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ISLE OF WIGHT CONCESSIONARY FARES SCHEME 2009 ('the Scheme')
NOTICE OF PARTICULARS OF THE SCHEME


Introduction

The Concessionary Fares Scheme agreed by Isle of Wight Council will come into effect on Wednesday, 1 April 2009 and continue until further notice. This Notice and Scheme replaces the Isle of Wight Concessionary Fares Scheme 2008 and supersedes all previous Concessionary Fare Schemes.


Legislation

The scheme is made in accordance with the Concessionary Bus Travel Act 2007, the Transport Act 2000, the Travel Concessions (Eligibility) Act 2002 and the discretionary powers contained in the Transport Act 1985 ('the Acts').


Responsible Authority

The Isle of Wight Council shall fund, administer and be the responsible authority for the Scheme.

All enquiries regarding the Scheme should be addressed to:

Highways & Transport
Isle of Wight Council
Enterprise House
St Cross Business Park
Newport
Isle of Wight PO30 5WB


All Notices required to be served upon the Isle of Wight Council in accordance with the Acts should be sent to:

Stuart Love
Director of Environment and Neighbourhoods,
Isle of Wight Council,
County Hall,
Newport,
Isle of Wight PO30 1UD


User Eligibility

Holders of a National Bus Pass for England who meet any of the following criteria will be eligible for free concessionary fares:

  • men and women aged 60 years and older;
  • any person who is blind or partially sighted;
  • deaf people;
  • people without speech;
  • people with a disability, or who have suffered injury, which seriously impairs their ability to walk;
  • people without the use of both arms;
  • people with a learning difficulty;
  • people who would be refused the grant of a driving licence to drive a motor vehicle under Section 92 of Part III the Road Traffic Act 1988;
  • people who have a severe and enduring mental health problem; and
  • travelling companions/escorts for disabled people who could not use bus services without the assistance of a travelling companion.


Hours of Operation

The Isle of Wight concessionary fares scheme will permit eligible users who hold a National Bus Pass for England, to travel on all registered bus services, save, for the avoidance of doubt, any services which are not eligible services under either section 146 of the Transport Act 2000 or under section 94 of the Transport Act 1985 and in each case pursuant to the Travel Concessions (Eligible Services) Order 2002 (as it may be amended or replaced from time to time). For the avoidance of doubt, this scheme, to the extent it is made pursuant to the Transport Act 1985, shall only relate to registered bus services which are also eligible services under section 146 of the Transport Act 2000.


Area and times of permitted free Travel

The area of travel will be the Isle of Wight at any time of the day, any day of the week, subject to local bus operating times.


Level of Concession

The proposed scheme provides free travel on presentation of a English National Bus Pass.


Administration

The administration of the issue of National Bus Passes will be carried out by the Isle of Wight Council. A database of all people who are issued with a bus pass will be kept. The Council will be responsible for meeting the statutory requirements for data protection.


Reimbursement

Bus operators will submit monthly returns to the Isle of Wight Council unless otherwise agreed in advance, identifying the number of journeys undertaken and the average fare payable.

For the Scheme it is intended that the generation factor ("Generation Factor") used for calculating reimbursement to operators will be 129.4%.The Generation Factor shall be calculated for each operator using the Department for Transport Reimbursement Analysis Tool utilising the data gathered up to and including the year 2008/2009. The Council may therefore vary the Generation Factor applicable to an operator (and therefore vary the consequent Reimbursement Percentage Level) during the period of the scheme to take into account data available to the Council and any data supplied by such operator (if it can be shown that the data supplied is more accurate than the data available to the Council).

A Reimbursement Percentage Level shall be calculated for each operator under the Scheme by using the Department for Transport Reimbursement Analysis Tool utilising the data gathered up to and including the year 2008/2009, and the resultant sum being expressed as a percentage of the average fare. In calculating the average fare the Council reserves the right to take into account any data available relating to the travel patterns of concessionary passengers, to ensure that the average fare foregone reasonably represents fares that would have been paid by such concessionary passengers in the absence of a scheme. A Reimbursement Percentage Level of 43.6% will be applied.

