Competition Commission to investigate local bus services

The Office of Fair Trading (OFT) has referred the supply of local bus services, excluding Greater London, to the Competition Commission (CC) for investigation, having considered the responses to its earlier provisional conclusions – the OFT was particularly concerned by five issues arising from a preliminary investigation:-

i) a stable and concentrated national market picture where the major groups largely ‘respect’ each other’s territories

ii) the majority of local bus services are operated by a small number of very large companies

iii) alleged predatory behaviour of incumbent operators designed to eliminate competition from new entrants

iv) low number of bids for contracted services – only one bidder for twenty-five per cent of local authority tenders

v) fares are much higher in areas where operators with a strong market position are not challenged by another large, well-resourced rival

The Confederation of Passenger Transport (CPT), representing the bus operators stated that the biggest competitor for the bus industry is the car – the impact of car travel on bus services was not considered by the OFT. The CPT and some major operators warned that plans for new investment and future partnership working with local authorities could now be delayed until the CC had completed the inquiry, which could last two years.

CrossCountry reduces use of high speed trains

CrossCountry has reduced the use of the company’s high speed trains on the service between Edinburgh and Plymouth via Leeds, Birmingham, Cheltenham Spa, Bristol Parkway/Temple Meads, Taunton and Exeter St Davids since the December 2009 timetable change - prior to the timetable change, the operator was using four out of the company’s fleet of five high speed trains on Monday to Friday, but it is now using just two on Monday to Thursday and three on Friday.

New Bristol – Gloucester train service?

The South East Wales Transport Alliance (SEWTA), a consortium of ten local authorities, has proposed that a new reversal facility be provided at Severn Tunnel Junction, in order to facilitate the introduction of a new train service between Bristol Temple Meads and Gloucester via Filton Abbey Wood, Patchway, Severn Tunnel Junction, Caldicot, Chepstow and Lydney.

Higher fines for over-running street utility works?

The Department for Transport (DfT) is to consult on a proposal for a ten-fold increase in fines (from a maximum of two thousand, five hundred pounds per day to a maximum of twenty-five thousand pounds per day) for overrunning utility works on the busiest roads/streets in South West England – the DfT subsequently plans to consult on a proposal that utility companies would pay a daily lane rental for works in the most congested areas of South West England.

People

David Sidebottom has been appointed as the first bus passenger director of Passenger Focus, in preparation for the organisation becoming the statutory bus, coach and tram passenger representative body for England, excepting Greater London.

And finally,

Bournemouth Borough Council issued one thousand, two hundred and twenty-nine fines for parking at bus stops in the last six months of last year!