Agenda item

To consider a report by Councillor David Smith, Lead Member for Public Realm, (copy enclosed) which sought approval for the revised management arrangements needed to deliver the new bus funding scheme via TAITH, and for a change to the Constitution of TAITH to allow the delivery of the new scheme.

Councillor D.I. Smith presented the report which sought approval for the revised management arrangements required to deliver the new bus funding scheme via TAITH, the Regional Transport Consortium, and for a change to the Constitution of TAITH to allow the delivery of the new scheme.

RESOLVED - that Cabinet:-

(a)   notes the new arrangements for bus funding to be implemented from the 1^st April, 2013 following the approval of the bus funding report by the Minister for Local Government and Communities.

(b)   approves the proposed amendments to the TAITH Constitution set out in Appendix 1 to the report, and

(c)    notes that further work would be progressed to identify new management arrangements for the delivery of the new scheme during the initial implementation and transitional period for Regional Transport Services Grant.

Councillor D.I. Smith presented the report which sought approval for the revised management arrangements required to deliver the new bus funding scheme via TAITH, the Regional Transport Consortium, and for a change to the Constitution of TAITH to allow the delivery of the new scheme.

The Minister for Local Government and Communities (MLGC) announced his intention to change the grants system used to support bus travel in Wales.  The variations had now been finalised and the report detailed the changes and highlighted their implications.

The Bus Services Operators Grant (BSOG), provided directly to bus operators by the WG, and Local Transport Services Grant (LTSG), provided to Local Authorities to support local bus networks, currently provided support of bus services from the Welsh Government (WG).  The total combined value of the grants in 2011/12 had been £33 million.  In January, 2012 the MLGC announced a proposed reduction of 25 to 27% in the two schemes.  There would be a transitional funding period whilst the grant was maintained, subject to a review future funding of bus services across Wales.  The first phase of reduction of around 9.5% was implemented from 1^st October, 2012 with local reductions in supported bus routes agreed by Cabinet in September, 2012.

The report summarised the revised bus funding arrangements and confirmed that the report from the Steering Group, established by the MLGC, had now been approved by the Minister.  The key principles of the new arrangements to be in place from the 1^st April, 2013 had been included in the report, together with, an outline of the work required to be undertaken to ensure that the consortia, local authorities and operators were ready to operate the new system by the 1^st April.  Plans for managing and resourcing the new responsibilities were being developed locally by a Task and Finish Group of the North Wales Transport Managers.

It was explained that work would be undertaken to understand the current levels of BSOG support for commercial and supported services, to determine the actual levels of funding for the commercial mileage element of the new grant and funding levels available to local authorities for supported services.  The Minister had agreed the introduction of the new system could take place on a phased basis.  Regionalisation of the LTSG would proceed as scheduled on the 1^st April, 2013 with changes to the BSOG being introduced over a 12 months period.

Councillor Smith confirmed that there was a risk that the new proposals would impact on existing bus networks during the transition period and there would inevitably be a reduction in the number of commercial services operated across North Wales, placing pressure on the supported network.  The level of unhypothecated funding allocated by Local Authorities would come under pressure as the changes and reduced budget impact on networks.  It was explained that a close working relationship between TAITH and the Local Authorities would be essential to manage the potential changes.

The Corporate Director: Economic and Community Ambition informed Members that the current TAITH Constitution limited its role to the aims and objectives set out on paragraphs 3.1 and 3.2 of its Constitution.  It was proposed to amend the Constitution by the insertion of the additional objective below into paragraph 3.2 of the document.  Details of the proposed amendments had been set out in full in Appendix 1.  No further changes had been proposed and any additional changes to the role of TAITH would require the further approval of the partner Authorities.  In reply to a question from Councillor H.C. Irving, it was confirmed that no Denbighshire staff had been seconded into TAITH to develop the implementation process.

A number of Members highlighted the contribution made by local bus services in sustaining rural communities and developing the local economy.  Reference was made to the possible negative impact resulting from the withdrawal of services and the importance of consultation with the community when considering future service provision.

The report outlined how the decision would contribute to the Corporate Priorities, costs and their impact on other services, the consultations process, Chief Finance Officer Statement and the risks and steps to reduce them.

RESOLVED - that Cabinet:-

(a)   notes the new arrangements for bus funding to be implemented from the 1^st April, 2013 following the approval of the bus funding report by the Minister for Local Government and Communities.

(b)   approves the proposed amendments to the TAITH Constitution set out in Appendix 1 to the report, and

(c)    notes that further work would be progressed to identify new management arrangements for the delivery of the new scheme during the initial implementation and transitional period for Regional Transport Services Grant.