Questions raised as Plymouth's £28.3m electric bus plan hinges on council subsidy

Plymouth Citybus wants to buy the vehicles but is dependent on a subsidy of £12.3m from Plymouth City Council

PlymouthLive readers have been discussing the news that Plymouth could be welcoming 50 new electric buses worth £28.3m, but only if the local council can provide a crucial subsidy. Plymouth Citybus, part of the Go Ahead Group, plans to purchase the eco-friendly vehicles, but relies on a £12.3m grant from Plymouth City Council to make it happen.

The new zero-emission buses would replace 50 outdated double-deckers, serving Plymouth and the Rame Peninsula, with the aim of slashing carbon emissions and enhancing air quality.

The proposed subsidy accounts for 43% of the total bus cost, with Citybus or its parent company covering the remaining amount. The majority of the subsidy, 84%, would come from the Department for Transport's Zero Emission Bus Regional Area (Zebra) 2 Fund, while the council would contribute 6% and Cornwall Council would provide 10%.

The bus upgrade hinges on the subsidy, as a government document states: "Without the proposed subsidy the project would not progress and the significant decarbonisation of bus transport and air quality benefits for Plymouth and the Rame Peninsula would not be realised."

To secure the subsidy, Go Ahead or Citybus must agree to cover any additional costs, allow community groups to use the chargers, and guarantee the new buses operate on designated routes for at least five years.

Commenter Fred1958 says: “PCC sold City Bus on the cheap, if the deal goes through and I think it will, let's put a clause in the funding that these buses can only be used in Plymouth. Ensuring the parent company of City Bus can't take them out of the city to subsidise other parts of their company.”

Plymouthboy replies: “After a while the buses will probably be used elsewhere. Heard a couple drivers a year or so ago moaning because the company bought buses from another company down this way and shipped them up north.”

CDTopsy writes: “So going on the costing, each bus will cost £566,000, but Norwich are replacing their buses at a cost of £500,000 each and London £400,000 each! maybe Citybus needs to shop around.”

Saintharry feels: “It is totally wrong for a private business to be bailed out by taxpayers. As Plymouth City Council has no money, any headline figure will be hugely higher due to failing to take account the money will have to be borrowed and interest paid. The experiment of using electric buses in London has failed and in five years the maintenance costs would mean the buses are worthless, and we will still be paying the interest for another 20 years. All the while the companies involved profit and I bet there will be no reduction in the bus fares.”

Kindofjanner agrees: “Another reason why critical infrastructure should not be in private hands. Will PCC receive this money back from eventual profit or will it go to the shareholders?”

Plymouthboy asks: “Why can’t City Bus/ Go Ahead pay the money themselves? If this does go ahead, bet the Gould route will still have the old double decker buses they use on the route currently.”

Jannerjanner agrees: “Why are the council potentially subsidising this? Go Ahead group earns more than enough in profits to pay for the entire cost of the new buses themselves, the taxpayer should not be paying a single penny towards this.”

Sunshine51 states: “As a taxpayer, I am totally against the Council subsidising private companies, even more so those foreign owned. It is staggering that people accept having their tax used to pay dividends to foreign companies. If Go Ahead cannot pay for their own investment, they should give up their ownership. We see this time and time again with our infrastructure and utilities companies. When will people wake up?”

MICFilms agrees: “Buy what you can afford is a motto that can be applied to all financial decisions, this one included.”

Osten Sibly thinks: “If the council is dishing out free cash to private transport companies, I would suggest every taxi operator in Plymouth contact the council to get them to pay 43% of the cost of any new electric car as well!”

NoxGT adds: “Goodness, what a cost! I thought there wasn't much money in the public purse? If they've got so much they can flounce it around like this, why on earth are they intent on putting up our taxes so much? The money should be given back to taxpayers.”

Do you think it is up to the Council to subsidise new buses? Have your say in our comments section.