Bus group says it will challenge the rejection of its judicial review as company chairman John Gunn says it has acted to protect its business

 
Rotala has ‘most modern bus fleet in Greater Manchester’

 
Rotala has been granted leave to appeal the rejection of certain elements of its judicial review into plans by mayor Andy Burnham to franchise bus services in Greater Manchester.

In March 2021 Burnham announced he planned to franchise bus services in the region, a decision that led the AIM-listed bus group and Stagecoach each to lodge judicial reviews on a number of aspects of the consultation process.

The operators’ arguments were rejected by Mr Justice Knowles on March 9, but Rotala applied to seek permission to appeal the decision which has now been granted on certain aspects of the case. The appeal hearing is expected to take place before August 2022.

Writing in Rotala’s recently published annual report, chairman John Gunn said the bus group was confident in its view that those elements of the decision where it had sought a judicial review were both irrational and/or unlawful.

As an operator in Greater Manchester, the company has acted to attempt to protect its business from a decision that is not only detrimental to Rotala’s future prospects, but also potentially detrimental to the citizens of Greater Manchester

He continued: “As an operator in Greater Manchester, the company has acted to attempt to protect its business from a decision that is not only detrimental to Rotala’s future prospects, but also potentially detrimental to the citizens of Greater Manchester in imposing upon them the financial burden of a franchising scheme that the board believes has not been properly assessed in line with the relevant legislation.”

He said Rotala, which acquired FirstGroup’s Bolton bus operations in 2019, remained committed to providing a high level of service to bus users in Greater Manchester and still remained willing to enter into a statutory partnership with Transport for Greater Manchester and the other local bus operators.
Gunn added a partnership-based approach would not only be just as effective as a franchising scheme, and be done at less risk to the public purse, but he claimed it could also be implemented far more quickly than the full franchising scheme.

“However, should the company be unsuccessful in its legal case and the franchising scheme is implemented, it will potentially be required to sell its Bolton depot and the bus assets based there to Greater Manchester Combined Authority,” he added. “The board believes that the Bolton depot has first class facilities and is the most modern and up-to-date bus depot operating in Greater Manchester. The bus fleet based there is also the most modern of any of the large operators in that region.”

Gunn said Rotala was confident that if that happened the values which might potentially be realised from the sale of these assets will, at a minimum, realise their book value and cover any outstanding liabilities.

 
The full story appears in the latest issue of Passenger Transport.

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