Contact: Andrew Wilson, ext 6389 email: [email protected]

1. Summary

1.1 This report provides details of the latest position on concessionary fares, bus services, Community Transport, rail issues and the Hayling ferry.

2. Concessionary Fares

Free Bus Travel for Senior Citizens and Disabled People from 1 April 2006

2.1 Over 70% of the bus mileage in Hampshire is operated commercially, with routes, timetables and fares determined by the operator concerned. On subsidised services, fares charged are generally in line with those on commercial services. Most bus operators give free travel to children under five, and charge half fare to children over 5 but under 16. Few discounts are offered commercially to senior citizens or disabled people.

2.2 Currently, legislation requires the district councils in England to offer a half-fare bus pass for travel within their district, at all times on Saturdays and Sundays, and between 09.30 and 23.00 on Mondays to Fridays, to residents over 60 or who are disabled. Eligibility is determined, and passes issued, by each district.

2.3 All the Hampshire districts, and Portsmouth City Council, participate in the Hampshire Farepass scheme, administered by consultants MCL, retained by the County Council on behalf of the districts. This offers a more generous concession, with no time restriction and allowing travel as far as the bus goes, provided that the passenger either boards or alights in Hampshire. For example, a Lymington resident with a Farepass issued by New Forest District Council, can travel to Bournemouth, or by bus from Lymington to Southampton, then from Southampton to Portsmouth, then from Portsmouth to Chichester, and return. Half fare applies to ordinary single or return tickets.

2.4 All the Hampshire districts except Havant currently offer an alternative to the half fare bus pass, in the form of tokens, to an annual value per holder ranging from £24 to £70. These are accepted by taxis and private hire cars, buses (for full adult fares, not half fares), most community transport and for railcards (Senior Citizens' or Disabled). Some districts offer a railcard themselves, as an alternative. In all districts, over 50% of people eligible for a half-fare bus pass waive this right and take tokens instead.

2.5 From 1 April 2006, legislation requires that half-fare travel for pass holders is replaced by free travel, within the same limits of time and geography (ie within district) as detailed above. The Government is providing additional funding for districts, on a formula basis. However, the formula does not reflect the varied provision of bus services within districts.

2.6 In an urban district, with a dense network of frequent bus services, far more additional journeys will be made when travel becomes free than in a thinly-populated rural district with infrequent bus services and longer distances to travel to shops etc. In Hampshire, MCL have estimated that the additional funding will be insufficient to meet the additional costs of unlimited free travel for Fareham Borough Council (by over £400,000 per year) and Winchester City Council (by over £100,000 per year).

2.7 Fareham Borough Council has therefore decided to opt out of the county-wide Farepass scheme, in order to reduce their deficit on the new scheme. Their passholders will receive free travel within the district and pay half fare for journeys outside the district (subject to negotiation).

2.8 All the other districts, and Portsmouth, will remain in the Farepass scheme, but Winchester residents' passes will not allow free travel on Mondays to Fridays between midnight and 09.00; Havant's passes will not be valid between 04.00 and 09.00 on Mondays to Fridays. A summary of the new schemes is attached, including the varying provision of tokens; several districts are restricting or withdrawing tokens from 1 April.

2.9 Negotiations are now taking place with the bus operators on the level of reimbursement for free travel. Legislation requires that the operators should be no better and no worse off as a result of participating in a concessionary travel scheme.

2.10 Thus there is no automatic recompense for carrying more passengers, unless additional capacity is required. Operators are understandably concerned that pass-holders may fill a bus and deny seats to fare-payers at subsequent stops. Whilst additional costs incurred in providing additional capacity may be claimed from the scheme, it will be difficult to forecast where and when more capacity will be needed. For example, a journey which is only quarter-full on a wet day in winter may be oversubscribed on a fine day in June.

2.11 Summary of Concessionary Fares Schemes in Hampshire from 1 April 2006

* County-wide includes any journeys which either start or finish in Hampshire

3. Bus Services Update

3.1 Stagecoach introduced a new night bus, Service N23, from Southsea and Portsmouth City Centre to Havant town centre and Leigh Park in December 2005. This provides journeys at around 01.30 and 02.30 from the city on Saturday and Sunday mornings and is one of several services introduced to reduce confrontation and disorder among people queuing for taxis.

3.2 First Service 63 operates between Havant, the Queen Alexandra Hospital main entrance and Fareham, hourly on Mondays to Fridays. On Saturdays, the service operates every two hours, with financial support from the County Council. The Monday to Friday service is presently operated commercially, with no support. However, First have advised that the service is now unprofitable on Mondays to Fridays.

3.3 The usage made of the service appears to justify the subsidy needed to retain the service. It uniquely serves certain roads in both Havant (Hulbert Road) and Portchester (Dore Avenue). It is also the only conventional bus service between Havant and the QA main entrance. The County Council has therefore agreed to support the service, at least until new contracts start in the Havant area later in 2006.

