COUNCIL MID ARGYLL, and ISLAY AREA COMMITTEE

DEVELOPMENT SERVICES 6 DECEMBER 2006

RURAL TRANSPORT GRANT 2007-08

1. SUMMARY

The purpose of this report is to put forward proposals for experimental public transport services to be funded by the Rural Transport Grant that the Council receives from the Scottish Executive. Each Area Committee, with the exception of Helensburgh and Lomond which is now entirely within the Strathclyde Partnership for Transport area, will consider a similar report particular to their area and the decisions will be collated, evaluated and ranked against the available funding and presented to the Strategic Policy Committee for approval.

2. RECOMMENDATION

It is recommended that members agree the use of Rural Transport Grant to provide the additional public transport services within the Mid Argyll, Kintyre and Islay area as detailed and note the corporate proposals to be agreed by the Strategic Policy Committee.

3. BACKGROUND

For the last nine years the Scottish Executive has provided the Council with additional funding for the promotion of rural public transport services within the authority’s area. The settlement figure for 2007-08 is £838,000 of which the Executive will allocate £147,037 to Strathclyde Partnership for Transport. This leaves a balance of £690,963 for services in the remainder of Argyll and Bute, a substantial increase on last year. £120,000 of the grant has been used over each of the past nine years to support existing services that the Council would have otherwise had to discontinue.

£570,963, therefore, remains to continue support for previously authorised projects (section A) or to promote new projects throughout the whole Council area. The Scottish Executive points out that the “grant is to enable authorities to introduce new or improved rural transport services (bus, ferry, rail or air), including maintaining those new or improved services introduced as a result of the grant funding which has been made available since 1998-99, and for related facilities, such as publicity and staffing for the promotion of rural transport services.” New experimental services for consideration are described in section B.

It should be noted that it can take a considerable time to build up patronage on a new service, especially if the service is operating in an area which has not had public transport services for some time. There will not be a long term

F:\moderngov\data\published\Intranet\C00000243\M00002437\AI00032320\RuralTransportGrant0.doc 1 of 9 29 November, 2006 confidence in a service until it has become well established. In general, the desire would be to operate a service which is showing potential for growth for at least three years before making a decision as to its long term future. It is recommended that all services provided during 2006-07 continue to be funded for 2007-08.

As far as possible, the funding is spread equally across the Council’s areas. However, this is not always possible as some areas already have adequate public transport services. There are also a number of projects which benefit the Council as a whole. Details of these are shown but the final decision on these services will rest with the Strategic Policy Committee. It should also be noted that some of the costs shown below are estimates.

4. RURAL TRANSPORT GRANT EXPENDITURE 2007-2008

Section A. Services and projects in operation or approved previously which it is recommended be continued.

SERVICE: Tarbert and (Serving both the Bute and and Mid Argyll, Kintyre and Islay areas.) CONTRACTOR: West Coast Motors DESCRIPTION: This service has three functions. It was originally introduced as part of other links, which together create a through journey from Rothesay to Lochgilphead and return. It also provides local links within Tarbert and in general enhances the bus service between Tarbert, Ardrishaig and Lochgilphead. COST: The amount of Rural Transport Grant required to 31st March 2008 for the bus service will be £22,000 plus an amount of £2,629.96 to CalMac for journeys between Portavadie and Rothesay which use the Colintraive Ferry. COMMENCED: 14th August 2000 COMMENTS: Usage of this service has fluctuated considerably according to the figures declared by the former operator D and E Henderson of Tarbert. On 16th April 2006, by agreement with the Council, the contract was transferred to West Coast Motors and a revised timetable introduced which linked some of the journeys on this service to the Tarbert Skipness service. During 2005 the service carried 5,187 passengers at a subsidy per passenger of £7.95, well ahead of the guideline criteria figure. However, in conjunction with the new operator the service has been promoted vigorously because of the additional journey opportunities and connections with ferries now possible as a result of the revised timetable. Passenger numbers for both sections of the route have risen from 6,967 to a projected 7,996 for 2006, an increase of 12.9%. The subsidy per passenger for 2006 has also dropped to £7.11. Accordingly it is recommended that the service be funded for a further year in the hope that this improvement may be continued.

