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Fares are soaring claims AMA

8th September 1988
Page 16
Page 16, 8th September 1988 — Fares are soaring claims AMA
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Which of the following most accurately describes the problem?

• Bus fares in major cities outside London have soared way above the rate of inflation and the number of passengers has dropped by an average of 7.5% since deregulation, says a report out this week from the Association of Metropolitan Authorities.

The study, undertaken by consultant Bill Tyson, covers Merseyside, Greater Manchester, West Yorkshire, South Yorkshire, Tyne and Wear, West Midlands and Strathclyde.

It says that fares have risen rapidly since October 1986, with the largest increase seen in South Yorkshire — a rise of 238.5%. Merseyside fares went up by 100% and only West Yorkshires fares remained static.

The number of bus passengers is also reported to have fallen. The largest decrease was in Merseyside, where the Passenger Transport Executive reported a drop of 32.5%. The study blames external factors such as a rise in car ownership and a fall in population, as well as fare increases, service changes and a switch to rail travel.

According to the report, deregulation in the Metropolitan areas has neither been the major success predicted by the Government, nor a total failure.

There has been strong competition for both commercial and tendered services, a reduction in operating costs, and rate payers have benefitted from a cut of at least 10% in subsidies. The bus wars which: broke out immediately after deregulation appear to have ended, says the report.

Standards of behaviour on the road have improved, it says, and the intial drop in the quality of service has now beei reversed. The study also warns that these benefits are offset by large-scale redunancies, lower wages and an inability of bus operators to provide concessionary fares or information.