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OFT calls for competition in bus sector
Fri 08 Jan 2010
The Office of Fair Trading (OFT) has said there needs to be more competition among bus services.
According to the organisation, this segment of public transport receives about £1.2 billion from the public purse every year.
As a result, it believes it is reasonable for the Competition Commission to look at how buses could be made more competitive so that routes are not dominated by a single operator.
The OFT has therefore referred local bus services in Britain to the commission, which it believes could ultimately help deliver better value for money for the taxpayer.
Heather Clayton, senior director at the OFT, said boosting competition among buses could also enable them to deliver the service passengers expect to receive.
However, she insisted that the organisation is not interested in returning to a state of unmanaged "head to head" competition on all services.
The Confederation of Passenger Transport UK has welcomed the move, saying it is in the sector's interests to keep prices competitive and attract passengers out of their cars.