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

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

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Ev 28 Transport Committee: Evidence 5 December 2007 Mr Roy Wicks, Mr Neil Scales, Mr David Cook, Mr Adrian Jones ong>andong> Mr Greg Yates Q226 Chairman: I know we have talked a bit about new technology, but they did specifically say to us— ong>andong> you can understong>andong> it because you must have the same problem in Liverpool -because of the numbers they are hong>andong>ling ong>andong> the speed at which the reader can cope with that, they are very concerned that Oyster cards can be read in 200 milliseconds, which is actually an item of time which means nothing in my life at all but which I am sure is very important, whereas ITSO cards take 700 milliseconds, or whatever it is it is rather more than the 200. You yourself know from the numbers hong>andong>led by the Underground system here that we are talking big numbers ong>andong> the diVerence in time, even if it was a couple of second for each traveller— Mr Scales: I will not trouble the Committee, Chairman, with the intricacies of fast frequency shift keying, but I will provide you with a note which will make it understong>andong>able in non-technical terms. Chairman: If you ever want to appear here again, Mr Scales, you will write that in big letters ong>andong> put it over your desk! Thank you very much indeed. Q227 Mr Hollobone: Kettering Borough Council is going to extend this concessionary fare scheme to peak times as well. Mr Cook, could you just run through the thinking of the council as to why it is prepared to do that ong>andong> what are the implications for other authorities if diVerent authorities are taking a diVerent approach to peak ong>andong> oV-peak? Mr Cook: I think the thinking of the council was that parts of the area are rural ong>andong> the access to bus services after 9.30 might be non-existent or might be extraordinarily patchy. We talked about tourist destinations earlier. Kettering is a hospital destination, so if people want to come into the hospital, or whatever, they might need transport ong>andong> we have quite a number of villages which are poorly served by bus networks ong>andong> the council felt they could diVerentiate in that way ong>andong> they wanted to see bus travel encouraged, full stop, ong>andong> they wanted to make sure that those hard to reach groups who might have diYculties were also able to have the benefits of this. That was one of the reasons. I think if someone undertakes a journey from an authority which has exercised that discretion into an authority which has not exercised that discretion, then if they want to make another onward journey before 9.30 they might find that they are having to pay for that journey, but in most cases if they were going, say, for employment somewhere then they would be coming out, back home again, as it were, in oV-peak time ong>andong> so would not therefore pay. Our thinking ong>andong> the members’ thinking was to make it fair ong>andong> accessible ong>andong> to reach all aspects of the community. Q228 Mr Hollobone: Would you have any feeling at all for the number of authorities which might be looking to extend the scheme in this way? Mr Cook: I have not any feeling for that now, but I am sure we could find that out with colleagues in the LGA ong>andong> provide a note, if that would help. Q229 Chairman: This is a rather sensitive subject. How secure is all this personal information that you are going to obtain? One reason why I am, frankly, not very keen on the system in London is that I see no particular reason why my dear friend Ken should know when I get on a train ong>andong> when I get oV it. I did not tell my husbong>andong>, so I am certainly not telling the Mayor! Mr Cook: If I might start the answer on that, I think the local authority holds a massive amount of sensitive data about individuals— Q230 Chairman: Mr Cook, I am not arguing with what they have got now. What I am saying is, you are going to add a whole lot more ong>andong> Mr Scales has made it very clear this is the only way they are going to make their economics actually make sense, because they need to know how many people, where they get on ong>andong> where they get oV. You are holding a lot of secure personal information, particularly if they are concessionary travel cards. We need to know really. What is the level of uptake, for example, you are experiencing? Mr Cook: As far as security is concerned—ong>andong> this is the issue that runs with any smart system—any smart system depends on data, so that goes with smart systems. The uptake we have had is that— Q231 Chairman: Mr Cook, I think you are making us more unhappy. I think you should move on. Mr Jones, do you know how secure it is? Mr Jones: I think we are reasonably happy with the security. I think it has passed all the relevant compliances ong>andong> there is a massive amount of data out there in private hong>andong>s about what you do which you might be more worried about than it being held by local authorities. You question about the uptake comes back to a point which I do not think was answered earlier, which is about how we actually incentivise uptake eVectively. I think that was the point Mr Cook was making, that we have got a perverse situation at the moment. It is actually in our interests not to incentivise— Q232 Chairman: Yes, I understong>andong> that. Mr Jones: But it is really important that we do. In our particular case, we have managed to get to 93%, which is very, very high. That is a direct result of targeting hard to reach groups like elderly Asian women, which is a group with a particularly low uptake ong>andong> we have managed to dramatically increase it by targeting it. It is actually against my interest. Q233 Chairman: Yes, but what I am saying is that that is actually a policy decision by your authority to give you this broad set of remits ong>andong> say, “Get on with it”? Mr Jones: Yes, but surely it is underpinning what the Government wants the concessionary scheme—

