Many buses have been withdrawn or amended from this weekend because Cornwall Council has slashed the reimbursement to bus operators for people who travel free using Concessionary Fare cards by over half. Half of our passengers don't pay anything so we have lost 25% of our revenue in one swoop. No business can survive that sort of onslaught. Cornwall Council did this despite being told that many services would have to be axed. Our reimbursement is now only 36% of the average fare, cut from 73.5%. At the same time, the Govt imposed a massive 58% hike in fuel tax to bus operators (and ONLY bus operators).!! On top of that, Cornwall Council cancelled our five-year tendered service contracts in the first year, after we had invested £1.5million in new vehicles, ticket machines, training, etc leaving us with a massive investment with no revenue stream. And this on top of all the normal inflationary increases, fuel and tyre price hikes, expensive compliance with new legislation etc.
That has meant that many services that previously operated commercially with no recourse to the public purse now lose money. We are a small business and cannot carry on like that as you will appreciate. We have begged Cornwall Council to pay a sensible amount in accordance with the Govt guidelines to save these services but they have steadfastly refused to do so - and we are as upset about this as our customers, having invested so much money in improving bus services in the area. We have managed to save quite a few services despite this massive hit. Cornwall Council does have the ability to buy in services that have been cut, but have told us that they have no money to do so. In fact, we are told more cuts can be expected. Many buses that are being axed are well-loaded and vital to the communities they serve and in many cases are fully loaded, but are losing money this has to be an absolutely ridiculous situation!
Please contact Cornwall Council Passenger Transport Unit (ptu@cornwall.gov.uk) and complain direct to them and tell them of your hardships. We really sympathize but as a small business, our hands are tied. And it is galling for us who have invested so much time and effort into these bus services, growing the market, being innovative, delivering a high quality bus service, to see them now being dismantled.
