SUE Blackshaw (Oxford Mail, March 23) asks someone to explain how the payments are made for the over ‘60s free bus journeys.

It is very complicated, but here goes: Bus operators are categorically not reimbursed the full value of a single ticket; far from it.

A formula is used to calculate the average value of a trip on each route. This is done by adding up the value of all of the single and return journeys taken on each route. From this, the average cost of a trip is calculated.

This figure is then further reduced by five per cent, to take account of journeys taken using travel cards.

Bus operators are then paid a percentage of that average fare – in the case of Oxford city this has been 45 per cent.

The law states that bus operators should be “no better and no worse off” because of the national concessionary fares scheme. We felt that the Oxford city scheme, at 45 per cent, did not meet this and we therefore appealed to the appropriate government department, who examined the figures and raised this to 51.1 per cent.

This fairly takes into account the extra passengers that have been generated by the existence of the scheme.

It also takes into account the full fare-paying passengers that we have lost because they now do not have to pay at all. This is especially relevant on the Park & Ride services, where all of those over 60 from outside the area, who used to visit Oxford and pay the full fare, are now travelling for free.

Finally, can I just clear up one popular myth. The tickets issued by our drivers are a permit to travel (as it says on the ticket) not single tickets as such. They are intended as a record of the journey for the passenger, the local authority and us – and not as a basis for reimbursement.

HELEN LE FEVRE, Finance and Commercial Director, Oxford Bus Company, Oxford