Impact of travel plan questioned

THE SOARING cost of concessionary travel could force bus companies to slash services and raise fares, it has been warned.

The Confederation of Passenger Transport UK, which represents more than 1000 bus firms, has said that the scheme costs more than the Government is willing to pay.

This year the Scottish Government allocated £180 million to reimburse bus firms for providing free travel.

Even though this public funding will rise to £187 million next year CPT claim it is not enough to cover the cost of the scheme and leaves private companies out of pocket.

Paul White, public affairs executive for CPT Scotland, said the concessionary travel scheme will run at least £7 million over budget this year and that costs will rise further in coming years.

He said: “If you consider the overspend this year – say it costs £188 million and the budget is £187 million – then you are already looking at exceeding that next year.

“You have to assume that costs in general will increase. Demographically, the population of people over 60 will increase, operating costs are likely to rise and fuel costs will increase.

“Operators are complied to operate within the scheme so they will have to increase the fares for fare-paying passengers to cover the cost.”

He said CPT would like to see the government reconsider how the scheme operates: either by increasing its funding or limiting eligibility. He said failure to act will leave bus companies with no choice but to increase fares or cut services.

“We, and Audit Scotland, think that a full review should take place that looks at all options, including eligibility,” he said.

“Down south they are already considering bringing free travel in line with the retirement age. They could also exclude free travel from peak hours or charge people a fee of 10 or 20p.

He added: “Unless there are changes we will have a fantastic system but very few buses where it operates.”

Perth-based Stagecoach, the UK’S second largest transport company, is a member of CPT and a spokesman said they had nothing to add to the statement.l

Public spending watchdogaudit Scotland warned two years ago that the bill for free bus travel could reach more than £500 million by 2026 unless some way of limiting the scheme – possibility by limiting eligibility to the over 65s –is found, although this was ruled out by the Scottish Government.

Scottish Labour’s spokesman on infrastructure and capital investment Richard Simpson MSP said: “Concessionary travel is one of Scottish Labour’s proudest achievements and must be protected to ensure that older and disabled people in Scotland can continue to receive this vital service that helps tackle the problems they too often face of financial and social exclusion.”

Transport minister Keith Brown said: “The Scottish Government is absolutely committed to concessionary travel for older people.

“In fact last year we extended concessionary travel to include disabled veterans and will, from April 1, ensure dial-a-bus services are also eligible for concessionary fares as well as increasing funding in the coming year to £187m as part of our agreement with the Confederation of Passenger Travel.

“The main reason for bus companies putting prices up is rising fuel costs and we would urge the UK Government to take action on fuel prices.”