Written question asked by Graham Stringer (Labour) on Tuesday, 2 May 2006, in the House of Commons. It was due for an answer on Thursday, 4 May 2006. It was answered by Baroness Merron (Labour) on Thursday, 25 May 2006 on behalf of the Department for Transport.

Buses

Question: To ask the Secretary of State for Transport what action his Department is taking to ensure bus fares do not rise faster than the cost of motoring.

Answer: The Government are very concerned about the growing divergence between the cost of public transport and private motoring which is largely due to market forces. The rise in bus fares mostly reflects the increased costs of labour, fuel and insurance to bus operators. These costs need to be met either through fare increases or subsidy. The Department makes it clear in its dealings with the bus industry that affordable fares are a crucial factor in promoting patronage growth and accessibility of services.The Government provides support for local bus services in the form of Bus Service Operators Grant, worth over £370 million annually to the industry. This grant reduces operating costs and therefore helps to minimise fares.In addition, the Government have introduced free concessionary bus travel for over-60s and disabled people and made available an additional £350 million to local authorities to reimburse to operators the revenue foregone. As from 1 April 2008, holders of concessionary passes will be eligible for free local bus travel in any part of the country.We are working up arrangements to develop new ways in which local authorities and operators can plan bus networks together by mutual agreement and consistently with competition law. This could include agreement on bus fares and ticketing.

Secondary information