Tuesday 10 February 2015
The Environment and Treasury and Resources Departments have held detailed discussions concerning the Integrated Transport Strategy and potential options that may be presented to the States to fund the Strategy in the light of the rejection of the previous decision to introduce a First Registration Duty.
It is ultimately for the Environment Department to make recommendations to the States in respect of funding the Strategy but we will continue to work closely with Treasury and Resources as the options are developed.
Whilst a free and enhanced bus service is part of the approved Strategy the on-going provision of a bus service that meets Guernsey's needs is a pre-requisite regardless of how future Strategy funding is resolved. The current bus contract will expire at the end of March and hence securing provision of a bus service beyond this point is essential regardless of any Strategy initiatives. As such, both Environment and Treasury and Resources Department's agreed that it was essential that the contract, that had resulted from a robust and competitive tender process, should proceed. A significant proportion of the costs of the proposed bus contract are, in effect, costs that would have been incurred if the contract had been awarded with the same levels of service as the original contract with CT Plus. A major element of the proposed additional contract costs related to free bus fares. Pending resolution of Strategy funding, bus fares will have to remain at current levels. The element of the contract valued at circa £300,000 which largely relates to improvements to the service put in place after the States debate in April 2014 will be covered by reallocation of funds from within the Environment Department's own budget for the time-being. Clearly the sooner the Strategy funding is resolved then the lower the impact will be on the Department's ability to finance its other services.
Environment Minister Yvonne Burford said:
"Both Departments recognise the essentiality of the bus service to many Guernsey people, especially those unable to own or drive a private motor car, as well as to our tourist industry, and hence it is vital that we ensure the continuation of the service. We will return to the States at the earliest possible opportunity with proposals for alternative funding for the contract and the core areas of the Integrated Transport Strategy."
Contact Information:
Steve Smith, Chief Officer
Environment Department
Tel: 717200
