Better Buses
Background
• Importance of buses in all seven PTE areas
• Concentration of operations with big 5 plcs
• Partnerships only partially successful in achieving policies
• Failure of deregulation in PTA areas – patronage decline
Better Buses
UK Bus Patronage Trends
0
20
40
60
80
100
120
140
1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02
Year
Ind
ex
(1
99
1/9
2=
10
0)
PTEs
London
Rest of GB
Better Buses
Background
• Importance of buses in all seven PTE areas
• Concentration of operations with big 5 plcs
• Partnerships only partially successful in achieving policies
• Failure of deregulation in PTA areas – patronage decline
• Sustained real fare increases
• Contrast with London and rest of Europe
Better Buses
Why PTEs want change
• PTEs provide bus companies with about one third of their
income
• Companies in PTE areas are generally highly profitable
• But poor quality services continue to reduce value to
users and undermine image
Better Buses
Why PTEs want change
• Little or no real competition between bus companies in PTE areas
• Poor value for money from public funding of bus services
• Better co-ordination enables greater policy delivery - intra/inter-modal plus wider transport benefits
• Inherent conflict between commercial & public policy objectives
Better Buses
Some inherent policy conflicts
• Vision - short-term commercial or long-run public?
• Long-term value of the market - grow or diversify out of?
• Pricing captive markets - exploit or protect?
• Marketing strategy - maximise share or increase size?
• Competition - seek to avoid or exploit to achieve vfm?
• Regulation - exploit ‘light-touch’ or assure service quality?
Better Buses
What PTEs don’t want
• Return to pre-1986 provision of bus services, though ‘operator of last resort’ powers useful
• Across the board change - continue with partnerships where they deliver
Better Buses
A new approach - franchised operations
• Consistent area-wide quality
• Network planning to deliver service integration
• Fully integrated ticketing
• Operator exclusivity following competition
• Comprehensive minimum standards with commercial
enhancement where appropriate
• Flexibility on size, character & length of contract
• Locally determined application
Better Buses
Sources of funding
• Savings in administration - ticketing, tenders & concessions
• Keen competition for right to operate
• Some service rationalisation removing wasteful competition
• Increased patronage
• Some additional public funding
Better Buses
Summary
• PTEs want a further ‘tool in the box’
• PTAs should have powers to specify networks and fares to meet the needs of their areas
• PTEs to offer bus service franchises to operators through tendering process to meet a general specification
• Bus operator(s) winning the franchise provided exclusive right to operate bus services in the area
• Greater funding - linked to policy delivery