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Councils will be allowed to run local buses as Labour scraps Thatcher's ban

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ChrisC

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The problem with devolution in this country is that it used current borders that were set centuries ago and often make little sense in the modern socio economic world. Derbyshire is a particularly now illogical example.
Before devolving power we should really have had an independent commission redraw the boundaries. But it’s political suicide as unfortunately the loudest voices seem to have the most administratively irrational opinions, usually wed to ancient geographic loyalties, snobbery, and self interest.
Fully agree.
The people of Chesterfield and surrounding area are very proudly Derbyshire people yet look towards Sheffield rather than Derby. The same in Nottinghamshire with Worksop and Retford who are proudly Nottinghamshire people but look more towards Sheffield and Doncaster. Buxton and Glossop area is another story.
 
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Djgr

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The problem with devolution in this country is that it used current borders that were set centuries ago and often make little sense in the modern socio economic world. Derbyshire is a particularly now illogical example.
Before devolving power we should really have had an independent commission redraw the boundaries. But it’s political suicide as unfortunately the loudest voices seem to have the most administratively irrational opinions, usually wed to ancient geographic loyalties, snobbery, and self interest.
Redrawing the boundaries in the 1970s did not age well.
 

johncrossley

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There are bound to be cross-boundary agreements to be made as neighbouring regions start franchising or running their own buses. This is commonplace in other countries, for example the German transport associations.
 

Poiuytre

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Forgive me if I'm being dense, but do we know what would happen in the following situation:-

An independent operator registers a all new bus service during the day between a "colosed door" school contract. The service is entirely commercial and doesn't directly compete with other services. Would this operator have this service taken away from them and either put out to tender by the Local Authority or run in house by the Local Authority... Or would they still be able to retain the service
 

Bletchleyite

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Forgive me if I'm being dense, but do we know what would happen in the following situation:-

An independent operator registers a all new bus service during the day between a "colosed door" school contract. The service is entirely commercial and doesn't directly compete with other services. Would this operator have this service taken away from them and either put out to tender by the Local Authority or run in house by the Local Authority... Or would they still be able to retain the service

I believe the Greater Manchester scheme has "service permits" for this kind of scenario but the operator does have to operate to Bee Network standards.
 

geoffk

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As a number of councils already run their own bus services, I'm not sure what "prohibition" there was in place.
Not counting municipal operators like Reading or Lothian, bustimes lists 18 operators with "Council" in their names (about half of them in England), and while they mostly run minibuses there are some that have full-size vehicles as well.
Hopefully with more combined authorities coming in, there will be fewer instances of cross-border services not being funded because neither council considers them a priority.
Since 1986, Reading Buses and the handful of other former municipal operators have been arms-length companies, owned by the local authority, rather than a Council department. Of these, Nottingham City Transport has a minority shareholding by Transdev.
 

Poiuytre

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I believe the Greater Manchester scheme has "service permits" for this kind of scenario but the operator does have to operate to Bee Network standards.
I see, thank you very much. Would the same apply if the operator was to try and register the service once the new scheme has come in. Or simply for existing services
 

Trainbike46

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I remember moving to Nottingham in the late 1990s and noticing how old and ugly (especially the very large front bumpers) the council owned buses were. However, when the private sector took a minority stake that changed immediately. Local authorities have not got a clue how to make services commercially attractive.
I'm sure some councils would do a bad job; however, there are some really good council-owned bus operators around. Lothian buses comes to mind.
 

edwin_m

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Fully agree.
The people of Chesterfield and surrounding area are very proudly Derbyshire people yet look towards Sheffield rather than Derby. The same in Nottinghamshire with Worksop and Retford who are proudly Nottinghamshire people but look more towards Sheffield and Doncaster. Buxton and Glossop area is another story.
This has to be pragmatic. In practice Chesterfield and Worksop will be part of whatever South Yorkshire does and Buxton and Matlock part of a Manchester-centre network. There are then relatively few routes that would cross the boundaries between these areas.
Redrawing the boundaries in the 1970s did not age well.
Some mistakes were made (Humberside?) but I'd suggest we are in a better position that we would have been if some of our major urban areas were stiil administratively split according to century-old boundaries. The backlash from 1974 has made it much more difficult to make sensible boundary changes since.
 

