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ISLE OF WIGHT COUNCIL
PARTICIPATION NOTICE


1. THIS IS A FORMAL PARTICIPATION NOTICEwhich is issued by the Isle of Wight Council, under the Transport Act 1985, sections 97(5), 97(8), 98(3) and 98(4A) and the Travel Concession Schemes Regulations 1986, as amended, requiring the Operator (as defined in paragraph 3 below) to provide the travel concessions required by the Isle of Wight Concessionary Fares Scheme (the "Scheme") (as detailed in paragraph 5 below and reflecting the variation notice published on 4 February 2011 on journeys on services subject to the Scheme to which this notice applies (as set out in paragraph 4 below).

2. THE AUTHORITY

The Authority is the Isle of Wight Council, C/o Strategic Director of Economy and Environment, County Hall, Newport, Isle of Wight PO30 1UD.

3. THE OPERATOR

The Operator is the Southern Vectis Omnibus Company Limited of 41-51 Grey Street, Newcastle upon Tyne, NE1 6EE

4. DETAILS OF SERVICES TO WHICH THE NOTICE RELATES

The services to which this notice relates are all registered services provided by the Operator within the Isle of Wight which are eligible services for the purposes of section 94 of the Transport Act 1985, save for those which are not eligible services for the purposes of section 146 of the Transport Act 2000, and excluding those where members of the public cannot make a single journey between two bus stopping places without it being at a fare which is a deliberate deterrent to such point to point travel and/or it appears to the Council that the fares for the service are significantly high in comparison to comparable journeys.

5. DETAILS OF THE SCHEME

The details of the Scheme are set out in Schedule 1 attached hereto.

6. WHEN THIS NOTICE TAKES EFFECT

The changes set out in this notice take effect on 1 April 2011 and shall continue for a period of 3 years until 31 March 2014, or, if earlier, until any future variation or revocation of the Scheme.

7.RIGHTS AND DUTIES OF THE OPERATOR

7.1          The Operator has a right under sections 98(2) and 98(4A) of the Transport Act 1985 to apply to the               Secretary of State for cancellation or variation of this notice within 56 days of the date of this notice;
7.2          The Operator has the right under section 99(2) of the Transport Act 1985 to apply to the Secretary of               State for release from the obligation to provide travel concessions pursuant to the Scheme;
7.3          The Operator is obliged to notify the Authority seven days before making any application under section 98               (2) of the Transport Act 1985 and at least 28 days before making any application under section 99(2) of               the Transport Act 1985;
7.4          The Operator is under a duty to provide the travel concessions required by the Scheme and shall be liable               on summary conviction to a fine not exceeding level 3 on the standard scale should the Operator fail               systematically to provide such travel concessions pursuant to section 101(1) of the Transport Act 1985.

 

Dated & Served: This 4th day of March 2011.

Service Method: Post and Facsimile


Signed

___________________________________________
Strategic Director of Economy and Environment

 

 

SCHEDULE 1

ISLE OF WIGHT CONCESSIONARY FARES SCHEME ('the Scheme')
AS AMENDED IN RESPECT OF THE TRANSPORT ACT 1985 ELEMENTS OF THE SCHEME FROM 1 APRIL 2010
NOTICE OF PARTICULARS OF THE SCHEME


Introduction

The Concessionary Fares Scheme agreed by Isle of Wight Council comes into effect on Wednesday, 1 April 2011 and continues until further notice. This Notice and Scheme replace the Isle of Wight Concessionary Fares Scheme 2009 (as amended for 2010) and supersede 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:

Transport Operations
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
Strategic Director-Economy and Environment
Isle of Wight Council,
County Hall,
Newport,
Isle of Wight PO30 1UD


User Eligibility

The following are users who are eligible for free concessionary travel at the times specified in this Scheme ("Eligible Users") :

(a) Holders of a National Bus Pass for England who meet any of the following criteria :