SERVICE: Ardrishaig/Lochgilphead and (serving Oban, Lorn and the Isles and Mid Argyll, Kintyre and Islay areas) CONTRACTOR: West Coast Motors

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DESCRIPTION: Enhanced service and route development following withdrawal of service by Coaches Ltd. July 2002. Four journeys each way on school days and two journeys each way on Saturdays and school holidays. COST: £11,780.00 estimate to year ending 31st March 2008. COMMENCED: Five-year commitment from 17th July 2005. COMMENTS: Prior to July 2002 the service on this route consisted of a return journey from Ardrishaig to Oban, daily during the summer and on four days a week during the winter, operated by Scottish Citylink Coaches Ltd. In addition to this a journey operated from Oban to Lochgilphead and return on school days only. During the winter and when schools were on holiday there were days where there was no service on the route.

Since the service was enhanced passengers carried have been as follows:

2003 19,308 passengers 2004 21,727 2005 21,819 2006 19,931 projected

For 2006 the projected subsidy per passenger will be £1.78, still well within the current guideline criteria figure.

Continued promotion of the service by both the Council and the contractor is necessary to restore modest growth to this service.

SERVICE: Additional Bus Services on Islay and Jura CONTRACTOR: Ben Mundell Ltd. trading as Islay Coaches and Alex Dunnachie trading as Charles MacLean DESCRIPTION: Additional Summer Sunday bus services on Islay and an additional journey on Thursday evenings from Jura to Bowmore and return. COST: £14,000 (Estimate) COMMENCED: The seasonal commitment to provide additional services has operated since summer 2003. COMMENTS: During 2006 the two additional Sunday journeys on Islay carried a total of 342 passengers at a cost of £2,785. The subsidy per passenger was well in excess of the guideline criteria at £8.41 per passenger. However, it is hoped to re- introduce the additional journeys for summer 2007 and promote them more vigorously.

A Thursday evening journey from Craighouse to Bowmore was authorised late 2005 and approval for continuation is also sought. However, it should be noted that the journey carries an average of 12 passengers each night at a cost of £120. This represents a subsidy of £10 per passenger, almost three times the guideline criteria figure.

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If there is no improvement on these subsidy levels the future of both services would have to be given serious consideration with a view to trying to find a more cost effective community transport solution as recommended by the Scottish Executive.

SERVICE: Additional “On Request” Ferry Service between Jura and Islay CONTRACTOR: ASP-Seascott DESCRIPTION: Early morning request journeys during the CalMac summer timetable. COST: £3,000 (Estimate) COMMENCED: Summer 2004 COMMENTS: The Tuesday and Saturday sailing from Port Askaig at 0700 during the peak summer season will continue during summer 2007. It is hoped to re-introduce the additional request sailing of the Islay – Jura ferry to provide a connection with this sailing during the period of operation 18th May until 24th September 2007.

Figures for this year’s request sailings are not yet available but it should be noted that during 2005 the sailing was requested on 14 occasions (12 Saturdays and two Tuesdays) and carried 90 passengers at a subsidy of £14.78 per passenger. However, while this figure is well over the guideline criteria figure of £3.50 per passenger the overall amount involved is small.

SERVICE: Kintyre Evening Services CONTRACTOR: West Coast Motors DESCRIPTION: Enhanced evening bus services to Southend and Machrihanish. COST: £9,000.00 COMMENCED: 10th December 2001 COMMENTS: These services were introduced as part of an initiative to revive evening services following the uncertainty created by their proposed withdrawal. Following local consultation, the evening journeys were re-timed in an effort to increase patronage. Despite substantial additional cost, no significant increase in patronage was experienced and the previous times were re-introduced at a saving of approximately £11,000 per annum. The contractor has been asked to supply up to date patronage figures for the evening services so that the figures can be measured against the Guideline Criteria. The normal figures we are given as part of the contract embrace the whole service and these journeys need to be identified separately. It is recommended that this enhancement continue.

SERVICE: Lochgilphead and Campbeltown (Tuesdays Only) CONTRACTOR: West Coast Motors DESCRIPTION: Additional journey introduced as part replacement for withdrawn Citylink service. COST: £2,370.00 COMMENCED: 29th October 2002

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COMMENTS: This service is an additional journey on an existing schools / local contract which hitherto only operated on school days. The Tuesdays Only journey was originally introduced between Tayinloan and Campbeltown as it provided the only means of direct transport between the Gigha Ferry and Campbeltown following the withdrawal of a Scottish Citylink Coaches journey. The service was then extended to Clachan and later to Lochgilphead. Figures for the individual journey are not available but taken as a whole, including the two school day journeys each way which carry a few fare paying passengers, the contract carried the following:-

2001 1,657 passengers 2002 2,198 2003 3,715 2004 3,716 2005 3,771 2006 3,980 projected

For 2006 the projected subsidy per passenger will be £3.74, slightly in excess of the current guideline criteria figure of £3.50 per passenger.

