02 February 2015/Categories: Industry News
Labour would hand local bus services to not-for-profit operators should they gain power, according to a new plan to end the market dominance of five large companies.
The party’s plan would see councils wield the power to award local licences and cut red tape to make it easier for non profit-making groups to run services.
The idea behind this plan is that it could help rural areas that have been left isolated by the loss of public transport options. Indeed, the number of miles of local bus service in this type of place has decreased by a significant 23 per cent since 2010.
Michael Dugher, the shadow Transport Secretary, told The Independent: “Like the energy market, the bus market is broken. Developing a thriving not-for-profit sector is one way Labour will rebalance our bus market.”
He added that the significant development of a not-for-profit model would help city and country regions to smash the “stranglehold” on the industry by the big private bus operators.
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