North East bus passengers will soon be able to use Oyster-style tickets, travel operators have announced.
Britain’s biggest bus operators – including Newcastle-headquartered Go Ahead and Sunderland-based Arriva – have announced plans to launch London-style smart ticketing across England’s largest city regions.
The pledge by Stagecoach, First, Arriva, Go Ahead and National Express aims to deliver multi-operator smart ticketing to millions of bus customers across England next year.
Greater Manchester will be an early adopter of what is described as a “transformational initiative”, helping support the area’s wider growth plans.
The smart tickets will then be rolled out across Tyne and Wear, Merseyside, South Yorkshire and West Yorkshire along with the city regions of Nottingham, Leicester and Bristol.
The bus providers have spent several months finalising their plans and this work has included liaising with IT suppliers and the Department for Transport.
The announcement comes two weeks after North East councils took a step towards seizing control of the bus services, in a major shake-up of public transport – a move bitterly opposed by the bus companies.
Members of the North East Combined Authority voted unanimously for the Quality Contract Scheme (QCS) for the Tyne and Wear area.
If passed by an independent review board the proposals will signal a new era of London-style bus services across the region, in which travellers carry a pass similar to the capital’s Oyster card and councils decide on fares and when and how often services run.The bus companies said their own plans represent a multi-million pound investment in what is the biggest smart ticketing project in the UK’s history.
The technology will allow smaller bus operators to be included and provide a platform to extend the system to other modes, such as trams and trains.
In a joint statement, Stagecoach Group chief executive Martin Griffiths, First Group chief executive Tim O’Toole, Go Ahead chief executive David Brown, Arriva chief executive David Martin and National Express chief executive Dean Finch said:
“Millions of people in our biggest city regions will benefit from this transformational initiative in London-style smart ticketing. It will deliver an even bigger programme and wider benefit than the capital’s Oyster system.
“Bus operators share the aspirations of our city regions to become growing economic powerhouses and we know high quality public transport is an important part of making that happen.”
Bus operators also urged central and local Government to work with them to improve bus services across the country.”
Source – Newcastle Journal, 04 Nov 2014
The North East Combined Authority has voted for a plan which could give councils power over when and how often bus services run in Tyne and Wear
What is a QCS?
A Quality Contract Scheme is a legal power over bus services by a council. In this case, the North East Combined Authority will set ticket prices, routes and timetables across Tyne and Wear and on some routes in and out of County Durham and Northumberland.
NECA will also decide what types of buses are used. Nexus, the public body which devised this scheme and currently manages the Tyne and Wear Metro, will collect fares and pay bus companies to provide bus services through contracts. This is a big change to the present market, where buses companies decide on prices and routes.
What is wrong with the current system?
NECA believes a QCS will be better than leaving things as they are. It argues people are put off using buses because fares have gone up on average 3% more than inflation for a decade.
Today, councils pay bus operators to provide less-used bus services, and subsidise some fares – as well as funding the free bus pass for older and disabled people.
This adds up to £56m-a-year in Tyne and Wear, money is running short and the cost of the free bus pass – which councils must pay by law – is growing, meaning that the other bus services councils pay for will have to be withdrawn.
So, everyone agrees it is great?
Not exactly. The bus companies – mostly Stagecoach, Arriva and Go-Ahead – strongly disagree with the move and recommended a voluntary system that gives them more freedom. They say a QCS a “huge gamble” that could lead to higher fares, worse services and higher tax bills in the long run.
Kevan Jones, MP for North Durham, also has “serious concerns”. He said profitable services in urban Tyne and Wear subsidise the rural bus network in Northumberland and County Durham. He is worried that subsidy would dry up under the new QCS.
Will it mean services cost more or less?
Nexus says fares are likely to go down. Future fare rises will be limited to inflation levels and only changed once a year.
New cheap fares for people aged 16 to 18 will be the same price as today’s fares for children.
There will be discounts for students and a new deal for older and disabled people who want to travel before 9:30am.
Nexus says around four in five adult passengers will see prices stay the same or go down when the new QCS fare zones begin.
Won’t this cost councils lots of money, then?
The idea is it will actually save councils money. Bus companies now make about £20m profit in the region every year, but Nexus estimates 80% of that money leaves the region. NECA says more of this profit from fares will be re-invested locally and this in turn will protect services now funded by councils that might otherwise be lost.
How would an Oyster card-style system work here?
In London, the one Oyster card allows you to travel on any bus, any train, any tube or any ferry. They can use Oyster as a season ticket or they can use Oyster to pay for single journeys.
The Tyne and Wear version will be called the Smartcard. Having one will get you on any bus, any Metro, the ferry or local train.
If you travel paying for single journeys and reach the daily ticket price, what you pay is capped – so you will always get the best deal, without needing to plan your day in advance. The technology for the Smartcard is in place already.
