Thursday 13 November 2008

Bus Passes. Are We Being Screwed?

Big article in the Herald Express yesterday. Torbay Council announce that they will need to find an extra £600 000 to fund the "Free Bus Pass Scheme." And that's on top of the £2.5m they already have put aside. That means council tax will have to go up by 5%. But Central Government have indicated that a rise of 5% would end up being capped. Nothing to do with knee capping but just as painful. A few Whitehall Heavies, usually in Black suits would turn up at the Town Hall and force their way in, explain very nastily that 5% is too much and remove large sums of money from the council strong room, you're being fined they will say, they will even give a receipt but we will never see the money ever again.

So no 5% rise in council tax. So give the bus companies less money? Yeah, right. After all the owner of the biggest local bus company is worth hundreds of millions. He wouldn't miss a couple of million would he? I think he would miss it. Problem with that is we have a good bus service round here, it's a big asset, it would be foolish to throw that away. Cuts will have to be made else where, in unimportant areas such as child care, social services, education, road repairs, street lighting and the rubbish would only be collected once every 3 months.
So how have Torbay Council made such a mess of the financies to be in this state? Given their reputation over the last ten to fifteen years, Audit reports listing the council as a poorly run authority came thick and fast, but there has been improvement recently. Are they slipping back into their all ways? Has infighting in the Town Hall returned? Is the title Councillor more important than the work that goes will it? Are they just taking the money and heading of to Sunny London? Well I am glad to say no. Actually I’m not glad. If the above were true than at the next election we could vote this lot out and get a new lot in who would sort the problem out. But if we got Barack over here, part time as it were, for a few weeks before he starts his big job in January I doubt even he would be able to sort it.

Lets go back a couple of years. Gordon Brown, then not Prime Minister, announced free bus travel for the disabled and over sixties within their local area. £420million of public money would be available to pay for it. (Buget 2005 figures). Then the scheme was extended, I can now travel anywhere in England on local buses for ‘free’. A billion pounds of public money would be spent to give the disabled and over 60’s the freedom of the busways. I, like just about everyone else assumed that this billion was going to come from Central Government. A few Whitehall civil servants sworn to secrecy by Gordon knew but they weren’t telling. They’d been sworn to secrecy hadn’t they? The quote below is from the Government’s web site and you can see how much money is coming from Central Government. So where is the rest coming from? The local authority that’s where. It’s public money isn’t it? Look at the second quote below, from the same source. Note the question uses the word guarantee, the answer, cunningly doesn’t.

1st quote
“4. What will this cost?
The Government is providing additional funds of up to £212m a year to pay for the national concession in England.
This is in addition to the extra funding each year provided for the previous enhancement to the scheme from 2006 (currently some £377m for 2008/9).”

Now I am not sure if the above means £337million is being spent this year or £549 million, both are a long way short of one billion.

2nd quote
“24. Will the Government guarantee that councils will be no worse off as a result of this change?
It is in all our interests to ensure that local authorities are adequately funded for the national concession. The Government is aware of concerns about funding and consulted those with an interest, including local authorities and bus operators, on funding and reimbursement mechanisms. WE BELIEVE that the funding provided to local authorities is sufficient to meet the cost of the scheme.”

The question asks will the Government guarantee but the answer doesn't actually guarantee anything. It just says “WE BELEIVE”. There are more people believe the world is flat than believe the funding is sufficient to meet the costs and they all work at the Treasury and can believe what every they like. They do after all have all the money and a reputation for not giving any away without serious amounts of blood being spilt.

So we, and other local authorities in the same boat (Titanic) are well and truly screwed. I suppose at the next general election we could vote Gordon Brown out but that would mean letting David Cameron in. Either way we’re screwed.

So we can either ask the disabled and over 60's to stop using buses, or we can write to Gordon Brown, address 10 Downing Street and include the second quote above in the letter and ask him if he agrees that local authorities are getting sufficient funding, or we can lie back and think of England.

Have a nice day!

5 comments:

Anonymous said...

This Government Scheme should be paid for by the Government NOT by Local Authorities. I know the money has to come from somewhere, but money could be saved from various places such as MP's trips abroad on "Fact Finding" missions, another way of saying "free holiday"! I have a bus pass and so far have used it once to travel from Torquay to Brixham, then had to have a taxi home as the buses don't come close enough to where I live and I can't walk far, therefore it's easier to use the car. Sylvie.

Lord Hutton said...

I agree with everything you say. It's not the Council's fault (for once;-). Torbay have now issued nearly 32000 passes, up 6000 on last year, and it isn't funded
The government will have to sort this out.

cogidubnus said...

And still the bus companies in many parts of the UK are being under-reimbursed...apparently my local bus company has still to receive a bean for an extra 10 buses worth of expense introduced to carry additional OAPs from April 2006...

Anonymous said...

Of course Torbay (and other holiday areas) are running out of Bus Pass money. I spent a few days in Bournemouth with my brother, we of course used the buses and who pays? The Council for that area and not my local council on Nottinghamshire. If someone from Torbay (or Bournemouth) spends a few days in Nottinghamshire, Nottinghamshire pays but not many do that, On the other hand loys of Nottinghamshire folk go on holiday to Torbay or Bournemouth

Anonymous said...

The free over-60s bus passes are a straightforward electoral bribe to retain the grey vote by laughingly named 'new'labour.

Do you remember any rioting in the streets or campaigns for free bus passes in the coastal resorts? No, nor do I. If anyone should pick up the tab it should be the labour party, but they are semi-bankrupt, of course.

Expect to see other handouts in the run up to the next election. They've already started with 'free' swimming sessions from April. Next will be substantial increases (but only one-off) so 'winter fuel payments'.

There is no doubt that there has been a huge increase in ridership amongst the over-60s. The argument that it reduces private car use is spurious, as most of these trips would not have taken place anyway.

There will be spin-off benefits (less depression, etc.) but bankrupting local authorities is ridiculous, as is giving outfits like Stagecoach to whack up the fares.

Fuel prices are plummeting and will continue to do so as the depression bites hard.

So when are the fares coming down Mr Souter? Whoops, I forgot, he won't be reading this. He will still be trying to break the strike in Inverness or somewhere.