Funds given to Stagecoach and National Express Xplore in Dundee: FOI release

Information requested

1. Could you please reveal the funds given to Stagecoach and Xplore in Dundee - latest round?

2. Could you please reveal, how this reimbursement is calculated. Is this based on bus numbers, passenger numbers, double decker vs standard bus?

3. Are you considering into the reimbursement in any way the age of the bus fleet - pollution?

Response

Please see below the corresponding answers to each of your questions.

1. The reimbursement payments made in respect of concessionary travel to both operators, for financial year 2018/19, to date are:

• Stagecoach in Fife - £23,263,722.56
• Xplore Dundee - £5,730,409.20

2. The model used to set reimbursement terms was agreed with the industry and based on agreed projections of fares increases and numbers of journeys taken.

In 2012 Transport Scotland commissioned economic research to further improve and update the evidence base underpinning reimbursement payments to bus operators for carrying concessionary bus passengers.  (published in 2013 at: https://www.transport.gov.scot/publication/scotland-wide-older-and-disabled-persons-concessionary-bus-scheme-further-reimbursement-research/). The overall aim of this work was to provide more robust, up-to-date evidence for certain components of the calculations for reimbursement, such as inflation and forecasting fuel costs.  It is a principle of the scheme that operators should be no better or no worse off as a result of their participation.

Results of this independent economic research demonstrate that some passengers would not travel without access to the Concessionary Travel Scheme.   Research estimates that approximately 40% of all concessionary journeys made only happen because passengers have access to the Scheme.

3. As above, the model for reimbursement is agreed with the bus industry and takes into account a number of metrics based on economics relevant to the bus industry, including inflation and fuel costs for instance. Elements of this are updated annually based on published Government and industry figures. Amongst these, is the cost index for Scotland for bus operators and this is published by the Confederation of Passenger Transport every 6 months. The cost index includes a parameter assessing the depreciation of the buses operating in Scotland. The cost index can be viewed at cpt-uk.org.

The age of the bus fleet does not contribute to setting the reimbursement rate for bus operators other than through this measure of depreciation.

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