Plans of Nexus Metro relocation could cost £700,000. Image: LDRS
Liberal Democrat councillors in Newcastle have slammed plans for Metro operator Nexus to move to a new headquarters at a cost of £700,000.
The Lib Dems branded the move “extraordinary” at a time when passengers on the Metro have faced significant disruption following the closure of the Gateshead Flyover in December. The issues on the service has already seen North East Mayor Kim McGuinness delay an annual fare increase until July.
However, the North East Combined Authority (NECA) has pointed out that the lease on Nexus’ current office was expiring this year. Furthermore, it was argued that the move will save the company money in the long-term.
The Lib Dems were also unhappy that the information was only revealed as part of NECA’s budget papers, which were released last Monday – just the day before the combined authority’s cabinet met to discuss them.
Cllr Greg Stone calls out Nexus for their treatment of customers through fare rises, in comparison to their ‘expensive new offices’.
Newcastle Lib Dem councillor Greg Stone said: “Devolution was billed as giving power back to the people of this region, but it increasingly looks like it is giving power to a small regional elite to reform public services and pass a budget for Nexus which prioritises fare rises, staffing cuts, and expensive new offices over the road from their current HQ.
“”It is extraordinary to think that at a time when the Metro system is in disarray, is falling £4m short of budgeted fare income, and its deficit is growing, the NECA Cabinet nodded through a report rushed out the day before which increases the misery for passengers yet still provides shiny new offices for Nexus executives.
“The governance of transport under mayoral devolution leaves a lot to be desired in terms of transparency and challenge. Major decisions are being taken with very little discussion or debate, with final budget papers being published less than 24 hours before a meeting where the budget is due to be passed.
“Major transport budget decisions should be discussed and debated and performance scrutinised in public, not rushed through in haste in a meeting where only cabinet members can speak and few actually do.”
The report presented to members stated that relocating to a “more modern” building would “offer better value” and an “improved working environment” to aid with recruitment, retetion and a “wider cultural change”. It added that the move to a new headquarters would require entering a new lease before the expiration of the lease at current base Nexus House, meaning there would be a “tempory, one off” budget pressure of £700,000 for the 205/26 financial year.
Responding to Coun Stone’s comments, a Combined Authority spokesperson said: “Our draft budget papers were first published in November, discussed by the Cabinet then and opened to public consultation for six weeks. We also shared them with members of our Overview and Scrutiny Committee, and this week’s meeting was just the final step in the process.
““At the meeting the Mayor and Cabinet in fact voted to freeze fares on Metro until July, rather than having price rises come in from April as normal. The draft budget had said fares would have to rise for Metro to meet its running costs but the Mayor recognised the impact of disruption over Christmas due to Gateshead flyover so took this rare step.
“Nexus has agreed actions to improve the Metro service including rolling out the new trains as quickly as possible and giving passengers better customer information through upgrades to the Pop App. Nexus is also moving to smaller offices because the lease on its current building is about to end after 25 years.
“The move to smaller and newer offices will save money and provide a more energy-efficient building, which means that more can be spent in future on Metro and other local transport it provides.”
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