strong> capable of accommodating not only statutory (concessionary travel)
functionality, but the addition of commercial ticketing products <strong>and</strong> related functionality (such as the cohosting
of other transport (eg charging or tolling) <strong>and</strong> non-transport (e.g. tourism) functions.
2.2 The available statutory basis for the integration of ticketing systems has been shown by the Chester
<strong>Travel</strong>card scheme to be suYcient for the purpose, <strong>and</strong> capable of satisfying the participation requirements
of major national bus operating groups. However, in the general case outside the established scheme, the
competition implications of multi-operator ticketing—<strong>and</strong> the penalties for non-compliance—have on
occasion been shown to reduce operator willingness to enter into “collaborative” schemes.
2.3 Outside the concessionary case, the strategy for developing the integration of ticketing systems suVers
from an inability of local authorities to enforce participation. Currently, participation is voluntary <strong>and</strong> relies
on a perceived commercial benefit on the part of the participant. For this reason, in the absence of significant
grant assistance towards equipment, software <strong>and</strong> systems, business cases are perceived as being extremely
weak <strong>and</strong> participation is conditioned accordingly. It should also be noted that in the case of local
authorities, the necessary knowledge <strong>and</strong> resource to develop such schemes may be lacking, or may not be
justified against the potential outcomes. In Cheshire, the justification is in pursuit of broad Local Transport
Plan policies relating to accessibility <strong>and</strong> ease of use of public transport.
2.4 The County Council’s concessionary travel scheme is under-developed compared with large
conurbations such as Greater Manchester <strong>and</strong> Merseyside. Any Government strategy needs to take into
consideration the needs of travellers from <strong>and</strong> within rural areas.
The Use of Smartcard Technologies
3. Is the industry taking up modern smartcard technologies adequately <strong>and</strong> appropriately?
3.1 If “The industry” is defined in its broadest sense (ie the entire operator, regulatory <strong>and</strong> local authority
spectrum), then it is true that modern smartcard technology is being taken up, although at diVerent rates in
diVerent areas.
3.2 Cheshire County Council’s <strong>Travel</strong>card scheme was selected <strong>and</strong> part-funded by DfT (with
Southampton City Council’s university travel scheme <strong>and</strong> Nottinghamshire County Council’s
concessionary scheme) as a successful existing scheme for development to the ITSO st<strong>and</strong>ard. To date, these
three “Legacy” schemes have undertaken extensive pioneering work into the application of the St<strong>and</strong>ard,
dealing with the problems encountered in establishing systems <strong>and</strong> practices, <strong>and</strong> the benefits of this are now
available to other local authorities. Cheshire has had its first live end-to-end ITSO implementation phase
in operation since December 2006, in Crewe.
3.3 In addition, Cheshire is contracted to DfT to host a research investigation into “low-cost” transport
smartcards, which is expected to provide evidence of additional applications <strong>and</strong> distribution opportunities
that would act to promote the take-up of transport smartcards.
3.4 As well as enhanced travel <strong>and</strong> product flexibility, the benefits of modern smartcard technologies to
all concerned in the accumulation of reliable transaction data <strong>and</strong> the prevention of fraud (particularly in
cases where travel entitlement is given) are readily appreciated. Although there are precedents for
proprietary operator smartcard-based schemes, we underst<strong>and</strong> that general take-up by operators may
present a perceived weak business case due to the significant capital investment required.
4. Does the ITSO system cater for the needs of all passengers <strong>and</strong> travel providers?
4.1 Yes. Our experience with the ITSO st<strong>and</strong>ard demonstrates that it provides a comprehensive basis for
the establishment of integrated ticketing solutions, which can be multi-modal. It provides an open platform
<strong>and</strong> certification system for access by a range of suppliers, <strong>and</strong> retains a structure enabling it to maintain
the potential to evolve with the addition of ticketing scheme equipment <strong>and</strong> systems, <strong>and</strong> card media.
4.2 Significantly, the ITSO st<strong>and</strong>ard presents the broader potential <strong>and</strong> flexibility for satisfactorily
accommodating not only statutory (concessionary travel) functionality, but of expansion into commercial
ticketing products <strong>and</strong> related functionality (such as the co-hosting of other transport (eg charging or