(S3O-10081) Public Transport (Fife)

4. Marilyn Livingstone (Kirkcaldy) (Lab): To ask the Scottish Executive, in light of its reduction in support for concessionary travel from 73.6p to 67p in the pound, which equates to a £1.3 million reduction in funding for public transport in Fife, how it will support the transport industry there. (S3O-10081)

The Presiding Officer (Alex Fergusson): I should have said that question 3 was not lodged.

The Minister for Transport, Infrastructure and Climate Change (Stewart Stevenson):

That has taken me slightly by surprise, Presiding Officer.

The Scottish Government remains committed to supporting the bus industry, as was demonstrated by the recent agreement that was reached with the Confederation of Passenger Transport, which will deliver another three years of substantial investment. The change in the reimbursement rate for the national concessionary scheme is intended to deliver the agreed principle that bus operators should be no better and no worse off as a result of the scheme. The agreement with the CPT includes an increase in the separate bus service operators grant, which is intended to help the industry to drive down fares and encourage more routes—all to the benefit of the travelling public.

Marilyn Livingstone: The minister will be aware that, for the network to be maintained, local government will have to make up the shortfall with no extra funding. That equates to £25 million in cuts throughout Scotland. Without that additional funding, Fife could see a shortfall of 25 to 30 buses. Given that other parts of the United Kingdom are continuing with the reimbursement rate of 73.6p in the pound, how can the Scottish Government justify these massive cuts to a scheme for the most vulnerable people in our communities?

Stewart Stevenson: I was not aware that the rate in England was anything remotely like 73.6p in the pound—in many cases, it is substantially less than 50p in the pound. The Labour transport spokesperson pointed to the long-term sustainability issues associated with a rate of 73.6p in the pound, and we agreed to a rate of 67p in the pound. The Confederation of Passenger Transport understands that.

When the reimbursement rate was set at its original level, a significant proportion of the money was for start-up costs. The start-up period will end with the completion of the installation of electronic ticketing, which will happen in the next few weeks. It has, therefore, been appropriate to revise the figure to meet the real costs to the bus companies. The increase of 10 per cent in the bus operators grant—which is guaranteed over the next three years—will play a key role in ensuring that we sustain the important network of bus routes across Scotland.