A threat of “skeleton” bus provision in Wales should revenue support end as planned after 30 June must be averted at all costs if long-term Welsh Government policy for the country’s services is to be delivered, the Coach and Bus Association Cymru (CaBAC) has warned.
CaBAC was responding to comments made to the Senedd by Deputy Minister for Climate Change Lee Waters on 15 February. He raised the prospect of a significantly reduced interim bus network ahead of the proposed franchising of services in the long term.
Mr Waters cited the Welsh Government’s financial challenges as the reason for that “skeleton” threat. But CaBAC believes that a medium-term solution to avoid it can be found without major additional expenditure if far-reaching dialogue and decisions are prioritised.
Most saliently, interim ‘bridge’ revenue funding beyond the current Bus Emergency Scheme (BES) round must be forthcoming for franchising to be successful, it says. Chair and Newport Transport Managing Director Scott Pearson cautions that while Mr Waters says a skeleton provision may be unavoidable in the meantime, the reality in some areas “will be no service at all.” If routes and drivers are lost, rebuilding regardless of regulatory environment will be intensely difficult, he continues.
“Government placed us on the route to franchising. Therefore, it has a moral responsibility to the people of Wales to maintain bus services in all areas.”
Disconnect between bus franchising in Wales and funding scope
CaBAC has further questioned how franchising will work when fiscal constraints are considered.
Mr Pearson points to difficulty in securing the three-month extension of BES to 30 June as an indicator that finding the amount required to deliver franchising will be challenging.
“Bus franchising in Wales is not achievable under current circumstances, except in some limited rural counties; there, it is already the default position because no commercial services exist,” he says.
Mr Waters has repeatedly expressed derision for the deregulated environment, while on 15 February he told the Senedd that concessionary fare reimbursement is a subsidy.
Such hostile language has led to speculation among some CaBAC members that the sector is being “set up to fail” in its current guise, allowing franchising to be more easily accomplished.
Fair bus funding playing field for Wales is CaBAC priority
While funding is challenging, CaBAC’s position is that a significant quantity of additional money is not necessary for sustainable bus networks to be delivered. Instead, it wants to see what is already spent overall on public transport in Wales be done so more efficiently and with a change to the funding split between bus and rail.
“We are not against franchising, if it is done properly,” says Mr Pearson. “That means rolling it out area-by-area, with a clear methodology and a fair playing field. That should take into account knowledge of the networks required and how buses fit as an important part of local communities.”
If Transport for Wales (TfW) is reshaped, it could acquire the necessary skills to competently deliver better and sustainable but networks, he believes. Coupling that to an overhaul of rail spend would “be sensible,” as would beginning the area-by-area rollout of franchising in rural regions before concluding with the three cities of South Wales. But TfW must first bring local authorities on board with the reregulation agenda, CaBAC believes.
“This era should not be a delivery plan for rail at the absolute expense of bus services across Wales, with the biggest detriment to those reliant on bus,” Mr Pearson continues.
What approach should be followed instead?
The trade body is not against changes to bus services in the shorter term. Its members understand that some routes should not continue as pre-pandemic and accept that reform of concessionary reimbursement and Bus Service Support Grant will form part of the future landscape in Wales.
That work must feed into to a longer-term horizon for public money for buses, however. “Those changes will require the industry and the Welsh Government to develop a plan, centred on what transport funding is available and how it is spent,” he explains.
CaBAC acknowledges that such discussions would need to be intensive and would occupy significant time.
“But to get to that point, we need a revenue support settlement to 31 March 2024. That is imperative. The attack on bus services affects every Welsh Government cabinet portfolio, never mind going against the Well-being of Future Generations Act.”
SMEs ‘could walk away’ from Welsh bus industry
Such a package gains greater importance when the potential impact of a worst-case scenario on school transport is considered. Withdrawal of some bus services under the “skeleton” position would create a requirement for more dedicated home-to-school provision.
But many SME operators in Wales have their business anchored by coaches. If they were to decide to concentrate solely on private hire and tourism-related work, the home-to-school landscape could become very difficult.
“Our members tell us that coach work has recovered well. When difficulties with driver recruitment are considered, along with the threat to bus services, that could lead those operators to refocus their direction,” Mr Pearson says. “Home-to-school contract costs would rise quickly in such a case. Then what?
“That is why we need to work with the Welsh Government and TfW to find a way out of the current situation. There is no alternative to what we are putting forward, and it needs to be actioned as soon as possible. I say to ministers: Please do not turn your back on the SME industry in Wales that has served you for so many years. The people of Wales deserve better.”
