TOWN Hall chiefs are to be asked to approve pumping additional investment into Warrington’s bus company to enable its move into a new, state-of-the-art depot.
The new depot, on the council-owned Central Trading Estate, on Dallam Lane, already has planning consent and the council has already obtained £7.1 million in external funding towards the estimated £9.9 milion overall cost of the project.
But in a report by Cllr Hans Mundry, lead member for transportation and highways, the council’s cabinet will be told next Monday of a need for additional funding of the bus company, Warrington’s Own Buses (WOB) to enable the scheme to go ahead.
The proposal is that WOB will lease the new depot from the council on a 125-year lease, paying a market premium for the lease at its commencement.
WOB will transfer the existing bus depot – which stands in the way of the council’s Southern Gateway project and includes plans for 1,300 new houses and other uses – to the council.
The additional investment in WOB – which will be considered in private along with an assessment of any risk involved – will be used solely to enable the bus company to pay the lease premium and associated costs to the council.
Cllr Mundry’s report to cabinet will state that while the reasons for moving the bus company to a new depot were set out in February, further justification is needed to explain why further capital in WOB is required.
The council wishes to have a viable bus company to help it meet its aim of becoming carbon neutral by 2030 and aims to have an all-electric bus fleet to help achieve this. Cars – even electric cars – are damaging to the environment and buses help take cars off the road.
WOB provides about five million passenger journeys a year. The company provides 85 percent of bus journeys in the borough. It is also a major employer. But to continue to use the existing, antiquated bus depot would hamper the transition to an all-electtic fleet.
Cllr Mundry adds: “Whilst the decision to inject equity into WOB is a decision that should be made on the balance of risk, it is clear the reasons for having a well-run and efficient bus service are manyfold and contribute to a number of priorities and aspirations for the borough and enable a number of organisations to work together to achieve them.”
