Contact: John Sorrell, ext 6216 email: [email protected]

1. Summary

1.1 The following decision is sought:

That the Project Appraisal for funding towards the provision of nearly new replacement buses for the New Forest Tour, at an estimated cost of £100,000, be approved, subject to the operator agreeing contract details that provide for:

(i) an agreement to use the vehicles outside the period of operation, to generate additional income;

(ii) a guaranteed three year operation regardless of passenger numbers;

(iii) a suitable agreement being reached regarding the asset value of the vehicles at the end of the three years; and

(iv) an agreement that profits contribute towards a reduction in the revenue support required each year.

2. Reason

2.1 The proposal is to allocate £100,000 of capital funding to the New Forest Tour. The funding, in combination with £30,000 of additional revenue per annum being sought from New Forest District Council and the National Park Authority, will secure two nearly new (one year old) open top buses for use on the Tour. The operator will guarantee use of these vehicles on the New Forest Tour for the next three years, and also for a further seven years subject to the appropriate revenue support being secured from year four, or the service being commercially viable. Solent Blue Line currently operates three recreational bus services on the Isle of Wight which are all run on a commercial basis.

2.2 The replacement buses will significantly improve the reliability and quality of service. They will also allow the service frequency to increase to hourly. The buses will be modern, low-floor and low emission vehicles. In combination, these factors will lead to growth of patronage.

2.3 The capital contribution will be conditional upon the County Council receiving guarantees that the revenue support from the partners is in place for a minimum of three years, thereby adding value to the proposed contribution, and that the buses are dedicated to the service for at least that period or for longer providing that any necessary service support is available. The County Council is therefore only making a capital contribution towards the purchase of two open top buses and not providing any revenue subsidy.

2.4 This decision supports Aim 2 (Stewardship of the Environment) of the Corporate Strategy by encouraging more people to use better quality bus services and providing additional sustainable travel choices.

3. Other Options Considered and Rejected

3.1 To continue using the existing (27 year old) open top buses for a third year was considered and rejected. This approach would need ongoing service support and offer little potential to increase patronage. It would also lead to increasing unreliability, which would in turn undermine the service and adversely affect the reputations of the service and the funding partners (including Hampshire County Council).

3.2 To withdraw all support for the service was rejected because of the loss of already established goodwill and the strong local and political support for continuation of the Tour.

3.3 The option of not making a capital contribution, but rather continuing to provide revenue service support, was rejected due to the overall budgetary position and other calls on revenue funding. Also, it would not provide the same added value from external contributions and would not support patronage growth, making the service more expensive to the County Council in the long run.

4. Conflicts of Interest Declared by the Decision Maker or Other Executive Member Consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: Date:

Councillor J K Glen

846Decn/JS