Labour challenges SNP on Edinburgh bus fare hikes

Scottish Labour in Edinburgh and Holyrood have today challenged the SNP on their plans for the future of bus services, and also on the potential legal implications of their decision to cut the fuel subsidy scheme for bus operators which has seen fares in the city hiked.

Councillor Lesley Hinds, Transport Spokesperson for Edinburgh Labour, has said that the Scottish Government must review its decision which is due to come into effect next week, and that the increase in fares should be reversed. Richard Baker MSP, Shadow Cabinet Secretary for Infrastructure and Capital Investment, has also tabled questions for Ministers on the legality of their proposals.

Councillor Lesley Hinds said:

"Transport Minister Keith Brown should not go ahead with the cut to the Bus Service Operators Grant which has resulted in bus fare increases affecting hundreds of thousands of bus passengers in the city. The fare hikes will hit those most dependent on bus services who are often the people who can afford increases least. The Transport, Infrastructure and Environment Committee of the Council agreed to write on an all-party basis to Keith Brown to raise these concerns and it is time for the SNP Government to listen.

Particularly in these tough times, Edinburgh residents simply cannot afford fare hikes of up to 9%. No impact assessment was made of the cut to the grant before it was announced. That is why the SNP Government needs to review it's decision and why this fare increase should be reversed."

Richard Baker MSP said:

"There are huge questions over this decision by the SNP which has resulted in bus fare hikes in Edinburgh and across Scotland. Time and again the SNP have failed bus passengers, from their U-turn on ensuring bus companies across Scotland are regulated properly, to the fare increases we are seeing now.

There are also big questions over the way they have changed the Bus Services Operators Grant and its implications. The change to the way the fuel subsidy is calculated appears to protect Stagecoach, whose owner Brian Souter is a major SNP donor, but punish other bus companies.

There are also deeply concerning questions over the legality of the proposal over EU state aid rules. While the previous scheme did comply with EU state aid rules it is not clear that this one does - or that Scottish Ministers have taken legal advice on the issue. That is why I have tabled questions in Parliament today on this issue. 

It is increasingly clear that the SNP have not fully thought through the impact of this cut. That is why they must review this decision urgently, otherwise it will be bus passengers who will pay the price."


Written PQs from Richard Baker MSP:

S4W-06431: To ask the Scottish Executive whether it has consulted the European Commission to ensure that the proposed changes to the basis of payment of Bus Service Operators Grant will not invalidate the rights under which payments are not subject to review or potential revocation under EU state aid rules and, if so, what advice was given.

S4W-06432: To ask the Scottish Executive whether it has consulted the Department for Transport to ensure that the proposed changes to the basis of payment of Bus Service Operators Grant will not invalidate the rights under which payments are not subject to review or potential revocation under EU state aid rules and, if so, what advice was given.

S4W-06433: To ask the Scottish Executive if it has consulted taken legal advice to ensure that the proposed changes to the basis of payment of Bus Service Operators Grant will not invalidate the rights under which payments are not subject to review or potential revocation under EU state aid rules and, if so, what advice was given.

S4W-06434: To ask the Scottish Executive whether it has asked the Department for Transport to consult the European Commission to ensure that the proposed changes to the basis of payment of Bus Service Operators Grant will not invalidate the rights under which payments are not subject to review or potential revocation under EU state aid rules.

S4W-06435: To ask the Scottish Executive what its position is on whether the proposed changes to the basis of payment of Bus Service Operators Grant will not invalidate the rights under which payments are not subject to review or potential revocation under EU state aid rules.