And ministers are being urged not to renew the Connex contract without going out to competitive tender to ensure that taxpayers do not pay too much.
The managing director of the group that owned previous operator Jersey Bus and Tantivy Blue Coach claims that it actually cost the exchequer over £4 million in subsidies last year to provide the scheduled and school bus services.
Chris Lewis, who heads the Diamond Group, said that the total level of subsidy paid to his firms in 2002 when their contract was terminated amounted to ?1.9 million.
