10 Years After
Deregulation
More than 10 years following the
deregulation of bus services in Great Britain, a comprehensive report discloses that bus
lines in the capital have succeeded in increasing their passenger totals while those in
other parts of the country have registered a marked decline in patronage.
The mixed results appear in a study titled "Buses in
London: A Comparison with the Rest of Great Britain," published by London Transport.
According to the report, bus ridership in London has
increased by 8 percent over the 10-year period from 1986 to 1996, as compared with an
average decline of patronage in the range of 31 percent across the rest of the country.
The passenger increase has occurred in London notwithstanding a 78 percent decline in bus
operating subsidies over the same period. At present, London has the lowest operating
subsidy rate in the country for urban bus services.
In London, the increase in ridership has been associated
with a slowing in the growth rate of car ownership, while continued growth in ownership
rate has taken place in Britain's other metropolitan areas.
London's bus routes were put out for competitive tender,
with London Transport retaining the power to regulate service and fare levels. In the rest
of the country, in contrast, the new bus operators were allowed to compete freely for
passengers without the residual controls retained by LT in the capital.
LT Planning Director David Bayliss said, "There can
be little doubt that well-ordered, managed competition in London has been better for the
bus market than outright deregulation and may have helped to slow the growth of car
ownership and use."
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