Mrs (Liverpool, Riverside)
(Lab/Co-op):...Some attempts to reform the system that
began operating in 1986 have brought about improvements, albeit
limited ones. Our inquiry was given examples of innovative
partnerships operating around the country. For example, the west
midlands bus alliance has benefited passengers through integrated
timetabling and joint ticketing, and FirstGroup told us about a
successful partnership in Bristol. I am sure that there are many
other examples of partnerships on offer under the current system
that have made things better and been able to address some of the
problems...
(Southport) (LD): Does
the hon. Gentleman agree that there is also a myth about
deregulation meaning the introduction of the private sector?
There were many splendid private sector operators in Liverpool
prior to deregulation, such as Crosville and Ribble, which
existed alongside the municipal sector.
(Blackley and
Broughton) (Lab): The hon. Gentleman is quite right
about Merseyside. In Manchester, Mayne Coaches ran a service in
the private sector, but it was regulated; it could not just—as
happens under the deregulated system—decide to run a bus service
one day and take it off six weeks later, or vice versa. So the
issue is not privatisation but the lack of regulation.
The point I was getting to is that there is supplementary
evidence that competition did not work. The rate of return in
London was much lower, and FirstGroup moved out of the London
market because it could make a much higher return in South
Yorkshire and Greater Manchester.
(Wolverhampton South West)
(Lab): My hon. Friend may be aware that, of the major
metropolitan urban areas outside London, the west midlands had
the least competition, with over 85% of services run by Travel
West Midlands and then by National Express. The ridership dropped
less in the urban west midlands than in any other metropolitan
areas, but, literally, at a price, with some of the highest fares
and some of the highest returns on capital. So the competition
was not there, and we had the high prices, but at least we had
the continued ridership.
: Indeed. It
was often the change that led to the loss of ridership. When
companies such as FirstGroup and Stagecoach operated their
services, they were certainly, whether by tacit agreement or
not—I doubt whether there was a written agreement—operating
semi-monopolies, which enabled them to charge much higher fares.
It is not only that the ridership has gone down, but fares have
gone up by about 43%.
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