Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page:

From The Socialist newspaper, 13 January 2010

Buses - privatisation means worse services

The Office of Fair Trading (OFT) has referred the UK bus industry to the Competition Commission because it has "evidence that limited competition between bus operators tends to result in higher prices and lower quality for bus users".

Alistair Tice

OFT's scrutiny of the UK bus market has found that the industry is dominated by nine operators. The big five, Stagecoach, FirstGroup, Arriva, Go-Ahead and National Express, control two-thirds of all local bus services.

OFT goes on to explain how this monopolisation has led to key routes or areas being dominated by a single company. Fares are about 9% higher where an operator faces limited competition. There are few bidders for "supported service" contracts such as partially subsidised rural routes. New entrants and smaller companies are being deterred by the "predatory behaviour" of incumbent/bigger operators.

Continued below ...

Watch Taken For A Ride video

Showing We Want our Buses Back demonstration and protests

... Continued

In fact, the OFT inquiry was prompted by the behaviour of Cardiff Bus forcing out a low-cost competitor '2 Travel'. Cardiff Bus set up a loss-making no-frills rival which undercut and forced 2 Travel out, then Cardiff Bus withdrew its own service!

So much for Thatcher's argument of competition improving services and driving down fares that she used when the Tories deregulated the bus industry in 1986 and broke up the National Bus Company. This led to cowboy competition with buses literally overtaking each other to get to the next stop to pick up passengers.

But as with the other public utilities that were privatised like rail, gas, electricity and water, all so-called competition has done is result in a handful of big companies profiteering from the industry whilst receiving huge public subsidies.

One-third of bus industry revenue (1.2 billion) comes from the taxpayer, including 750 million for subsidised fares. Yet there is no public control of these private bus operators outside London and Northern Ireland. They can literally charge what they like and run where they like.

One of OFT's 'solutions' is more use of Quality Contracts. QCs allow local authorities to set fares and timetables for routes or areas which private operators then bid for, similar to London. But so far, not one Passenger Transport Authority has applied for a Quality Contract. Legislation under the Local Transport Act which comes into force this month is supposed to make it easier for local authorities to obtain QCs. However, the Tories have said that they will abolish it if they win the election.

Whilst any form of regulation is to be welcomed, the recent 20% hike in London bus fares by Tory Mayor Boris Johnson shows how little public control there really is. Private operators will only bid for the contracts if they are guaranteed enough profit (326 million in 2007/08) and the big five's monopoly has local authorities over a barrel.

Only by taking the bus industry back into public ownership, with local services democratically run by councils, bus workers and passengers, as part of an integrated public transport system, will fares be cut and services improved.

Then public transport can become a more attractive alternative to the car, thus reducing congestion and pollution.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.

In The Socialist 13 January 2010:

Decent jobs - not slave labour

Protest against bankers' bonuses

Leeds City Council Future Jobs Fund is no solution

Trade Unionists and Socialist Coalition

Launch of Trade Unionist and Socialist Coalition

Socialist Party news and analysis

Labour's leadership crisis - time for a new workers' party

Global warming chills the north

The real cost this winter

Iceland debt crisis: Make the 'dirt bags' pay!

No to County Council cuts in Warwickshire!

Fast news

Northern Ireland

Corruption scandal grips Northern Ireland

Socialist Party workplace news

Fujitsu workers say: "Enough is enough"

Signallers' strike spreads

Buses - privatisation means worse services

Teesside fight to save jobs

Twinings jobs meeting

Hospital workers battle on

Unison Witchhunt

Unison witch-hunt: Shock exposures at Employment Tribunal

Workplace Feature

Call centres: Union campaign makes important gains

Socialist Party international feature

Greece - on the edge of a volcano

International socialist news and analysis

Sri Lanka presidential elections: No to the two warmongers!

Israel: Instability, class polarisation and socialism

Chile - Freedom for Elena Varela


Hard chimes for Pompey


Home   |   The Socialist 13 January 2010   |   Join the Socialist Party

Subscribe   |   Donate  

Related links:


triangleLondon Buses safety campaign

triangleBus safety: we won't be distracted from public ownership

triangleSocialist sales at Salford station

triangleBuses and buggies: a driver speaks

triangleWestbourne Park bus dispute continues


triangleNasty party out the Tories

triangleCWU fights court attempt to stop national strike

triangleNHS meltdown - fight the Tory cuts

triangleHousing crisis: Corbyn's positive measures blanked by Labour's right


triangleHow the Single Market blocks socialist policies

triangleFight for a socialist Brexit

triangleDon't we need competition to spur on progress?


triangleRMT condemns Welsh government rail privatisation

triangleNationalise rail now!


triangleTravel chaos for Ryanair customers as airline cancels thousands of flights

Public transport:

triangleShould you be furious about 'furious cycling'?

Reports and campaigns

Reports and campaigns



Justice for Tube cleaners demo



Salford Unison condemns pay cuts


Royal Mail

CWU fights court attempt to stop national strike



Carlisle NHS campaigners hand in petition to MP



Don't wreck our rec! Campaigning to save green space in Standish



No more fire deaths - ensure safety now!



Cardiff Socialist Students confront 'Parasite' Jacob Rees-Mogg


John McDonnell

Manchester rally discussed unionisation and nationalisation



Join the Orgreave Halloween rally



Workplace news in brief


Democratic rights

Who's watching who?: The fight for justice, trade union and democratic rights


Northern Ireland

Boeing bust-up threatens thousands of skilled jobs



Too much to cross the Mersey


Royal Mail

Set for national strike action



Supporting the general strike in Catalonia

triangleMore Reports and campaigns articles...

Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle13 Oct The end of the Tories?

triangle11 Oct Nasty party out the Tories

triangle11 Oct CWU fights court attempt to stop national strike

triangle11 Oct The fight against racial discrimination is tied to fighting against...

triangle11 Oct Catalonia: Workers can finish what Puigdemont won't

triangle6 Oct Boeing bust-up threatens thousands of skilled jobs

triangle4 Oct The nasty party turns on itself... but the Tories must be driven out

More ...

triangle16 Oct Teesside Socialist Party: After the party conferences

triangle17 Oct London: TUC lobby & rally; and London march

triangle18 Oct Warrington & St Helens Socialist Party: 1917-2017; the October Russian Revolution

triangle18 Oct Hackney Socialist Party: 100 years ago - the Bolshevik-led revolution

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube



October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017





















Platform setting: = No platform choice