3.4 Contracts for the supported services in the Havant area were due to expire in June 2006. However, the County Council has embarked on a series of bus service reviews across the County, and that for Havant has not yet started. It is therefore intended to defer re-tendering until the summer, with new contracts starting in September or October. In the meantime, no changes are planned to supported services.

3.5 In Summer 2004 and 2005, the Chichester Harbour Conservancy Board funded the `Harbour Bus', Service 57, on Saturdays, Sundays and Bank Holidays. This enabled Havant residents to visit many of the places of interest around Chichester Harbour, such as Emsworth Marina, Bosham, Dell Quay and Chichester Marina (Birdham). Unfortunately usage has not been sufficient to justify its operation in 2006.

4. Community Transport

4.1 Call & Go has recently seen a new approach taken to its publicity. The emphasis on the new publicity is to ensure that all people who are eligible to use the service are encouraged to do so rather than focussing on the older and disabled residents in the area.

4.2 The service has also been revised allowing daily access to both the Queen Alexandra and St. Mary's hospitals as well as retail in both the borough of Havant and Commercial Road, Portsmouth.

5. Rail Update

Greater Western Franchise

5.1 First Group plc has recently been appointed as franchise holder for the Greater Western Franchise for 10 years from 1 April 2006. Hampshire's interest is in the Portsmouth/Brighton to Cardiff, Basingstoke to Reading, and the Reading to Gatwick services. The franchise is subject to review after the seventh year.

5.2 The South Western Franchise is the key franchise for Hampshire's rail services. A new ten year franchise starts in February 2007, subject to review after the seventh year. The new franchise combines two existing franchises - South West Trains and Island Line.

5.3 Stakeholder consultation has been completed. A copy of the County Council's full response is available from the Passenger Transport Group on 01962 845492 or via the internet at:

/decisions/decisions-docs/060118-exmshr-R0112093833

5.4 An Invitation to Tender will be issued by the Department for Transport (DfT) in March 2006 to the five short-listed companies who have pre-qualified. Bidders then have 90 days in which to submit their bids. The bidders are:

· Arriva Trains South West Limited (Arriva plc);

· First South Western Limited (First Group plc);

· Great South Western Railway Company Limited (a joint venture between GNER holdings and MTR Corporation Limited of Hong Kong);

· Trafalgar Trains Limited (National Express Group plc); and

· Stagecoach South Western Trains Limited (Stagecoach Group plc) - (the incumbent).

5.5 The decision on the successful franchisee by Department for Transport is expected in autumn 2006.

5.6 In parallel with the franchise process, Network Rail is preparing capacity assessments of the rail network on a route by route basis, to determine the optimum utilisation level for the existing infrastructure and to consider where investment to improve capacity could most advantageously be applied. These assessments are known as Route Utilisation Strategies (RUS), and that for the South Western Main Line has recently been consulted on. Once input from consultees has been evaluated, a definitive version will be published by the Office for Rail Regulation (ORR). A copy of the County Council's response is available from the Passenger Transport Group on 01962 845492.

5.7 The key points which the County Council made in its responses to these two consultations were:

(i) opposition to a proposal to truncate the Romsey - Totton via Chandler's Ford service at Eastleigh;

(ii) desire to retain a Basingstoke to Brighton through service;

(iii) support for increasing clearances on the routes between Southampton Docks and the Midlands to enable taller containers to be carried on standard height wagons;

(iv) support for the examination of radical solutions such as double-deck trains in order to address growth predictions;

(v) need for a half-hourly frequency of stopping services between Portsmouth and Southampton off-peak; and

(vi) support for timetable accelerations, especially on the Alton line.

Station Improvements

5.8 It is envisaged the annual match-funded rolling programme agreed between the County Council and train operators will continue whichever company secures the South Western franchise, which encompasses the vast majority of stations in the county.

5.9 New vandal-proof waiting shelters will be provided in 2006/07 at Portchester, Bedhampton and Warblington. The programme of cycle storage provision (hoops and lockers) at stations will be continued where unsatisfied demand is identified.

5.10 `Welcome Boards' branded with the County Council logo and listing the facilities available at each station, together with local maps and Helpline numbers, are being installed at all stations. The programme for SWT stations is now complete. Stations on the future GW franchise and on Southern Railway will be so equipped by the end of 2006. These comprise Dean, Dunbridge, Romsey, Bramley, Farnborough North, Blackwater, Warblington and Emsworth.

Station Car Parks

5.11 In its response to the South West franchise consultation the County Council expressed the view that the issue of increasing car park capacity on a selective basis must be seriously addressed if there is to be any capacity provided to cater for off-peak travel and expressed its willingness to work with Network Rail and franchisees to this end. At the same time it considered that franchisees could be required to implement such measures as car-sharing incentives.

