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A decision made (23/02/07) regarding Connex Bus Services - 2007 Commuter Fare Revisions.

Subject:

Connex Bus Services – 2007 Commuter Fare Revisions

Decision Reference:

MD-T-2007-0021

Exempt clause(s):

Type of Report:

(oral or written)

Written

Person Giving Report (if oral):

Telephone or

e-mail Meeting?

Report

File ref:

I:Minister:2007:Ministerial Decisions: MD 00 Connex Bus Services – Commuter Fares

Written report – Title

Scheduled Bus Service – Commuter Pass Fares

Written report – Author

(name and job title)

Caroline Anderson – Director of Transport

Decision(s):

The Minister agreed that the commuter pass fares on the Connex bus service will be as follows from 6th April 2007:

Fare Band	5 Day Pass	6 Day Pass	Monthly Pass
A	£8.50	£10.20	£31.50
B	£12.75	£15.30	£47.25

Reason(s) for decision:

To bring the commuter pass fares into line with the restructured fare bands.

Action required:

Advise Connex of this decision.

Ensure Connex advise the public of the revised fares.

Signature:

(Minister/ Assistant Minister)

Date of Decision:

23 February 2007

Connex Bus Services - 2007 Commuter Fare Revisions.

TRANSPORT & TECHNICAL SERVICES

SCHEDULED BUS SERVICE - COMMUTER PASS FARES

Purpose of the Report

Further to the Minister's approval for a simplification of the current fare structure on the Connex services (MD-T-2007-0018 refers), to seek the Minister's approval to amended commuter pass rates with effect from 6th April 2007 in line with the simplified fare structure.

Background

The Minister has now agreed the 2007 summer leisure network together with a simplification of the fare structure reducing the current four fare bands to two. The Ministerial decision omitted to include the effect of this restructuring on the 5 and 6 day commuter passes.

Discussion

As the single ride fares have been averaged between the fare bands (for example, the current 90p and £1.10 fares have been reset at £1.00 and, similarly, the £1.40 and £1.60 fare have been reset at £1.50) it would seem appropriate to apply the same logic to the commuter passes and simply take the mid-point.

The current and proposed fares are as follows:

Current Fares

Fare Band	5 Day Pass	6 Day Pass	Monthly Pass
A	£7.65	£9.20	£28.35
B	£9.35	£11.20	£34.65
C	£11.90	£14.30	£44.10
D	£13.60	£16.30	£50.40

Proposed Fares

Fare Band	5 Day Pass	6 Day Pass	Monthly Pass
A	£8.50	£10.20	£31.50
B	£12.75	£15.30	£47.25

Comments

A financial evaluation of the impact of this proposal is attached at Appendix A and, as can be seen, the financial effect is minimal (less than £100). Proportionately, the effect is greater on the 6 day pass because about half the passes were at the maximum £1.60 fare which has been reduced by 10p. The effect is less on the 5 day pass because almost an equivalent number of passengers (375) will be paying more as will be paying less (415).

It is acknowledged that the number of passes sold is relatively low, but taking the mid-point has a near break-even effect even if sales were greater. It is hoped that this simplification may increase the number of passes sold although it is acknowledged that there is no capacity at peak times on the most popular routes (Routes 1 and 15).

The discount applied on these passes, both currently and proposed, is 15%.

Recommendation

The Minister is recommended to agree that the commuter pass fares will be as follows from 6th April 2007:

Fare Band	5 Day Pass	6 Day Pass	Monthly Pass
A	£8.50	£10.20	£31.50
B	£12.75	£15.30	£47.25

Reasons for Recommendation

To bring the commuter pass fares into line with the restructured fare bands.

Actions Required

Advise Connex of this decision.

Ensure Connex advise the public of the revised fares.

Written by:	Caroline Anderson - Director of Transport

Approved by:	John Richardson - Chief Officer

File Ref: 35/9