URBAN BUSES: WIND OF CHANGE BLOWS AT HOME AND ABROAD

The paper concerns the economics, control and management of urban bus services and in particular whether there should be a relaxation of quantity, licensing and monopoly franchises. In answer to this suggestion, the author argues that instead quantity regulation should be retained and that there should be a carefully controlled introduction of managerial incentives and philosophies associated with the private sector. Moves towards relaxation have been brought about by inadequate public transport and the introduction of paratransit forms such as the minibus. Such introductions, in developed as well as developing countries, have been made to break down monopolies and develop local competition. The economics of operating conventional stage buses compared with minibuses are evaluated. The author argues that the real advantage of quantity licensing is in the achievement of a "socially desirable" level of service over routes of widely varying profitability. The arguments advanced in favour of public ownership of bus operations are discussed. (TRRL)