York’s First bill proves freedom comes at a cost

29 March 2007

York City Council will have to pay an extra £274,000 to First buses after the firm claimed it was out of pocket because more passengers than originally estimated were taking advantage of free bus travel in the city.
The Department for Transport (DfT) upheld an appeal by the firm for more compensation from the council to cover its losses.
The council has now called on the Local Government Association (LGA) to hold talks with the Government on increasing subsidies to local authorities prior to the roll out of blanket concessionary travel across England. Other councils, including Poole (Surveyor, 22 March 2007), are also calling for a funding increase.
York’s approach to the LGA comes after it discovered it was not the first council to be penalised in this way. The DfT has admitted other bus operators have been successful in appeals but refused to reveal individual circumstances, claiming this would be ‘unfair’ on the firms involved.
The council says it had agreed with First a £1.7M reimbursement fee when York brought in free travel for the elderly and disabled last year, but First claimed use of bus passes far outstripped original estimates.
‘The firm said there had been more passengers than expected and the DfT agreed a further reimbursement fee,’ said leader of the council, Steve Galloway.

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York’s First bill proves freedom comes at a cost

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