A declining industry
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THE BUS industry was in a state of "chronic decline" and the Government's duty was to do something about it, Junior Transport Minister David Mitchell told a bus users' conference on Monday this week.
He defended the Government's deregulation plans against criticism that they would mean loss of rural services and break up of integrated networks.
Mr Mitchell said that operators would try to retain networks which they found "their most precious asset".
Systems like Tyne and Wear would be able to keep the majority of commercially-justified rail feeder services and put others out to competitive tender, But operators should be able to provide other services, too.
Mr Mitchell played down the privatisation element in the Government's policy. Lt only related to NBC, he said, and was "a very small part of the Bill" to take place over a period of years and have only limited impact.
Privatisation of the municipally-owned companies would be entirely a matter for their councils.
The main thrust of the policy was competition which would mean pressure to get costs and fares down and the removal of cross-subsidy.
Creaming off on tendered serviced was "highly unlikely" to arise Mr Mitchell claimed.
If parts of a route were uneconomic tenders could be called for them and "would almost invariably go to the chap on the other part" who could make the lowest bid.