De-regulation

[K101HUM]

RE: De-regulation

(17/08/2012 15:22)ace Wrote:  There's always somebody that has to come up with a load of baloney isn't there?
Competition doesn't exist? The customer has no choice? Is that why there are so many good bus companies out there?
Stagecoach, First, Arriva, and many more. All providing modern buses at competitive prices.
What did we have before? Slow, old, smelly, unreliable buses that were about as environmentally friendly as a park bonfire.
And there are plenty of smaller companies around, doing very nicely thankyou.
And I do understand it all happened in 1986, the year before Thatcher won the biggest majority ever won in a General Election, so they were hardly on their way out of Government.
Have a lovely weekend.

Just a couple of points here, do please define as to when the streets were graced your quoted old, smelly, unreliable buses? I do believe this was accomplished through the introduction of de-regulation, meaning it was economically viable for new market entrants to purchase ageing vehicles as a way to enter the market. A local example being Fareway in the late 80's, purchasing ex MPTE VR's. The Merseyside Transport fleet at the turn of the 80's had an fleet age of approximately 6.49 years according to the fleet lists, thus showing prolonged investment in the fleet when dependant on the state. An average fleet age in 1988 for the Merseybus fleet (which stood several hundred vehicles fewer than that on 1979) was approximately 9.39 years, albeit discounting the investment in the Dodge S56 minibuses and the imminent arrival of the E-WBG Olympians. A further point being a sizeable segment of the MTL fleet formed upon the final step in privatisation in 1993 to form MTL Trust Holdings were Atlanteans approaching 20 years old. Somewhat different to that of 1979...wouldn't you agree?

Upon de-regulation, there were many communities on Merseyside who were without any means of viable transport solutions which had various affects on lifestyle. Here you can refer to a in-depth study performed in 1990 by Rob Donald and Laurie Pickup. Areas such as Netherley, Croxteth and Speke with particular reference. A surge in fare prices simply meant people were priced of a bus network which proved unreliable at that particular moment in time. It was highlighted families were spending 10% of household income on public transport (solely bus, as the 3 areas are not served by the Merseyrail network, highlighting a sole reliance on bus travel for journeys past a tolerable walking distance) and such financial restraints meant private car ownership was uncommon.

I think there will be an abundance of arguments and counter-arguments in response to such beliefs.

A post de-regulated structure, it could be argued, has simply transferred monopolies from public sector ownership, to the private sector. However, through this we have since gained market stability and, looking locally to Stagecoach and Arriva, increasingly modern fleets. The latter can be down to the presence of competitive pressure. Something evident in 2006 when Arriva started to invest heavily in the fleet...just as Stagecoach began the mammoth task of overturning the inherited Glenvale fleet.

And the formation of 'good' companies. Going back to the question of market stability, Manchester residents and users of FirstBus may contest that statement.