ANNEX A
APPRAISAL OF BUS ISSUES IN WHITE PAPER
(A) DEMOCRATICALLY
ACCOUNTABLE BODY
(DAB)
(i) consult/agree/implement sustainable transport
policies
Mechanism for "agreeing" unclear,
operators not required to co-operate.
(ii) ability to make the bus part of this
Not clear and not soon.
(iii) influence over (b) to (i) below
Unclear. Some hope in Quality Contracts, but
not clear how to justify requiring a Quality Contract or if fares
can be part of Quality Contract.
(B) REVENUE
(i) fares not to rise faster than inflation and
to be part of policy delivery
Fares issue obviously important but not addressed
in terms of fare levels, just aspirations for joint ticketing,
etc.
(ii) increased revenue from increased volume to
be shared by operator (for incentive, investment and profit) and
DAB to invest in bus priority, improved service, etc., (virtuous
circle)
No mention of how local authority to reap reward
of share of extra revenue to reinvest in bus infrastructure. Given
scarcity of public finance, surely need to address this issue.
(iii) network tickets and modern fare collection
systems
Covered, but powers needed. How would network
ticket revenue be shared if operators have different base fares
and change them at different times of year. More comprehensive
powers on fares needed.
(iv) revenue and user statistics to be available
to DAB to interface with other monitoring methods to determine
contribution of fares, service level, care parking policy, bus
priority, etc., towards policy objectives.
Not addressed.
(v) DAB to hold revenue to facilitate network
tickets without expensive revenue allocation surveys and admin.
Not clear if Quality Contracts would allow for
this.
(C) SERVICE
(i) penalties for non delivery of specified service
Not addressed.
(ii) no wasteful on road competition
Only in Quality Contracts.
(iii) even headway between operators on common
sections to maximise effective service level
Only in Quality Contracts.
(iv) network to cover space and time required
by DAB to deliver objectives
Only in Quality Contracts.
(v) frequency and penetration to be optimised
with fare level, journey time etc., within budgets available
Not possible even in Quality Contracts unless
fare levels included.
(vi) provided by quality of vehicle specified
by DAB
Requested in Quality Partnership, not clear
if can be specified in Quality Contract.
(vii) staff trained to acceptable level
Not addressed.
(viii) staff motivated by decent minimum standards
of pay and conditions
Not addressed.
(ix) joint comprehensive information readily available
A clear aspiration, details of how achieved
not so clear.
(xi) DAB to be a partner with users and operators
in continuous monitoring and network development, whilst avoiding
instability in established aspects of network
Reduced number of times for registration changes
promised. Role of user groups not so well defined.
(D) SUBSIDY
(OR PRICE
OF GROSS
COST CONTRACT/FRANCHISE)
(i) not to leak into inefficiency and excessive
profit
Efficiency and excessive profit ignored.
(ii) need for value for money (VFM) indicators
Not addressed.
(iii) recognition of changes in operating costs
Not relevant given White Paper approach, maybe
in Quality Contracts depending on Quality Contract content.
(E) BUS
PRIORITY
(i) DAB to provide
Happening, funding issues, could be from extra
fares revenue generated by bus priority, but not addressed in
White Paper.
(ii) need to know services will continue and use
the bus priority provided
Only in Quality Contracts.
(iii) need to know volume gain due to bus priority
will not produce revenue gain that is mainly extracted as higher
profit
Not addressed.
(F) PARKING
(DEMAND MANAGEMENT)
(i) DAB to deliver parking supply/pricing policy
that supports objectives
Happening for local authority public parking.
Need workplace parking levy, offered but no mention of when and
cannot seek as well as road charging (4.111). Why? Could have
workplace parking levy in one part of area and road charge in
another (4.111). However somebody could cross a cordon charge
at one point and drive to somewhere in same area with workplace
parking levy. So why presumption against both for whole area?
(ii) need to know volume gain due to demand management
via parking policy will not produce revenue gain that is mainly
extracted as higher profit
Not addressed.
(iii) other demand management techniques as they
become available (e.g., road/congestion pricing)
When will they become available? As no national
base charge can one local area dare to use them for fear of loss
of trade or employment?
(G) COMPETITION
(i) off road
Only in Quality Contracts.
(ii) if little effective local competition need
VFM indicators to ensure no loss of efficiency or excessive profit
There is little competition now but no VFM indicators
suggested.
(iii) revise competition law to prevent squashing
of small operators by "unfair" tactics
Not mentioned, but perhaps appetite for this
has gone for fear of government reaction and large operators already
have the market they want.
(H) ADMIN/BUREAUCRACY
(i) limit per cent of spend on admin/monitoring,
would be helped by gross cost contracts and DAB holding revenue
if network tickets envisaged
Not covered. Not clear how Quality Contracts
would handle network ticket revenue sharing.
(I) MARGINAL
COST EQUALISATION
(i) DAB to deliver locally via parking and congestion
charging
Proposed but needs legislation/pilot areas,
but not both are allowed over whole area.
(ii) dialogue with central government on parking
(including PNR), road pricing, fuel tax (and FDR)
FDR reinstated without any targeting or assurance
that it does not go into profit line.
(J) OPERATORS
PROFIT
(i) via unit cost control, but within minimum
standards for pay/conditions, vehicles and training
Not addressed.
(ii) share in increased revenue
All the increase to operator even if generated
by local authority policy and funding.
(iii) NOT via higher fares, lower service, higher
subsidy, misuse of increased FDR, misuse of concession fare budgets
or excessive extraction of higher revenue from higher volume due
to implementation of other transport objectives
Not addressed.
(iv) maximisation of profit and maximisation of
passengers are different
Still very true but the White Paper does not
address.
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