Tyne and Wear bus contracts get go-ahead in rolling back of de-regulation

The North East Combined Authority has agreed to submit proposals for a quality contract scheme for national approval, in a move which would bring the biggest changes to the way buses operate in the region since de-regulation in the 1980s.

The North East is the first part of England to reach this stage in developing a quality contract scheme (QCS) under legislation introduced in 2000. The new scheme proposed by Nexus, the Tyne and Wear Passenger Transport Executive, would see bus companies contracted to provide routes by the North East Combined Authority, rather than the bus operators deciding which services to run on the basis of market demand.

Local authorities currently supplement the network by subsidising routes which would not be commercially viable for bus operators. Under the contracts scheme, operators would provide services on a range of routes to a contractually agreed price, the idea being less profitable services would be cross-subsidised.

The QCS would apply to Tyne & Wear and to services which cross into Northumberland and County Durham.  Leaders also agreed a protocol to avoid any adverse impacts on other services in Northumberland and County Durham.

Bus operators proposed an alternative voluntary partnership agreement which would see bus companies working together with the combined authority to provide a coordinated service under a formal voluntary agreement.

Councillor Nick Forbes, (leader of Newcastle City Council and) Regional Transport lead for the North East Combined Authority said: "After a lengthy and careful consideration of the proposals, and the voluntary partnership agreement, the leadership board felt that the QCS scheme to be in the best interests of bus users in the region."

The proposal will now be submitted to the national Quality Contract Board convened by the Traffic Commissioner who will consider whether the proposal is in the public interest. Their decision will then be referred back to the North East Combined Authority for a final decision. If agreed the aim would be to introduce the QCS by April 2017.