BOSSES at an independent North-East bus company are celebrating after winning back a lucrative park-and-ride contract.

Scarlet Band, a small firm based in West Cornforth, lost the multi-million pound contract to run Durham County Council’s Durham City park-and-ride service to transport giant Arriva five years ago.

The decision sparked a furious row, after Scarlet Band owner Graeme Torrance revealed his company’s offer was £24,000 cheaper.

Fellow defeated bidder Go North East claimed the tendering process was flawed and threatened legal action.

An investigation by the council’s lawyers found the tendering process to be proper and correct, but the rules were changed to allow the authority to consider environmental, social and economic factors – not just cost – in awarding contracts in future.

Now the council has awarded the next five-year contract to Scarlet Band, starting on Monday, October 27.

Mr Torrance said he was delighted and promised to drive the first bus from Belmont himself.

“We’re a local company and it’s good for the community.

“I think we were pretty good on it before and we were disappointed to lose it, so we’re pleased to win it back,” he added.

Twelve drivers will have the option of moving from Arriva to Scarlet Band, taking its workforce to 60, and the firm plans to buy ten new eco-friendly buses to run the service.

Nick Knox, area managing director for Arriva North East, said the firm was very proud of its achievements over the past five years, including a 99 per cent customer satisfaction rate and 13 per cent rise in passengers on the service, saying its operation had been a great success.

Dave Wafer, the council’s strategic traffic manager, said Arriva had provided an excellent service but Scarlet Band had put in an extremely competitive bid, saving the council more than £170,000 a year.

The park-and-ride service runs buses from three sites on the outskirts of Durham, at Belmont, Sniperley and Howlands, into the city centre every ten minutes, carrying around a million passengers every year.

No changes to fares or timetables are planned under the switchover.