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£50m of public money goes on the buses
BUS operators in South Yorkshire are paid almost £50 million of public money each year to fund free concessionary travel, run tendered services and in fuel grants, The Star can reveal.
Politicians say the huge public funding is further justification for pressing ahead with plans to take services back under public control.
They are unhappy about high fares and how competition has seen popular routes flooded with buses - while other areas face cuts.
Proposals are being drawn up for Quality Contracts through which companies bid for franchises to run routes - with fares and journey frequencies set by South Yorkshire Passenger Transport Executive.
The PTE hands out 30.5 million to cover free fares for pensioners and mobility pass holders.
A further 11.1 million is given by the PTE to operators to run 'tendered services' - which are not commercially viable but paid for by the PTE on the basis of social need. Bus companies in the county also receive 8.3 million in fuel duty rebates - paid by the Department for Transport.
Have you got a view on the amount of public cash being spent on buses? Join the debate by adding your comment below, write to Your Say, The Star, York Street, Sheffield S1 1PU or email letters@thestar.co.uk.
David Young, director of customer experience at SYPTE, said: "It equates to around 42 per cent of total operating costs coming directly from the public purse."
Sheffield Council cabinet member for transport Coun Ian Auckland said: "It's an insane system that bus companies are receiving nearly half their funding from the public purse, and yet are not acting in the public interest.
"We have been calling for Quality Contracts, to secure a fair deal."
Opposition Labour transport spokesman Coun Bryan Lodge said: "We must get on with using powers made available to bring buses back into public control and deliver a service Sheffield deserves."
Brandon Jones, First South Yorkshire's deputy managing director, said: "It is only right that the costs of delivering the PTE concessionary schemes and service tenders are properly reimbursed to operators.
"These payments are not a subsidy, the public purse is buying services from operators that benefits hundreds of thousands of users each year.''
Paul Lynch, managing director of Stagecoach Yorkshire, said: "Stagecoach does receive some money from the public purse, but the vast majority of it is for carrying concessionary passengers.
"The scheme is not s subsidy to the operator. It is designed to leave us no better or worse off."
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Saturday 26 May 2012
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