Free fares prove costly for Midlands authority

29 November 2007

The West Midlands Passenger Transport Authority (Centro-WMPTA) is set to pay out an extra £10M, after the DfT ruled it short-changed private bus companies over concessionary fares.

As part of its agreement with Travel West Midlands and Go West Midlands, Centro-WMPTA agreed to reimburse the firms fairly for the concessionary fares they carry on their buses. WMPTA said it firmly believed that the scheme it had in place did reimburse operators accurately, but the two operators disagreed and successfully appealed against the scheme to the transport secretary.

Centro-WMPTA sought a judicial review, but a court has now refused to grant permission for the legal challenge to be heard. The authority said the ruling meant several million pounds of taxpayers’ money would now have to be handed over to the two bus operators.

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Free fares prove costly for Midlands authority

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