Return to Agenda

ITEM TIC21E

TRANSPORT IMPLEMENTATION COMMITTEE -
4 MARCH 2004

SHIPSTON-ON-STOUR AND BANBURY/CHIPPING NORTON BUS SERVICES REVIEW

Report by Head of Transport

1. Warwickshire County Council hold two contracts for daily bus services between Chipping Norton and Stratford-on-Avon via Shipston-on-Stour for which Oxfordshire County Council make a financial contribution. On 31 July 2003 the Transport Implementation Committee agreed to continue to help fund these services until April 2004 whilst their futures were reviewed and it is the result of that review that the Committee is now asked to make its decision on future funding.
   
   
2. Warwickshire County Council is inviting tenders for a daily service between Shipston and Chipping Norton and Oxfordshire County Council have invited tenders for a Sunday service between Oxford and Chipping Norton. Warwickshire have already announced their intention not to arrange a through Sunday service between Stratford and Oxford as at present. They are also inviting tenders to operate a Shipston to Banbury service which would incorporate our existing Sibford Gower to Banbury service using Section 106 developer money. Confidential information on the tender prices and the results of discussions with Warwickshire, together with their intentions, will be included in Exempt Annex 2, to be circulated later.

Background information on these services is included at Annex 1 (download as .rtf file).

Reasons for Exempt Annex

3. This item should be considered in exempt session because its discussion in public might lead to the disclosure to members of the public present of:
   
   
1. the amount of any expenditure proposed to be incurred by Oxfordshire County Council and other local authorities and organisations under any particular contract for the supply of goods or services: and
2. information relating to the financial or business affairs of any particular person (other than the authority).
   
   
4. The operational costs must be treated as strictly confidential since they relate to the financial and business affairs of the operator. All other prices must be treated as strictly confidential until such time as the Committee decides whether or not to provide financial support for each service. Revealing operators' prices before then would prejudice Oxfordshire County Council's position if tenders or propositions have to be sought again for any of these services.

Financial Position

5. The current funding available in the Council's bus subsidy budget (treating both Rural Bus Subsidy (RBSG) and main budget as one, and omitting certain budgeted funds not available for bus subsidy, in accordance with recent practice) is as follows:
   
   

   	£000s
   Main budget 2003/4 (excluding carry forward)	2,448
   RBSG for 2003/4	1,383
   Base budget available	3,831
   Carry forward from 2002/3	265
   Total available 2003/4	4,096
   Expected out-turn 2003/4	£4,041
   Ongoing annual rate of expenditure	£4,256

   
   

   Decisions taken at this meeting will not take effect until 2004/5, so will not affect the out-turn of expenditure this year. A small underspend can thus be expected in the current year.

6. However, the prospects for 2004/5 are not good. It will be noted that the ongoing rate of expenditure is £425,000 above the base budget. This indicates that, if both subsidy expenditure and the base budget were to remain unchanged throughout the year, there would be an overspend of £370,000 in 2004/5. In fact, as I have reported elsewhere, over the last 4 years there has been an average rise of 24.7% a year in bus subsidy simply to maintain the status quo. If this trend continues, an overspend of over £1,000,000 could occur.
   
   
7. A decision on the amount of the bus subsidy budget for 2004/5 will be taken between the writing of this report and the date of the meeting. I shall report orally on any implications for decisions at this meeting - but it is highly likely that savings will have to be sought.

RECOMMENDATIONS

8. The Committee is RECOMMENDED to make its decisions on subsidy for the future provision of the Chipping Norton to Shipston service, the Sunday Chipping Norton to Oxford service and the Shipston/Sibford Gower to Banbury service on the basis of the tender prices contained in Exempt Annex 2 to this report, plus the comments from, and the financial contributions requested by, Warwickshire County Council.

DAVID McKIBBIN
Head of Transport

Background papers: Nil

Contact Officer: Allan Field Tel: Oxford 815826

13 February 2004

Return to TOP