Transport Committee: Evidence Ev 29 5 December 2007 Mr Roy Wicks, Mr Neil Scales, Mr David Cook, Mr Adrian Jones ong>andong> Mr Greg Yates Q234 Chairman: I am not saying it is a good thing, Mr Jones, I am just trying to find out what is going on. So you are consciously targeting hard to reach groups. Are there very obvious variations between one section ong>andong> the population of the borough? Mr Jones: Yes. In our experience—ong>andong> it may not be typical—certainly Asian groups were very hard to reach, new immigrant groups particularly. In our particular case because of the structure of fares inner-city residents tended to use buses less because they were relatively not cost-eYcient compared with outer-city residents. Q235 Chairman: I am getting a nod from Mr Wicks. Mr Yates, you have got a slightly diVerent situation. Is that true of your area? Mr Yates: We have got a very high take-up now compared with what there was with the half fare scheme. Q236 Chairman: So what are you talking about in figures? Mr Yates: It has gone up to about 90%, probably. A massive increase in Cheshire from two years ago, hence, as my colleagues have said, the split interest in incentivising any further take-up. In our case the district council do the local work ong>andong>, for example, in your own constituency there might be some special eVorts taken to target— Q237 Chairman: Everything happens in my constituency, Mr Yates, it is special, starting with the Member of Parliament ong>andong> working downwards, or, on the other hong>andong>, as some people say, working upwards. What is the level of fare-dodging in your areas? Mr Wicks: That is commercial information, so we do not actually know. Q238 Chairman: Oh, Mr Wicks, you are giving money to men ong>andong> you do not know an answer to something like that? Mr Wicks: We are not giving money, no, because it is the bus operator’s fares ong>andong> so it is their revenue which is being lost. Q239 Chairman: Has nobody been indiscrete enough to give you an indication? Mr Wicks: No, certainly not in our area. Q240 Chairman: Gosh, that is interesting! Mr Wicks: They would argue it is non-existent, I suspect, if they were here. Chairman: I am sure they would argue something to the eVect. Q241 Clive EVord: It is about the security of the information, because what we have been told is that the new concessionary cards will contain the information on the non-secure section of the card about the personal details of individuals. Do you want to comment on that? Why is that ong>andong> why is that necessary, ong>andong> should the information not be more secure than it appears to be? Mr Scales: I would not like to guess, Mr EVord, at this point. I will provide you with a note that gives you a full answer to that. Q242 Chairman: You are going to be writing us the Encyclopaedia Britannica of buses, Mr Scales. Are your bosses aware of this? Mr Scales: I think, Chairman, I will be writing you a good paper on smartcards ong>andong> bringing the Committee’s knowledge up as far as I can take it, hopefully. Clive EVord: Well, I will wait until I get a piece of paper. Q8243 Chairman: I want to ask pteg about the written evidence you gave us, because you talked about unintended consequences. Mr Wicks: I think the unintended consequences, particularly on concessionary fares, are where authorities are put in the position, such as the example I cited earlier, where we have to consider whether we can continue to oVer a concession on rail or – Q244 Chairman: That is exactly what I think we want to know about. Have you cut back on any other concessionary schemes? Mr Wicks: We have not had to yet, but then we do not know what the funding will be for next year. We are in the position now of trying to set our budget for 2008-9 ong>andong> we have two problems: we do not know what funding we will get from central government for the existing scheme ong>andong> the operators are able to appeal against the reimbursement that they had both for this year ong>andong> for next year, both of which could be budget challenges. My own authority is very keen to make sure that when it introduces this extension to concessions it is just that, it is not a replacement for something else. But clearly there is a set of circumstances which could mean that even if we kept those sets of policies going we might have to reduce the amount of money we spend on tendered services for something like that. Q245 Chairman: What you are really saying is that you cannot estimate that at the moment because it is very dependent upon monies. Mr Wicks: Also, just to assist the Committee, there is the whole process, which I think my colleagues have referred to, whereby the operators can appeal against their reimbursement ong>andong> there is no disincentive to appeal because there are no costs involved in appealing. So we have this constant uncertainty. Q246 Chairman: They do not pay any costs? Mr Wicks: Only the costs they incur in actually putting it together, but they are not at any risk in challenging our assumptions all the time. Q247 Chairman: Is that continuing? Mr Wicks: That is continuing. We certainly have appeals against us for the current year, even though

