Bus market overhaul is an 'expensive gamble'
COUNCIL bosses face "significant obstacles" in their attempts to overhaul Bristol's bus system, MPs have warned.
And the Government has said the city council would lose out on funding if drastic changes go ahead.
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Councillor Tim Kent
The authority wants to set up a franchise arrangement, known as a Quality Contract, allowing it to control timetables, routes and fares.
It would be the first council in the country to do so, under powers introduced more than a decade ago.
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Bus operator FirstGroup has claimed the switch would be an expensive gamble. But council bosses say their relationship with the transport giant "cannot carry on as it is".
A report by the influential Transport Select Committee says Quality Contracts are "a legitimate" option, and that councils should use them to put pressure on bus companies.
But they said: "That no local authority has implemented a Quality Contract more than a decade after the provisions were introduced suggests that there are significant hurdles to overcome, particularly for the first local authority to go down this route."
This includes the costs, which have been estimated at around £1 million a year, plus the same amount to set it up, and the "interim risks to bus services".
Yesterday the government announced reforms to the way that bus subsidies are managed, in an attempt to curb a decline in usage outside London.
In parts of the country designated as "better bus areas", including Bristol, tax breaks that are currently given to bus companies will be handed to local authorities to allow them to better control the local market.
However, councils will be denied this new power – and any additional cash that comes with it – if they opt for a Quality Contract, Transport Minister Norman Baker said.
Tim Kent, the city council's cabinet member for transport, said he thought his Lib Dem colleague had made a mistake.
He said: "I think it's a mistake by civil servants. I am sure that once Norman has had it pointed out to him his opinion may change."
In other areas where councils have attempted to bring in Quality Contracts, bus operators have threatened to withdraw all their services and sack staff. Mr Baker told the MPs he took a "dim view" of such a "scorched earth policy".
A FirstGroup spokeswoman said: "Quality Contracts are completely untried and we believe they will cost council tax payers money they don't have at the moment."
The Select Committee report also said the bus industry needed to show more leadership to raise the standard of services. Outside London, some services were "not as good as they could or should be," and bus users were treated less favourably than rail passengers, it said.
The First spokeswoman said: "We are keen to work with local councils to improve bus services and welcome the Transport Select Committee's comments that partnership working is the most realistic way of delivering service improvements without increasing council tax payer spending."
Comments
by katachua
Sunday, September 16 2012, 12:30PM
“@fatboy67
"I though other bus companys were being invited to tender for contracts."
But they don't, do they? They have the country nicely parcelled out. Google for 'oligopoly'....”
by fatboy67
Saturday, September 15 2012, 7:12PM
“Its like banging your head against a brick wall. The council try to take steps to improve the service. Then goverment say you cant do that, But you must ease traffic congestion. I though other bus companys were being invited to tender for contracts.”
by katachua
Saturday, September 15 2012, 5:54PM
“@J12345678
"Interestingly First Group's own site reveals: "In our UK Bus division we are conscious that our value for money scores in many parts of the country are lower than we would wish, and that we need to review our fare structures. Bristol, Somerset and Avon was our lowest scoring area." "
First Group's miserly policies will diminish the company's profits in the long term, as other companies take business from them. The question is, can we wait that long?”
by katachua
Saturday, September 15 2012, 5:51PM
“"However, councils will be denied this new power – and any additional cash that comes with it – if they opt for a Quality Contract, Transport Minister Norman Baker said."
Absolutely. It might interfere with the bus companies, and their Tory shareholders, getting rich at the expense of passengers and taxpayers.”
by J12345678
Saturday, September 15 2012, 1:14PM
“Interestingly First Group's own site reveals: "In our UK Bus division we are conscious that our value for money scores in many parts of the country are lower than we would wish, and that we need to review our fare structures. Bristol, Somerset and Avon was our lowest scoring area."
It then goes on to say there was a 43% reduction in family tickets over school holiday period. But nothing for ordinary/single people going to work!
http://tinyurl.com/99kubax”
by Rosbs
Saturday, September 15 2012, 8:46AM
“Anything to cut bus fares in Bristol will encourage more people to use the buses. The cost of travelling around Bristol is a joke”
by stockwoodpete
Friday, September 14 2012, 11:31PM
“The article refers to "the costs, which have been estimated at around £1 million a year, plus the same amount to set it up"
Cancel the pointless BRT2 and you've got 15 years funding at a stroke.”
by katachua
Friday, September 14 2012, 7:07PM
“"Bus operator FirstGroup has claimed the switch would be an expensive gamble."
Indeed - expensive for THEM...”
by BristolMark2
Friday, September 14 2012, 2:09PM
“This is the only way we'll ever have a decent, cheap and reliable bus service in Bristol. First are scaremongering as they know this will eat into their vast profits, and Norman Baker is just seriously deluded. Relying on the free market has not worked for buses in Bristol, that's plain for all to see.
Regarding costs, unless I've misunderstood the situation, high earning routes would be packaged with ones that have previously been subsidised, so the withdrawal of those subsidies should offset the admin costs anyway.”
by avonside40
Friday, September 14 2012, 1:57PM
“"In other areas where councils have attempted to bring in Quality Contracts, bus operators have threatened to withdraw all their services and sack staff."
TRANSLATION: "If you try and make us actually provide a decent service we will throw all of our toys out of the pram and then scream and scream until we are sick."
On a more serious note, isn't that called racketeering?”