Archived decisions

Contact: Keith Willcox, ext 6997 email: [email protected]

1. Summary

1.1 The services set out in the appendix have been identified for reduction or withdrawal since these now exceed the Council's subsidy limit of £2.50 per passenger journey and cost pressures require economies to be made to remain within the approved passenger transport budget.

1.2 Changes are also being made to a number of the Cango services in Hampshire in order to enhance their viability.

2. Background

2.1 As there was loss of Government grant and cost pressures exceed the 2.5% inflation allowance in 2006/07, a plan of action to contain expenditure pressures was developed. The Environment Policy Review Committee was consulted on 25 May 2006 and the Executive Member for Environment approved the strategy on 30 May 2006. It included some £200,000 worth of service adjustments to existing supported services in 2006/07 in order to remain within budget and the report set out that application of the Council's subsidy limit was likely to lead to a reduction in services.

2.2 The Environment Policy Review Committee considered this report on 20 July 2006.

3. Criteria for Economies

3.1 Since deregulation in 1986 the County Council has used the subsidy per passenger carried to measure the value for money of local bus contracts. This is a fairly simplistic measure, for example valuing passenger journeys equally whatever their purpose or length, but is an accepted process of establishing value for money. More complex and sophisticated criteria are being developed which will reflect the key theme of accessibility planning within Local Transport Plan 2. The initial work has provided a solid base and over the next few months the mechanism will be further developed. It is then envisaged, following consultation, that the new criteria will be applied to the prioritisation of subsidised services in future years.

3.2 For 2006/07 the existing criteria of a maximum subsidy of £2.50 per passenger journey has been used to determine which services should be considered for reduction or withdrawal.

4. The Consultation Process

4.1 Notification was sent to all District and Parish Councils and local County Councillors informing them of the proposed changes in their areas and inviting comments.

4.2 Notification was also sent to the bus operators concerned to initiate the necessary service alterations, and it is likely that the affected services will be reduced or withdrawn at the end of July.

4.3 Neighbouring local authorities were also informed of the proposals where appropriate.

5. Supported Services to be Reduced or Withdrawn

5.1 Applying the existing criteria results in eight supported bus services, listed in the appendix, being withdrawn. All eight services are well in excess of existing criteria, based on the latest passenger data. Six services are individual contracts and two services are combination contracts. These economy measures in total amount to £234,451. This allows some scope for potential cost savings from the two combination contracts not being fully realised and for limited replacement services to some communities.

5.2 In the New Forest consideration has been given to the latest work carried out on the New Forest area review. This has highlighted an opportunity to offer non-conventional solutions in place of journeys on conventional bus services.

5.3 The review identified a package of changes to services on the Southampton-Cadnam corridor with the potential for early introduction (4 September 2006) in advance of the New Forest retendering (see appendix). The £41,145 per annum is the estimated saving after replacement with the unconventional service. These savings from the Southampton-Cadnam corridor are part of the forecast £120,000 per annum savings from the New Forest Area Review, reported to the Executive Member on 30 May 2006.

6. Consultation Responses

6.1 The outcome of the consultation period, which ended on 19 July 2006, will be reported orally at the meeting.

7. Changes to Cango Services

7.1 Cango services have been reviewed as part of the local district-wide passenger transport reviews carried out to date, and in parallel to this process a number of operational changes are now being proposed. All of these changes are consistent with the findings coming out of these area reviews.

7.2 Following an evaluation of the Alton Cango service (which covers parts of East Hampshire, Basingstoke and Hart) a number of operational changes are proposed from August 2006. This will involve a streamlining down of the service from a three vehicle to a two vehicle operation. Whilst this will result is some rationalisation of the frequency of the service and the areas covered, it will have the necessary effect of reducing passenger subsidy figures in order to make this service more viable.

7.3 The Lymington, Fordingbridge and Romsey Cango services have also been reviewed and in view of the disappointing patronage figures on each service it is proposed that these should be converted to services provided through "taxi shares" with effect from 1 October 2006. This will retain a reduced opportunity for people to travel in these areas but at a more affordable level of subsidy in the longer term.

7.4 Consultation on all of the changes is taking place with local County Council Members, district and parish councils and wider stakeholders where passenger transport forums exist. Many of these services still benefit significantly from Government Rural Bus Challenge monies. Effecting these changes now provides an opportunity to continue to use these monies to develop more flexible ways of providing journey opportunities in these areas where there are low numbers of users. This approach will provide the best chance of maintaining a sustainable service in these areas in the longer term.

8. Impact Assessments

8.1 The proposed service changes will have some adverse impact on the users of the services affected. However, there is no evidence that the changes will have a greater adverse impact on some sectors of the community, for instance elderly and disabled people, compared to others.

Recommendations

1. That the proposed service reductions and withdrawals, listed in the appendix, be approved.

2. That the proposed changes to the Cango services be agreed.

981Rpt/KAW

APPENDIX

Potential bus subsidy economies for 2006/07

C - Part of combination contract; saving is estimated and will be negotiated with the Operator.

New Forest Review