Merseytravel considers future of Ferries and job cuts to trim costs

Apr 8 2009 by Neil Hodgson, Birkenhead News

TRANSPORT authority Merseytravel could axe one of its three iconic Mersey Ferries in a bid to reduce costs.

The cutbacks are part of a review announced by chief executive and director general Neil Scales which also involves job cuts, including at least 30 Mersey tunnels police.

He emailed details of the proposed cuts to staff, claiming his hand had been forced by an expected £13m deficit by 2011.

Even with the proposed job losses and merger of several departments, he said the authority will still be £7m in the red.

A Merseytravel spokesman said the deficit will be caused by cost increases and also the loss of a £25m government windfall for achieving “excellent” status in its current local transport plan.

Changes to the Government’s reward formula mean its next local transport plan, running from 2011 to 2016, will not qualify for any payments.

The spokesman said: “We are looking at budgets two years ahead. In context, £13m is only 4% of a £350m turnover business.”

Merseytravel has not set a target for job losses but is looking for wastage across almost every department, including legal, marketing, maintenance and human resources.

Unison is the main union representing Merseytravel staff, but no-one was available for comment.