15th Mar 2021 10:15
(Alliance News) - Stagecoach Group PLC on Monday lashed out at a local authority recommendation for bus services in the Manchester metropolitan area, saying the process used to reach this stage was "unlawful" and the consultation "flawed".
The comments followed the Greater Manchester Combined Authority recommending that a bus franchising scheme go ahead in the region. If approved, the scheme would roll out in three phases in January 2023, January 2024 and January 2025.
The majority of Stagecoach's Manchester operations are in the final phase area, the company said.
The recommendation will be discussed at a meeting of the Greater Manchester Housing, Planning & Environment Overview & Scrutiny Committee this coming Friday, prior to its consideration at a specially convened meeting of the Combined Authority on Tuesday next week.
"We are disappointed at GMCA's recommendation," said Stagecoach Chief Executive Martin Griffiths. "We believe the Combined Authority conducted an unlawful process and a flawed consultation on proposals which do not properly reflect the fundamental and material changes brought about by the Covid-19 pandemic.
"This is simply not the right time to be considering spending huge sums of money on a bus franchising scheme which does not meet the tests laid down in law. The proposed scheme also involves spending GBP135 million on transitional costs alone without delivering any improved services for customers when at the same time multi-million-pound cuts are being considered to vital frontline public services."
Stagecoach said it has submitted a court application for a judicial review of the Combined Authority's consultation.
Stagecoach and other bus operators have pushed the idea of 'Recovery Partnerships' instead of the franchising scheme. Recovery Partnerships would be allocated ring-fenced funding focused on passenger improvements. Stagecoach said in November the partnerships "are designed to act as a bridge from the current interim arrangements to a longer-term commercially sustainable system".
Separately on Monday, Stagecoach said it welcomed the publication by the UK Department for Transport of its National Bus Strategy for England, which it said will maximise the use of buses to reduce car journeys.
"As we look to emerge from Covid, we also want to work closely with government on a proactive joint campaign to rebuild consumer confidence in public transport and to promote the wider green credentials of travelling by bus," Stagecoach CEO Griffiths said.
Stagecoach were trading flat in London on Monday morning at 98.50 pence.
By Tom Waite; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
SGC.L