Bus/Rail Integration

5.12 In its response to the franchise consultation, the County Council stressed the importance of developing further bus/rail links and suggested that a requirement be placed on bidders to make proposals for dedicated bus/rail links at particular stations which should be funded within the franchise.

Carriage of Cycles

5.13 SWT introduced its new Cycle Policy in October 2004 aimed at creating a better balance between the needs of peak hour passengers and cycle users. On the whole, less cycle-related problems have been referred to the County Council, as the policy has been implemented and understood by cyclists. The use of a different colour in the timetable to denote trains with cycle restrictions has been helpful.

Eurostar Beyond 2007

5.14 When Stage Two of the new Channel Tunnel Rail Link, from the Medway area to London St Pancras, is complete in 2007 Eurostar will concentrate all their services on St Pancras and withdraw completely from Waterloo International. There are operational advantages to the company in doing so, as without the need to serve Waterloo, the third rail electric equipment on the Eurostar trains can be removed.

5.15 This means that passengers from Hampshire and the rest of Waterloo's catchment area will be considerably inconvenienced by having to cross London on already congested Underground services to join Eurostar trains at St Pancras, or else travel from Waterloo East to Ashford International to connect there - a double change is required, compared with walking from one side of Waterloo station to the other.

5.16 The County Council had previously voiced its concern to the Strategic Rail Authority (SRA) about the threat to Waterloo services posed by the move to St Pancras and asked that a residual service to Waterloo be maintained after 2007. However, Eurostar is not franchised in the same way as other train operators and the SRA was unable to influence the decision in our favour.

5.17 A recent study commissioned by the DfT has recommended that the Eurostar platforms be retained for alternative rail use rather than sold off as a commercial development. Further studies will determine the most beneficial solution, which could involve transferring Windsor line services to the former international platforms, thereby freeing up other parts of the station, or using them for main line services (which could directly benefit Hampshire) or by treating them as an overspill to the South Eastern lines towards Kent. There are also thoughts of remodelling Waterloo itself to create additional track capacity, possibly involving longer platforms able to deal with longer trains.

5.18 In respect of new station development, proposals for a new station at Chineham on the Basingstoke - Reading line are being progressed. The project has already passed the initial operational feasibility hurdle. The next stage is to commission further work on establishing a business case for the project, and this will be undertaken in the first half of 2006. Long lead times are inevitable with projects of this nature, that frequently involve changes to infrastructure and signalling which are the responsibility of Network Rail. Officers are also examining the feasibility of making a case to re-open Marchwood station on the Waterside line.

6. Hayling Ferry

6.1 The County Council provides a subsidy for the Hayling Ferry service (jointly with Portsmouth City Council) to cover the winter period (September to April) when the service is not commercially viable. For 2005/6 this subsidy is budgeted at £19,200, of which payment is split between Hampshire County Council (54%) and Portsmouth City Council (46%).

6.2 A licence agreement exists between Langstone Harbour Board and Hayling Ferry Ltd (formerly Edwards & Co) enabling the ferry to use the pontoons at Hayling Island and Eastney. From September 2005 Langstone Harbour Board have increased the licence fee levied by them from £900 to £4,940 and this fee will rise further in September 2006 (to £9,100) and September 2007 (£13,260).

6.3 The ferry owner advised that they are unable to meet these increased charges from ferry revenue and the County Council and Portsmouth City Council have therefore jointly agreed to meet the charges on the ferry company's behalf. This will increase the overall annual subsidy (payable jointly by the two authorities) from £19,200 to £24,140 from September 2005, rising to £28,300 in September 2006 and to £32,460 from September 2007.

6.4 In September 2005 the County Council received a request from Hayling Ferry Ltd for a grant to enable the overhaul and refurbishment of
"Pride of Hayling", the vessel used to provide the Hayling Ferry service. The County Council and Portsmouth City Council agreed jointly to provide a capital grant totalling £26,839, or 50% of the total cost (of which the County Council has provided £15,000, and Portsmouth City Council £11,839).

6.5 Overall this means that the County Council has met 28% of the cost of the works, with the balance of the costs being met by Portsmouth City Council (22%) and Hayling Ferry Ltd. themselves as the owner of the vessel (50%).

6.6 It is usual for the vessel to be decommissioned for annual routine maintenance work during the two weeks of the Christmas school holiday period, when usage of the ferry is minimal. Because of the more extensive nature of the works on this occasion, arrangements were made by schools in Portsmouth whose pupils use the ferry to be taken to and from school by minibus during the first four weeks of the spring term.

6.7 The works were successfully completed, and the vessel returned to service on 31 January 2006. The grant provided by the County Council and Portsmouth City Council will enable the vessel to continue to provide the Hayling-Portsmouth ferry service for a further period of up to ten years, as an important component of the passenger transport network in the Solent area.

7. Impact Assessments

7.1 This report provides a position statement only, therefore an impact assessment in terms of the Race Relations (Amendment) Act has not been undertaken.

Recommendation

That this report be noted.

850/AW