Post by WLT892 on Sept 28, 2006 22:38:18 GMT
hmmmm.....this is interesting. Mr Souter chief executive of stagecoach has threatened to pull stagecoach out of bus market if council gains more power to run bus service:
business.timesonline.co.uk/article/0,,9077-2378636,00.html
Stagecoach threatens to step off the buses if councils win more control
By Ben Webster, Transport Correspondent
STAGECOACH has threatened to pull out of bus operations in major British cities if the Government proceeds with plans to give local authorities sweeping new powers over services.
Brian Souter, the bus and rail company’s chief executive, has told industry colleagues and politicians that he would prefer to sell his bus depots to developers for housing or supermarkets than allow councils to dictate how he should run his business.
Douglas Alexander, the Transport Secretary, promised yesterday to end the “free for all” among private bus operators. Bus passenger numbers are declining in every large city apart from London, the only area where services remain under public control.
Mr Alexander told the Labour Party conference: “I will act to give the local transport authorities that need them real powers to make a real difference.”
The Government is understood to be looking at making it much easier for local authorities to introduce “quality contracts” under which they can specify bus routes, frequency and fares.
Quality contracts are similar to the system of franchising in London, where bus companies do not take revenue risk and earn much lower margins than on their deregulated services in the regions.
Stagecoach, Britain’s second-biggest bus company, sold its London bus franchises last month to concentrate on markets where it has freedom to innovate and set fare levels.
Roy Wicks, chairman of the Passenger Transport Executive Group, which represents local authorities in Manchester, Liverpool, Sheffield, Newcastle, Leeds, Birmingham and Glasgow, said Mr Souter had made clear he would sell his bus operations if he lost control over how the business was run.
business.timesonline.co.uk/article/0,,9077-2378636,00.html
Stagecoach threatens to step off the buses if councils win more control
By Ben Webster, Transport Correspondent
STAGECOACH has threatened to pull out of bus operations in major British cities if the Government proceeds with plans to give local authorities sweeping new powers over services.
Brian Souter, the bus and rail company’s chief executive, has told industry colleagues and politicians that he would prefer to sell his bus depots to developers for housing or supermarkets than allow councils to dictate how he should run his business.
Douglas Alexander, the Transport Secretary, promised yesterday to end the “free for all” among private bus operators. Bus passenger numbers are declining in every large city apart from London, the only area where services remain under public control.
Mr Alexander told the Labour Party conference: “I will act to give the local transport authorities that need them real powers to make a real difference.”
The Government is understood to be looking at making it much easier for local authorities to introduce “quality contracts” under which they can specify bus routes, frequency and fares.
Quality contracts are similar to the system of franchising in London, where bus companies do not take revenue risk and earn much lower margins than on their deregulated services in the regions.
Stagecoach, Britain’s second-biggest bus company, sold its London bus franchises last month to concentrate on markets where it has freedom to innovate and set fare levels.
Roy Wicks, chairman of the Passenger Transport Executive Group, which represents local authorities in Manchester, Liverpool, Sheffield, Newcastle, Leeds, Birmingham and Glasgow, said Mr Souter had made clear he would sell his bus operations if he lost control over how the business was run.
