LONDON (Alliance News) - Transport operators Stagecoach Group PLC and Go-Ahead Group PLC both on Tuesday welcomed the decision made by the Tyne and Wear Quality Contract Scheme Review Board that the bus franchising proposal tabled by the North East Combined Authority has failed to meet the necessary statutory tests.
The transport executive for the authority had proposed that bus services should be franchised in Tyne and Wear through the letting of contracts, with local taxpayers taking on the risk of the local bus network. This would have replaced the current system whereby services are largely commercially-funded by bus operators.
The review board found the scheme failed to meet the core test of being economic, efficient and effective. It said the effectiveness of the scheme had been "significantly overstated", with similar benefits available under the alternative plans from transport operators.
The board also expressed doubts about the affordability of the scheme and said the authority had failed to demonstrate that the change would result in an increase in bus use.
"We welcome the Review Board's confirmation that the core franchising proposal was unaffordable, inflexible, high risk and not in the public interest," said Martin Griffiths, Stagecoach's chief executive.
"We would urge the North East Combined Authority to respect the findings of the Review Board, and put passengers and local people first, by abandoning the misguided franchising plans. Instead, we call on them to work in partnership with bus operators to build on Tyne and Wear's excellent bus network and deliver on our joint responsibility to give local people even better bus services," Griffiths added.
"We are pleased our belief has been validated that working in partnership can bring about a better outcome for both bus passengers and taxpayers," Go-Ahead said in a statement.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
