Tyne and Wear goes for quality contracts "to save £70m" whilst improving bus services

The Tyne and Wear Integrated Transport Authority has agreed to introduce quality contracts, which it says will deliver better bus services while reducing costs to local taxpayers by £70m.

Key features of a proposal it is now opening to consultation include capping future price rises, additional capacity and introducing London-style smart travel. Fare rises would be limited to the level of inflation, whilst the current network of services would be maintained for seven to ten years, with 2% growth.

The ITA would fund improvements by taking control of fare revenue from private companies and re-investing a greater proportion of the profit buses make in Tyne and Wear in local services.

The ITA has instructed Nexus to launch formal consultation on a Quality Contracts Scheme proposal, which sets out how it would achieve the improvements. It is also inviting bus operators to develop a revised partnership offer as an alternative.

Cllr David Wood, Chair of the ITA, said: "Having looked at the options in some detail, the ITA is clear the Quality Contracts proposal as it now stands represents a better opportunity to achieve our aims than the alternative voluntary partnership so far offered by bus companies.

"We estimate that to provide this level of service in today’s deregulated bus market could cost the taxpayer at least £70 million more. If we don’t take action now to re-invest more of the profit buses make widespread cuts are inevitable from 2015, hitting families, bus company staff and the vulnerable hardest."