Neighbourhoods Cabinet Member – Minutes – 10 March 2016
36 (36) PUBLIC TRANSPORT: CONCESSIONARY FARES 2016/17 – The Director of Places submitted a report providing an update on reviewing the reimbursement rate for the council’s concessionary fare scheme since the draft scheme published, and seeking approval for a “Final Scheme” for concessionary fare reimbursement for 2016/17.
The Cabinet Member took a decision in January 2016 (minute 28 refers) to use the method recommended by the Department for Transport (DfT) to calculate the reimbursement rates for the council’s concessionary fare scheme for 2016/17. The Cabinet Member also agreed for further consultation to take place with bus operators on this matter.
Discussions had subsequently been held with operators as the review of the DfT model had progressed. The review had still to resolve the following concerns that operators had raised, should the council adopt the DfT method:
• The assumptions around trip generation given that the council operated a pre 9.30 am concessionary fares scheme.
• The payment or not of marginal capacity costs on subsidised services.
• The calculation of average fare in relation to specifically number of trips made on day tickets.
It was important that these issues were resolved correctly. Operators could appeal the concessionary fares reimbursement rate if they believed the proposal left them worse off. The key principle of the scheme was that no operator should be worse or better off by participating in the scheme.
The council was currently piloting a community transport initiative linked to a flexible bus service within North Lincolnshire. Local bus operators were supporting the delivery of this initiative that followed on from a successful bid to the DfT for Total Transport Pilot funding.
Resolved – (a) That Option 1, as set out in appendix B to the report, be approved, and (b) that fact that the option would require future reports on savings proposals to fund the one year saving if the costs cannot be contained within the service area’s budget, be noted.