TheGrandWazoo

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The problem with devolution in this country is that it used current borders that were set centuries ago and often make little sense in the modern socio economic world. Derbyshire is a particularly now illogical example.
Before devolving power we should really have had an independent commission redraw the boundaries. But it’s political suicide as unfortunately the loudest voices seem to have the most administratively irrational opinions, usually wed to ancient geographic loyalties, snobbery, and self interest.
The problem is that you always have a problem where there's any sort of boundary. Someone or something always falls foul of it. The 1974 reorganisation did a lot to remove many of the anomalies - that half of Burton on Trent was in Derbyshire, for instance. Or Teesdale being half in Yorkshire, and half in Co Durham so you'd have two bin lorries racing each other up the parallel roads!

The reality is that some counties have precious little interest in their buses anyway. I'm not expecting North Yorkshire's bus services to be improved significantly even if York/North Yorks Combined Authority takes the helm. Not certain that a franchised operation would have delivered the 36 improvements either.
 

joieman

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Taking the East Midlands combined authority as an example as that’s the one I am most familiar with, I can’t see it working so well as it isn’t a small self contained area centred around one major city.

Firstly, although it‘s called the East Midlands it is only actually Nottinghamshire and Derbyshire including the unitary city authorities of Nottingham and Derby. Even Leicestershire is not included because they voted not to be part of it. I can perhaps see it working in the south of the area centred upon both Nottingham and Derby because there is lots of cross border travel between the two counties. The further north you go the more problematic it becomes. Some parts of the north of both Nottinghamshire and Derbyshire are even further north than Sheffield! Many bus services in these areas are cross border routes centred upon locations in South Yorkshire and even to a lesser extent Greater Manchester.
And the existing bus operators raise serious questions for how franchising arrangements would work.
Firstly, Nottingham City Transport is still mostly municipally owned, so what would be the point of franchising that?
Secondly, both Nottingham City Transport and Trentbarton to a certain degree are both smaller bus operators that would have a lot to lose under a franchising system, which, as the franchising systems in London and Manchester have shown, turn out to be dominated by large, impersonal national or international corporations, with smaller operators struggling to comply with the standards set for franchising. The fact that such operators only run buses across a small network only makes their problem even worse.
As far as I'm concerned, franchising buses is using a sledgehammer to crack a nut. I believe that increased control of bus services should be used to supplement existing commercial bus networks by filling in the gaps of underserved communities, whether by tendering or through local authorities creating their own bus operators to run these supplementary bus services. Much can be done to improve the connectivity and ease of use of bus services in the UK without going to the extreme of franchising, which is not going to be an automatic cure to the issues that face Britain's bus services. For instance, I would personally like to see the implementation of nationwide bus passes/multi-operator tickets like in Germany with the Deutschlandticket bus pass that I reckon many of us here envy.
 

johncrossley

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As far as I'm concerned, franchising buses is using a sledgehammer to crack a nut. I believe that increased control of bus services should be used to supplement existing commercial bus networks by filling in the gaps of underserved communities, whether by tendering or through local authorities creating their own bus operators to run these supplementary bus services.

Is that any different to how deregulation works? If you look at the tendered services run in Greater Manchester before franchising, they tended to be wiggly, indirect services of little interest to anyone other than retired people with poor mobility who aren't in a rush.

For instance, I would personally like to see the implementation of nationwide bus passes/multi-operator tickets like in Germany with the Deutschlandticket bus pass that I reckon many of us here envy.

Is this compatible with deregulation? Arguably the existing £2 single offer has effectively meant the suspension of deregulation while the offer is in operation.
 

edwin_m

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And the existing bus operators raise serious questions for how franchising arrangements would work.
Firstly, Nottingham City Transport is still mostly municipally owned, so what would be the point of franchising that?
Secondly, both Nottingham City Transport and Trentbarton to a certain degree are both smaller bus operators that would have a lot to lose under a franchising system, which, as the franchising systems in London and Manchester have shown, turn out to be dominated by large, impersonal national or international corporations, with smaller operators struggling to comply with the standards set for franchising. The fact that such operators only run buses across a small network only makes their problem even worse.
As far as I'm concerned, franchising buses is using a sledgehammer to crack a nut. I believe that increased control of bus services should be used to supplement existing commercial bus networks by filling in the gaps of underserved communities, whether by tendering or through local authorities creating their own bus operators to run these supplementary bus services. Much can be done to improve the connectivity and ease of use of bus services in the UK without going to the extreme of franchising, which is not going to be an automatic cure to the issues that face Britain's bus services. For instance, I would personally like to see the implementation of nationwide bus passes/multi-operator tickets like in Germany with the Deutschlandticket bus pass that I reckon many of us here envy.
I suspect Nottingham would leave things mostly as they are, as it mostly works quite well. I'm not familiar with these proposals but I believe it is up to each council what model to adopt. They might want to try for more fares integration so there's no penalty for using two different operators on the same day.

