Funding shortfall will jeopardise bus industry - McInnes

3.19.00pm GMT Thu 14th Feb 2008

Liberal Democrat Transport spokesperson Alison McInnes MSP has criticised the SNP Government for disingenuity and spin over its funding for the bus industry in Scotland. The government budget seriously underfunds both the Bus Service Operators Grant (BSOG) and the Concessionary Fares Scheme, despite the Finance Secretary's last minute increase of £4 million for bus services.

The Confederation of Passenger Transport believes that bus operators are facing a deficit of £7.5 million over the next eighteen months, which could lead to fare increases and curtailment of services.

Commenting, Mrs McInnes said:

"The Scottish Government has been highly disingenuous over its funding for bus services in Scotland. Despite the SNP's spin, the Scottish bus industry is facing severe cuts and hardship.

"John Swinney implied that he was providing adequate funding to address this problem, but instead he is merely filling a financial shortfall for the BSOG. In reality this money only covers the SNP's original miscalculations, and does not increase the level of fuel duty rebate in Scotland in line with the recent rise in fuel duty.

"The Cabinet Secretary has also confirmed that Scotland's share of any future increase in fuel duty support in England and Wales will not be earmarked for bus operators in Scotland.

"Operators have planned and budgeted for a fair deal on fuel duty compensation in line with the rest of the UK, but are now looking at a gaping funding deficit of some £7.5 million. The highly successful Concessionary Fares Scheme is also dangerously underfunded.

"The SNP Government's lack of support is going to be severely damaging, particularly for rural service operators which are already at full stretch financially. If bus operators are not adequately compensated for the fuel duty they pay or for the concessionary fares they provide then their only options are to cut services or raise fares. Bus passengers will suffer, and the effects will be felt even more acutely in rural areas where bus services are relied upon the most.

Alison McInnes believes the SNP are not delivering on public transport

"The SNP profess to be in favour of public transport, but their contrivance over the BSOG and the Concessionary Fares Scheme tells a completely different story."