4. Better Buses – the PTEs viewpoint Tim Larner Director, pteg Support Unit IPPR, June 2004

5. Better Buses Background Importance of buses in all seven PTE areas Concentration of operations with big 5 plcs Partnerships only partially successful in achieving policies Failure of deregulation in PTA areas – patronage decline

6. Better Buses

7. Background Importance of buses in all seven PTE areas Concentration of operations with big 5 plcs Partnerships only partially successful in achieving policies Failure of deregulation in PTA areas – patronage decline Sustained real fare increases Contrast with London and rest of Europe

8. Better Buses Why PTEs want change PTEs provide bus companies with about one third of their income Companies in PTE areas are generally highly profitable But poor quality services continue to reduce value to users and undermine image

9. Better Buses Why PTEs want change Little or no real competition between bus companies in PTE areas Poor value for money from public funding of bus services Better co-ordination enables greater policy delivery - intra/inter-modal plus wider transport benefits Inherent conflict between commercial & public policy objectives

10. Better Buses Some inherent policy conflicts Vision - short-term commercial or long-run public? Long-term value of the market - grow or diversify out of? Pricing captive markets - exploit or protect? Marketing strategy - maximise share or increase size? Competition - seek to avoid or exploit to achieve vfm? Regulation - exploit light-touch or assure service quality?

11. Better Buses What PTEs dont want Return to pre-1986 provision of bus services, though operator of last resort powers useful Across the board change - continue with partnerships where they deliver

12. Better Buses A new approach - franchised operations Consistent area-wide quality Network planning to deliver service integration Fully integrated ticketing Operator exclusivity following competition Comprehensive minimum standards with commercial enhancement where appropriate Flexibility on size, character & length of contract Locally determined application

13. Better Buses Sources of funding Savings in administration - ticketing, tenders & concessions Keen competition for right to operate Some service rationalisation removing wasteful competition Increased patronage Some additional public funding

14. Better Buses Summary PTEs want a further tool in the box PTAs should have powers to specify networks and fares to meet the needs of their areas PTEs to offer bus service franchises to operators through tendering process to meet a general specification Bus operator(s) winning the franchise provided exclusive right to operate bus services in the area Greater funding - linked to policy delivery