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It is proposed that the Government should assist the operators of the student travel scheme, by means of payments to be determined by the Government. Where an operator disagrees with the amount of payment offered by the Government, arrangements will be made for the case to be referred to arbitration in the last resort. It is also intended that the scheme should be regularly reviewed.

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General Reaction to the Scheme

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The general reaction of transport operators to the proposed scheme has in most cases been cautiously favourable. One company, CMB, has however indicated that it does not generally welcome the scheme (but would comply if compelled to implement it) During discussions with the operators a number of difficulties have, however, been identified, most important of which are:

(i)

(ii)

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two operators (CMB and KCR) do not wish the student travel scheme to operate on Sundays and public holidays the since they claim that their services are already over-git crowded on those days. (There is some sympathy for the two operators on this score. It is considered that as many of the services are overcrowded on these days then they should be excluded from the scheme on Sundays and public holidays either wholly, or, in respect of CMB, on those routes which are severely overcrowded);

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nyhe sun guir sight but by. one company (KMB) whilst generally agreeing to the migh application of the scheme to the majority of routes on Sunday's and public holidays, would prefer the scheme t not to apply to designated "Recreational" routes which only operate on Sundays and public holidays at higher fares. (There is some sympathy for the company, and as the designated "Recreational" routes do suffer from overcrowding, and as the ordinary services to recreational areas will not be affected, it is recommended that the "Recreational" routes should be excluded from on the scheme);

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(iii) both KMB and CMB have reservations about operating w the student travel subsidy scheme on cross-harbour routes which at present have no student or child con- cessions. Both companies have pointed out that with the introduction of compulsory half fares for children aged under 12, each company is likely to lose money for every child carried under the age of 12 on their cross-harbour services. Both companies have suggested that for the se routes the Government should bear the cost of subsidy for children under the age of 12, failing which they would wish

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