Minutes:
The Director of Public Transport Operations presented this item.
Members were reminded that through the course of the pandemic, public transport across the country was supported through funding from central government in various forms. Members were informed that funding would expire at the beginning of October; the absence of this funding and significant reductions in patronage levels which will present significant challenges to the viability of public transport across the region. A condition to the last funding tranche was that SYMCA must engage with bus operators to work out what a sustainable network post-September looks like.
Members were asked to note the difficulties faced in terms of the ability to secure tenders to replace services at threat of being cancelled.
Committee Members were informed that the Mayor had issued a press release on the morning prior to the TEB meeting stating that up to a third of services were at risk of either reduction or cancellation without intervention.
The MCA has written to all bus operators and received responses to the request to commence information sharing in preparation for the October reductions. The baseline of all operator service has been completed and this is being shared, in confidence, with other operators so we can understand if this has any return benefits in reducing the tendering requirements. Cost estimates have been formulated to show what the costs would be to buy back those services that are at risk of being cut. Updated costs produced using the latest known position, including inclusions of non-statutory school services have now been included on the ‘essentials’ list following discussions with local authority leaders. There is continued engagement with local authorities on the timeline and approach and sharing of latest data. This will continue into July due to the network changes and lack of commercial interest in expired tenders.
It was explained that the MCA has commenced engagement for market support on public engagement and consultation to afford members of the public the opportunity to comment on what is important to them in terms of the types of services available and the scale of reductions.
Members noted the paper being prepared to go to MCA Board on the 25th July. This seeks to agree an approach on the financial awards commissioned and purchased through the tender process to make up for the services being reduced, as well as providing a guide to policy decisions. These papers will be public on the 15th July. The public engagement activity will go live around this time too. This consultation will be used to help decide which services to procure back through the tender process.
The Director of Public Transport Operations explained that ordinarily we would look to purchase, through our tender process, services from our operators where services are reduced. First South Yorkshire are currently operating a number of services on our behalf, on tenders that were originally due to come to an end in April, but these were temporarily extended to the end of July. We were not able to renegotiate an extension of to the end of October. In response to this, we went to market but received zero bids on seven services. On some services where we had received bids, these have had exceptionally high prices of over 1000% increases on previous contracts. We now have seven services in Rotherham and Sheffield that are either being reduced or cancelled.
Members noted that the cost of services that we have assumed to buy back far exceeds our available existing budget for the remainder of this year. The budget for 22/23 under £12 million, anticipated costs could be anywhere up to £25 million. We do have £5.1 million available in the Protection of Essential Services Revenue Fund available and how this fund will be used will be part of the paper taken to the MCA in July.
ACTION: The Director of Public Transport Operations to share the slides with members.
It was noted that the single biggest risk is operators not being willing to bid for work, we cannot compel operators to participate in that process.
Members noted the very short timescales for public consultation and consultation with partners and asked how differing priorities would be reconciled.
The Director of Public Transport Operations agreed that the deadline will be tight, but that resources would be made available including use of external third parties. He added that there is a risk with priorities not being aligned but he does not anticipate that the public’s priorities will be too different from what the team have planned for. The challenge will be if operators are prepared to run the route which the public want to see prioritised.
It was observed that operators were struggling to retain staff, which was impacting on cost increases and their ability to bid for work. Recruitment of drivers was also problematic due to unsocial hours of work.
The Chair asked how the lack of award from the Bus Service Improvement Plan, had impacted on the continuation of services. It was noted that this would not have a direct impact as this funding should be used on new networks and other areas of improvement.
It was stressed by Members that the MCA must make it clear to the public during consultation what is at risk and the difficult decisions that need to be taken. This was agreed and it was suggested that the tone used by the Mayor is demonstrating this.
ACTION: TEB members to receive the press release issued by the Mayor and LEP when published.
RESOLVED: That members noted the update presented to them and receive an update in September.