04 June 2008
The Minister for Transport and Technical Services, Deputy Guy de Faye, advised the States yesterday that he has agreed to extend the contracts for the scheduled, leisure and schools bus services currently held by Connex, for a further three years.
In a statement to the House, he said “The extension of the contracts provides a positive financial return to the States and tangible benefits to the traveling public. I firmly believe that this decision is the right one for the Island and especially for the public – both those traveling now and those that wish to take advantage of the progressively improving bus transport system”.
Connex won the contract for the scheduled bus services in 2002 for a period of 7 years and in 2007 commenced operating the leisure and schools network after an open tender process. Both contracts were due to expire in 2009 but both allow for a maximum extension of 3 years when a full competitive tender process will be undertaken.
Passenger numbers have increased by 19% since the first year of the contract with Connex carrying just short of 3 million passengers in their 5th year of operation. Over that period, fare revenue has increased by 30% and amounted to £2.8 million in 2007. Figures for 2008 are showing further increases on these figures. Fare prices have increased by only 4% during this time.
This extension of contract will bring a £300,000 reduction on the contract price over the extension period, additional scheduled commuter services and other benefits.
The Minister has also agreed to settle the outstanding shift allowance issue with Connex paying TTS £200,000. the original payment made to Connex in 2002 was £186,000 and the Committee of Inquiry into the bus tendering exercise recommended that the Public Services Committee of the day should take action to determine whether this payment could be recovered.
The Minister finished his statement by saying “I would remind Members that the original contract allowed for a maximum 3 year extension and that a new contract for the complete integrated public, leisure and schools network will be tendered in order to be operational in 2012. I will extend the scope of the contract so that this larger public transport package will have the potential benefit of being able to attract a wider group of local, national and international companies to the tender process, which can only be in the best interest of the Island in respect of securing the best deal for the future”.
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