Net Cost Bus Contracts

Meeting: 
MQT on 2008-11-12
Session date: 
November 12, 2008
Reference: 
2008/2641
Question By: 
Valerie Shawcross
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

Have any TfL Board members raised the issue of changing the nature of bus service -contracts towards a 'net cost contract' structure? Is this issue of 'de regulation' of bus services under consideration by TfL?

Answer

Answer for Net Cost Bus Contracts

Answer for Net Cost Bus Contracts

Answered By: 
The Mayor

Yes. A proposal to review how bus services are planned and procured was discussed and agreed at the TfL Board meeting on 5 November 2008. It is intended that, following a competitive tender, a consultancy will be appointed to assist in undertaking this piece of work.One aspect the review will look at is the pros and cons of different contracting arrangements, including net cost, but there are no preconceptions as to what the outcome of the review will be. It will take all stakeholders views into account, with the ultimate objective of ensuring that value for money is obtained in how the bus service is delivered.Deregulation of bus services would require primary legislation and is not under consideration.