6 June 2008

Dear Colleagues,

Commercial performance during 2007/08 was strong for all Translink services; many more people are choosing to use us. I have highlighted this growth over the past weeks.  As you know it has been driven by quality delivery and a strong customer focus.
 
While our plans for this year are to continue this improvement, there will be significant commercial pressures on the Group during 2008/09.  Our costs are rising sharply and certain funding streams will be reduced / removed by Government. Specifically,

• fuel costs will be £7million higher than last year while congestion is increasing and adding to our operational costs
  
  
• increases in employer pension contribution (to NILGOS) which are not being met in full by Government will cost us an extra £5million
  
  
• and route revenue support (bus services) of £2.1million is being withdrawn  

These pressures must be managed by us through continuing to increase passenger numbers by making sure the services are right every time.  

We must reduce costs and overheads or find efficiencies, a small number of some uneconomic bus services are also being reduced and fares have had to be increased.  The level of profitability for the group will be lower in 2008/09 than previous years.
 
In all, as you will not be surprised to hear as you listen to the news and read newspapers, the next 12 months will be difficult.  We will need everyone pulling together to make sure we do not lose the successes of the last years.  
 
Remember our suggestion scheme ‘Miles Better’ – if you have any ideas to improve efficiency or cut costs or deliver better services, tell us about them and you could win a reward yourself.
 
I will of course keep you fully informed in the months ahead.

Catherine Mason,

Group Chief Executive