Agenda item

To consider a report by Councillor David Smith, Lead Member for Public Realm (copy enclosed) detailing the actions taken following the collapse of GHA Coaches Ltd and seeking agreement on the future strategy for local bus services.

RESOLVED that Cabinet –

(a)       endorse the actions taken by officers to fill service gaps following the collapse of GHA, i.e. support the criteria (highlighted in paragraph 4.5 in the report) used to reinstate services until the end of the financial year;

(b)       agree that the council will use reserves to contribute to some of the additional costs incurred during 2016/17 (on the assumption that Welsh Government will also make an additional financial contribution);

(c)        agree that discussions about the future budget for local bus services should form part of the forthcoming budget workshops;

(d)       notes and is grateful for the offer of financial assistance from the Welsh Government in respect of the additional costs incurred by the Council in the restoration of local bus services following collapse of GHA coaches.  Cabinet would respectfully urge the Minister to consider further financial assistance in respect of the additional costs incurred in the current financial year in the statutory provision of school transport services which represents the biggest proportion of the additional financial burden imposed on the Council due to this company’s demise;

(e)       officers enter into discussions with Government officials in respect of the school transport element of these additional costs, and

(f)         that officers approach the Rural Development Plan to seeking funding for the development of community transport services.

Councillor David Smith presented the report detailing actions taken following the collapse of GHA Coaches Ltd in July 2016 and sought agreement on the future strategy for passenger transport services.

Councillor Smith explained that statutory school transport had been immediately reinstated following the collapse of GHA coaches and local bus services progressively restored, at least in part, pending a decision as to the forward strategy.  He paid tribute to the Passenger Transport Team on their tireless work in restoring school transport at short notice and the significant efforts made in ensuring that affected communities continued to benefit from some form of local bus service provision.  However the costs incurred had been considerable with an additional £175k for school transport in the current financial year.  The budget for local bus services would also be overspent and in light of future costs it was proposed that members debate the future strategy for those services and future level of budget for local bus services as part of the forthcoming budget workshop. Councillor Smith also updated members on discussions with the Minister for Economy and Infrastructure advising that Welsh Government would offer financial help for costs incurred in restoring local bus services but no contribution had been offered for school transport which represented the biggest proportion of the additional financial burden for the Council.

The following matters were discussed during the ensuing debate –

·         Cabinet endorsed the action taken by the Passenger Transport Team in restoring bus services and paid tribute to their hard work and efforts to ensure minimum disruption

·         whilst the offer of financial assistance from the Welsh Government for local bus services was welcomed concerns were raised regarding the additional significant financial pressures on school transport provision and Cabinet asked that officers contact Welsh Government to seek further financial assistance in that regard

·         officers responded to questions and elaborated upon the different provision in more populated areas with growth and investment in private sector services in contrast to more rural sparely populated areas where growth was unlikely

·         the future of the public transport budget was discussed together with the financial situation and implications as set out within the report and some debated focused on potential options for consideration as part of the future strategy with a view to ensuring sustainable services going forward.  Officers acknowledged concerns regarding potential impacts in rural areas and responded to questions regarding specific routes and the future management of services in order to ensure sustainable solutions when considering the future strategy.  Officers confirmed that various models were being explored including the development of community transport services.  Cabinet supported the proposal by Councillor Eryl Williams that the Council approach the Rural Development Plan for funding in order to develop community based provision.  Cabinet also agreed that the budget needed to be considered in its entirety as part of the overall budget setting process

·         some concern was raised that the cost to passengers using the new services had increased in some cases and officers advised that the Council had no control over the cost of bus fares for commercially operated services and some fare adjustment may be required to ensure future viability of the service – however for regular passengers it would be more cost effective to purchase weekly/monthly or annual bus passes which was a benefit not offered previously by GHA Coaches – officers were asked to raise awareness of that option.

RESOLVED that Cabinet –

(a)       endorse the actions taken by officers to fill service gaps following the collapse of GHA, i.e. support the criteria (highlighted in paragraph 4.5 in the report) used to reinstate services until the end of the financial year;

(b)       agree that the council will use reserves to contribute to some of the additional costs incurred during 2016/17 (on the assumption that Welsh Government will also make an additional financial contribution);

(c)        agree that discussions about the future budget for local bus services should form part of the forthcoming budget workshops;

(d)       notes and is grateful for the offer of financial assistance from the Welsh Government in respect of the additional costs incurred by the Council in the restoration of local bus services following collapse of GHA coaches.  Cabinet would respectfully urge the Minister to consider further financial assistance in respect of the additional costs incurred in the current financial year in the statutory provision of school transport services which represents the biggest proportion of the additional financial burden imposed on the Council due to this company’s demise;

(e)       instructs officers to enter into discussions with Government officials in respect of the school transport element of these additional costs, and

(f)         that officers approach the Rural Development Plan to seeking funding for the development of community transport services.