Speedwellbus - what's really happening

Yesterday we speculated on what was behind news that Tameside independent operator Speedwellbus was de-registering a large number of services in October.

Speedwellbus have been in touch with details about their future. We incorrectly stated yesterday that all their services were being de-registered. They are in fact reorganising their business to reflect the present harsh economic climate. Also, some of the de-registrations that appeared on VOSA's website will no longer be happening thanks to a deal with GMPTE over reimbursement levels. Some commercial services are still to be withdrawn. The recently launched S50 (Manchester - Hey Farm) service is to be scaled back to run between Ashton-under-Lyne and Mossley only.

Responding to our request for comment, the company's Managing Director Jack Hampson sent us this statement which we're reproducing in full.

Over recent months as the recession has worsened Speedwellbus has seen a decline in revenues across all of our services. This has led to some of our routes falling into a marginal position, and the decision was recently taken to address this by de-registering those routes. Contrary to the perception that some may have formed from the VOSA website, we have not de-registered all of our services. The core of our business has always been our Glossop-area cross boundary services which operate into Tameside and Stockport. These routes form no part of the changes we are making, and will all continue as at present.

 

Since the changes to concessionary reimbursement were made in 2006, we have been struggling to maintain the profitability of our Greater Manchester services. The reimbursement per passenger trip which we receive from GMPTE is quite low. As we carry a relatively high number of concessionary passengers due to the nature of the routes which we operate, the move to free travel for the elderly has hit our income stream hard. We have attempted several changes to our network over the years to try to address this shortfall, but the general fall in revenue as the economy has worsened meant that we had to take more widespread action to protect the financial position of the company.

 

The de-registrations which have appeared on the VOSA website are those of our Greater Manchester contracted services, together with the 41/337 (Dukinfield/Ashton/Crowhill) and 343 (Hyde-Oldham) routes which we operate commercially. In the past few days we have reached an agreement with GMPTE whereby they will increase the subsidy rates of the contracted services to a level which will allow us to continue to operate them. As such there will not now be any on-road change to these services. The commercial routes, at the discretion of GMPTE, will presumably be put out to tender. 

 

We have also had to make some changes to our recently-introduced S50 service. The project had a difficult launch as Swan Street - the only practicable means of access to Shudehill Interchange - was closed on the very day the service commenced. We had not been given any advance notice of this closure and therefore were completely un-prepared for it. This, coupled with the other roadworks at Ancoats and the Metrolink works at Droylsden, has meant that the SpeedwellValue project has had probably the worst possible start. We have decided therefore to withdraw from the Ashton to Manchester section of the route until the roadworks and closures have finished. This will allow us to concentrate on delivering the value service we have promised on the Ashton to Mossley section of the route. Passenger numbers are already strong on this section, despite the reliability issues caused by the roadworks, and we are confident that this scaled-down S50 service can be a success for us.

Comments

[Shaun]

Good to hear that an independant company isn't going to disappear. Wouldn't want another Vale of Manchester situation.

Certainly do agree with the S50. The Ashton-Mossley section looks the busier section compared to Ashton-Manchester. And the roadworks around Swan Street is causing problems. Took 10-15 minutes just to get from one end to the other via Oldham Road, Thompson Street and Rochdale Road earlier this week. Would have been easier though to divert it via Oldham Street and Church Street.

Hopefully, if they can establish the Mossley-Ashton part of the route and then give a bit more publicity to the Ashton-Manchester section, if and when they bring it back, then the service may work.

[Simon, riverside]

Very odd, nice to see a very detailed response to a very intense situation. Shame all operaters cant respond in such a way.
S50 had potential The mistake was always the route. Through Stalybridge and with Flash adverts on the front of the buses it would have mad a lot of money. Anyway, nice to see this firm is re grouping rather than ending. Speedwell bring a lifeline to many and i hope it carries on for many years because i dont thing anyone else would have done as good a job!

So What are they dropping? I am not too sure from this? Service numbers of what is being dropped would be nice. sorry for being thick!

[Shaun]

I think what's being said is that GMPTE have given Speedwellbus more money to run the contracted services (188, 217, 309/310, 353/354, 395/396), to make it more viable for them to run.

Bit puzzled about the 41 and 337 as Speedwellbus are saying they're running it commercially while the GMPTE timetable says it is contracted. But I think the weekday 343 service may be put up for companies to bid for (similar to JPT taking up the 343 Saturday service and First taking up the 41 and 337 Saturday service), as that is currently being run commercially and the same may apply to the 41 and 337.

I agree with the S50. They need to make people aware of the service and what it offers. When Stotts started running the 427 and competed against First a few years ago, they put notices up in the front and side windows saying maximum fare 70p and that got people onto the bus. The only way that people would know about Speedwellbus charging a maximum £1 fare is on their website or on here. No notices, no route branding.

