Highland Country Buses, trading as Stagecoach in the Highlands, has agreed to pay £20,500 to schools on the Isle of Orkney after a Public Inquiry (PI) in Kirkwall before Traffic Commissioner (TC) Joan Aitken.
It is the first case where an ex gratia payment to schools has been made in such circumstances.
The Inverness-based company had been called before the TC because of reliability issues with contracted school services and local bus services, many of which were caused by vehicle breakdowns.
The TC was concerned about the standard of vehicle roadworthiness and presentation. She reduced the number of vehicles authorised on the O-Licence from 210 to 180 until she is satisfied with compliance.
Stagecoach in Scotland MD, Robert Andrew, apologised in public to Orkney Council officials for the company’s failures.
Mindful of the apology given by Mr Andrew, the TC agreed with Stagecoach that the company would make a payment of £20,500 for the direct benefit of schools within Orkney, rather than ordering it to make a payment to the Scottish Government.
This payment is not compensatory and does not affect any contractual obligations between the council and Stagecoach. It is an ex gratia payment facilitated by the TC.
The TC proposed to the council that £1,000 be paid to each of the 11 Orkney mainland primary schools, whether using Stagecoach for school transport or not given that the wider Orkney mainland community uses the service buses. Also, £2,500 is to go to each of the two senior schools (Kirkwall Grammar and Stromness Academy) and £500 to each of the nine Isles schools.
