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ARGYLL and BUTE COUNCIL STRATEGIC POLICY COMMITTEE

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ARGYLL and BUTE COUNCIL STRATEGIC POLICY COMMITTEE ARGYLL and BUTE COUNCIL STRATEGIC POLICY COMMITTEE DEVELOPMENT SERVICES 1 JULY 2004 BUS ROUTE DEVELOPMENT GRANT SCHEME 1. SUMMARY The purpose of this report is to seek members approval to submit three schemes identified in conjunction with bus operators for the first round of Bus Route Development Grant funding under section 70 of the Transport (Scotland) Act 2001. 2. RECOMMENDATIONS It is recommended that members (i) note the introduction of the Bus Route Development Grant Scheme as announced by the Scottish Executive. (ii) approve preparation and submission by 30th July 2004 of applications for the following three routes identified in conjunction with bus operators:- (a) Oban and Dunbeg (b) Oban and Fort William (c) Oban and Perth 3. BACKGROUND (i) On Wednesday 21st April 2004 the Scottish Executive formally announced the launch of the Bus Route Development Grant scheme in accordance with their “Partnership for a Better Scotland” commitment. The overall purpose of the Grant is to improve access to public transport, encourage modal shift and reduce congestion. The grant is a section 70 transport grant under the terms of the Transport (Scotland) Act 2001. (ii) The grant will provide financial support for up to three years to aid the development of new and existing registered local bus services that have the potential for growth. Bids for projects to start in 2004-05 must be identified in conjunction with bus operators and be set within the context of the Council’s Local Transport Strategy. (iii) Projects for the initial round of funding must be able to demonstrate high potential for developing new and under-used registered bus services, achieving high levels of passenger growth, greater service frequency and quality and other significant benefits to passengers. Projects have to demonstrate the potential for routes to be fully commercially viable at the end of the proposed 3-year funding period. Particularly important for a rural area like Argyll and Bute where commercial viability is unlikely in the majority of cases, subsidised services and subsidised elements of services will also be considered for funding where growth can be demonstrated. However, the transport authority must agree to maintain the existing level of subsidy during the specified period of service or until commercial viability is achieved. F:\moderngov\data\published\Intranet\C00000188\M00001735\AI00017432\BusDevGrantKickStartSPC0.doc 1 of 3 24 June, 2004 (iv) It is for local authorities to decide whether to bid, and if so, how many bids to make. Authorities are asked to bear in mind that it will only be possible to approve a limited number of bids, particularly in this first phase. It is suggested that if more than one bid is submitted they should be ranked according to priority. Bids co-ordinated on a regional basis involving voluntary regional partnerships, where they exist, will be favoured. Joint bids from more than one authority in respect of a cross boundary project will also be considered. It should be noted that if a local authority does not appear proactive and is slow to instigate bids then an operator could approach the local authority and require them to instigate a bid. (v) Projects will need to demonstrate commitment from both the Council and the bus operator to achieving the stated aims and outputs of the project and to making it work over the grant period to achieve longer-term viability. The initial projects will also be required to participate in a research project. (vi) Each application must be appraised in accordance with the principles set out in the Scottish Transport Appraisal Guidance (STAG). In particular it should be noted that projects will not succeed on the basis of social inclusion alone, factors such as congestion and modal shift will be of more importance. Operators and the Council have to act in partnership and submit a good business case to have a chance of their application succeeding. (vii) The potential for viable schemes within Argyll and Bute outwith the Strathclyde Passenger Transport Authority boundary is very limited but we have had two approaches from operators and during detailed discussions three potential schemes have been identified. The two operators who have approached the Council are West Coast Motors and Scottish Citylink Coaches Ltd. (viii) West Coast Motors now operate the majority of mainland tendered services within Argyll and Bute and had examined their overall network and come to the conclusion that there is little scope for viable schemes in Campbeltown, Kintyre and Mid Argyll. These areas already have a satisfactory network of services and any scheme using this particular grant would be unlikely to produce a good enough business case. It is too early to include Dunoon and Rothesay where they have only just started operating for the Council but there may be possibilities in these areas in future years of the scheme. Several Rural Transport Grant schemes are already underway in some of these areas to fill gaps in existing services. West Coast Motors have, therefore, come forward with a proposal to develop the local bus service between Oban, Glengallan Road and Dunbeg. There are three reasons for selecting this route. (a) Patronage on this route is already healthy and shows potential to increase. (b) Current development along Glengallan Road is bringing about an increase in patronage. (b) The proposed development to the north of Oban will increase potential patronage further. These three reasons lead to the conclusion that this service has the potential to sustain a half hourly bus service that could in time become financially viable. The service is currently hourly. The annual cost of the service improvement would be between £70,000 and £85,000. (ix) In discussion with Scottish Citylink Coaches it was felt that the existing commercial services (Glasgow to Oban and Glasgow to Campbeltown) are well established and that it may prove counterproductive to tamper with them. The level of service on each is three journeys per day with Council supported connections at Inveraray providing a thrice daily link to Dunoon. Accordingly, and in keeping with the Council’s policy of developing strategic routes, it was concluded that weaknesses existed in the strategic network to the north and east of Oban. Consequently, it was agreed to examine the Oban and Fort William service with a view to providing a minimum of two journeys per day F:\moderngov\data\published\Intranet\C00000188\M00001735\AI00017432\BusDevGrantKickStartSPC0.doc 2 of 3 24 June, 2004 each way, six days a week all year round. It was also agreed that the fledgling Perth and Oban coach service, now in its second summer, be operated four days a week all year round. The former Citylink proposal will require commitment from Highland Council and the latter will require commitment from both Stirling and Perth & Kinross Councils. In the event that commitment is not forthcoming the proposals cannot be developed and submitted. The Oban and Fort William enhancement would cost £10,880 per annum and from Oban to Perth, £76,160 per annum. (x) Accordingly, the proposals should be ranked as follows:- (a) Oban and Dunbeg – no other authorities involved. (b) Oban and Fort William – one other authority (Highland Council) involved and they have already given a favourable reception to the proposal. (c) Oban and Perth – two other authorities involved, neither of whom have yet been approached. (xi) Applications have to be submitted by 30th July 2004 and it is, therefore, recommended that these proposals be developed and appraised in accordance with the requirements of the application. This work, including the preparation of a business case, will require to be undertaken in partnership with the bus operators as required by the conditions of the grant. 4. IMPLICATIONS 4.1 Policy – none 4.2 Financial – all three routes already receive some financial support from the Council and this has to continue during the period of the grant. 4.3 Personnel – none 4.4 Equal Opportunities – none 4.5 Legal – none For further information please contact D Blades (01546 604193). D Duthie Head of Transportation and Infrastructure 23 June 2004 F:\moderngov\data\published\Intranet\C00000188\M00001735\AI00017432\BusDevGrantKickStartSPC0.doc 3 of 3 24 June, 2004 .
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