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Dereg malpractices '88

9th March 1989, Page 22
9th March 1989
Page 22
Page 22, 9th March 1989 — Dereg malpractices '88
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Which of the following most accurately describes the problem?

• Malpractices by operators struggling in a cut-throat competitive environment have plagued the first full year of deregulation, says the Annual Report by Traffic Commissioners.

North Eastern commissioner Frank Whalley notes that competition is now so intense "that some towns and cities are saturated," resulting in excessive duplication of routes and "doubtful practices." Whalley also alleges that some big operators will go to extremes to stop new, small companies from encroaching on their territory. They set up identical, high-frequency services and sustain losses until the small man is bled dry, claims the commissioner.

In the face of this, commissioner John Mervyn Pugh says that in the West Midlands, "small operators appeared reluctant to enter into any form of direct competition with established major operators." Pugh's South Wales area is so competitive that operators are making trivial complaints against rivals rather than improving their own services. "An unhealthy attitude by operators towards competition soon gives rise to unacceptable behaviour on the part of drivers which brings discredit to the whole of the bus industry," he says.

For the Eastern Traffic Area, Brigadier Compton Boyd echoes Pugh's reservations about the benefits of deregulation. "The current legislation has generated more competition between operators, occasionally to the point where blows have been exchanged or vehicles damaged." He mentions in his report the problem of judging the validity of unsubstantiated accusations and denials of malpractice by operators and highlights the need for independent evidence.

Deregulation has had "disturbing results" in the Western area, says commissioner Major-General John Carpenter, who charges that some operators have resorted to "underhand tactics and unlawful operation." The area also suffered from a driver shortage during the period covered by the report (1 April 19897-31 March 1988).

The Metropolitan commissioner Ronald Ashford reports numerous complaints about "the unreliability of bus services from the County areas where services have been deregulated" and notes a steep decline in the number of applications for London local service licences from 460 to 60. In contrast, the Scottish area has been inundated with 416 applications every month — a 34% increase over last year.


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