The Government has launched a new £30m fund to encourage the purchase of low carbon buses, a move that could have positive repercussions for Ballymena-based Wright Bus.

The fund will be available to bus operators and councils in England to use towards the additional up front cost of buying low carbon buses.

It is part of the Department of Transport’s wider strategy to stimulate low carbon travel and improve air quality in UK cities.

Transport Secretary Andrew Adonis said: “CO2 emissions from buses have increased significantly over the last 10 years. For the sake of our environment and the air quality in our towns and cities it’s important to encourage the industry to move towards low carbon models.

“Over the next two years we expect this fund to support the purchase of several hundred low carbon buses and, just as importantly, help to stimulate the development of a new green technology industry and help to safeguard up to 900 jobs in bus manufacturing.”

In February bus-builders Wright Bus announced 235 redundancies at its Ballymena plant following the cancellation of a substantial order from one of its customers.

While the company remained cautious a spokeswoman said the fund was a positive development.

“Wright Bus welcome any initiative that creates opportunity for low carbon buses and increases the profile of ‘green’ public transport

“As innovators of hybrid-electric buses we will be watching developments surrounding this announcement with interest,” the spokeswoman said.

Low carbon buses use at least 30% less fuel and emit nearly a third less carbon than an equivalent conventional bus.