Rate-levy fixed for free transport
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• A dispute between Tyneside Passenger Transport Executive and Newcastle on Tyne City Council over the amount of a rate levy to provide free travel for 100,000 old, disabled and blind people from April 1, has been settled.
Newcastle Council had been advised by its legal department not to pay the precept on the grounds that it was too high and because of the way the figure had been reached. The PTE obtained legal advice and was told that its action was in order. Eventually a compromise agreement was reached whereby the rate levy was reduced by 0.12p in the £ which will cut Newcastle's contribution by £32,000 a year.
Some weeks ago, the DoE advised the PTE to postpone the free travel concession because of the economic situation, but the PTE did not accept the advice.