|   
                  The new contracts strength is that it provides an exit 
                  payment if a contract is terminated. There is an option for 
                  contractors to terminate their contract if the service route 
                  is reduced by 50%, and still receive an exit payment. There 
                  is an appeals mechanism with an independent referee to review 
                  default notices. The new payment model provides for fixed and 
                  variable costs and a profit margin. The contract allows for 
                  all costs to be reviewed by an independent expert panel over 
                  a three-year period, with the power to bind both the Government 
                  and industry to its decisions.  
                   These 
                    contractual changes provide greater certainty for both contractors 
                    and government, give clarity to the contractual conditions 
                    of service delivery and provide greater safeguards for school 
                    bus contractors.  
                  Operational 
                    issues 
                      top 
                    of page 
                  Services 
                    In addition to substantial contractual reform, a number of 
                    reviews were undertaken to maximise school bus service efficiency 
                    and ensure the school bus budget was used to the maximum advantage 
                    of the community, particularly in regional areas. A number 
                    of opportunities were identified for bus route improvement 
                    and rationalisation, and this allowed the savings to provide 
                    school bus services in areas where student transport entitlements 
                    had developed. In particular, school bus services were reallocated 
                    where there was a direct duplication of either Transperth 
                    services in the metropolitan area or government subsidised 
                    regional town bus services within regional towns. This was 
                    done in Australind and Leschenault where Bunbury City Transit 
                    services were expanded and routes rationalised. Similar changes 
                    occurred in Mandurah/Rockingham when the new Mandurah Bus 
                    Station was opened in September 2003, and most recently a 
                    school bus route rationalisation was implemented in the Eastern 
                    Hills area. 
                  During 
                    the year, a number of new school bus services were introduced 
                    at Bullsbrook, Pinjarra, Karratha and Albany to cope with 
                    passenger loading issues. Due to changing demographics and 
                    declining population trends in some areas, particularly in 
                    the Wheatbelt, a small number of school bus services were 
                    withdrawn as student numbers fell below the minimum requirement 
                    of four students. This occurred in the towns of Westonia, 
                    Bruce Rock, Buntine, Ravensthorpe and Williams. 
                     
                  New school 
                    bus services for students attending special education facilities 
                    were commenced in the metropolitan area and covered the areas 
                    of Riverside, Peel and Forrestfield. The relocation of the 
                    Carawatha Language Development Centre to Beeliar Primary School 
                    saw a number of services rerouted. It also provided opportunity 
                    to rearrange a few services that had been travelling in excess 
                    of 90 minutes so that they fall within the 90-minute threshold. 
                     
                  Liaison 
                    To effectively manage the wide range of state school bus contracts, 
                    liaison visits to school 
                    communities are undertaken to discuss transport issues with 
                    contractors, school principals and 
                    school bus advisory committees. The highlight of these on-site 
                    visits in 2003/04 were visits to 
                    Aboriginal communities in the Kimberley to gain first-hand 
                    understanding of school community 
                    transport issues in that region. 
                     
                   Bus 
                    maintenance 
                    During the year, 1,630 inspections were conducted to ensure 
                    school buses were roadworthy and well maintained, and only 
                    29 infringements were issued. This result highlights the benefits 
                    of the bus inspection program and no doubt contributes to 
                    the high safety record of the States school bus arrangements. 
                     
                 |