Deregulation has failed. It’s time to put that right.
Imagine a system where companies enjoy a local monopoly over a service. A service with little choice, transparency or regulatory oversight. A service that costs the taxpayer millions of pounds a year where we have little or no say over how it’s delivered. That’s the day-to-day reality we face when travelling by bus in the north-east.
Since bus services were deregulated outside London in 1986 under Margaret Thatcher, the contrast between regulated and deregulated services is startling. According to pteg, the Passenger Transport Executive Group, regulated services in London have increased bus patronage by 95 per cent and increased bus mileage by over 70 per cent on 1986/1997 figures. In contrast, deregulated services in shire areas have seen passenger numbers fall by 18 per cent and in metropolitan areas by 42 per cent over the same period.
It’s clear deregulation has failed, but there is an alternative. For two and half years I’ve been campaigning for Tyne and Wear’s Integrated Transport Authority to introduce a London-style form of regulation known as a quality contract scheme. Through legislation brought in by the previous Labour government, the authority would have broadly the same powers as Transport for London to set routes, fares and timetables. At the end of August, after many delays and threats of legal action from bus companies, a consultation to introduce such a scheme was launched.
Greater control over our transport network would mean local councils could match up transport routes to business development zones, attracting further investment to grow the region’s economy. This is vital in an area with the highest rate of unemployment in the country.
There has been great focus on the cost of rail travel for commuters, but the rising cost of bus fares is often overlooked. Many people across the north-east have no easy access to rail services and are reliant upon buses. A simple fare system with Oyster-style smart ticketing, where average annual fare increases would be no more than the retail price index, along with low fares for children would help cut the cost of living and ease the pressure on families.
Bus operators across Tyne and Wear receive around £62m a year from the taxpayer, in one form or another. Yet we are left almost entirely at their mercy. Their talk of legal action, threats to sack staff and costly PR campaigns have been disappointing but hardly surprising. They’ve had 27 years to do as they please.
Ed Miliband’s message from this year’s party conference was clear – Labour will not shy away from challenging the status quo and will intervene where markets have failed. There could be no clearer example than here in the north-east. I’m proud that we are showing what Labour can do even when out of government nationally.
An accountable and transparent bus network would promote growth and investment. It would offer better value for the taxpayer and help tackle the cost of living crisis facing too many families. This opportunity will only come about once in a generation – we cannot allow vested interests to hold back the north-east.
You can find out more about plans for a London-style bus network in Tyne and Wear via the campaign at www.thebigbuscampaign.co.uk
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Bridget Phillipson is member of parliament for Houghton and Sunderland South
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