The Office of Fair Trading (OFT) is to study the supply of local bus services to see if market moves which have left nearly two-thirds of local services in the hands of five large operators have had a positive or a negative effect on fares and services.
The study will initially concentrate on how competition in local bus services works, and the OFT will liaise with councils, bus operators and central and devolved government to collect information. The study’s duration and scope will depend on these initial findings.
‘The OFT receives regular complaints about bus prices, service levels and a perceived lack of competition between companies bidding for tenders,’ said chief executive John Fingleton. ‘At the same time, many claim that even where there is competition, it has failed to deliver improvements in local bus services. The study will test these issues against the available evidence.’
The Confederation of Passenger Transport said it was astonished at the announcement as few, if any, industries had continued to serve their customers and invest at the level it had during the recession.
‘An investigation at this time, when there are so many other things happening on the economic front, runs the very real risk of undermining an industry vital to the UK’s economy, and in the current climate, appears nothing short of madness,’ said chief executive, Simon Posner. He said operators would work with the investigation, but he was confident they had no case to answer, and would be able to demonstrate all their actions were in the public interest.
Meanwhile, commuters in London will see one-quarter increase in fares as double-decker buses are brought in to replace ‘bendy’ buses being axed by mayor Boris Johnson, it has been revealed.
According to Arriva chief executive, David Martin, the extra cost is due to the capital’s biggest bus operator having to put on extra buses to substitute the ‘bendies’ being taken off the road by Johnson on the ‘high-profile’ 38 route to Victoria.
Johnson made it one of his electoral pledges to axe the buses, saying they ‘were never suited to London’s roads’. He added that conductors would return to prevent fare evasion.
Last December, the mayor launched the New Bus for London competition, where bus manufacturers were asked to design a new Routemaster bus for the capital. It is expected the winning design will be on the road by 2011.
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