What if I am travelling in or out of Tyne and Wear from County Durham or Northumberland?
Most bus routes in and out of Tyne and Wear from County Durham, and some of those from Northumberland, are included in the plan for the whole route. That means the Smart tickets, the QCS network and lower prices will be available when you travel into Tyne and Wear.
Will there be fewer buses and will buses go the same routes?
Routes will be the same as now on the first day of a QCS, Nexus says. The difference is people can suggest improvements through new Bus Boards in each area.
Council leaders want to protect services and begin to grow them. They hope it will ultimately mean cheaper fares and bus and rail networks that work together better.
If the QCS does not happen, Nexus and NECA say cuts are inevitable, particularly to young people’s fares, school buses and evening services now paid for by local councils.
How will the process work if QCS is passed?
It will be April 2017 before a QCS starts – council leaders will make a final decision next year after an independent panel has reviewed the 900-page scheme agreed by NECA this week. If it goes ahead it will take Nexus two years to let contracts and gear up for change, with lots of information and engagement with customers on fare changes, smart cards and other benefits.
What happens to the bus companies and their staff?
About 3,000 people now work on bus services in Tyne and Wear, which in future will be included in the Nexus contracts.
Staff will work on the same routes and their jobs, wages and pensions will be protected by law – plus Nexus has said it will give further protections to staff – even if they have to change the bus company they work for. The scheme is supported by the Unite union.
What will happen if bus companies take legal action in the meantime?
Bus companies are worried they will lose business to rival bidders. They have threatened legal action against NECA and Nexus. Both public bodies insist they are using the law properly, however.
Nexus says QCS is legal and based on the best available facts and figures. It has also said all possible steps will be taken to make sure legal action doesn’t slow down its plan for a QCS.
Source – Newcastle Evening Chronicle, 26 Oct 2014
Bus services are better in council hands, MPs have said ahead of a vote that could dramatically change the future of public transport in the North East.
Twelve Tyne and Wear MPs have written to the North East Combined Authority leadership board ahead of their meeting this afternoon to decide whether to establish the first council regulated network of buses outside of London since 1986.
They believe the proposed Quality Contracts Scheme run by Metro operator Nexus will deliver £272m in economic benefit to the North East.
However the plans have been bitterly-opposed by bus companies Go North East, Stagecoach and Arriva, who instead want to run the network under a Voluntary Partnership Agreement called the North East Bus Operators’ Association.
They believe handing back control of buses to councils would create new risks for ‘cash-strapped’ local authorities.
Bridget Phillipson MP, who has been leading the campaign in favour of the Quality Contracts scheme, said:
“The members of the Combined Authority have a clear choice when they meet today. They can either maintain the status quo where bus operators funnel profits out of our region or support real and lasting change with a Quality Contract Scheme.
“If a regulated transport system is good enough for our capital city then it’s good enough for the people of Tyne and Wear.”
She added in her letter that the present deregulated system allowed operators to cut routes and an investigation in 2011 by the Competition Commission was critical of the service in Tyne and Wear.
Tom Dodds, secretary of the North East Bus Operators’ Association, said:
“Ms Phillipson misunderstands the partnership agreement. There are 17 successful partnerships around the country. The partnership for Tyne and Wear would be the most comprehensive of all, offering cheaper fares for 16-18 year olds, new ‘Bus2Bus’ tickets for people who use the buses of more than one company but don’t need to use Metro, and up to 50 extra buses on new services. The contract scheme promises none of that, and allows politicians to increase fares and reduce services at will to balance their books.
“If the bus network is inadequate, then the contract scheme does nothing to improve it – in fact, it freezes the bus network until 2018.”
He added that there was no action taken by the Competition Commission following their report in 2011.
Nexus claims their system would see £8m saved or re-invested into the service, reducing the profits going to bus company shareholders from £20m to £12m a year.
The letter has been signed by the following MPs
Bridget Phillipson (Houghton and Sunderland South), Nick Brown (Newcastle East), Catherine McKinnell (Newcastle North), Alan Campbell (Tynemouth), Mary Glindon (North Tyneside), Stephen Hepburn (Jarrow), Emma Lewell-Buck (South Shields), Chi Onwurah (Newcastle Central), Ian Mearns (Gateshead), David Anderson (Blaydon), Julie Elliott (Sunderland Central) and Sharon Hodgson (Washington and Sunderland West).
The North East Combined Authority’s leadership board, which is made up of the leaders of seven local authorities, will take a vote today at the Civic Centre in Newcastle whether to proceed with the Quality Contracts Scheme after it was endorsed by its transport committee earlier this month.
Source – Newcastle Evening Chronicle, 21 Oct 2014