The financial implications of the proposed adjustment in the rates of subsidy is an increase of $26 million to the original estimated cost of $57 million in
full year.
Public Reaction
9
The revised scheme may be well received by the public particulary as few children will now be excluded from it and these will be within walking distance of their schools. There may, however still be some comment about the lack of means-testing in determining eligibility for the subsidy.
Publicity
10
Should this scheme be introduced, full publicity will be given to explain how it operates. In any case, it should not be seen as a measure taken purely for the sake of solving administrative problems of the Government and transport companies, but as a redistribution of travel subsidies in favour of those with long distances to travel. It should further be pointed out that students from families receiving public assistance already receive an additional allowance to cover the full cost of travel so that no hardship will be caused to lower income families if the proposed scheme is implemented.
Advice Sought
11
(a)
Members are asked to advise whether :
the student travel subsidy scheme proposed in memorandum XCC(80)131 (Annex A) with the adjusted rates of subsidy as set out in paragraph 3 above should be introduced to replace the present student travel subsidy scheme;
(b)
the effective date for implementation should be postponed to 1st April 1981;
(c)
it should be implemented initially for a period up to July 1982 after which the scheme should be reviewed.
(The Principal Assistant Secretary, Social Services (Mr C. W. B. OXLEY), the Senior Assistant Director of Education (Mr D, B.M. BOARD) and Deputy Commissioner for Transport (Mr P.F. LEEDS) will attend before the Council for the discussion of this item).
9th January 1981
(CR 44/2041/74 V)
CONFIDENTIAL