50 jobs to go as bus deal crashes

GUERNSEY'S existing scheduled bus service will stop at the end of the year with the loss of 50 jobs, it emerged today.

Operator Island Coachways has pulled out of talks with the Environment Department over extending the contract to provide public transport.

Its board took the 'difficult decision' to do so because it was not viable to operate the new proposed contract under the terms offered by Environment.

The current contract ends in December and negotiations were in hand to sign a new agreement, but it is clear that the process has broken down.

In a statement released at 10am today, managing director Hannah Beacom said that the firm's remaining 40 staff will be unaffected as it will continue to operate its coach operation from its Tramsheds site at Les Banques.

The Environment Department issued its own statement following the announcement from Island Coachways, saying it was 'very disappointed' with the turn of events.

'The Department would stress that bus users need have no immediate cause for concern as the existing contract remains valid until the end of 2011 and Island Coachways has expressed a willingness to operate under a contract extension until 31 March. That offer is under consideration.'