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ITEM TIC20E

BUS SUBSIDIES

1. The Public Transport team undertakes two major reviews of bus services in different parts of Oxfordshire each year, which take effect in July and October. In addition, a smaller review takes place, for implementation in February, of services that may have to be changed for other, often unforeseen, reasons. This report invites members to consider the future of services which have come up for review in February 2003.
2. Background information on these items in Section A is included in Annex 1. Confidential information on prices of existing short-term contracts (Section B) is included in Exempt Annex 2.
3. Tender prices, including officers’ recommendations and local members’ comments, will be contained in a confidential supplementary Annex 3, to be circulated later. Members are reminded that operators’ responsibilities under the Transport Information Strategy will almost certainly mean that tender prices will rise significantly.

Financial Position

	£000s
Base budget (RBSG and main budget) 2002/3 (includes £100,000 subject to holdback against budget pressures elsewhere)	3,404
Carried forward from 2001/02	165
Total available for 2002/03	3,569
Expected out-turn 2002/03 if contracts now under review continue at the same subsidy as now.	3,340
Current annual rate of expenditure	3,493

4. Any subsidies agreed at this meeting will apply for only seven weeks in 2002/03, so the decisions taken now will have little effect on the current financial year. However, the rate of spend on bus subsidies has (once again) grown during the year, and now exceeds the base budget. Any further spending increase, now or over the coming year, thus risks an overspend in 2003/04.
5. Independent of the services referred to in this report, there are significant pressures on next year’s public transport budget, due to the effects of above RPI inflation tender returns, the impact of the new Information Standards and other factors. These are included in the revenue pressures for Environment, Roads & Transport which will be considered in relation to the budget for 2003/04

Section A – Review of Subsidised Bus Services

Contract PT/W240, Charlbury Rail-Link Bus Service

6. This service commenced in March 2001 using money from the Government’s Rural Bus Challenge and links Charlbury Rail Station with Charlbury Town, Leafield, Shipton-under-Wychwood and Ascott-under-Wychwood. Although slow to build up, patronage during the last few months has been particularly encouraging with the target number of daily passengers carried virtually achieved.
7. Money from the Rural Bus Challenge will run out on 1 April 2003 but revenue support (from the Rural Bus Subsidy Grant) has already been authorised for the period from April 2003 until June 2003. Approval is now sought to keep the service operating for a further four months until October 2003. Its future can then be carefully examined in conjunction with the review of other bus service contracts in the Chipping Norton, Charlbury and Woodstock area, which are due to terminate.

Service for West Hagbourne

8. At the Executive meeting on 4 September it was agreed that the subsidised bus service linking West Hagbourne with Didcot on Thursdays would cease on 24 October 2002. The contract to operate the service had been terminated by the original operator in June 2002 and a temporary contract then operated until October 2002 whilst discussions with the Parish Council and the Oxfordshire Rural Community Council took place to see if a community-based transport scheme could be introduced. Surveys had shown an average of two passengers each way, which gave a very high subsidy per passenger.
9. The Parish Council subsequently reported that they felt unable to assist in a Community Transport scheme and therefore the idea was dropped, despite the impending withdrawal of Contract PT/S73.
10. Officers have met Councillor Green (the local member) and representatives of the Parish Council in October at which the local representatives explained that, in their view, West Hagbourne suffered from a lack of public transport because of its unfortunate geographical location. When the Didcot service was withdrawn the only bus service left in the village was the Friday shopping bus to/from Wallingford. Rather than pursue a community-based scheme they asked if officers could explore with West Berkshire council the possibility of diverting one journey on their subsided service from Newbury to Didcot to operate via West Hagbourne.
11. Subsequent talks with West Berkshire revealed that, by coincidence, the current operator (Newbury Buses) had prematurely surrendered the contract for the Newbury to Didcot service and it was about to be retendered. West Berkshire have indicated that a small contribution (based on the extra mileage accruing from the diversion) would be required. However talks between relevant officers have not yet taken place at the time of writing this report. The costs involved will therefore be reported to the meeting.

Review of ex-Chiltern Queens Bus Services

12. At the Executive meeting on 23 July 2002 it was agreed to pay Thames Travel the daily amounts shown in Annex 1 to take over the ex-Chiltern Queens’ contracted bus services (following that company’s demise). It was also noted that these bids were high and therefore officers were asked to immediately commence a review of these services and to report back to the December 2002 Executive meeting.
13. This review, in full consultation with local members and local councils, is nearly complete, and full details will be reported to the meeting.

