Bus operator Stagecoach has threatened a legal challenge over plans by the Welsh Government to make changes to the country’s concessionary travel scheme.
The company has given the Welsh Government a deadline of April 1 to re-think its decision to set a new rate at which bus operators are reimbursed, which would result in a £24 million cut in the scheme’s budget, or face a potential judicial review.
Stagecoach has said legal advice suggests key failings in the process the Welsh Government has followed. The Government may also be liable to pay compensation for “violation of EU law”.
Lawyers have also written to ten local authorities in Wales, including Caerphilly, who are responsible for implementing the concessionary travel scheme in areas covered by Stagecoach operations, pointing out that following the Welsh Government’s new guidance could be unlawful.
Last month the Welsh Government confirmed a three-year funding package of £189m for its free bus travel scheme across Wales. The budget has been cut by more than 11% from the £213.3m package provided over the past three years.
The scheme provides free travel to more than 720,000 concessionary pass holders in Wales, including armed forces’ personnel and veterans. Under the scheme, bus operators in Wales should be reimbursed for the full costs of participating in the compulsory scheme.
However, legal experts suggest the Welsh Government has erred in law by unilaterally capping the scheme to fit within an allocated budget rather than following the statutory “no better, no worse off” principle.
John Gould, Managing Director of Stagecoach in Wales, said: “The Welsh Government has so far refused to listen to warnings from bus operators, passengers, public transport campaigners and community groups. Legal action is a last resort and we have written to the Welsh Government to give them an opportunity to re-think their decision. We want to protect people from the devastating impact of these brutal, flawed and unlawful cuts.
A Welsh Government spokesperson said: “The new rate, recommended by an independent review, maintains the principle that bus operators who take part in the scheme are no better and no worse off. Any operator who believes they may be adversely affected by a local authority’s reimbursement arrangements have the right to appeal to Welsh Ministers.”
A spokeswoman for Caerphilly County Borough Council said it was acting within Welsh Government rules.
She added: “The local authorities have already requested an urgent meeting with the Welsh Government to discuss this latest development.”
Stagecoach wasn't complaining about the buses the Welsh government paid for but now they take a little cut there complaining thing stagecoach need to sit down and thank them really
The Labour controlled Welsh Goverment doing something illegal? You mean like their Local Goverment mates awarding pay rises and their previous National Leader going to war.
Oh well, keep voting for them. Over and over and over…..