London Banter - View Single Post

Neil Williams · January 6th 08, 09:38 AM posted to uk.transport.london

On Sat, 5 Jan 2008 21:40 +0000 (GMT Standard Time),
(Colin Rosenstiel) wrote:

The Government has decided that the basis of payments to bus companies
for the free travel is the full fare foregone. In the past such schemes
worked on real marginal costs.

The *basis* is, then a substantial percentage is taken off to
recognise that journeys would be made that wouldn't otherwise be, but
offsetting the fact that additional capacity will need to be provided,
which isn't free.

Having seen some figures, it is not a substantial subsidy at all,
though where the figure is greater than zero is obviously is some kind
of subsidy.

Neil

--
Neil Williams
Put my first name before the at to reply.