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Details of Connex bus service fare revenue for the month of June 2003

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1240/5(1929)

QUESTIONS TO BE ASKED OF THE PRESIDENT OF THE ENVIRONMENT AND PUBLIC SERVICES COMMITTEE ON TUESDAY, 22nd JULY 2003 BY SENATOR E.P. VIBERT

Question 1

Would the President inform members -

  1. of the fare revenuetaken by Connexforthemonthof June 2003?
  2. whether he is yet in a position to inform membersof the projectedsizeof the loss incurred and how much extra this is going to cost the taxpayer than the budgeted £1.4 million?

Answer

  1. Revenueisnotreported in calendarmonthformatbutintheindustry standard of thirteen, fourweekly

periods. The most appropriate period therefore is from June 8th to July 6th 2003. The accurate figure will be available on 26th July; however preliminary indications are that the revenue for that period will be of the order of £230,000.

  1. Although not clearwhat is meant by loss incurred bytheIsland', I have been trackingtheoperational results so far. Only once the full operating year's results are received and audited can the figure be provided accurately, inour next six-monthlyreport due inNovember,and the full amountof subsidy determined. Basedon current trendsand projections, whichisalways a riskyprocedure,it appears tome that the fare revenue is likely to be lower than theoriginal2002 estimate.

Question 2

In its report of the operation for six months of the Connex Bus Company the States were informed that during the period covered by the report a total of 1,039,511 passengers were carried which produced a total revenue of £807,615. This was an average fare of 78p. In view of the fact that the fare structure is 80p, 100p. 125p, 155p, would the President explain this very low figure?

Answer

Simplistic calculation of averages is not sound statistical practice and results in misleading information. The revenue detailed in the report was collected from fare-paying passengers.  he passenger total, however, includes 181,842 passengers who benefited from free travel given to holders of Health Insurance Exception passes and Pensioner passes. The Senator will also recall that the child fare is a flat rate 50p. Allowing for the combined effect of the above, the adult average fare for this period is almost £1.

It is our intention to provide more detailed passenger and revenue statistical information in our Annual Report for the twelve-month period, 2002-2003.