Ev 28 <strong>Transport</strong> Committee: Evidence<br />

5 December 2007 Mr Roy Wicks, Mr Neil Scales, Mr David Cook, Mr Adrian J<strong>on</strong>es <str<strong>on</strong>g>and</str<strong>on</strong>g> Mr Greg Yates<br />

Q226 Chairman: I know we have talked a bit about<br />

new technology, but they did specifically say to us—<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> you can underst<str<strong>on</strong>g>and</str<strong>on</strong>g> it because you must have<br />

the same problem in Liverpool -because of the<br />

numbers they are h<str<strong>on</strong>g>and</str<strong>on</strong>g>ling <str<strong>on</strong>g>and</str<strong>on</strong>g> the speed at which<br />

the reader can cope with that, they are very<br />

c<strong>on</strong>cerned that Oyster cards can be read in 200<br />

millisec<strong>on</strong>ds, which is actually an item of time which<br />

means nothing in my life at all but which I am sure<br />

is very important, whereas ITSO cards take 700<br />

millisec<strong>on</strong>ds, or whatever it is it is rather more than<br />

the 200. You yourself know from the numbers<br />

h<str<strong>on</strong>g>and</str<strong>on</strong>g>led by the Underground system here that we are<br />

talking big numbers <str<strong>on</strong>g>and</str<strong>on</strong>g> the diVerence in time, even<br />

if it was a couple of sec<strong>on</strong>d for each traveller—<br />

Mr Scales: I will not trouble the Committee,<br />

Chairman, with the intricacies of fast frequency shift<br />

keying, but I will provide you with a note which will<br />

make it underst<str<strong>on</strong>g>and</str<strong>on</strong>g>able in n<strong>on</strong>-technical terms.<br />

Chairman: If you ever want to appear here again, Mr<br />

Scales, you will write that in big letters <str<strong>on</strong>g>and</str<strong>on</strong>g> put it<br />

over your desk! Thank you very much indeed.<br />

Q227 Mr Hollob<strong>on</strong>e: Kettering Borough Council is<br />

going to extend this c<strong>on</strong>cessi<strong>on</strong>ary fare scheme to<br />

peak times as well. Mr Cook, could you just run<br />

through the thinking of the council as to why it is<br />

prepared to do that <str<strong>on</strong>g>and</str<strong>on</strong>g> what are the implicati<strong>on</strong>s for<br />

other authorities if diVerent authorities are taking a<br />

diVerent approach to peak <str<strong>on</strong>g>and</str<strong>on</strong>g> oV-peak?<br />

Mr Cook: I think the thinking of the council was that<br />

parts of the area are rural <str<strong>on</strong>g>and</str<strong>on</strong>g> the access to bus<br />

services after 9.30 might be n<strong>on</strong>-existent or might be<br />

extraordinarily patchy. We talked about tourist<br />

destinati<strong>on</strong>s earlier. Kettering is a hospital<br />

destinati<strong>on</strong>, so if people want to come into the<br />

hospital, or whatever, they might need transport <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

we have quite a number of villages which are poorly<br />

served by bus networks <str<strong>on</strong>g>and</str<strong>on</strong>g> the council felt they<br />

could diVerentiate in that way <str<strong>on</strong>g>and</str<strong>on</strong>g> they wanted to<br />

see bus travel encouraged, full stop, <str<strong>on</strong>g>and</str<strong>on</strong>g> they wanted<br />

to make sure that those hard to reach groups who<br />

might have diYculties were also able to have the<br />

benefits of this. That was <strong>on</strong>e of the reas<strong>on</strong>s. I think<br />

if some<strong>on</strong>e undertakes a journey from an authority<br />

which has exercised that discreti<strong>on</strong> into an authority<br />

which has not exercised that discreti<strong>on</strong>, then if they<br />

want to make another <strong>on</strong>ward journey before 9.30<br />

they might find that they are having to pay for that<br />

journey, but in most cases if they were going, say, for<br />

employment somewhere then they would be coming<br />

out, back home again, as it were, in oV-peak time<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> so would not therefore pay. Our thinking <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

the members’ thinking was to make it fair <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

accessible <str<strong>on</strong>g>and</str<strong>on</strong>g> to reach all aspects of the community.<br />

