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The Assembly Government working with CPT Cymru (representing bus operators) and local authorities have agreed on the new arrangements to be in place for the next financial year.
The Minister for the Economy and Transport, Ieuan Wyn Jones, said:
"Without making any changes to the level of entitlement for the concessionary bus fare scheme we have managed to develop a fairer and more efficient way of reimbursing the bus companies. The new deal will ensure the bus operators are no better or no worse off.
"I welcome the work with CPT Cymru, representing the bus industry and local authorities to deliver this new agreement which will put the concessionary bus fare scheme in a stronger position and provide better value for the taxpayer."
John Pockett, Director of Government Relations for CPTCymru, the professional trade association of the bus and coach industry, said:
"We are very pleased to have reached this agreement with our partners in the Welsh Assembly Government and Local Authorities, especially in these challenging times."
Together with the introduction of the new electronic bus pass system earlier this year, monitoring of the system will now be far more efficient.
The new mechanism will allow for tighter control of the concessionary fares budget, ensuring that budgets in future years should not be exceeded.
The new arrangements will come into effect on 1 April 2010.
1 December 2009
