New Metro trains could increase budget gap
and increased fare revenue.
Buttheynowfacetheprospect of a budget gap worth almost £9 million by 2022/23 duetofactorsincludingunion demands for increased driver pay and higher maintenance charges.
“In the short term, we will seeanincreaseincostsassociated with the new maintainer for maintaining the old [Metro] cars,” said John Fenwick, Nexus’s director of finance and resources.
“We’ve provided a specific reserve [for that] that was created back in 2016 and that will cover the initial costs associated with the old Metro cars.
“And in the longer term, any additional costs that we foresee in terms of the new fleet and the maintenance of the new fleet, they will be offset by energy savings, so that’s that’s covered.
“However,thereisasignificant issue that remains unresolved in relation to drivers’ pay and that’s currently subject to negotiations with the recognised trade unions.”
Mr Fenwick was speaking atyesterday’s(Wednesday,October23)meetingoftheNorth EastJointTransportCommittee.
A report for the panel showed Nexus, which operates the Metro, had seen its cash shortfall for 2019/20 jump by almost 500 per cent, from about £700,000 to £4.1 million.
This predicted the gap to rise to £7.3 million by 2022/23, buttakingintoaccountpotential issues with the new fleet it is feared this could increase further to £8.8 million.
It added unions were seeking higher salaries due to the introduction of a ‘more technologically advanced vehicle’.
Spanish firm CAF, Swiss manufacturer Stadler and Japanese Hitachi, which operates a factory in Newton Aycliffe, County Durham, are in contention to secure the contract to supply the new Metro fleet.
Earlier this year it was claimedHitachiwasoutofthe running,butNexushasinsisted its procurement process is still ongoing.