Strathclyde overcomes SBG
Page 20
If you've noticed an error in this article please click here to report it so we can fix it.
• Two Scottish Bus Group companies have failed to stop stage carriage variations by Strathclyde PTE on the grounds that the PTE receives a subsidy that gives it an unfair commercial advantage.
Strathclyde was seeking service variations which it claims will smooth the way to deregulation. Of 41 applications, Kelvin Scottish Omnibuses opposed seven and Clydeside Scottish Omnibuses five.
John Elliott, Kelvin's operations manager said the primary ground of objection was that the PIE receives subsidy not provided after a tendering exercise, and that it was using that subsidy to gain an unfair commercial advantage.
He said 99% of Kelvin's operations are urban, but the PTE receives at least five times more subsidy than his company.
Kelvin, compared with the PTE, could be regarded as one of the small operators the transitional provisions are designed to protect, he said.
The package would save the PTE 21 peak buses, 7,000 bus hours and 27,000 bus kilometres a week and 61 drivers.
Scottish Traffic Commissioner Hugh McNamara said he was not convinced there is a direct relationship between the PTE's subsidies and any unfairness.
PTE finance controller John Churchill said it has budgeted revenue support until deregulation of 25.8 million for the PTE and .24 million for SBG. In the past two years, the PTE had returned substantial sums whereas an additional payment over that budgeted had to be made to the SBG last year.
PTE bus manager George Hall said it is phasing in the network it proposes to operate after October 26, to avoid chaos for the public.