Tees Valley Mayor, , has today committed to a
“thorough investigation” into whether “London-style” franchising
is the best option for Tees Valley’s bus network.
Following a positive response to proposals from the Tees Valley
Combined Authority Transport Committee yesterday (26 June), Mayor
Houchen will now instruct officials at the authority to prepare
an assessment of a proposed franchising scheme for the whole of
Tees Valley. The Committee recommended that £150,000 should be
allocated to carry out an initial feasibility study.
Under bus franchising, the deregulated bus market is suspended
and bus operators are only able to provide services under
contract to the area’s local transport authority. This approach
is used extensively across Europe, in London and elsewhere as it
offers a range of significant advantages that are impossible
under partnership – such as integrated ticketing, route planning,
cross subsidy across bus services and consistent branding and
accountability.
Under the bus franchising system in London, Transport for London
- accountable to the Mayor - specifies what bus services are to
be provided. TfL then decides the routes, timetables and fares.
The services themselves are operated under contract by private
companies through a competitive tendering process.
Mayor Houchen is keen to understand whether a similar system
could be established in the Tees Valley, and if the costs and
risks associated with franchising to potentially offer a better
way of delivering a better bus network than is currently provided
under the deregulated system.
Tees Valley Mayor
said, “People rightly demand that our bus
network should be modern, accessible, affordable, and everyone
should be able to use it. That’s why we need to look at all
options on the table – including bus franchising.
“Not everyone uses a car, so it is vital that our buses play
a fuller role in connecting people with jobs, housing, education,
healthcare, shops, family and friends.
“Our bus companies are doing the best they can in the face of
subsidy cuts by local councils, but it would be wrong of us not
to look at whether there are other models that would work
too.
In April 2017 the Bus Services Act became law, giving
Mayoral authorities like Tees Valley powers to improve bus
services by reforming the current bus market. The options
available include franchising – the system used in other cities
globally – and ‘enhanced partnerships’.
As part of this initial assessment, the Combined Authority will
engage with bus operators to build a true picture of the
operating costs and revenues of the Tees Valley bus network. This
study will also focus on looking in detail at the top line
financials of the current bus network in order to establish the
level of profit generated by the Tees Valley bus network each
year; and if there is a significant surplus, whether this
reflects a fair return on investment for local people.
Mayor Houchen added, “This isn’t about
putting the buses in public hands, but looking at whether a
regulated system like London would work for us too.
“I’m clear that the Tees Valley needs a joined-up transport
network, with simple fares and ticketing, that puts the passenger
first and guarantees the best value ticket for their
journey.
“With this this initial assessment, we will be moving ahead
with the powers we have to look at re-regulating the buses so
they work for the people.”
Undertaking the above study will require the Mayor to invoke his
powers under the Bus Services Act in respect of franchising, and
request financial data from local bus operators. To date, only
Greater Manchester has used these new powers.
