Increases proposed to Guernsey bus fares to reduce subsidy

Friday 25 June 2010

The Environment Department has announced its intention to introduce a series of changes to the structure of fares for travellers on scheduled Guernsey bus services. Whilst fare increases are proposed, passengers will still be able to travel for as little as 50 pence by bulk buying journeys on the Ormer Card.

Under the new fare structure, a single bus journey will be increased from 60p to £1, with fare reductions for regular bus users who purchase Ormer cards of twenty or fifty journeys. There will, at this time, be no change to the existing free concessionary fares that apply to OAPs and certain school children. It is anticipated that changes will be implemented from 1st August.

Deputy Peter Sirett, Minister for the Environment Department said “the recommendation to restructure the fares is necessary in part to cover the increased costs of running the service, but also to more fairly balance the costs of providing a social bus service between the taxpayer and the bus user. The Environment Department believes that the bus service will still represent excellent value for money when compared with other modes of transport and when compared with fares payable for bus services in other jurisdictions”.

Recent analysis has identified that 75% of costs of the current bus service are subsidised by the tax payer. The present financial conditions faced by the States of Guernsey means that the current level of subsidy for bus travel on the Island is unsustainable. The proposals should raise around £400,000 towards operational costs of the bus service and rebalances the level of subsidy currently paid by the taxpayer towards bus journeys.
The proposals for increased fares have been devised with the support of the Financial Transformation Programme, which is actively evaluating where cost and efficiency savings can be made across the States of Guernsey.

Based on a value for money review, the proposed changes to the fare structure are not expected to compromise the policies of the Road Transport Strategy, which aims to promote alternative means of transport.

Hannah Beacom, Managing Director of Island Coachways said “in light of the economic climate the proposed fare structure increase is an entirely understandable recommendation and therefore Island Coachways is supportive of this proposal. Island Coachways provides the island?s travelling public with quality service and I believe that the proposed fare is still excellent value for our passengers.”

The Environment Department has now entered into a consultation phase on the proposed fare increases. Members of the public are invited to forward any written comments they have on the proposals to the Environment Department either by letter or email to arrive no later than Friday 9th July 2010.