Continued promotion of the service by both the Council and the contractor is necessary to continue the modest growth to this service.

SERVICE: Campbeltown and Sound of Kintyre CONTRACTOR: West Coast Motors DESCRIPTION: Service to Sound of Kintyre (refurbished ex RAF housing) and Vestas – Celtic Wind Technology Ltd. factory. COST: £29,600.00 COMMENCED: 31st March 2003 COMMENTS: This enhanced service has shown continued growth since being introduced.

2002 0 passengers 2003 2,132 2004 4,996 2005 6,265 2006 5,685 projected

For 2006 the projected subsidy per passenger will be £8.04, well in excess of the current guideline criteria figure of £3.50 per passenger.

Continued promotion of the service by both the Council and the contractor is necessary to continue the modest growth to this service which has suffered a slight downturn this past year. If the upward trend cannot be restored it may prove necessary to withdraw the service enhancement and serve the area with the Ring’n’Ride service or Community Transport.

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SERVICE: Campbeltown Ring’n’Ride CONTRACTOR: West Coast Motors DESCRIPTION: Demand Responsive Service, Monday to Friday serving Campbeltown, Campbeltown Airport and Southend COST: £8,500.00 COMMENCED: 10th January 2005 COMMENTS: This new service was the subject of a detailed report to members on 8th December 2004. The majority of the funding for the service has come from the Scottish Executive by means of a special grant as part of a study into the value of this sort of service to rural areas. A small sum of Rural Transport Grant is still required towards the cost of operation of the service for 2007-08. Although Community Services : Social Work withdrew their contribution to the service with effect from 1st April 2005 they still continue to supply Homecare Assistants to travel with the bus when their clients are being transported.

In its first year of operation the service carried 8,178 passengers and the projection for the year is 12,634. The subsidy per passenger is £2.79, within guideline criteria limits. A review of the service will be undertaken soon when it may prove possible to expand the area served to include Stewarton and Sound of Kintyre.

SERVICE: Inveraray and Lochgilphead Commuter service CONTRACTOR: West Coast Motors DESCRIPTION: Operation of the existing school days only morning journey from Inveraray on Mondays to Fridays throughout the year and a return journey after 1700hrs in the evening at a time to be decided following local consultation. COST: £30,500.00 COMMENCING: 4th April 2005 COMMENTS: This service was the subject of an earlier experiment, which failed through lack of use. There now appears to be a greater willingness to support such a service although the cost is substantial. To bring the service within the Guideline Criteria will require at least 17 return journeys per day. The service operates to and from Ardrishaig and will divert via the hospital but cannot operate via Kilmory as there is nowhere suitable to turn a large vehicle.

The opinions of local community organisations, potential users and major employers in the area were sought prior to fixing the evening departure time and the service was given the maximum publicity by way of timetable leaflets, press advertising, radio advertising and bus stop information panels. The assistance of community organisations was also sought in publicising the service.

From commencement on 2nd May 2005 to 18th March 2006 the service has carried 3,238 passengers at a subsidy of £8.63 per

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passenger. The projection for 2006 is 4,138 reducing the subsidy per passenger to £7.36. Unfortunately, this figure is still very high but the service should be given a further year to see if modest growth can be continued. A further publicity campaign will also be arranged for the service.

SERVICE: Ardrishaig and Lochgilphead Local Bus Services CONTRACTOR: Anderson Coaches DESCRIPTION: Additional journeys to MacDonald Terrace COST: £8,500 COMMENCING: June 2006 COMMENTS: Although the Council and West Coast Motors were successful in obtaining Bus Route Development Grant bid for the service to the new hospital, MacDonald Terrace was left without a service as a result and so Anderson Coaches services into Lochgilphead have been extended to MacDonald Terrace four times daily, Monday to Friday as well as operating via the new hospital. As yet there are no accurate figures for patronage on these journeys but the data will be obtained.

