AM speaks out against WAG's Wales only bus tax (Kirsty Williams AM )

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Kirsty Williams AM <info@kirstywilliams.org.uk>

AM speaks out against WAG's Wales only bus tax

February 19, 2008 4:00 PM

Welsh Liberal Democrat spokesperson for Transport Kirsty Williams AM has challenged the government on its decision not to follow England's move to rebate commercial bus companies following the increase in fuel duty last October. The Welsh Assembly Government has decided not to increase the bus services operators' grant (BSOG) in line with the tax increase. Operators will as a result have had to fork out an additional £700,000 in 2007/08, with still further penalties expected later this year.

Welsh Liberal Democrat spokesperson for Transport Kirsty Williams AM said:

"Welsh bus owners are now at a disadvantage to their English counterparts who are having the increased fuel duty subsidised, while for the first time and without explanation the Assembly Government has decided not to do so here in Wales.

"My fear is not only for the companies who will have to struggle to find this extra cash but also for the marginally commercial services, particularly in rural areas, which will feel the first negative affects of this tax. As a result either ticket prices will rise or services will be cut.

"With local authorities still reeling from the Plaid-Labour Government's poor settlement they are unable to assist in picking up the tab and it will ultimately be passengers who are left to pay the price.

"I have challenged the First Minister on this decision and shall be taking the issue up with the Minister for Transport to get to the bottom of this confusing turn around in policy."

"The Assembly government is on the one hand raving about tackling climate change and on the other making policy choices that do just the opposite. We must use transport to help progress Wales into a cleaner, greener country but the Assembly Government is lagging behind by investing in a future of dirty, polluting cars and road freight to the damage of our public transport system."

Notes:

Bus Service Operators' Grant (BSOG) is a subsidy paid to bus operators based on the duty they pay on fuel for vehicles. This is the first occasion that the Welsh Assembly Government has not paid the rebate in full.

The rebate for the current year is approximately £14m, which equates to 10% of the subsidy paid for the all-Wales rail franchise.

Current bus passenger numbers are around 112m, compared with 21m for the all-Wales rail franchise.

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