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copyright 2002 by the ARTS Consortium. ARTS is a project within the fifth framework programme of the European Union - competitive and sustainal growth.
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 Economic and Socioeconomic barriers include financial barriers which cause hindrance, delays or obstacles in the process of designing/planning and implementing new and more flexible transport services. These barriers include the absence of funding and subsidies for new transport services and their associated infrastructure, along with inadequate knowledge about potentially available financial support. In addition, they include the taxation structure that applies to operators offering transport services. Furthermore this category includes the obstacle created for the introcuction of new services by poor cost-coverage and related problems caused by poor demand in rural areas. |
>> Financing / Funding / Subsidies
>> Cost-Coverage
>> Taxation and Insurances
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In most countries the majority of funds only subsidise regular services. Special funds for public transport services in rural areas are very unusual. Thus it is often very difficult to finance new and innovative transport services, because common funds only cover the scope of regular (bus) services but not these kinds of services. In the Eastern Accession Countries, this is not the result of a lack of awareness of the problem but mainly from a lack of financial recourses.
Time limits on public funding is another common problem, because funds are often limited to a short period of time, thus only covering the start-up phase of a new service. Demonstration projects are in danger of expiring once the time limit expires. Additionally, short contract periods or time restrictions on licences hinder long-term operation.
At local level, lack of information and knowledge about financing and possible funding or subsidies is a major obstacle. Most of the funding is scattered over different governmental levels and different administrative responsibilities. Hence, for municipalities and regional authorities it is very important to be fully aware of possible funding/subsidies and to act as co-ordinators.
The lack of funds/subsidies for innovative transport services is a crucial and important obstacle. The implementation of new services is often hindered by this fact. It remains questionable whether short term funding is capable of establishing new innovative services that outlast their demonstration status. On-demand and voluntary services in particular are affected by lack of funds as the introduction of these services is relatively expensive (e.g. for a travel dispatch centre) and strongly dependent on public funding.
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>> Finland
>> Greece
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| If you want to know more about this Barrier and how to overcome it, please feel free to download our Handbook. |
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