On this page:

SCOTTISH EXECUTIVE EFFICIENCY TECHNICAL NOTES: MARCH 2005: page 44

« Previous | Contents | Next »

Listen

SCOTTISH EXECUTIVE EFFICIENCY TECHNICAL NOTES: MARCH 2005

1. Portfolio/Number/Name:T/C2 - Concessionary Fares

2. Programme/Activity: Please include a short description

The current scheme for concessionary fares is for buses is complex and could be changed to create a more simple and cost effective scheme. This would drive out efficiency savings.

3. Planned Savings

2005-06

2006-07

2007-08

Cash (m)

0

5

5

Time Releasing (m)

0

0

0

4. Accountable Officer for delivery

Eddie Frizzell

5. Project Manager

Tom MacDonald

6. EGDG account manager

Iain Dewar

7. Quality Impact

Describe any impact on the quality of service delivery. Be specific and explain if the expectation is positive, negative or neutral.

New financial arrangements, central administration, validation and verification procedures should enhance the quality of service.

8. Dependencies

Explain if your savings are dependant on legislation or other structural changes.

The introduction of the new national bus concessionary travel scheme from April 2006; passage of the Transport Bill in 2005; establishment of the new transport agency in 2005; successful outcome of negotiations with Local Authorities about GAE revisions; and successful introduction of national citizen's card (Smartcard) are all critical to the delivery of this saving.

9. Description of efficiency and actions to be taken

9.1 How will the saving be made? Be specific about number/size of contracts, staff, posts dates etc.

Savings will be achieved through improved national administration; consolidation of additional operator capacity costs in the scheme reimbursement rate; savings in GAE expenditure; and reductions in irregularity and fraud by use of Smartcard technology.

9.2 What action is critically needed to secure delivery of this saving? Be specific, and name the key action managers if they are outwith your immediate management chain (e.g. in an NDPB.)

A new concessionary travel unit needs to be set up as part of the Scottish Transport Agency to fully develop and effectively manage a national scheme with the bus operators. Assistance from CoSLA, SPT and other Local Authorities would greatly assist in securing satisfactory arrangements. Delivery of the Smartcard project is also crucial.

10. Impact on Staffing to achieve the efficiency gain

If there are to be any changes in staff numbers (at activity level) to achieve the efficiency gain, please indicate how many full time equivalents and how far you expect savings to be achieved by natural wastage (show additions as + and reductions as -).

2005- 06

2006- 07

2007- 08

+

-

Net

Explanation

N/A

11. Benefits

In general, the benefits of the Scottish Executive Efficiency Plan are the enhanced outputs from the resources Ministers have been able to allocate in SR04. But if there is a direct connection between this efficiency saving and the enhancement of a particular service please describe it here.

N/A

12. Gross/Net Cash Savings

12.1 Please set out the gross recurring saving and any offsetting recurring expenditure.

The gross recurring saving by 2007-08 is 5 million. There is no offsetting recurring expenditure.

12.2 Against what budget does this expenditure and saving fall?

Transport: Concessionary Travel Budget

12.3 Has this saving been built into your budget?

Yes

12.4 If so, what is the maximum allowable expenditure against the budget data, in each year, for that saving to be delivered?

2006-07 - 159m
2007-08 - 163m

12.5 If not, how do you propose to invest the additional cash back into public services?

N/A

12.6 What plans do you have to exceed the required saving? Explain by how much in each year.

Saving would increase if the business areas in which savings may occur realised greater savings.

13. Time - release savings

13.1 Please explain any time-releasing savings indicated at question 3.

N/A

13.2 Please describe the method you plan to use to calculate the cash equivalent of those time release savings.

N/A

14. Measurement and Monitoring

14.1 How are you proposing to measure the expected efficiency benefits (e.g. in terms of costs, level of output or quality of service)?

Detailed information on administration costs, passenger journeys, average fares and reimbursement rates applied will be gathered by the Transport Agency as part of the reimbursement process.

14.2 What monitoring & reporting procedures will be put in place to measure the efficiency savings (How often will progress towards the target be monitored? Who will have lead responsibility for reporting progress and what procedures will be in place?)

Detailed financial monitoring will take place on at least a quarterly basis. The Transport Agency will be responsible for monitoring and reimbursement processes and high quality systems will need to be in place by April 2006. Transport Division 2 is currently taking forward the work to set up a concessionary travel unit involving transport consultants, CoSLA, SPT and other Local Authorities.

14.3 Monitoring Data: Sources, validation and risks

  • What data will be used to measure progress? Is all the required information quantifiable and readily available? If not what action will be taken to rectify this?

    Detailed information on concessionary passenger journeys will need to be captured and analysed by the Transport agency.


  • What measures will be in place to validate the accuracy of the data? Who will take responsibility for this?

    High quality IT, validation and verification systems will be required to ensure the integrity of the scheme. The use of Smartcard technology will be a feature, but other systems such as operator audits, passenger surveys and "mystery passengers" will also play a part in the process. The extent of other activity will depend on the degree that Smartcard and other "smart" solutions are available.
  • Are there any issues or risks relating to how you plan to use the data? (e.g. accuracy, difficulties in collection)

    No.

« Previous | Contents | Next »

Page updated: Thursday, March 31, 2005