LABOUR & LIBDEMS HAVE QUESTIONS TO ANSWER OVER WASTED £33 MILLION

For immediate use: Wednesday 3rd November 2010





Attn: NEWSDESKS


TRANSPORT CORRESPONDENTS


AUDIT SCOTLAND BACKS MSP’s CONCERNS OVER CONCESSIONARY TRAVEL SCHEME



As the Scottish Parliament’s Public Audit Committee considers a hard-hitting report by Audit Scotland about the national concessionary fare scheme, committee member and SNP MSP for Kilmarnock and Loudoun, Willie Coffey, has expressed concern at the potential for bus companies to overcharge the Scottish Government for journeys made under the scheme.


The national concessionary fare scheme was introduced in 2006 and in a hard-hitting report, Audit Scotland has backed concerns Willie Coffey raised on behalf of constituents and highlighted weaknesses in the way the scheme was introduced by the Labour-led Executive.



Audit Scotland found that, although the scheme is popular, with 80% of over-60s in Scotland holding a bus pass, there were weaknesses in how the scheme was planned and implemented.


The cost of the technology on which the scheme runs has increased from £9 million to £42 million, and is four and a half years behind schedule. Audit Scotland found the contract arrangements for the delivery of the technology to be ‘weak’.


The report also revealed that adult single fares, which are used as the basis for the concessionary travel scheme, have increased on average 6.25% a year since the scheme was introduced.



The Scottish Government and the bus companies agreed that, from April 2010, the rate of reimbursement for concessionary fares will reduce from 73.6% of the adult single fare to 67%.



The parliament’s Public Audit Committee will consider the report at its meeting today (3 November).


Commenting Public Audit Committee member, Willie Coffey, said:



“The national concessionary fare scheme is a lifeline for many pensioners and disabled people and I was concerned when a number of constituents approached me about what they felt were flaws in the scheme’s administration.


“Now, having read the Auditor’s report, I am shocked at how badly the then Labour/LibDem Executive handled the introduction of the scheme, with the requirements of the Scottish Public Finance Manual being ignored in the process.



“I am pleased to see that the scheme is now being brought under control, with a new charging regime in place and less opportunity for error and fraud.


“But this report leaves Labour and the LibDems with a lot of questions to answer; why no effective systems were put in place to administer the scheme when it started, leaving it open to error and fraud, and why the technology took four and a half years longer than planned and cost more than four times the original budget.”


ENDS



Notes


Audit Scotland’s report on National Concessionary Travel can be found here:



http://www.audit-scotland.gov.uk/media/article.php?id=154