Some bus routes have been described as 'unsustainable'

The inquiry has been ordered in response to public and political concerns over the tendering process.

The Environment and Public Services Committee has defended the way Connex was awarded its licence.

Meanwhile, Connex has been told it cannot cut some services and routes over the winter.

Severe criticism

The inquiry will look at claims that public money is being spent on a bus service that is said to be failing to attract sufficient passengers.

Connex was awarded the contract to run Jersey's buses at the end of September 2002.

Shortly after this, Jersey Bus started up its own Easylink service, which ran on busy routes in the summer, often at lower prices than Connex.

It is believed the competition lost the States-subsidised company about �400,000.

The department responsible, Environment and Public Services, has been heavily criticised over the issue and is facing a vote of no confidence.

Committee president Deputy Maurice Dubras has defended the way Connex was awarded the licence but has instigated the review after repeated criticism of the process.

The review will be conducted by the Chief Internal Auditor to the States and is due to begin on 5 January, 2004.

However, Senator Ted Vibert has criticised the plans for the review, saying it is a move to stop his vote of no confidence in Environment and Public Services.

Senator Vibert alleges he has had problems compiling information he needs for his no confidence vote.

Tourism review

Meanwhile, Connex has been told it cannot cut some services and routes this winter.

The company had planned to cut a number of routes and stop services after 2100 GMT.

It has been told to carry on with its current timetable, but there will be a full review of routes and fares.

BBC Jersey Home Affairs Producer John Henderson said: "Public meetings, hundreds of letters and petitions rained in on Environment and Public Services - and it rejected the planned cuts.

"It decided there were routes under threat which should continue to operate. But it also found some winter services are so heavily subsidised they're unsustainable."

The Environment and Public Services Committee has asked Connex to fully review its timetables and work more closely with the tourism industry.