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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<strong>Transport</strong> Committee: Evidence Ev 49<br />
12 December 2007 Mr Stephen Joseph, Mr Anth<strong>on</strong>y Smith, Mr Rufus Barnes <str<strong>on</strong>g>and</str<strong>on</strong>g> Mr Gord<strong>on</strong> Edwards<br />
travel scheme? Have other c<strong>on</strong>cessi<strong>on</strong>s been cut<br />
back in order for authorities to be able to<br />
implement it?<br />
Mr Joseph: One example where this unintended<br />
c<strong>on</strong>sequence came to South Yorkshire was as a<br />
result of the shortfall the Passenger <strong>Transport</strong><br />
Executive started to charge buses a departure tax at<br />
bus stati<strong>on</strong>s. Stagecoach, for <strong>on</strong>e operator, charged<br />
an extra fare if you were going to those bus stati<strong>on</strong>s.<br />
Q404 Chairman: That is a unique idea, charging at a<br />
bus stati<strong>on</strong> to get <strong>on</strong> a bus.<br />
Mr Joseph: Exactly. This does not make any sense to<br />
passengers at all. In answer to an earlier questi<strong>on</strong><br />
about where we can get evidence from <strong>on</strong> this, what<br />
we can get evidence <strong>on</strong> is the percentage of the<br />
average adult fare passed over to operators in each<br />
local authority area. That evidence is available. In<br />
the Sussex example I gave 41.9%, for instance, of the<br />
average adult fare is being passed over compared<br />
with 73.6% in Wales, which does give you some<br />
indicati<strong>on</strong> of the level of shortfall. I think the<br />
particular argument in SheYeld or the result in Tyne<br />
<str<strong>on</strong>g>and</str<strong>on</strong>g> Wear are not defensible but to go back to the<br />
point I made, the root of this is the level <str<strong>on</strong>g>and</str<strong>on</strong>g> formula<br />
for reimbursement.<br />
Q405 Mr Clell<str<strong>on</strong>g>and</str<strong>on</strong>g>: Do we think that the new specific<br />
grant is likely to go anywhere at all towards<br />
resolving any of these problems?<br />
Mr Joseph: I think the jury is out <strong>on</strong> that. Actually<br />
when I have heard presentati<strong>on</strong>s from the relevant<br />
Department for <strong>Transport</strong> oYcials they have<br />
admitted that it is fingers in the air stuV. They really<br />
do not know where the travel is going to be; they<br />
have made a best guess. We area c<strong>on</strong>cerned that<br />
particularly in things like tourist h<strong>on</strong>ey pot areas or,<br />
for that matter, in L<strong>on</strong>d<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> some other big cities,<br />
that there will be a significant shortfall which will<br />
appear in places like Blackpool, for instance, <str<strong>on</strong>g>and</str<strong>on</strong>g><br />
there will be problems with that.<br />
Mr Edwards: Another unintended c<strong>on</strong>sequence,<br />
because the m<strong>on</strong>ey goes down to district councils<br />
there are of course a lot of district councils that have<br />
received far more m<strong>on</strong>ey for c<strong>on</strong>cessi<strong>on</strong>ary fares<br />
through the Rate Support Grant than they actually<br />
need to pay out. They are therefore able, because it<br />
comes as part of the EPCS element, to use that<br />
m<strong>on</strong>ey <strong>on</strong> other services. If we had it all d<strong>on</strong>e by<br />
specific grant—which we support—a lot of district<br />
councils in the south west of Engl<str<strong>on</strong>g>and</str<strong>on</strong>g> would have a<br />
major problem in how they fund certain services<br />
which are currently being funded by c<strong>on</strong>cessi<strong>on</strong>ary<br />
fares m<strong>on</strong>ey which is not being used for that<br />
purpose. We would fully support this Committee<br />
taking district councils out as travel c<strong>on</strong>cessi<strong>on</strong><br />
authorities.<br />
Q406 Chairman: Are you saying that they are not<br />
good value for m<strong>on</strong>ey anyway?<br />
Mr Edwards: No, we are saying they are excellent<br />
value for m<strong>on</strong>ey, the c<strong>on</strong>cessi<strong>on</strong>ary fares, but as Mr<br />
Clell<str<strong>on</strong>g>and</str<strong>on</strong>g> has said, he has a shortfall in Tyne <str<strong>on</strong>g>and</str<strong>on</strong>g><br />
