Rotala Management - Questions & Answers

[Simon Dunn]

Why are diamond suspending the 228 service?

You do realise that people rely on that vital service to get from Kinver to Stourbridge and Merry Hill. How are they supposed to access vital health care services at Corbetts and Russells Hall?

It is effectively stranding people who live in Kinver and the surrounding villages by withdrawing their bus service.

Have you even thought to consult with local councillors who represent residents who live on that route before removing their bus service?

As an industry we are fortunate that the DfT and Central government policy is helping to support bus.  They have set out that operators should be no worse off as a result of COVID and have introduced a number of policies for guidance.  This guidance is being interpreted differently by different local authorities.  TfWM have taken a different approach to every other local authority.

This different approach has effectively reduced the income to Diamond by £1 million and we simply need to balance our books and the 228 has no chance of getting anywhere near being viable.  We are not a charity and services which aren't holding their own will be removed.  Although we have at this point increased other services, this is were the demand supports this.  I expect there will be other service reductions if demand does not increase substantially over the next few weeks, and these changes because of this £1 million deficit will need to happen at speed.

TfWM and Staffordshire are aware - the changes were thrown onto us less than 2 weeks ago, we immediately highlighted the impact of this.  We have given time for them to respond but unfortunately as a result of no change in policy we have no choice to react quickly.   You should check with Steve Minor, why Claribels have removed their commercial mileage.



Simon

[Trident 4194]

As an industry we are fortunate that the DfT and Central government policy is helping to support bus.  They have set out that operators should be no worse off as a result of COVID and have introduced a number of policies for guidance.  This guidance is being interpreted differently by different local authorities.  TfWM have taken a different approach to every other local authority.

This different approach has effectively reduced the income to Diamond by £1 million and we simply need to balance our books and the 228 has no chance of getting anywhere near being viable.  We are not a charity and services which aren't holding their own will be removed.  Although we have at this point increased other services, this is were the demand supports this.  I expect there will be other service reductions if demand does not increase substantially over the next few weeks, and these changes because of this £1 million deficit will need to happen at speed.

TfWM and Staffordshire are aware - the changes were thrown onto us less than 2 weeks ago, we immediately highlighted the impact of this.  We have given time for them to respond but unfortunately as a result of no change in policy we have no choice to react quickly.   You should check with Steve Minor, why Claribels have removed their commercial mileage.

Simon

How can TFWm get away with this?

[fleetline6477]

How can Diamond finish this service at such short notice, don't you need to give the 56 days notice?

[Simon Dunn]

How can Diamond finish this service at such short notice, don't you need to give the 56 days notice?

COVID allows short term de-registration - we have applied under this.  This item has been under discussion with Staffordshire/TfWM for months.

[l.murphy123]

COVID allows short term de-registration - we have applied under this.  This item has been under discussion with Staffordshire/TfWM for months.

Staffordshire are absolutely useless from a passenger/tax payer perspective. How much do you get now on average for a concessionary pass holder? Is it still around the 90p-£1 mark?

[Tony]

Staffordshire are absolutely useless from a passenger/tax payer perspective. How much do you get now on average for a concessionary pass holder? Is it still around the 90p-£1 mark?

The same as everywhere else in the UK it is based on a percentage of the normal fare

[Simon Dunn]

The same as everywhere else in the UK it is based on a percentage of the normal fare

Tony

I would say that is over simplifying it.

Most, not all schemes refer to the DfT guidance.  The DfT provide a model and written guidance which is used to calculate the reimbursement rate.  This rate takes into consideration change in fare/ inflation/ elasticity and additional costs which wouldn't exist in the absence of the scheme. 

The whole principle though, is that operators should be no worse or not better off in the absence of it.




Simon

[l.murphy123]

Tony

I would say that is over simplifying it.

Most, not all schemes refer to the DfT guidance.  The DfT provide a model and written guidance which is used to calculate the reimbursement rate.  This rate takes into consideration change in fare/ inflation/ elasticity and additional costs which wouldn't exist in the absence of the scheme. 

The whole principle though, is that operators should be no worse or not better off in the absence of it.

Simon

Thanks thats really useful. On a route entirely tendered, does the operator keep all the revenue from tickets or does some go back to the authority funding the route?

[Simon Dunn]

Thanks thats really useful. On a route entirely tendered, does the operator keep all the revenue from tickets or does some go back to the authority funding the route?

It depends upon local authority.  In TfWM land, I am not aware of any tender were the operator doesn't take the risk on usage (through concessions, and on bus receipts).  Worcestershire County Council take this approach, but also have tenders were they take the risks around usage.

On final point - on tendered services you are not eligible for marginal capacity costs for concessionary fares.  This also affects the concessionary fares rate of reimbursement.


Simon

[Jakemat10]

Could you please update me on the whereabouts of 20541 if it will return to service or if it's withdrawn

Thanks

Jake

[BD12TCJ]

Ie 40705 going to be repaired?

[Simon Dunn]

Could you please update me on the whereabouts of 20541 if it will return to service or if it's withdrawn

Thanks

Jake

I don't think it will return to service

[Simon Dunn]

Ie 40705 going to be repaired?

The vehicle is at the factory now being repaired

[Jakemat10]

Ok thanks is it still at redditch depot then

[Jakemat10]

Would you consider bringing 30897 down to tividale along with 21109

Thanks

Jake