VITAL bus services in East Lothian set to be scrapped by First could be saved under "radical" proposals from the two political parties vying for power in May's council elections.

Operator First has announced it is withdrawing 13 county bus services in June, leaving many rural communities with little or no service and causing up to 40 job losses at its Musselburgh depot.

Villages including Pencaitland, Ormiston, Elphinstone and Gifford will lose their only bus service (see full list of withdrawn services below).

A number of other services, including the Edinburgh/Haddington/Dunbar route, will be renumbered and given a new timetable.

Commercial services will cease operation on June 10, while tendered buses, including school services, run until July 1.

Both the SNP and Labour groups have vowed to include manifesto commitments which could see some services becoming council-run.

The SNP-led administration is now looking to establish a council trading company called 'East Lothian Transport' to take control of services which First no longer deems commercially viable.

Councillor Paul McLennan (SNP), council leader, held talks with Scottish transport minister Keith Brown on Tuesday.

East Lothian's Labour group - which claims it first floated a similar proposal five years ago - says it will also include a similar commitment in its manifesto for the forthcoming elections.

Meanwhile Lothian Buses - which runs services in western parts of East Lothian - is exploring opportunities to take on some of the scrapped routes.

Also, at an emergency meeting of senior council officials and elected members on Wednesday, it was agreed that the council transportation officials would contact other bus companies with a view to secure continued services on routes set for withdrawdrawal.

In February, First had admitted that it was carrying out a "comprehensive review" of services following a 20 per cent cut to the Bus Service Operators' Grant administered by the Scottish Government.

The Courier understands that First may have lost up to �2.5 million in the next year if it had continued running the abandoned routes.

Paul Thomas, managing director of First Scotland East, said: "We have for some time been running a number of services in the East and Midlothian regions at a loss.

"Over a number of years we have tried many marketing and pricing initiatives, but the extra financial pressures put upon us by the current economic climate, high fuel prices and cuts in external funding mean that we simply have no option other than to discontinue the bulk of our operation in East and Midlothian."

He added: "We fully explored a range of alternatives, including selling our operations and transferring staff to another operator, but unfortunately these were unsuccessful.

"I am truly sorry that we are having to discontinue services in the East and Midlothian regions and consider the possibility of redundancies. However, if we are to continue as a viable business we see no alternative."

The firm has vowed to work with trade unions and staff throughout a three-month consultation period.

The council leader branded the cuts "extremely disappointing" and has urged cross-party talks to discuss a way forward.

But he added: "East Lothian Council is determined to protect our communities and maintain vital transport links. In that regard East Lothian SNP are looking at radical solutions.

"We will look to establish a council trading company called 'East Lothian Transport' that will provide bus transport on routes deemed non-commercial to link up our villages and towns with train and bus routes.

"These services will be funded by fares and using some of the funding that we currently use for the supported buses being withdrawn by First.

"We should also make clear we wish to enter negotiations with First to look at the potential of drivers being offered employment by the new ELT company."

The threatened bus routes currently provide travel for approximately 95,000 passenger journeys every week in East Lothian.

Following Tuesday's meeting Mr Brown said: "I will be making Transport Scotland available to work together with East Lothian and Midlothian councils and to offer advice on East Lothian's proposals."

Further talks between representatives from Lothian Buses, First Scotland East and the Scottish Government, as well as East Lothian councillors, are expected to take place in the coming weeks.

Councillor Willie Innes, Labour group leader, told the Courier the cuts were a "disaster for rural communities". He said: "It's not totally unexpected given the savage cuts by the Government in supporting bus companies across Scotland, and that was compounded by the SNP council cutting �200,000 from its budget supporting rural bus services."

Of his party's plans, Mr Innes added: "We have a commitment in our manifesto to develop bus services, because we realise that local people need to get to work, particularly in the rural communities.

"It's something we were working on five years ago, to develop a range of opportunities, and that would include either providing it ourselves or with a partner bus company."

Fa'side councillor Jim Gillies, who lives in Ormiston, said he was "very angry" about the cuts, while fellow Labour ward member Donald Grant bemoaned the lack of stability for services in the area.

SNP Fa'side councillors Ruth Currie and Kenny McLeod said the news was "truly shocking".

Musselburgh East and Carberry councillor John Caldwell (ind) has spoken to First to discuss the redundancies.

Community groups and residents have reacted with outrage.

Ralph Averbuch, chair of Pencaitland Community Council, said: "The fiasco is a direct consequence of poorly realised tendering which all but led to a monopoly that serves no benefit to the communities which it's meant to serve.

"The administration needs to take this opportunity to implement some imaginative new approaches to rural bus provision."

Joan Ramsay, chair of Tranent and Elphinstone Community Council, said: "I am concerned for our rural communities, in particular Elphinstone, as the community council worked with ELC last year to maintain the majority of the 110 service provision."

A spokesman for RELBUS, which works for improved rural bus services, said: "Until we have all the details of the proposed changes there will be considerable uncertainty.

"We are therefore looking for a strong commitment from elected members and operators to make up the losses. On behalf of all rural bus users, we are also asking that the user's voice is heard in the reconstruction of viable services."

East Lothian MSP Iain Gray said: "I have asked for a meeting with Lothian Buses to discuss what they can do to mitigate the impact of the withdrawal of so many services.

"More Lothian Buses services could be one solution, but East Lothian Council will need to act to ensure communities do not become only the preserve of people with cars."

Services to be withdrawn: X13 Pencaitland- Edinburgh X29 Seton Sands-Edinburgh 44 Wallyford-Balerno 44B Pencaitland-Balerno 44C Macmerry-Tranent 110 Dalkeith/Elphinstone-Prestonpans 121 North Berwick-Haddington 123 Haddington-Gifford 129 Seton Sands-Musselburgh/Ocean Terminal 141 Penicuik-Fort Kinnaird 328 Dalkeith-Musselburgh 428 Dalkeith-Musselburgh 625 Whitecraig-Elphinstone Research Centre