Lib Dems hope bus probe will be ticket for change

2.33.53pm GMT Fri 8th Jan 2010

Kilian Bourke

Cambridgeshire Liberal Democrats have welcomed the news that local bus services across the country could be investigated by the Competition Commission.

They believe the move could be good news for passengers across Cambridgeshire who are restricted to using one company just because it has the monopoly on services.

This is particularly evident in Cambridge where Stagecoach runs 86 per cent of all commercial services. Its nearest competitor Whippet has just six per cent of the market.

Cambridgeshire, however, saw a 60 per cent rise in bus passengers between 2001/2 and 2008/9, against a trend of falling figures nationally. Stagecoach also took a key commercial decision around 2000 to focus major resources and effort on Cambridge which has resulted in increased confidence in the market.

Local bus services have been submitted to the Competition Commission by the Office of Fair Trading which fears that limited competition is pushing up prices. It is worried that anti-competitive measures are blocking new companies from entering the market.

Lib Dems hope that the action will lead to a better deal for passengers and claim cross-company ticketing would be a good place to start.

Lib Dem highways spokesperson Kilian Bourke said: "This is good news for local people. Stagecoach has no real local competitor so it can do as it pleases, and it has been allowed to do so for far too long. Only this winter it reduced the frequency of many services, despite a public outcry.

"The problem is that the county council has failed to create the right competitive environment in the public interest. As a consequence local people who rely on bus services are reliant upon Stagecoach, whose decisions are inevitably going to be commercial.

"I have written to the Competition Commission urging it to look closely at the situation in Cambridgeshire."

Ely North and East County Councillor, Nigel Bell said: "The de-regulation of Bus Services has naturally led to private companies concentrating on profitable routes and services. This, combined with the council's cuts in the budget for subsidised services, has led to a general downgrading of services particularly in rural areas.

"It is to be hoped the Competition Commission will restore to councils greater powers to regulate, co-ordinate and improve bus services in their areas."

County Councillor Fiona Whelan said the county council's agreement with Stagecoach to run Cambridge's Park and Ride service even prevents other operators dropping passengers off at the service's pick up points.

"The Competition Commission should make a beeline for Cambridge," said Cllr Whelan. "The Park and Ride service is a clear instance of an anti-competitive practice being written into a contract.

"If smaller companies were allowed to use the Park and Ride my residents would have much better access to the county, but the council has shown no willingness to budge on this. Rural bus provision in Cambridgeshire is a disgrace."

Chair of Cambridge's Transport Committee, Kevin Wilkins said: "It is to be hoped that the Competition Commission will recommend measures that will result in a better deal for bus-users. Cross-company ticketing would be a start."