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Great Western Coffee Shop > All across the Great Western territory > Smoke and Mirrors > Finances of Bustitution
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Author Topic: Finances of Bustitution  (Read 4112 times)
grahame
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« on: July 05, 2013, 19:56:30 »
http://www.telegraph.co.uk/finance/newsbysector/transport/10160646/Government-cracks-down-on-rail-replacement-bustitution.html

Quote
Ministers will announce that bus companies will no longer be able to receive "bus service grants" for rail replacement work.

The move by rail minister Norman Baker is designed to stop rail companies that own the bus company from pocketing the cash - and encourage them to use other parts of the railway network when engineering work takes place.

The Daily Telegraph revealed two years ago that First Group's own rail replacement bus service had received ^2.5m in three years. Stagecoach's rail replacement bus service had made ^74,000 in just six months.

Rail companies already pocket compensation from Network Rail when engineering work forces the closure of a track while passengers have to pay full fare and are not allowed to claim compensation.

Government sources claim the crackdown should save taxpayers ^2m.


It appears that rail substitutes buses receive BSOG▸ (Bus Service Operators Grant (a partial refund of fuel duty, enabling operators to provide socially necessary public transport)) grants ... so that the TOC▸ (Train Operating Company) running buses gets full fares, compensation from Network Rail, and extra grants ... have I really read that right?

Quote
Mr Baker said: "I have been pushing for some time to end this highly questionable practice.

"It is simply not right that the public purse has been subsidising these replacement services when Network Rail already offers compensation when trains are not running."

Yep, looks like I have.
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