NETWORK Warrington is not getting ‘free money’ after being handed a loan from Warrington Borough Council says an executive board member.

Clr Russ Bowden (LAB - Birchwood), executive member for corporate resources and assignments, spoke out after the council came in for criticism after offering the bus company a substantial six figure loan.

He said: “This is not free money.

“It is a loan to the company for them to invest in new buses and their infrastructure.

“They can only borrow from the council and it is not a free loan, it attracts interest and the council will make money out of it.

“We are not giving away the council’s money, or subsidising the bus company, this is a loan at a commercial rate.

“It is a short term deal and we expect them to repay that money. And it will therefore generate money for the council at the same time.”

Last week the Warrington Guardian revealed how the bus company had gone to the council for the loan.

Under the terms of deregulation Network Warrington can only take on a loan from its shareholder - which is the council itself.

Readers were split over the decision with many questioning the use of taxpayers money to bail out the company.

Commenting on warringtonguardian.co.uk David james01 said: “I disagree with this council spending our council tax money on a bus company. They have just bought a fleet of new buses. Sell this company making it totally private.”

But others supported having a municipally owned bus company.

Baz_201 said: “WBT is an asset to the town and should be treated as such (and this from a non-bus user in the main).”

In this year’s budget the council hailed its plans to offer loans to businesses such as social landlords to help fund improvements at low interest rates to benefit residents.

“This is one example of how we can use our borrowing power to benefit the people of the town,” added Clr Bowden. “This way, we manage to keep a municipal bus company and we are totally committed to that.

“And it is through that that we have got the extensive network we have got.

“If a private company took it on, we would not be providing a proper service.”