The big four may get smaller
Page 17
If you've noticed an error in this article please click here to report it so we can fix it.
• Four of Britain's largest bus operators face being broken up into smaller companies by the Government.
Four Passenger Transport Authorities — Greater Manchester, South Yorkshire, West Midlands and Merseyside — have been contacted by the Department of Transport in the past month and asked for their views on whether their bus companies should be divided into smaller units.
This would affect Greater Manchester Buses, South Yorkshire Transport, West Midlands Travel and Merseybus. The DTp letter says that ministers are considering using their powers under the 1985 Transport Act to divide the PTA-owned bus operations.
Busways Travel Services, which is owned by Tyne and Wear PTA, is not affected by the move: the DTp says it is "happy for Busways to stay as a single unit". Busways is currently putting together a management-employee buyout.
The affected companies and PTAs are considering their reactions to the proposals: some have already expressed their anger at the move.
South Yorkshire Transport says: "We need sub-division like we need a hole in the head. We are still calling on the Government for a greater period of operational and financial stability before they initiate any major changes." il The DTp has issued a guidance notice to PTAs and local authorities on what sort of bus company sale proposals are likely to be acceptable to the Government.
It says that when ministers are considering a bid they will be guided by three principles: It should promote and sustain competition in the bus industry; employees should be given a reasonable opportunity to acquire a controlling interest, and a fair market price should be obtained by the company.
Regarding metropolitan public transport companies, it says: "Before agreeing to the sale of a Metropolitan FTC, ministers would wish to be satisfied that it would be appropriate, in the light of their objective regarding the promotion of fair and sustained competition, for the company to be sold as a single unit.