Q228 Mr Hollob<strong>on</strong>e: Would you have any feeling at<br />

all for the number of authorities which might be<br />

looking to extend the scheme in this way?<br />

Mr Cook: I have not any feeling for that now, but I<br />

am sure we could find that out with colleagues in the<br />

LGA <str<strong>on</strong>g>and</str<strong>on</strong>g> provide a note, if that would help.<br />

Q229 Chairman: This is a rather sensitive subject.<br />

How secure is all this pers<strong>on</strong>al informati<strong>on</strong> that you<br />

are going to obtain? One reas<strong>on</strong> why I am, frankly,<br />

not very keen <strong>on</strong> the system in L<strong>on</strong>d<strong>on</strong> is that I see<br />

no particular reas<strong>on</strong> why my dear friend Ken should<br />

know when I get <strong>on</strong> a train <str<strong>on</strong>g>and</str<strong>on</strong>g> when I get oV it. I<br />

did not tell my husb<str<strong>on</strong>g>and</str<strong>on</strong>g>, so I am certainly not telling<br />

the Mayor!<br />

Mr Cook: If I might start the answer <strong>on</strong> that, I think<br />

the local authority holds a massive amount of<br />

sensitive data about individuals—<br />

Q230 Chairman: Mr Cook, I am not arguing with<br />

what they have got now. What I am saying is, you<br />

are going to add a whole lot more <str<strong>on</strong>g>and</str<strong>on</strong>g> Mr Scales has<br />

made it very clear this is the <strong>on</strong>ly way they are going<br />

to make their ec<strong>on</strong>omics actually make sense,<br />

because they need to know how many people, where<br />

they get <strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> where they get oV. You are holding<br />

a lot of secure pers<strong>on</strong>al informati<strong>on</strong>, particularly if<br />

they are c<strong>on</strong>cessi<strong>on</strong>ary travel cards. We need to<br />

know really. What is the level of uptake, for<br />

example, you are experiencing?<br />

Mr Cook: As far as security is c<strong>on</strong>cerned—<str<strong>on</strong>g>and</str<strong>on</strong>g> this<br />

is the issue that runs with any smart system—any<br />

smart system depends <strong>on</strong> data, so that goes with<br />

smart systems. The uptake we have had is that—<br />

Q231 Chairman: Mr Cook, I think you are making<br />

us more unhappy. I think you should move <strong>on</strong>. Mr<br />

J<strong>on</strong>es, do you know how secure it is?<br />

Mr J<strong>on</strong>es: I think we are reas<strong>on</strong>ably happy with the<br />

security. I think it has passed all the relevant<br />

compliances <str<strong>on</strong>g>and</str<strong>on</strong>g> there is a massive amount of data<br />

out there in private h<str<strong>on</strong>g>and</str<strong>on</strong>g>s about what you do which<br />

you might be more worried about than it being held<br />

by local authorities. You questi<strong>on</strong> about the uptake<br />

comes back to a point which I do not think was<br />

answered earlier, which is about how we actually<br />

incentivise uptake eVectively. I think that was the<br />

point Mr Cook was making, that we have got a<br />

perverse situati<strong>on</strong> at the moment. It is actually in our<br />

interests not to incentivise—<br />

Q232 Chairman: Yes, I underst<str<strong>on</strong>g>and</str<strong>on</strong>g> that.<br />

Mr J<strong>on</strong>es: But it is really important that we do. In<br />

our particular case, we have managed to get to 93%,<br />

which is very, very high. That is a direct result of<br />

targeting hard to reach groups like elderly Asian<br />

women, which is a group with a particularly low<br />

uptake <str<strong>on</strong>g>and</str<strong>on</strong>g> we have managed to dramatically<br />

increase it by targeting it. It is actually against my<br />

interest.<br />

Q233 Chairman: Yes, but what I am saying is that<br />

that is actually a policy decisi<strong>on</strong> by your authority to<br />

give you this broad set of remits <str<strong>on</strong>g>and</str<strong>on</strong>g> say, “Get <strong>on</strong><br />

with it”?<br />

Mr J<strong>on</strong>es: Yes, but surely it is underpinning what the<br />

Government wants the c<strong>on</strong>cessi<strong>on</strong>ary scheme—

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