  • men and women who are elderly persons as defined in section 146 of the Transport Act 2000, as varied by article 2 of the Travel Concessions (Eligibility) (England) Order 2010 ("Eligible Age"); and
  • disabled persons (as defined in section 146 of the Transport Act 2000), ("Disabled Persons") being any person who:
  •      is blind or partially sighted;
  •      is profoundly or severely deaf;
  •      is without speech;
  •      has a disability, or who have suffered injury, which has a substantial and long-term adverse effect on their      ability to walk;
  •      does not have arms or has long-term loss of the use of both arms;
  •      has a learning disability, that is, a state of arrested or incomplete development of mind which includes      significant impairment of intelligence and social functioning; or
  •      would, if he applied for the grant of a licence to drive a motor vehicle under Part III the Road Traffic Act 1988,      have his application refused pursuant to section 92 of that Act otherwise than on the ground of persistent      misuse of drugs or alcohol;

(b) Island Residents who suffer severe and enduring mental health problems and have been issued with a New Islander Card; 

(c) a travelling companion/escort for Island Residents who are Disabled Persons holding  a National Bus Pass for England or persons holding a New Islander Card,  who could not use bus services without the assistance of a travelling companion ("Travelling Companions").

Where:

"Island Resident" shall mean the holder of a National Bus Pass for England or a New Islander Card which has been issued by the Isle of Wight Council; and

"non-Island Resident" shall mean the holder of a National Bus Pass for England who is not an Island Resident.


Hours of Operation

The Scheme will permit Eligible Users who hold a National Bus Pass for England or a New Islander Card, or are Travelling Companions to travel on all registered bus services at the times of permitted free travel listed below, 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 the following times:

  • between the hours of 0930 and 2300 Monday to Friday and at any time on a Saturday or Sunday or on any day which is a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971, solely in accordance with the requirements of the Transport Act 2000 namely:
  •       Island Residents and non-Island Residents who are men and women who are of Eligible Age; and
  •       non-Island Residents who are Disabled Persons.
  • at any time on any day of the week:
  •      Island Residents who are Disabled Persons;
  •       Travelling Companions; and
  •       Island Residents suffering severe and enduring mental health problems,

subject in each case to local bus operating times.


Level of Concession

The proposed scheme provides free travel for eligible users during the applicable hours of operation of the Scheme specified above on presentation of an English National Bus Pass or a New Islander Card, as the case may be.


Administration

The administration of the issue of National Bus Passes and New Islander Cards 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 trips undertaken and the average fare payable.

The revenue reimbursement shall be calculated as the product of the outturn numbers of concessionary trips made during the year on services provided by the Operator multiplied by the average commercial fare which applied to the Operator's services during the year, multiplied by the Reimbursement  Percentage Level.

The Reimbursement Percentage Level is calculated for each operator under the Scheme by using the Department for Transport Reimbursement Calculator utilising the data gathered up to and including the year 2010-11, and the resultant sum being expressed as a percentage of the average fare.  The Reimbursement Percentage Level of 34.1% will be applied from the commencement of the Scheme.

In calculating the average fare (in accordance with the Department for Transport guidance) 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.

The Council will also pay a default sum of seven and one half pence (£0.075) ("Default Sum") for each generated concessionary fare trip to cover any additional operating costs resulting from having to meet the increased demand from concessionary users. The Default Sum is derived from the Department for Transport Reimbursement Calculator. The figure is used in the absence of figures, substantiated to the satisfaction of the Isle of Wight Council, from any Operator.

Operators may additionally make claims to the Council for other additional costs in excess of the Default Sum incurred by them pursuant to participation in the Scheme.  The Council must be satisfied that any additional costs exceed the Default Sum 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.  For the avoidance of doubt, where the reimbursement calculations lead to a variation of the future Reimbursement Percentage Level under the Scheme, such variation shall be made in accordance with the Variation procedure set out below, and the requirements of the Transport Acts 1985 and 2000 (as the case may be).


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

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 relating to the discretionary Transport Act 1985 elements of  the Scheme. At the date of notification the Operator will be supplied with a copy of this Scheme and any Variations thereto.

The Isle of Wight Council shall, pursuant to section 150 of the Transport Act 2000, give four months' notice in writing to Operators of any proposed variations relating to those mandatory elements of the Scheme made pursuant to the Transport Act 2000.

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

Strategic Director-Economy and Environment,
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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