A BUS operator claims routes are at risk unless a funding crisis surrounding concessionary fares is resolved.

Regal Busways has committed to running a new service from Southend to Chelmsford from December, but says its future operation is uncertain.

Managing director Adrian McGarry said many services were effectively running at a loss when operators take passengers aged over 60 who have a bus pass for free concessionary travel.

Mr McGarry says councils are supposed to reimburse the fares, but funding has not yet been received from district councils.

At present Regal are only able to commit the new route until February because of the funding situation.

Mr McGarry claimed his company, based in Great Wakering, is owed thousands of pounds, despite recently stepping in to help communities who have lost access to bus services.

He said: "It was the pass holders who were most affected by these losses, yet to date we still do not have confirmation from the district councils if we are to receive any payments for carrying the pass holders. Without these payments we will not be able to continue to operate these service."

Southend Council leader Nigel Holdcroft said there was an agreement with the bus companies operating in the town concerning payment for the concessionary bus fares scheme.

He added: "There is a dispute because the companies are asking that each free pass use should be treated as if the person concerned had travelled the whole of the route, rather than the present 60 per cent which appears manifestly wrong. However, this does not affect the current system of payment."

Yvonne Woodward, head of finance at Rochford District Council, said there were agreed procedures in place for reimbursing the bus companies.

Essex county councillor for transportation, Norman Hume said: "Essex County Council is aware of the issues concerning the concessionary fares scheme and is working very hard with the statutory providers of the scheme, the district and borough councils, to resolve outstanding issues over funding. We will be meeting with them shortly."