About £20m could be spent on a new bus fleet and depot on Guernsey under plans put forward by the States.
The current operator, CT Plus, uses former tram sheds as a depot at the moment, as the previous bus depot was sold off and replaced by social housing.
Deputy Roger Domaille said a proper depot would make it easier to tender for a bus service in the future, and the project would include £5m for replacing and refitting the buses which CT Plus currently operate.
He said: “This money is not for a completely new bus fleet, it is for a replacement programme which would include buying new buses, renovating some and upgrading others.
“Another £15m is earmarked to find a permanent home for the bus operator and service. The £15m is a build cost and doesn’t include having to purchase land so it could cost more.
“The decision to sell off the old depot was not thought through – social housing is clearly a priority but in taking away the existing depot the States should have gone to a phase two and replaced it.”
“We have to have a bus service. Despite complaints it is a good bus service. It has its problems but it is a good service.”
