The Canadian intercity bus industry: shaped by public policy

In spite of a national transportation policy which advocates reliance on competition and government programs which do not favour one mode over another, the structure of bus industry remains greatly affected by government. With few exceptions, which are in small communities, urban and suburban scheduled services are publicly owned. Little change in the pattern of public ownership and subsidy is likely. The intercity bus industry continues to operate under a regulatory regime introduced on a provincial basis in the 1930s. The industry is competing with heavily subsidized railway services, provided by VIA Rail, and with a vibrant, deregulated airline industry. The federal government's determination to reduce the deficit of VIA Rail will likely lead to a broad consideration of passenger policy. Thus, factors external to the bus industry may lead to a long overdue consideration of the regulatory regime of the industry.