BCC worried about cos
Page 20
If you've noticed an error in this article please click here to report it so we can fix it.
THE BUS and Coach Council has told the Department of Transport that it agrees with the objective of ensuring competition between operators, but admitted that its sectors do not agree on the best way of dealing with this.
In its response to the DTp's consultation document on the structure of district council bus undertakings, it said that some BCC members believe the new arms' length municipal bus operators should be governed by using existing company structures in accordance with the Companies Act, while others think anew designation of company — issuing separate detailed accounts — while staying in district council ownership should be set up.
The DTp consultation paper proposes that district council bus undertakings would be able to seek capital from the market but that any such borrowings would be subject to Government controls on local authority borrowing.
BCC says that they should be exempted from such controls whether they remain a council department or are formed into a limited company.
It says to do otherwise would not allow free and fair competition and may make it difficult to involve private capital.
The BCC response also disagrees with the consultative paper proposal that the articles of the new municipal bus companies should be restricted and should not allow diversification into separate areas of business.
It would not expect any such restriction to exist if control of the company passes from the council.