SERVICE: Mid Argyll Transport Volunteers CONTRACTOR: Mid Argyll Transport Volunteers DESCRIPTION: Funding to complement the organisation’s Rural Communities Transport Initiative Grant application in order to continue their activities. COST: £1,000 COMMENCING: 2006 COMMENTS: In offering local authorities a Rural Transport Grant allocation the Scottish Executive is encouraging authorities to fund community transport where this appears to be a viable alternative to conventional transport. The Mid Argyll Transport Volunteers provide a valuable service to those over sixty years of age by providing them with transport to medical appointments, shopping or other journeys they require to make if they are unable to use public transport or there is no public transport available. They have 15 regular drivers and carry out an average of 30 journeys per week.

Section B. New services or projects.

In addition to the foregoing proposals the following project is recommended: -

SERVICE: Lochgilphead – Crinan – Jura CONTRACTOR: To be decided by tender DESCRIPTION: Summer only passenger ferry service between Crinan and Jura with connecting bus service to Lochgilphead. COST: £25,000 estimated contribution from Rural Transport Grant with the majority of funding from other sources. COMMENTS: This figure is a small part of the overall funding required to put in place this ferry and connecting bus link. The sponsors of the project, Jura Development Trust, are also seeking contributions from Argyll and the Islands Enterprise, elsewhere within the

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Council, Regional Selective assistance and the Rural Communities Transport Initiative. If all applications are successful the project will go ahead with infrastructure work at Crinan and Jura, three sailings per day peak summer and two during early and late summer.

SERVICE: Lochgilphead – Campbeltown – Lochgilphead Commuter Journeys CONTRACTOR: West Coast Motors DESCRIPTION: Major enhancement to timetable. COST: £58,000 estimate COMMENTS: Our experience with Rural Transport Grant has been that in the main, the best performers have been enhancements to existing services rather than completely new initiatives with a minimal service. This proposal seeks to supplement existing services to make possible commuting journeys from Campbeltown to Lochgilphead and also from Lochgilphead to Campbeltown. Some of the journeys are already in place either supported by the Council or being operated commercially by Scottish Citylink Coaches. The additional journeys will be quite expensive to operate due to the distances involved and in the afternoon there will be dead mileage in order to make sure drivers end their shifts at the correct end of the route.

Parity of fares and interchangeability of tickets would have to be agreed with Scottish Citylink Coaches and informal enquiries indicate that this may not be an insurmountable problem.

However, this would be the most costly Rural Transport Grant initiative undertaken thus far and bearing in mind the need to try and achieve an equitable Rural Transport Grant settlement between the three Council Areas it may not be possible to fund this project in its entirety given the overall cost involved and other projects underway in the area. The actual amount available for this service may not be known until the final paper is presented to the Strategic Policy Committee by which time some of the estimated amounts will have been confirmed either by the result of tenders or discussions with the appropriate contractor.

SERVICE: Ardrishaig/Lochgilphead and Oban (serving Oban, Lorn and the Isles and Mid Argyll, Kintyre and Islay areas) CONTRACTOR: West Coast Motors DESCRIPTION: Experimental Sunday service – Summer Only COST: No allocation of funding at present COMMENCES: 1st April 2007 COMMENTS: The history of this route is detailed earlier in this report. The Council already funds two similar seasonal Sunday services between and Rothesay and between Dunoon and Inveraray both of which are reasonably patronised. This proposal would provide two journeys each way between

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Ardrishaig and Oban and would be of benefit to tourists and local residents alike providing links to the supermarkets in Oban but also to the tourist attractions on the route, for example Kilmartin and Arduaine. This proposal would only be inaugurated if sufficient funding is available once firm prices have been received for other projects.

5. CORPORATE

In addition to the foregoing and in line with the conditions of the grant a further sum of approximately £60,000 will have to be agreed corporately by the Strategic Policy Committee as the expenditure will benefit the Council as a whole. These include a commitment to Community Transport, expenditure related to the administration, publicity and marketing of Rural Transport Grant supported projects, accessibility planning and a small grant to the ongoing Red Cross transport scheme which the Council already assists using Rural Transport Grant.

6. IMPLICATIONS

6.1 Policy – Consistent with Council’s core policy of providing access.

6.2 Financial – Cost contained within the Rural Transport Grant.

6.3 Personnel – None

6.4 Equal Opportunities – None

6.5 Legal – None.

For further information please contact D. Blades (01546 604193).

D Duthie Head of Transportation and Infrastructure

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