Shake-up of bus services due to be given final approval tomorrow - despite Dudley Council objection
Mayor Richard Parker's plans for a £22.5 million shake-up of the West Midlands bus network are set to be approved tomorrow (FRI) - despite a Black Country council's objection.
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The plans for a rail-style franchising system will go before the region's seven council leaders at a meeting tomorrow, where they will need the support of at least five authorities.
The leaders of Sandwell, Wolverhampton, Birmingham, Coventry and Solihull councils have indicated they vote in favour of the plans, but Dudley Council has said it is 'somewhat opposed'. Walsall Council has declared itself neutral.
The move will see Transport for West Midlands setting the routes, timetables and fares for services, and inviting private operators to tender for the contracts. At the moment, private operators are free to set their own routes and timetables, although the combined authority can contract them to operate services which would not otherwise be provided.
If approved, the transition towards a franchise-based model is expected to be fully implemented by the end of 2029, with bus operators being typically awarded seven-year contracts to run services.
It would see the combined authority spend £44.8 million buying depots and a further £77 million on its existing diesel bus fleets, but the costs would be recovered by leasing them back to the bus companies which held the franchises.
But a report to the board said the cost of replacing the fleet in the longer term would be less, as the combined authority would be able to borrow money at a lower rate than private operators.
It said that taking over ownership of the depots and bus fleet would reduce barriers to entry for prospective operators, increasing competition and lowering costs. The report budgeted £22.5 million for the cost of administering the changes.
The report said that all seven authorities recognised the strategic case for franchising services, with most of the comments relating to the financial risk.
"Detailed discussions have subsequently taken place to allay these concerns through the authorities’ finance directors," the report added, with additional questions raised about the combined authority's capacity to manage the franchises.
It said that of more than 3,000 people who responded to a questionnaire issued by the authority, 52 per cent had expressed support for the scheme, with 18 per cent against and 30 per cent neutral.
The report said the bus operators were generally in favour of the model.
