COUNCIL chiefs fear they may not be able to meet obligations for taking children to school unless more money is spent on the service.
Members of Dorset County Council's cabinet will hear on Wednesday that since 2001 it has become increasingly difficult to attract and retain contractors for the school run.
The joint report by Peter Lewis, director of resources and Miles Butler, director of environmental services, adds that it is also becoming harder to find replacement contractors at short notice.
The report says: "Concerns are increasing that the county council may soon fail in its obligations to transport pupils to school."
It adds that the county council's own fleet of six school buses, which operates four of the school run routes, is getting old.
The report adds: "Four are at least 14 years old, while the two newer vehicles are seven and eight years old. Maintenance and down time are increasing. On one day this term only three coaches were available and a replacement had to be hired from a private operator.
"Recruitment of drivers for the four routes operated by Dorset County Council buses is also made more difficult by the uncertainty about the future of the fleet."
Mr Lewis and Mr Butler are recommending that to improve the situation the education bus depot at the Grove industrial estate in Dorchester be retained to ensure the future of the home-to-school bus service.
They also recommend buying two replacement buses and two extra coaches to ensure the council meets its statutory obligation to ensure pupils are able to attend school.
The report adds: "There are also opportunities for synergies between the various transport activities of the county council. It is prudent to maintain the capacity to provide home-to-school transport while these are investigated more fully."
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