The Council will also pay a default sum of twelve pence (£0.12) for each generated concessionary fare journey to cover any additional operating costs resulting from having to meet the increased demand from concessionary users. The sum of twelve pence is derived from the guidance issued by the Department for Transport. The figure is used in the absence of accurate figures from the Operator.

Operators may additionally make claims to the Council for other additional costs incurred by them pursuant to participation in the Scheme. The Council must be satisfied that of any additional costs exceeding the twelve pence provided prior to considering any additional costs claim made by the operator. In making such claims the operator shall provide the Council with sufficient information supporting their claim for costs to demonstrate that:

(1) the operator has necessarily incurred costs additional to basic operating costs and attributable to an increase in the number or capacity of the vehicles used in providing services on which concessions are available in order to meet the extra demand created by the availability of those concessions; and

(2) that those costs are such that they will not be met by the reimbursement payments otherwise made in accordance with the scheme, during the year in which those costs are incurred

and such information may include, but not be limited to:

(a) details of the additional number or capacity of vehicles used in providing eligible services as a result of concessions being available;

(b) information demonstrating that the additional capacity was required on those services, and is not spare capacity, and showing the extent to which the reason for requiring such additional capacity was due to the availability of concessionary travel;

(c) details of the cost of additional vehicles deployed (or provision of additional capacity) and details of how these have been utilized less any benefit realized by the operator from disposal (or other use) of vehicles previously used to provide such services and any other benefits including (but not limited to ) generated commercial patronage; and

(d) any other information that the operator believes is relevant to its claim for additional reimbursement payments arising from providing additional vehicles or capacity to meet demand created by the availability of the concessions;

The Council shall use all such data provided by such operator, in conjunction with any further information that the Council may itself have to assess the additional costs incurred by the operator and assess any additional reimbursement payments to be made (or if excess additional costs have been paid).

The Isle of Wight Council will require all information required to be produced in support of any claims under the scheme to be certified as accurate by a "responsible person" on behalf of bus operators. The returns will be subject to periodic audit by the Isle of Wight Council or its nominated representatives. Bus operators will be expected to provide all information reasonably required for this purpose.

At the end of each financial year, the Council shall review the reimbursement calculations made in accordance with the scheme during the previous financial year (including additional cost calculations). If following the review it is determined by the Council that the amount of reimbursement (including additional costs) paid during the previous financial year to an operator should have been higher then the Council will pay the difference to such operator within 3 months of the date of recalculation. If following the review it is determined by the Council that the amount of reimbursement (including additional costs) paid to an operator during the previous financial year should have been less, the Council will either:

(1) deduct by equal instalments the amount of over reimbursement from the next three payments to be made under the Scheme to such operator; and/or

(2) if such next three payments are not or will not be sufficient to re-pay such over-reimbursement, demand such over-reimbursement from the operator by notice in writing, and such operator shall be obliged to make such repayment within 30 days of receiving such demand.

The reimbursement calculations issued by Isle of Wight Council shall form part of this Scheme and the particulars and conditions contained therein shall be binding on all bus operators and Isle of Wight Council subject to any lawful variation in accordance with the Acts.

Right to Survey

The Isle of Wight Council has the right to carry out surveys on vehicles on which concessionary fares are issued. Bus operators will be consulted as to how and when the survey will be carried out and operators will be given reasonable prior notice of the Isle of Wight Council's intention.


Variations

The Isle of Wight Council reserves the right to vary the Scheme or to offer discretionary enhancements to the Scheme in accordance with the terms of the Scheme and the provisions of the Transport Act 1985 and any reimbursement arrangements relating to and forming part of the Scheme at any time in accordance with the provisions of the Acts, upon relevant Notice. The Isle of Wight Council shall give 28 days notice in writing to Operators of any proposed variations or changes to the Scheme or reimbursement arrangements, but the period of such notice may be shortened by mutual agreement.


Right of Participation

Notwithstanding the mandatory participation of Operators in accordance with the Transport Act 2000 and the Concessionary Bus Travel Act 2007, the Isle of Wight Council may require and notify any Operator to participate in the Scheme or any variation of the Scheme in accordance with the Transport Act 1985, and such participation will commence not less than 28 days after receipt of such written notification. At the date of notification the Operator will be supplied with a copy of this Scheme and any Variations thereto.


