Bus service deregulation is not working, report warns

28 Sep 06
Bus travel outside London will continue to decline over the next decade if policy remains as it is, local transport authorities are warning.

29 September 2006

Bus travel outside London will continue to decline over the next decade if policy remains as it is, local transport authorities are warning.

A report from the Passenger Transport Executive Group, published this week, predicted that service levels and patronage will each fall by around 20% while fares will rise by about 20% unless control of key bus services and fare parameters is passed to local authorities.

The September 25 report, produced for PTEG by economic consultancy Nera, concludes that current arrangements are not working well, with buses failing to provide attractive alternatives to car travel.

Whereas in the capital Transport for London decides routes, fares and timetables, in the rest of the country a more deregulated market operates and councils are relatively powerless to ensure service quality and fare levels.

Neil Scales, director general of Merseytravel and spokesman for PTEG on bus issues, said: 'Nera has pulled no punches in showing us that we face continuing decline in bus use. The report also confirms that the current system of bus deregulation is not fit for purpose.'

On September 27, Transport Secretary Douglas Alexander told the Labour Party conference he would review existing bus policy. 'We have seen a free-for-all that has left the needs of the public behind,' he said. 'I will act to give the local transport authorities that need them real powers to make a real difference.'

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