Monday, January 12, 2015

Broken bus market

Michael Dugher, Labour's Shadow Transport Secretary, commenting on the Campaign for Better Transport's report on local bus services, said today:

This is more evidence that like with the energy sector, the bus market is broken.  On David Cameron's watch bus fares have risen by 25% - an increase five times faster than wage growth - and big bus companies have been cutting crucial routes that people rely on to maximise their own profits.
The Competition Commission estimated the failure in competition within the bus market costs the taxpayer £305 million each year, but David Cameron has refused to stand up to the bus barons.
Labour is determined to see passenger power by regulating bus services in a better way.  We will act fast and legislate to give cities and county regions greater control over local bus services.  This will result in communities being able to determine routes, set fares and integrate and improve bus services.

Personally, I was with Michael all the way until that bit about counties.  Leicestershire County Council won't even fund rural libraries, so a fat lot they care about rural bus routes.  

I'm afraid many councils have completely failed to use the few powers they still have to face up to service provider cartels.  Another mechanism for breaking up the monopolies urgently needs to be found.  But at least we know Labour will look for one.

 
 

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