 Easylink ran on busy routes during the summer, often at lower prices |
A Jersey bus service, set up in competition with another company, has cost the States hundreds of thousands of pounds in lost revenue, island politicians have been told. In its report into the first year of operation for Connex, Environment and Public Services revealed it had to subsidise the company by far more than it had expected.
Connex was awarded the contract to run Jersey's buses at the end of September 2002 and it was thought the company would need to be subsidised by �1.8m.
But shortly afterwards, Jersey Bus started up its own Easylink service, which ran on busy routes in the summer, often at lower prices than Connex.
The committee believes the competition lost the States-subsidised company about �400,000.
This, and other unexpected costs including vehicle registration duty, meant the amount of subsidy paid to Connex rose to nearly �2.5m.
The services offered by Connex are now under review, and are expected to change next year.
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