Right of Appeal

Any operator and/or the Council shall be entitled to (but not required) to request an Early Neutral Evaluation of any dispute between such operator(s) and the Council as to reimbursement under the Scheme, in accordance with the Dispute Resolution Procedure set out in the Schedule to this Scheme. The recommendation of the independent expert will be non binding and intended to assist the parties in understanding the merits of their position prior to deciding whether to take further action, unless the parties determine that they would wish the determination to be binding.

Additionally, any Operator has a right of appeal to the Secretary of State against the terms of reimbursement of the Scheme under the Transport Acts 1985 and 2000 or against participation in any discretionary element of the Scheme under the Transport Act 1985 on the grounds that:-

(a) There are special reasons why their company's participation in the scheme in respect of any of the services to which the notice applies would be inappropriate (under both the 2000 Act and the 1985 Act); or

(b) Any provision of the scheme or of any of the scheme arrangements are inappropriate for application in relation to any operators who are not voluntarily participating in the scheme (1985 Act only).

Prior to making such an application, notice in writing must be given to the person and at the address specified under the 'Responsible Authority’ heading above.

Signed: STUART LOVE

Director of Environment and Neighbourhoods,
Isle of Wight Council,
County Hall,
Newport,
Isle of Wight PO30 1UD

SCHEDULE

Dispute Resolution Procedure

1. In the event of any dispute arising in connection with any matter arising from the Scheme which cannot be resolved by agreement between the parties representatives within 5 working days of the dispute arising, senior representatives of the parties shall, within 5 working days of a written request from either party to the other, meet in good faith to attempt to resolve the dispute.

2. If the dispute is not resolved as a result of such meeting, either the Council or the relevant Operator may (at such meeting or within 5 working days of its conclusion) propose to the other in writing that the dispute be referred to an independent expert (“Independent Expert”). The Independent Expert shall conduct an Early Neutral Evaluation of the Dispute as set out in the process below. The Early Neutral Evaluation leads to a non binding Recommendation ("the Recommendation") being issued by the Independent Expert. The Early Neutral Evaluation process is private and confidential.

3. If the parties are unable to agree on a Independent Expert or if the Independent Expert agreed upon is unable or unwilling to act then any party may within 5 working days from the date of the proposal to appoint a Independent Expert or within a further 5 working days of notice to either party that he or she is unable or unwilling to act, apply to the President of the Law Society to appoint an Independent Expert.

4. If any matter is referred to the Independent Expert for determination in accordance with paragraphs 2 and 3 above, then:

(a) the Independent Expert shall provide the Recommendation, subject to the remaining provisions of this paragraph 4, on a basis that is fair and reasonable in all respects as between the Operator and the Council and that takes into account all relevant factors and circumstances;

(b) the Independent Expert shall act as an expert in providing a non binding opinion;

(c) the Council and the Operator shall ensure that the Independent Expert has full access to all books, information and records in their possession or in the possession of their auditors and accountants that are relevant to the dispute and to his determination thereon. The Council and the Operator shall be permitted to serve written submissions setting out their position in relation to the dispute on the Independent Expert ("Initial Submissions") within 14 days of the appointment of the Independent Expert. The Council and the Operator shall then have the opportunity to serve a reply to the other party's Initial Submissions ("Final Submissions") within 14 days of the deadline for serving Initial Submissions. The Independent Expert shall be appointed on the basis that he/she shall use best endeavours to provide the Recommendation within 21 days of receiving the Final Submissions.

(d) the Independent Expert’s fees shall be borne equally by the parties unless he shall decide that one party has acted unreasonably (in which case his fees shall be borne as he shall direct).

(e) the Council and the Operator expressly acknowledge that the Independent Expert shall not be liable for any act or omission whatsoever in connection with this Early Neutral Evaluation.

(f) None of the parties will call the Independent Expert as a witness, consultant or arbitrator in any litigation or arbitration in relation to the dispute in question.

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