OFT local bus referral 'can’t come as a surprise to anyone’

Neil Scales, Chair of PTEG and Chief Executive of Merseytravel

Neil Scales, Chair of PTEG and Chief Executive of Merseytravel

It can hardly be a surprise to anyone that the competition authorities are going to take a long hard look at the way a market which has been divided up by large companies is operating. The OFT has also set out some clear examples of how local monopolies can be detrimental for fares and the costs of tendered services. The big question now is what remedies the Competition Commission might apply.

Attempting to trigger more on-street competition would be a cure that’s worse than the disease....