Lib Dems Question Bus Monopoly

7.17.24pm BST (GMT +0100) Tue 15th Sep 2009

Cambridgeshire Liberal Democrats are calling for the Office of Fair Trading to investigate the County's bus industry.

The OFT recently reported that limits on competition may be driving up prices, and asked the Competition Commission to investigate the local bus sector nationally. But local councillors feel that there may be a need to investigate Cambridgeshire in particular.

County Cllr Kilian Bourke, Lib Dem spokesperson for public transport, said "The figures are alarming. Stagecoach has 86% of the County's commercial routes. Whippet, its nearest competitor, has a mere 6%."

"The almost total lack of competition in Cambridgeshire is clear from the fact that many of the subsidised service contracts attract only one bidder when they go out to tender. This is keeping bus subsidies artificially high, at the taxpayer's expense."

"Cross-company fares are also a problem. At present Stagecoach charges £5 for a Dayrider-Plus ticket, whereas its cross-company equivalent, the Multibus ticket, costs £7. This is a clear instance of anti-competitive pricing."

Cllr Bourke added: "Stagecoach shouldn't be held responsible for this, it is simply running a successful business. But because the County Council has failed to provide the right competitive environment, Stagecoach has been allowed to corner the market. There is a risk that this may prove detrimental to the public interest in the long run, so we have asked the OFT to step in and evaluate the situation from an objective standpoint."

"Worryingly, the Conservatives are burying their heads in the sand on this issue, pretending it doesn't exist. But 86% is a difficult figure to ignore."