To: The Chair and Members of the Transport Committee

Meeting: 13 June 2019

Authority/Authorities Affected: , Sefton, Knowsley, Wirral, St. Helens

EXEMPT/CONFIDENTIAL ITEM: No

REPORT OF MERSEYTRAVEL

Bus Station Departure Charges

1. PURPOSE OF THE REPORT

The purpose of this report is to seek approval for a revised structure of Bus Station Departure Charges and look to provide consistent charging arrangements across all Merseytravel facilities, whilst at the same time introducing a much more progressive regime which encourages and rewards the introduction of low emission buses to improve air quality across the region, in line with the LCR Bus Strategy and in support of the work of the LCR’s Air Quality Task Force.

2. RECOMMENDATIONS

Members are recommended to: -

(a) note the contents of the report and understand the details associated with Bus Station Departure and Layover Charges; and

(b) approve the revised charging structure proposed for Bus Station Departure charges with a view to resolving the current inconsistencies and encouraging low emission vehicles; and

(c) approve the charges and associated discounts as set out in sections 3.9 and 3.11 of this report.

3. BACKGROUND AND KEY ISSUES

3.1 The current arrangements associated with Departure and Layover charges in Bus Stations are governed by two key documents – a Bus Station Agreement (signed by all operators who utilise a designated bus station across the region) and a Bus Station Manual (in effect a more detailed operational arrangement of the legal agreement).

3.2 The loose definition of a “bus station” is in effect a gathering of bus stops at which Merseytravel own and is responsible for the highway maintenance Where the bus stop is on the local authority highway network then it is not governed by the Bus Station arrangements. Dependent upon size and footfall, some stations are staffed and others simply managed remotely. The Bus Stations that we charge operators for use are: -

Staffed Bus Stations

Queen Square Bus Station (no layover) Liverpool One Bus Station (and layover) Bus Station (no layover) Bus Station (and layover) Bus Station (and layover) St Helens Bus Station (no layover)

Unstaffed Bus Stations (no layover at any)

Prescot Bus Station Bus Station Earlestown Bus Station

3.3 It is important to note that for historical reasons, Merseytravel has not applied departure charges for Liverpool South Parkway (LSP), or some services into Liverpool One Bus Station.

3.4 Each staffed Bus Station includes a Travel Centre on site. Charges are made on a per departure basis as follows: -

Standard Rate £0.48 Green Rate (Euro Admission Standard) £0.44

3.5 Each unstaffed Bus Station does receive regular visits and inspections, as well as being served by help points and CCTV. Charges are made on a per departure basis as follows: -

Standard £0.17 Green (Euro Admission Standard) £0.15

3.6 As well as departure charges above, Merseytravel also charge layover charges in our Bus Stations where applicable. It must be stressed that layover charge arrangements are for noting only and do not form part of the proposals within this report.

3.7 As part of the work of the Bus Alliance and in support of emerging work in the City Region to improve air quality, an action to review Departure Charges in our staffed and unstaffed bus stations was commissioned, with a view to achieving the following objectives: -

 To provide a consistent and transparent charging scheme.  To incentivise Environmentally friendly vehicles across all bus operators – taking account of modern vehicle technology and developments. The proposals could also incentivise other improvements across the operator fleet that will enhance the customer experience.  Include all use of the Bus Station facilities, considering drop off arrangements as well as departures.  Ensure our charges remain compliant with relevant legislation.

3.8 Following a detailed review of current charges, a revised pricing structure has been developed to ensure the bus operators’ overall expenditure and income relating to bus station departures remain unchanged, but the above objectives are met.

3.9 As a result, the following categories of vehicles have been established, considering their impact on the environment in terms of emissions: -

Category Vehicle Types Standard Euro 4 Engine Rate 1 Electric Vehicle Rate 2 Biomethane Euro 6 Hybrid Euro 6 Stop/ Start Rate 3 Euro 6 Euro 5 Hybrid Rate 4 Euro 5 Rate 5 Euro 3 and below

3.10 In reviewing charges, it is felt best to set a standard departure charge, which will vary for staffed and unstaffed bus stations and be reviewed annually in line with the Bus Station legal agreements. The rates for 2019/20 are proposed as follows: -

Staffed Bus Station £0.48 per scheduled departure Unstaffed Bus Station £0.17 per scheduled departure

3.11 It is also proposed that based on the category of vehicle type in the table in section 3.9 above, the following discounts will be applied against the standard charge. Discount rates and categories will also be reviewed annually as part of the departure charge review: -

Category Discount Rate Standard No discount Rate 1 50% discount Rate 2 40% discount Rate 3 35% discount Rate 4 20% discount Rate 5 Double standard fee

3.12 The main two bus operators across the region, part of the Bus Alliance, have been consulted as part of these arrangements and are supportive of such.

3.13 Smaller operators, whose use of the bus stations is limited, have been communicated in respect of the change, and comments requested. No comments have been received in respect of this proposal.

3.14 Finally, in setting a consistent approach, charges will be applied for all operators across all of our bus station facilities within the Merseyside region and the bus station agreements will be amended to reflect these new arrangements.

4. RESOURCE IMPLICATIONS

4.1 Financial

The proposed charging structure was reviewed and proposed to ensure the overall impacts for Merseytravel and the bus operators was largely neutral, but support low emission vehicles and fleet investment across all operators. The net impact will see approximately £5k extra per annum for Merseytravel as a result of these new charges.

4.2 Human Resources

There are no direct HR implications associated with this report.

4.3 Physical Assets

There are no direct implications associated with this report.

4.4 Information Technology

There are no IT implications with this proposal.

4.5 PMO Implications

There are no PMO implications associated with this report.

5. RISKS AND MITIGATION

5.1 The report looks to mitigate risks of challenge based around an inconsistent charging model associated with Bus Station Departure Charges.

5.2 However, should the preferred option be progressed, then we do introduce the risk of services actually being withdrawn by Operators from our Bus Stations, inconveniencing the customer. This risk has been mitigated through consultation in developing this proposal and in principle agreement from the two largest bus operators in the region.

5.3 There is an overall risk that income from departure charges could significantly reduce for Merseytravel as bus operators invest in a low emission fleet. Whilst this should be seen as a positive intervention supporting the wider Combined Authority air quality agenda, officers have looked to mitigate this by allowing a review of categories and discounts annually.

6. EQUALITY AND DIVERSITY IMPLICATIONS

A rapid screening Equality Impact Assessment has not been completed for this report as it is around a commercial operators agreement. The whole basis of the discussion has been around introducing this revised charge without impacting customer facing services in any way.

7. COMMUNICATION ISSUES

There are minimal communication and marketing impacts, other than communicating our decision to all Bus Operators. The majority of the remaining operators use of bus stations is not expected to result in significant financial issues or loss.

8. CONCLUSION

The report looks to highlight inconsistencies with current arrangements and provide a consistent bus station departure charging model moving forward, which also recognises the importance of air quality in our major urban locations and therefore encourage use of low emission vehicles across our region.

Frank Rogers Chief Executive of the LCR Combined Authority

Contact Officer(s):-

Gary Evans, Head of Customer Delivery 0151 330 4502 Liz Storey, Corporate Communications Manager 0151 330 1430

Appendix/Appendices:-

None

Background Documents:-

Bus Station Agreements Bus Station Manual