SYT told to sell SOT
Page 16
If you've noticed an error in this article please click here to report it so we can fix it.
• South Yorkshire Transport has been told to sell off its lowcost subsidiary SUT by the Monopolies and Mergers Commission.
Transport Secretary Cecil Parkinson has accepted all of the MMC findings which conclude that SYT's acquisitions at the end of last year were against the public interest.
The MMC said that the acquisition of Sheffield and District, Sheaf Line, SUT and Grove Coaches had reduced competition in Sheffield significantly.
It suggests that the total share of SYT bus mileage would increase from 73%-87% in Sheffield which would lead to higher fares, lower standards and less choice.
SYT argued that the three companies had been amalgamated into a viable low-cost unit which was managed corn pletely separately from the main company. Sheaf Line had been rescued from bankruptcy and both it and SUT charged lower fares.
The MMC did not believe that the mergers benefited the public. It concluded that where a dominant operator removed competition by acquisition, it became necessary to streng then the competitive position by enforcing divestment of the business.
SUT and Sheaf Line have been forced to deregister services and "subcontract" routes to Yorkshire Traction and East Midland after more than 10% of its workforce left.
Routes have also been returned to SYT.