This item was published during the term of a previous administration that ended in April 2007
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Passengers to benefit as Boyack announces three pence cut in fuel duty to be passed on to bus operators
04/04/2001
Transport Minister Sarah Boyack today announced that the benefit of a three pence duty cut on ultra low sulphur diesel will be passed on to local bus operators in Scotland.
The Minister said the benefits of passing on the cut in duty would be directly felt by passengers, by reducing the need for fare rises, which in turn should attract more people to public transport.
Speaking at the annual conference of the Confederation of Passenger Transport in Turnberry, Ms Boyack said:
"Buses have a vital role to play in achieving our public transport objectives.
"The benefit of duty reduction in Scotland will be worth £5 million a year to bus operators. Passing on the full benefit of this duty rebate will have a positive impact on the industry as well as its customers.
"Apart from the clear environmental benefits, it will encourage people to use buses by offsetting some of the cost increases the industry is currently facing."
Today's announcement was made following an interim recommendation by the Commission for Integrated Transport that the full benefit of the three pence per litre cut in fuel duty in the recent budget be passed on to the industry through Fuel Duty Rebate (FDR).
The rebate is a grant paid by the Scottish Executive to local bus service operators to offset the duty paid on the fuel on those services. This is currently worth £50 million a year in Scotland.
The Minister outlined the crucial role the industry has to play in revitalising the public transport market, as she addressed representatives from across the bus industry in Scotland.
She said:
"We need to make public transport a first choice - not a last resort. Part of this can be delivered by providing easily accessible services and accurate travel information as well as maintaining lifeline links to protect and sustain our remote and rural communities.
"The bus industry has a big part to play in this. Passengers value reliability and frequency so it is of little use investing in new vehicles, bus stops or information systems if the service itself is irregular and unreliable.
"The industry must improve the quality of service for all users, changing attitudes so that bus travel becomes a realistic and attractive alternative.
"The Transport (Scotland) Act will bring substantial change for the bus industry and by working in partnership, we can begin to provide local solutions to local problems.
"Nearly half of those who travel to work say they do not use the public transport alternative although it would be possible to do so. There is a huge market out there that must be won.
"The challenge we now face is to work together to deliver a modern, reliable, quality bus network which contributes to an integrated public transport service"
BACKGROUND
1. The Commission for Integrated Transport is currently reviewing subsidies to the bus industry and will report later in the year. In the meantime, it has made an interim recommendation that the full benefit of the three pence per litre cut in fuel duty in the recent budget be passed on to the industry through Fuel Duty Rebate (FDR). In real terms, this means the level of duty rebate increases from 75% to 80%.
- Last September the Minister announced that new resources would be provided to local authorities to enhance existing concessionary fare schemes for pensioners and people with disabilities so that from October 2002 they will benefit from free off-peak local bus travel. In March she confirmed that this would be extended to men over 60.
News Release: SE0918/2001
4 Apr 2001