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More Competition in Bus Industry Urged

14th January 1966
Page 46
Page 46, 14th January 1966 — More Competition in Bus Industry Urged
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Which of the following most accurately describes the problem?

FROM OUR POLITICAL CORRESPONDENT

T N the latest non-official political pamph let to come from the Tory headquarters in Smith Square, written by journalist Russell Lewis, a case is argued for more competition and fewer restrictions. "We really need pirate buses to make the industry more flexible", writes Mr. Lewis. In the pamphlet's section on transport, he says that no area of the economy would benefit more from a policy of enforced competition.

The pamphlet attacks the dominance of the 1930 Road Traffic Act on transport activities. Although the main justification for the Act—the protection of the railways as public carriers—has been removed, its effect on the buses remains.

"The existing public bus services consist of a few cartels, well protected by the courts of the Traffic Commissioners, where they object automatically and usually with success to any new applicant", Mr. Lewis says.

This lack of competition seems to inhibit experiment—for example, with different sizes and types of vehicle. He describes the method of appraising routes for efficiency and good service as "astonishingly arbitrary". Bus routes, he concludes, are mostly the product of history rather than logic— and many London routes go back to the horsedrawn days.

The pamphlet also attacks the justification that present route systems are sound because they permit cross-subsidization. "In reality, the overheads of the big companies are so high that the small operator could probably provide a cheaper rural service."

In addition, as most profitable urban routes are through the densely populated poorer areas, they tend to subsidize services to fashionable suburbs. Thus, present bus services are not only hidebound; they are economically unjust as well.

The pamphlet contends that competition should be legislated into road transport by amending the Road Traffic Act, 1960, to abolish road service licensing completely.

As for road haulage, Mr. Lewis advocates the adoption of the Geddes recommendations in their entirety. The money at present spent on licensing courts would be better spent on increasing the amount of vehicle inspection. Present levels of safety in British lorries, he says, are scandalous.

Tags

People: Russell Lewis
Locations: London

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