Quote:
This is likely to be a fixed price contract operation. The operator doesn't have to carry a single passenger to get paid provided the deliver the agreed service.
Every cent of fare box for PSO services will be handed to the NTA, the NTA set the fares and conditions. The NTA take the fare box risk.
On the other side is the carrot and stick
Bonus payments for beating targets (paid logically enough out of the increase in revenue that will result from a better service)
Heavy fines for failing targets
|
Would be a good set up for operators but the taxpayer will still end up taking the hit with possible losses the NTA will make and somebody will have to fill the funding gap.
I am all for competition however I just can't see much savings for the taxpayer which is why I remain skeptical about the plans.