Inquiry into First Bristol bus fares
Bristol bus operator First could be forced to reduce its fares if an investigation is held into large national companies monopolising local services.
The Office of Fair Trading has called for an inquiry into the bus industry after it found fares were nine per cent higher in towns and cities where a big firm had a stranglehold, such as Bristol.
The Competition Commission (CC) has the power to take strong action against companies if it discovers there is a lack of competition on bus routes.
The CC could order firms to lower their fares or control the frequency of services, force them to sell off parts of their business or make policy recommendations to the Government.
But if the inquiry goes ahead in 2010, it could take another two years for the findings to be unveiled and any action to be taken.
The possible CC investigation prompted a mixed reaction from politicians and bus companies.
Bristol city councillor Jon Rogers, cabinet member responsible for transport, welcomed an inquiry.
He said: "There is abundant evidence of a lack of competition leading to higher fares in Bristol. Many people in Bristol feel First's fares are far too expensive. The original aim of competition after deregulation has not transpired in the way it was envisaged."
Kerry McCarthy, Labour MP for Bristol East, called for bus fares in the city to be slashed earlier this month.
Of the plans for a CC investigation, she said: "They could introduce other bus companies into the market but I'm not sure that would work because First is all powerful.
"One idea is to introduce a measure of local regulation and give the local authority more power to decide who will run the bus contract. I don't think market forces have worked and it's too important for Bristol not to get this right.
"What First should be doing is testing out lower fares to see if more people use the buses. Sometimes you see a double decker go past and it's only got two people on it. Cabot Circus is offering car parking for £1 an hour so the bus companies aren't really competing."
First runs the majority of services in the Bristol area although other companies including Wessex Connect and Abus also cover some routes. ACL Travel, which ran services in North Somerset, has just taken its orange fleet of buses out of service.
Alan Peters, owner of ABus, which runs services from Bristol city centre to Keynsham and Stockwood, said his company runs a shared timetable with First on some routes.
He said: "First have always had higher prices in Bristol because car ownership in this part of the country is higher than elsewhere.
"Because there are fewer passengers, there are higher fares. First provide a better service than people give them credit for."
First Bristol, Somerset and Avon, which runs the bus services in the Bristol area, is part of FirstGroup, which made a pre-tax profit of £326.4 million in the financial year to March 31.
In its UK bus arm, which features a fleet of 9,000 buses and a market share of 23 per cent, FirstGroup's revenues increased by seven per cent and operating profits lifted 9.8 per cent to £134 million in the same period. The OFT said it proposed to refer the £3.6 billion local bus industry to the CC after finding evidence that the sector was "not working as well as it should". Its five-month probe found most routes were operated by only a small number of players and passengers were faced with higher fares in areas where competition was low.
The bus sector and other interested parties, including passenger groups and local authorities, now have until October 15 to give their comments before the OFT will give its final ruling on whether to make a reference to the CC.
Karen Baxter, spokeswoman for First, said: "We will read the OFT's report in detail and will respond by October 15."
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by Julraj, Bristol
Saturday, August 22 2009, 9:36AM
“Ico, indeed I have been to Tokyo and yes I was in awe of their public transport system. However Tokyo's much like London - flat and very densely populated. Using a car in either city would be stupid and so public transport is always used - it has to be good. Bristol has many people passing through the centre because there's no proper ring road. It's also very hilly making undergrounds and trams expensive and difficult to adopt.
We have a blame culture here in Britain, unlike Japan. They fix things, we like to blame people and wait for someone else to fix it.”
by Stuart, Bristol
Saturday, August 22 2009, 8:35AM
“Margaret, Wrington. No comment here. However what do we have to lose? It can't get any worse so change has to be the answer...”
by steve, Bristol
Saturday, August 22 2009, 8:27AM
“it cost 2-70 pence from stockwood to the centre on first on the A BUS it cost JUST 1 POUND”
by Margaret, Wrington
Saturday, August 22 2009, 7:24AM
“Conservative Spokesperson,so "Call me Dave" has promised a referendum to elect a Mayor for Bristol, he has also promised that the NHS is safe in his hands,and that pensioners winter heating allowance is safe with him,when did ANY politician keep a promise,Bristolians are not fooled that easily.”
by Ico, Bristol
Friday, August 21 2009, 11:12PM
“"Anyone whose been to another country and raved about its public transport infrastructure and cost no doubt ignore the age and questionable safety of the buses, trams and trains"
You haven't been to Japan, have you?