Contracts PT/S166, PT/S170, PT/S171, PT/S180 (Wallingford area)

14. These short-term de-minimis contracts were awarded by the Executive on 4 September to Thames Travel and they expire in February 2003.
15. Consultation and passenger surveys are currently being undertaken to determine their longer-term future and a report will be submitted to the Committee.

Contract PT/S178, Bus Service 98, Berinsfield-Didcot

16. Due notice has been received from the current operator (White’s Coaches) to surrender prematurely this contract with effect from 8 February 2003. This service was introduced on 18 February 2002 with 75% of the costs being covered by a grant from the Countryside Agency under a Rural Transport Partnership.
17. The Countryside Agency has been advised of this situation and warned that when the contract is retendered, it is likely to result in a substantial increase in costs. A meeting has been arranged with the Agency on 20 November and a retendering exercise has taken place in the interim so that any cost increase can be considered.
18. This retendering is now taking place with some minor changes to the timetable suggested following full consultation with Local Members and Parish Councils. Long Wittenham Parish Council have been particularly worried about its future as they have a limited alternative market day bus service on three days per week.
19. Officers will report to Committee the results of the retendering and the views of the Countrywide Agency on the future of this Subsidy Contract.

Contract PT/C33, Bus Service 83, Duns Tew-Oxford

20. This contract, although part of the Bicester area review, is scheduled to expire early in February 2003. The existing operator, Heyfordian Coaches, was not prepared to see an extension of the contract at the current price, therefore, necessitating it to be tendered.
21. Therefore, this Wednesday off-peak shopping service to Oxford from Duns Tew and Middle Barton has been retendered (without alteration to the route or timetable) to operate until October 2005, in line with other services in the area, to coincide with the next Bicester review.
22. The results of the retendering will be reported to the Committee.

Contract PT/S11, Bus Services 331/332, Thame-High Wycombe

23. This contract is administered by Buckinghamshire County Council, as the route operates mainly in that County, and is due to run until July 2004. Oxfordshire County Council pays a contribution to the overall cost of the contract.
24. Buckinghamshire have indicated that they wish to make substantial changes to the timetable and route of these services. The results of a meeting with Buckinghamshire County Council will be reported to the Committee.

Contract PT/O6, Bus Service 107, Bainton Road-Oxford City Centre-Headington Quarry

25. Thames Travel, who operate this contract, have approached us with a view to making some improvements to this service in the Headington and Headington Quarry area to make it more attractive. They would do a marketing exercise to make more people aware of the service as currently the level of patronage is disappointing. This contract started in July 2002 and is due to run until July 2004.
26. However, these improvements at the Headington Quarry end of the service would be implemented at the expense of the loss of service to Bainton Road. Members will recall that it was proposed that Bainton Road would be left unserved when subsidised services were revised last July and only reinstated when it was found possible to extend 107 from the City Centre to Bainton Road direct via Woodstock Road.
27. Officers will undertake passenger surveys and consult Local Members on the proposed loss of service to Bainton Road and/or any alternative solutions and report to the Committee.

Section B – Subsidised Bus Services Covering Commercial Withdrawals

28. Background details of these contracts can be found in Exempt Annex 2.

Contract PT/S48, Bus Service 1140/142, Reading-Woodcote

29. A temporary contract for this service was awarded to Thames Travel from October 2002 until 8 February 2003. This replaced the only commercial service operated by the former Chiltern Queens Bus Company and is separate from the services shown above, in Section A.
30. Details of a replacement contract for this service will be reported to the Committee.

Contract PT/S81, Bus Services TB29.35, Wallingford-Woodcote

31. A temporary contract for this service was awarded to Thames Travel from October 2002 until 8 February 2003. This replaced links lost when the Chltern Queens’ commercial service between Woodcote and Wallingford ceased.
32. The future of these services will be reviewed in conjunction with the Review of Chiltern Queens’ Bus Services (see Section A) and the results reported to the Committee.

RECOMMENDATIONS

33. The Committee is RECOMMENDED to make its decisions on subsidy for services described in this report on the basis of the prices contained in exempt Annex 3 to be reported subsequently.

DAVID YOUNG
Director of Environmental Services

Background papers: Nil

Contact Officer: Allan Field Tel: Oxford 815826

November 2002

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