The Government is facing pressure from former transport secretary Stephen Byers to throw a cash lifeline to the Tyne and Wear transport executive, which faces a £5.4M shortfall for operating a pensioners’ free bus travel scheme.
New Labour stalwart Byers broke ranks this week to warn local government minister, Phil Woolas, that Tyne and Wear was being ‘treated unfairly’. Byers told the minister everyone wanted free bus travel for pensioners but it had to be managed in a way that was ‘fair and just’. The row follows chancellor ~Gordon Brown~'s decision to introduce free bus travel for pensioners. Some £350M has been allocated by the Treasury to cover the cost, but the way it has been distributed has hit the five metropolitan councils in Tyne and Wear.
Nexus still faces a £5.4M shortfall, despite transport secretary Alistair Darling providing £1.7M extra to cover the potential loss of income, and will have to increase fares for young people, and scrap some services to cover this (Surveyor, 9 March). Woolas promised talks with Nexus and councils ‘to try to resolve the problem’. ‘The Government recognises that the amount of money distributed to Tyne and Wear is not adequate to meet the needs of the scheme as proposed, or the current demand for pensioner bus travel,’ he said.
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