So, at the moment, there's no changes apart from the S50 being curtailed to run between Hey Farm and Ashton for the time being but they may lose the 41, 337 and 343, depending on what Speedwellbus and GMPTE do.

[Phil, Denton]

Speedwell journeys on 41 & 337 were commercialised some time ago - albeit Saturdays were later deregisterd and First gained the Tender. This is all shown in the 19 April Bus Guide. Having read this, there just remains two points:
Why did Speedwell initially register into Piccadilly, when they knew full well that the City Council had issued a TRO reducing the number of buses in the Oldham Street/Piccadilly/Lever Street area?
Secondly, the *big* bone of contention, given the OFT's report into the Bus industry and vague attempts to get some form of integration into the deregulated industry:
Why do Speedwell NOT accept System One tickets.
Its interesting to note that all the criticisms of large Operators put forward by the OFT - predatory timetabling and refusal to accept integrated tickets - actually apply far more to *small* operators in GM, and have done for 23 years! Its about time these David v Goliath fantasists started leaving the ivory London towers and came into the REAL world.

[Tiger Menesiero]

This is great, this response was on the net before the 343 drivers had been told the service was finishing. It was not good that I knew about the situation before my friends who drive the service were officially told.That says a lot to me.
Regarding the comment about the S50 and the non-acceptance of System one tickets, they are having to accept them now. And they will start issuing anybus day savers from next week on this route.
Regarding the 343 going out to tender, latest from G.M.P.T.E head office is that they are considering it. I rang the traveline today to see if they had been updated regarding the change, and was told that it is looking unliklely that it will be put out to tender.
I have started a campaign to save the 343 service, as it is needed. Petitions are going around Mossley, with Hyde and Oldham being covered next week, also I have started a facebook group, you can find it if you search for SAVE THE 343 BUS SERVICE.
I am getting newspaper coverage too,it is going to be covered in the M.E.N and local papers.
It may be a total waste of time, but hey, at least I tried.

[Rob]

The fact that the 343 is tendered during the evening & on Sundays to First and on Saturday to JPT suggests that it's a fair bet that it will become tendered on a weekday. GMPTE say they are considering it, I wouldn't expect them to make anything else public at this stage . I'm not sure that Traveline are in a position to add anything further?

[Tiger Menesiero]

Hi Rob, Yep, hopefully you are right.... Just strange that one of the head honchos at g.m.p.t.e discussed other services that are being cancelled by Speedwell, giving me the info on what is happening with them now, which is not public knowledge yet, but I could not get a straight ansa on the 343.
Common sense says they will put it out to tender, but just incase I'll carry on with the campaign. Got a really good response so far.

[Shaun]

Registration for modified S50 has appeared on VOSA, running between Mossley and Ashton, every 20 minutes from 12th October 2009

[Rob]

An update on the S50 - appears to be only running from Hey Farm to Ashton Bus station. They now accept System One passes too.

From Sunday 11 October, they will be introducing a Sunday hourly service - these buses will be free until 20th December. Their first bus from Hey Farm at 09:10 (earlier than First's first bus at 09:23).

[lewis]

Sunday services, until 20th decemeber, are free as well. Got a leaflet on the S50 today

[Shaun]

Contracts have been awarded for the 41, 337 and 343 weekday services starting from December 14th and Speedwellbus have got the 343 back! The 41 and 337 will now be run by Stotts. First will still run the Saturday services for the 41 and 337 and JPT will still run the 343 Saturday service.

[Michael Tinker]

speedwell are starting the S48 from April 12th on the same route as firsts 348 service to Carrbrook

about time we had a different firm on tameside routes

it will be a speedwell value service again

[Anthony Evans]

not happy at all that speedwell are taking the s48 off service in 3 weeks time,i use the service alot and when am on a bus or see one going by,there seem to be loads of the buses.so tell me what going wrong.most people are not happy with speedwell at the moment,as this was a good service to the 348,u take the service than drop it like a shell.once again the people of copley and carrbrook suffer once again.well done speedwell.even if u keep one a hour service,the people of copely and carrbrook would be happy.

[MossleySmiffy]

Following the disappearance of the S48, it's farewell to the S50 as well - pretty obvious that the "bullyboy" tactics of First Group are one of the major reasons for both of these services disappearing with their introduction of £2-50 day tickets on the 348 and 350 routes in order to compete with the cheaper Speedwell prices ... when I say compete I mean "close down" of course ...ain't de-regulation wonderful ... at least there's still a 343 to get me to work in Oldham - at the moment ...