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I haven't had time to read this properly as yet but at first glance there may be a licensing issue here in respect of licensing and hire or reward. We shall see?
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Leicester Mercury
August 11, 2006 Friday
HEADLINE: Deal may cut £1m from transportation budget
BYLINE: Tom Mack
More than £1 million a year could be saved on the cost of transporting children and the elderly after a landmark deal was struck.
Leicester City Council was paying up to £3 million a year in taxi bills, mainly on youngsters going to special schools and taking pensioners to day centres. It hopes to cut the bill after striking a deal with St John Ambulance, which said it could offer a specialist service.
In September, Leicester City Council leader Roger Blackmore said the bill had to be slashed after the Leicester Mercury revealed overspending in the council's transport service.
Transport costs rose unexpectedly by £600,000.
Taxi fares make up about £3 million of the annual £7 million city council transport budget. Mr Blackmore said that in some cases, the council was paying £30 for journeys as short as three miles.
Costs also rose sharply where taxi companies were asked to provide an escort to help a disabled person get into and out of the cab.
Under the new deal, the average cost of a trip will drop by £4.
Coun Blackmore said: "My hope is that we ought to save something in the range of £1 million for the same amount of trips. However, it is likely demand will rise, so it is hard to predict."
The council said it hoped using one organisation - and which is already involved in caring - would improve services and help cut administration costs.
St John Ambulance will run the passenger service for three years, with the option to have it extended by a further two.
A spokesman for St John Ambulance in Leicestershire welcomed the contract. He said: "We are delighted to have won this important contract and look forward to working with the city council."
Cabinet member for environment, transport and culture, John Mugglestone, said: "It is a tremendous business boost for St John Ambulance.
"We hope it will be a long and happy partnership."
A phased handover to St John Ambulance will take place over the next six months. The council's budget watchdog, the resources scrutiny committee, has been concerned about the over-running budget in transport.
Chairman, Labour councillor Ross Willmott, said the contract would provide a good saving if it worked as planned. He said: "It is good news that it has been sorted out, but it's a pity it's taken them so long.
"This has been going on for three years, costing taxpayers £3 million a year."
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