Menu
20/08/2009
Bus Fares Competition Probe Revealed
The local bus sector has been referred to the Competition Commission (CC) by the Office of Fair Trading over higher fares for passengers.
In a five-month investigation into the £3.6bn industry the OFT found evidence to suggest that limited competition may be leading to higher prices for bus users.
The study has identified a number of features of local bus markets that could prevent, restrict or distort competition in the sector.
These relate both to commercial services and services subsidised by local transport authorities.
Issues include:
"In addition, this is a market where an estimated £1.2bn comes from public subsidy so restricted or distorted competition can potentially have a significant impact on taxpayers.
"We believe that the issues we have identified clearly justify a full investigation and we therefore propose to refer this sector to the Competition Commission."
The OFT is seeking comments on its provisional decision to refer these markets. Interested parties have until 15 October 2009 to submit their views.
If a reference is made, the CC will conduct a detailed public investigation and reach its own conclusions.
The CC can compel parties to submit particular evidence, and also has the power to impose remedies which go beyond the outcomes available from an OFT market study.
(GK/BMcC)
In a five-month investigation into the £3.6bn industry the OFT found evidence to suggest that limited competition may be leading to higher prices for bus users.
The study has identified a number of features of local bus markets that could prevent, restrict or distort competition in the sector.
These relate both to commercial services and services subsidised by local transport authorities.
Issues include:
- A situation where the majority of local routes are operated by a small number of large bus companies.
- Higher fares in those areas where operators with a strong market position are not challenged by a large, well-resourced rival.
- Many complaints alleging predatory behaviour of incumbent firms designed to eliminate competition from new entrants, low numbers of bids for supported service contracts in many areas, with just one bidder for a quarter of tenders.
"In addition, this is a market where an estimated £1.2bn comes from public subsidy so restricted or distorted competition can potentially have a significant impact on taxpayers.
"We believe that the issues we have identified clearly justify a full investigation and we therefore propose to refer this sector to the Competition Commission."
The OFT is seeking comments on its provisional decision to refer these markets. Interested parties have until 15 October 2009 to submit their views.
If a reference is made, the CC will conduct a detailed public investigation and reach its own conclusions.
The CC can compel parties to submit particular evidence, and also has the power to impose remedies which go beyond the outcomes available from an OFT market study.
(GK/BMcC)
Related UK National News Stories
Click here for the latest headlines.
18 September 2008
Competition Rules To Change For Banking Merger
Legislation is to be modified to make-way for one of the biggest banking mergers in recent times. The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS. Alistair Darling said the move would go ahead in the interest of UK financial stability.
Competition Rules To Change For Banking Merger
Legislation is to be modified to make-way for one of the biggest banking mergers in recent times. The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS. Alistair Darling said the move would go ahead in the interest of UK financial stability.
10 September 2015
Bus Operators To Share Clean Bus Technology Funds
Funding is being offered to bus operators across England to equip buses with emission cutting technology and offer passengers better journeys.
Bus Operators To Share Clean Bus Technology Funds
Funding is being offered to bus operators across England to equip buses with emission cutting technology and offer passengers better journeys.
09 March 2006
Supermarkets facing competition investigation
The increasing dominance of supermarkets in Britain's grocery market may be investigated, it has been revealed. The Office of Fair Trading has announced that it is planning to refer the issue to the Competition Commission for more detailed investigation.
Supermarkets facing competition investigation
The increasing dominance of supermarkets in Britain's grocery market may be investigated, it has been revealed. The Office of Fair Trading has announced that it is planning to refer the issue to the Competition Commission for more detailed investigation.
11 February 2015
London Bus Drivers Postpone Strike Action
Planned strike action by London bus drivers has been postponed as an "act of goodwill". The strike action was due to take place on Friday and Monday, with drivers walking out across the city's 18 bus companies. Unite the union has called on the bus companies to accept an invitation for talks.
London Bus Drivers Postpone Strike Action
Planned strike action by London bus drivers has been postponed as an "act of goodwill". The strike action was due to take place on Friday and Monday, with drivers walking out across the city's 18 bus companies. Unite the union has called on the bus companies to accept an invitation for talks.
02 October 2009
Competitive Supermarket 'Test' Urged
The Competition Commission has recommended a "competition test" to stop supermarkets dominating in a local area. The test would prevent supermarkets' groceries developments, including extensions to existing stores, by retailers with a strong presence in a local area, to make competing developments from rival retailers easier.
Competitive Supermarket 'Test' Urged
The Competition Commission has recommended a "competition test" to stop supermarkets dominating in a local area. The test would prevent supermarkets' groceries developments, including extensions to existing stores, by retailers with a strong presence in a local area, to make competing developments from rival retailers easier.
-
Northern Ireland WeatherToday:A very mild, but mostly cloudy day, although with some bright or sunny spells. It will be mostly dry in the morning, but a little patchy light rain or drizzle at times in the afternoon. Maximum temperature 14 °C.Tonight:A band of heavier rain will move east during the evening before clearing eastwards after midnight. then mostly dry through the early hours, but a little rain towards dawn. Minimum temperature 8 °C.