Wear <str<strong>on</strong>g>and</str<strong>on</strong>g> we have a short fall in greater Bristol, but<br />
we have West Dev<strong>on</strong> which spends less than 50% of<br />
its current m<strong>on</strong>ey for c<strong>on</strong>cessi<strong>on</strong>ary fares actually <strong>on</strong><br />
c<strong>on</strong>cessi<strong>on</strong>ary fares.<br />
Q407 Mr Clell<str<strong>on</strong>g>and</str<strong>on</strong>g>: Mr Joseph menti<strong>on</strong>ed this rather<br />
novel idea of the bus companies charging passengers<br />
to use certain bus stati<strong>on</strong>s. Are there any other<br />
c<strong>on</strong>sequences for the fare paying passengers by the<br />
introducti<strong>on</strong> of c<strong>on</strong>cessi<strong>on</strong>ary fares?<br />
Mr Joseph: As I said in my earlier answer to Mr<br />
Stringer, I think it is very much about cuts in the<br />
commercial services, increases in oV-peak fares <str<strong>on</strong>g>and</str<strong>on</strong>g><br />
other things <str<strong>on</strong>g>and</str<strong>on</strong>g> Mr Edwards has also menti<strong>on</strong>ed<br />
this too. It is much less high profile than the charges<br />
at bus stati<strong>on</strong>s or the loss of a particular scheme; it<br />
is incremental eating away of the bus network <str<strong>on</strong>g>and</str<strong>on</strong>g><br />
incremental increases in fares.<br />
Q408 Mr Leech: Mr Joseph, the implicati<strong>on</strong> from<br />
what you said was that you were advocating direct<br />
payment from government to bus operators for<br />
journeys that are taken with c<strong>on</strong>cessi<strong>on</strong>ary fares, is<br />
that right?<br />
Mr Joseph: That is correct, as in Wales <str<strong>on</strong>g>and</str<strong>on</strong>g><br />
Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g>.<br />
Q409 Mr Leech: Why do you think it is that the<br />
Government will not support that? Is it anything to<br />
do with the fact that it is going to cost an awful lot<br />
more than they say it is?<br />
Mr Joseph: We are not experts <strong>on</strong> this but I think<br />
actually the evidence from Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>and</str<strong>on</strong>g> Wales was<br />
that by the time you took in the transacti<strong>on</strong> costs of<br />
actually routing it through local authorities it was<br />
actually cheaper for those respective devolved<br />
governments to do it directly <str<strong>on</strong>g>and</str<strong>on</strong>g> that is why they<br />
ended up with a direct system. It actually ought to be<br />
cheaper. The problem we have at the moment is that<br />
we have the imbalances that Mr Edwards referred<br />
to, m<strong>on</strong>ey going to places that do not spend it so<br />
there is actually wasted m<strong>on</strong>ey in parts of the system<br />
<str<strong>on</strong>g>and</str<strong>on</strong>g> shortfalls elsewhere <str<strong>on</strong>g>and</str<strong>on</strong>g> a nati<strong>on</strong>al scheme<br />
would put that right.<br />
Q410 Mr Leech: Why do you think the Government<br />
is so against the idea?<br />
Mr Joseph: I think that is very hard to say <str<strong>on</strong>g>and</str<strong>on</strong>g> you<br />
are going to have to ask the Minister after this<br />
sessi<strong>on</strong> that questi<strong>on</strong>. As far as we can see it is simple<br />
inertia <str<strong>on</strong>g>and</str<strong>on</strong>g> in-fighting between diVerent government<br />
departments in terms of routing through local<br />
authorities.<br />
Q411 Chairman: Inertia is very seldom simple. Mr<br />
Edwards?<br />
Mr Edwards: It is n<strong>on</strong>sense to have 291 travel<br />
c<strong>on</strong>cessi<strong>on</strong> authorities in Engl<str<strong>on</strong>g>and</str<strong>on</strong>g> all able to do their<br />
own arrangements for issuing cards, all with their<br />
own rules, all with their own local arrangements, all<br />
with their own back oYce, all being encouraged by<br />
the Government to sign separate c<strong>on</strong>tracts for 2008<br />
ITSO cards. Mr Joseph is quite right, we need, like<br />
Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>and</str<strong>on</strong>g> Wales, a nati<strong>on</strong>al scheme with<br />
nati<strong>on</strong>al reimbursement; we need to stop all these