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A decision made 2 November 2009 regarding: School Buses - Request for an above inflation increase.

Decision Reference: MD-TR-2009-0177
Decision Summary Title:	Transport and Technical Services Department – Above Inflation Increase in School Bus Charges		Date of Decision Summary:	30 October 2009
Decision Summary Author:	Finance Manager, Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Transport and Technical Services Department – Above Inflation Increase in School Bus Charges.		Date of Written Report:	30 October 2009
Written Report Author:	Finance Manager, Decision Support		Written Report : Public or Exempt?	Public
Subject: School bus charges – TTS request for an above inflation increase.
Decision(s): The Minister for Treasury and Resources, agreed to approve the 18.4 percent increase in school bus charges from £0.50 to £0.60 flat fare in order for the department to reflect the increase in costs since the last price increase in 2004. The excess in the compounded 2.5 percent limit is due to rounding up to the nearest 10 pence.
Reason(s) for Decision: Financial Direction 4.1 Increases in States Fees and Charges states that where a fee or charge increase exceeds the above limit [2.5%] per annum and is potentially contentious, the Minister for Treasury and Resources is responsible for approving the fee increase.
Resource Implications: There are no financial or manpower resource implications other than those noted in the report.
Action required: Finance Manager to inform Finance Director, Transport and Technical Services Department that the fee increases have been agreed.
Signature:		Position: Senator P.F.C. Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

School Buses - Request for an above inflation increase.

TREASURY AND RESOURCES MINISTER

Capital to revenue transfers

Purpose of Report

Financial Direction 4.1 “Increases in States Fees and Charges” states that fees and charges should be limited to an annual increase of no more than 2.5 percent in accordance with P125/2000 States Anti Inflation Strategy. Departments seeking increases in potentially contentious charges of greater than 2.5 percent that are not calculated by reference to statute, or by a formula previously approved by the States or Minister for Treasury and Resources, will need approval from the Minister for Treasury and Resources.

The Transport and Technical Services Department request approval for above inflation increases in School Bus Flat Fare.

Background

The Department wish to increase the School Bus Fare from £0.49 to £0.58 (excluding GST) representing an 18.4 percent increase. Including GST, or amounts actually paid, the increase will be from £0.50 to £0.60, or 20 percent.

The increase in school bus charges reflects the increases in costs since the last price increase in 2004. 2.5 percent compounded over five years is 13.1 percent and the 5.3 percent excess on the limit is to enable the price to be rounded up to the nearest 10 pence.

Recommendation

For the Minister for Treasury and Resources to approve Transport and Technical Services request for an above inflation increase in school bus charges in order for the department to reflect the increase in costs since the last price increase in 2004.

Reason for Decision

Financial Direction 4.1 Increases in States Fees and Charges states that where a fee or charge increase exceeds the above limit [2.5%] per annum and is potentially contentious, the Minister for Treasury and Resources is responsible for approving the fee increase.

States Treasury Nick Collins, Finance Manager Decision Support

2 November, 2009 for decision 2 November 2009