Tokyo lives by its public transport system which is clean, ultra-efficient, safe, surprisingly cheap. It is very obvious that they are run by companies whose primary interest is to provide a public service instead of abusing their monopolistic position (which they could easily do, considering how dependent the locals are on public transport). The locals also walk and cycle a lot.
I suppose with their narrow streets and the sheer size of the city, they HAD to make public transport work...and they have succeeded spectacularly. Where there is a will, there is a way. And if they can do it, so can we. But not with First.
"Roads and pavements need to be wide enough for a tank so accidents dont happen"
Right, so you definitely haven't been to Japan!”
by Conservative Spokesperson, Bristol
Friday, August 21 2009, 10:53PM
“Dear T, you wrote...
"Introduce a Bristol "Oyster" service" - this would be a good idea and should be supported, but would need to operate across an area of Bristol, Bath and surrounding areas, with zones like London. Great idea but who acts in place of TfL to coordinate? The councils could not agree about the tram and we lost it, what has changed?".
We are listening to you all and keeping a record. Mr Cameron visited Bristol early this year and promised a local referendum to Greater Bristol for an Elected Mayor. If you elect a mayor for Greater Bristol then this person will make these decsions and help you tear down barriers.”
by T, Bristol
Friday, August 21 2009, 9:30PM
“"I live 8 miles from work, and it would cost me around £20 a week to use the Bus (80 miles) For £20 of diesel I can do 140 miles, without being late, in comfort, and when I want it. " But your car costs more than just the fuel to keep it on the road - what about insurance, tax, servicing and depreciation?
"You will get more people using your service" - First do not want this because they will then have to buy and run more buses - this actually will reduce their current subsidised profits!
"The CPZ plans could be scrapped as there would be no need for one" - but the council make money from the CPZ's so these would still go ahead!
"Cut the quiet daytime services... there is no point running at a loss when most people are working" - but what about all the families, people with young children, OAPs etc?
"Introduce a Bristol "Oyster" service" - this would be a good idea and should be supported, but would need to operate across an area of Bristol, Bath and surrounding areas, with zones like London. Great idea but who acts in place of TfL to coordinate? The councils could not agree about the tram and we lost it, what has changed?
These are great ideas, but it is not that simple and there is a need for something to change substantially to shake up the status quo - First and the City Council bizzarely have little incentive to start change”
by Birbeck, Montpelier
Friday, August 21 2009, 9:14PM
“Simon, Kingswood: Another problem is that unlike London with an 'entrance' and 'exit' door, for some reason even First's new buses only have one door, and this really slows things down too!
I always use my Oyster card when I return to London; I was there this week and to spend only £1 for a journey that would be £2.30, well, whatever it is now, makes the Capital bearable!”
by Simon, Kingswood
Friday, August 21 2009, 6:57PM
“I live 8 miles from work, and it would cost me around £20 a week to use the Bus (80 miles) For £20 of diesel I can do 140 miles, without being late, in comfort, and when I want it.
Why would I choose to take the bus? Only if it was cheaper and more reliable than driving!!
FIRST PAY ATTENTION!!!
1) DROP YOUR FARES!!! You will get more people using your service, decreasing congestion in the centre and making the service more reliable. Also less people will park in Cotham, Kingsdown, southville etc (all the places the council wants CPZ's). The CPZ plans could be scrapped as there would be no need for one!
2) Cut the quiet daytime services... there is no point running at a loss when most people are working!! Put more on at peak times instead. Each bus will then have more people on it, making it more efficient and profitable.
3) Introduce a Bristol "Oyster" service. This would also mean fixed journey costs, 1 stop or 100 stops for the same price, and a daily "Cap". In London 20 people can get onto a bus in the same time it takes one person in Bristol to ask for a ticket, the driver to punch it in and request the fare, the passenger to find the money, pay the driver & wait for change etc.. Multiply that by the number of people getting on and it means the bus is slow. Pre-payment would mean the busses would be stopped for less time, making them more reliable and quicker. The other advantages would be that the drivers would have to handle less cash (that cost First more to bank), and they would issue less tickets (I'm sure they are not cheap for a blank ticket roll with "security" features!!)
I'm sure if First did those 3 simple things they wouldn't be in the paper every other week, the public would be happy, the council would be happy, the central area residents would be happy, and First would most likely increase their profits making them and their shareholders happy.”
by Scott, Bristol
Friday, August 21 2009, 6:57PM
“*It's £2 from Bristol Temple Meads to Clifton on a train - even though it will be operated by "First Late Western".”