UK'S UNCERTAIN BUS STORY

The effects of bus deregulation have been felt most strongly in the northern conurbations outside London, where deregulation is to be applied in the next few years. There has been considerable competition from operators moving into an area, from those already in an area competing with one another, from new operators entering the bus market, from coach operators and from entirely new companies. Most rival services have charged similar fares but fares had not yet been reduced. Bigger buses have been replaced by minibuses by many operators, and competition appears to have reduced operating costs. Patronage has fallen generally by between 7.5 and 10 per cent, partly due to increased fares. Initially, there were major redundancies from the passenger transport executives (ptes) and new jobs created among new operators were unlikely to offset these losses. Government subsidies have been reduced by at least 10 per cent, however this reduction has resulted in higher fares. The author considers that it is too early to reach an overall conclusion. There is a need to monitor changes to determine what socially necessary services are required and to reform administration to make it more efficient.