THE USE OF REVENUE SUPPORT IN AN AREA OF HIGH UNEMPLOYMENT

A supplementary submission was made to the Department of Transport in July, 1980 as part of Durham County Council's 1981/82 transport policy and programme. This requested additional transport supplementary grant to assist bus users in Derwentside district following the closure of Consett steelworks. This followed an indication by the Department of Transport that they would look favourably at an application for additional revenue support for Derwentside. The purpose of this additional support was not only to ease the burden of fares within the district but also to give special attention to the needs of people who travel to places outside the area. Although most of the district relies on the service provided by Northern General Transport there are also eight independent operators covering eleven routes. In attempting to break even, Northern's fare scales are much in excess of the fares in Tyne and Wear County. The low fare scales in Tyne and Wear require considerable financial support, in September 1981 this was reported to be in the order of L1M per week. Passengers using cross-boundary services are charged at the Northern scale in Derwentside and lower Tyne and Wear scale in the PTE Area. The request for additional transport supplementary grant was successful and L356000 at out-turn prices, was made available to assist bus services in Derwentside district. It was considered that the money should be spent in the following ways: (a) a package of reduced fares estimated to cost L266000 which included: (1) monthly season tickets, (II) town tickets in Consett and Stanley, (III) job-seeker tickets for the unemployed, (IV) cheap day returns between selected points. (b) revenue support to maintain bus services in Derwentside district estimated at a cost of L90000. This was essential to retain adequate levels of service to enable passengers to make use of the fares package. The expenditure was approved by Durham County Council's Environment Committee on 9th June 1981. The reduced fares scheme commenced on Saturday, 18th July, along with bus service revisions in the Derwentside area. In the paper on the reduced fares package it is intended that sufficient details should be provided to identify the scheme from its emergence as a package to the end of the first three months of the proposals. Explanations are given of the techniques used to identify the use being made of the tickets. It should be emphasised, however, that any calculations used to determine the distribution of the revenue support between operators will not be published. This would break the guarantee of confidentiality as the data is of considerable commercial significance to each operators. (Author/TRRL)