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London dereg by 1988

9th November 1985
Page 20
Page 20, 9th November 1985 — London dereg by 1988
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GREATER LONDON'S bus services are likely to be deregulated within two years, Transport Secretary Nicholas Ridley predicted last week.

1 le was speaking after the 1985 -1.ransport Act received the Royal Assent last Wednesday, paving the way for the abohticm of all road service licensing in Scotland, Wales and England outside Greater London.

According to Ridley, no decision has yet been taken on when London's services will be opened up to full competition, but said it is likely to happen in 18 months to two years from now.

For the rest of the country, all operators have until February 28 next to register the commercially viable routes they intend to run from deregulation day. October 26 next.

They will be committed to running these routes until the end of January 1987, after which they may start, stop or alter services after giving 42 days' notice to their local Traffic Commissioner.

The Act removes the present duties of local authorities to co-ordinate public passenger transport in their areas and replaces this with power to subsidise services on condi tion they are put out to open tender.

Local authorities are also empowered to promote the availability of public transport within their area.

The National Bus Company must now draw up and implement a restructuring of its operations to compete fairly with other operators after deregulation and for it to be privatised within three years.

Taxis will be permitted to take passengers at separate fares and provide local scheduled bus services, and local authorities will no longer have the power to restrict the number of taxis operating in their areas.

District councils and PTEs must transfer their bus operating undertakings to separate companies between March and October.

Local transport and education authorities and transport, education and social services departments within these authorities are also required to co-operate with each other to secure the hest value for money.

The Act preserves existing powers to establish concessionary fares schemes for elderly and disabled people and for children.

Operators who wish to participate in such schemes will be entitled to receive the same local authority reimbursement as others and local authorities may require participation if it considers it necessary.

To try to protect rural services, the Act provides a transitional grant of up to $:20 million in the first year, which is to be paid directly to operators along with fuel duty rebate. It also provides for innovation grants for special projects in rural areas. This allows over 1 million per year and is to be administered by the Development Commission.

From January until October, the present system of a relaxed service licensing regime will operate to allow operators to start competitive services before full deregulation, Many local authorities are already inviting tenders for subsidised services and will be able to continue to do this throughout the period of transition.

Quality controls are strengthened through operator licensing, and the Ikpartment of Transport says it is increasing the numbers of its vehicle inspectors to cope with the anticipated increase in numbers of operators.

Tags

Organisations: Development Commission
People: Nicholas Ridley
Locations: London

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