ONE of the higher priority recommendations from Tribal Consulting is that the Environment Department reviews the current bus contract to wring out some value for money for the public purse which this year will pour £2.25m. into it, rather more than £50 a head per taxpayer.
Environment’s response was swift: we’re already doing it and the report should be with the States shortly. Depending on how far and how thorough a review that implies, the development is to be welcomed.
It might also provide a clue to how successful the fundamental spending reviews are likely to be.
The essential problem with the subsidy given to Island Coachways is that no one is particularly clear what the money’s for, what the taxpayer is supposed to get back in return – and why.
Each year, the company is given a fistful of cash and that’s pretty much that, which is why Tribal recommends a thorough overhaul of the service provided and one that defines the States’ requirements.
It would be easy to criticise Environment for not having done this before. Forget passengers, because this is public money, what benefit does the island as a whole accrue from the £2.25m.?
That it has not been, however, reflects the rather casual approach departments generally had towards funding: there was plenty of it so getting every last drop of value was not much of a priority.
Tribal’s approach is to encourage departments to have a complete culture and attitude shift and to encourage politicians and their professional staff to ask, ‘why on earth are we doing this?’
Environment’s forthcoming report will indicate how far down the road it has got in reappraising its thinking.
Tribal suggests savings equivalent to £724,600 a year are possible, which would drop what Island Coachways receives to little more than £1.5m. a year.
As Tribal says, load rates are poor at an average of 20 unique passengers per route and income of 41p per user is also poor, suggesting overcapacity and fares that are too cheap.
Environment’s response to this challenge will be interesting indeed.
Bus review could set the pattern
ONE of the higher priority recommendations from Tribal Consulting is that the Environment Department reviews the current bus contract to wring out some value for money for the public purse which this year will pour £2.25m. into it, rather more than £50 a head per taxpayer.
Environment’s response was swift: we’re already doing it and the report should be with the States shortly. Depending on how far and how thorough a review that implies, the development is to be welcomed.
It might also provide a clue to how successful the fundamental spending reviews are likely to be.
The essential problem with the subsidy given to Island Coachways is that no one is particularly clear what the money’s for, what the taxpayer is supposed to get back in return – and why.
Each year, the company is given a fistful of cash and that’s pretty much that, which is why Tribal recommends a thorough overhaul of the service provided and one that defines the States’ requirements.
It would be easy to criticise Environment for not having done this before. Forget passengers, because this is public money, what benefit does the island as a whole accrue from the £2.25m.?
That it has not been, however, reflects the rather casual approach departments generally had towards funding: there was plenty of it so getting every last drop of value was not much of a priority.
Tribal’s approach is to encourage departments to have a complete culture and attitude shift and to encourage politicians and their professional staff to ask, ‘why on earth are we doing this?’
Environment’s forthcoming report will indicate how far down the road it has got in reappraising its thinking.
Tribal suggests savings equivalent to £724,600 a year are possible, which would drop what Island Coachways receives to little more than £1.5m. a year.
As Tribal says, load rates are poor at an average of 20 unique passengers per route and income of 41p per user is also poor, suggesting overcapacity and fares that are too cheap.
Environment’s response to this challenge will be interesting indeed.
Article posted on 6th October, 2009 - 3.59pm