Derby may want to do differently, as I believe the bus service there is generally worse, and between them they'll have to find a solution for the rather frequent buses between the two cities.
Is that any different to how deregulation works? If you look at the tendered services run in Greater Manchester before franchising, they tended to be wiggly, indirect services of little interest to anyone other than retired people with poor mobility who aren't in a rush.

Is this compatible with deregulation? Arguably the existing £2 single offer has effectively meant the suspension of deregulation while the offer is in operation.
As I understand it the £2 fare works in the same way as concessionary fares, that the operator is topped up for every one sold. So it doesn't affect the principle of deregulation at all.

As far as I can tell, this proposal allow all councils to suspend deregulation in their areas if they so wish, just as Manchester and other Metro areas are already doing. I suggest it's likely to disappear in all but a few areas like Nottingham.
 

johncrossley

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As I understand it the £2 fare works in the same way as concessionary fares, that the operator is topped up for every one sold. So it doesn't affect the principle of deregulation at all.

In that sense you are right, but in my view subsiding fares goes against the fundamental principle as intended in 1986 that commercial services should be run without subsidy. Apart from concessionary fares, the government resisted subsidising fares until the £2 offer even though fares were a major problem with deregulation. If reasonable fares can't be offered on a commercial basis then that shows the system is fundamentally flawed.
 

Hyebone

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Fully agree.
The people of Chesterfield and surrounding area are very proudly Derbyshire people yet look towards Sheffield rather than Derby. The same in Nottinghamshire with Worksop and Retford who are proudly Nottinghamshire people but look more towards Sheffield and Doncaster. Buxton and Glossop area is another story.
As a resident of Chesterfield, I can confirm this.

Chesterfield to Sheffield we have 5 routes, one of which being an 'express' service. (6 if you count the 80 and 120k interworkings...)

Chesterfield to Derby we have one hourly service in the form of 'the Comet' run by Trentbarton. Our local network is Stagecoach, so there's no interworking tickets.
 

TheGrandWazoo

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In that sense you are right, but in my view subsiding fares goes against the fundamental principle as intended in 1986 that commercial services should be run without subsidy. Apart from concessionary fares, the government resisted subsidising fares until the £2 offer even though fares were a major problem with deregulation. If reasonable fares can't be offered on a commercial basis then that shows the system is fundamentally flawed.
No - he's right in every sense. The operators are being recompensed. It is the individual that is being subsidised.

Remember that Fuel Duty Rebate (now Bus Service Operators Grant) is also a payment to operators to offset costs and reduce bus fares. It was introduced in 1965
 

edwin_m

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In that sense you are right, but in my view subsiding fares goes against the fundamental principle as intended in 1986 that commercial services should be run without subsidy. Apart from concessionary fares, the government resisted subsidising fares until the £2 offer even though fares were a major problem with deregulation. If reasonable fares can't be offered on a commercial basis then that shows the system is fundamentally flawed.
In my opinion bus deregulation is fundamentally flawed in all sorts of ways, including the way either the £2 fare or free concessionary travel introduces a subsidy by the back door. A decent bus network requires some level of regulation beyond the minimum provided by Traffic Commissioners, and the ant-monopoly regulation from the Competition Commissioner which usually seems to make this worse for passengers. If the operators behave in the public interest rather than fully commercially, as in Nottingham, then the system just about works. But elsewhere it needs either franchising or an in-house public operator.
 

Leedsbusman

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In my opinion bus deregulation is fundamentally flawed in all sorts of ways, including the way either the £2 fare or free concessionary travel introduces a subsidy by the back door. A decent bus network requires some level of regulation beyond the minimum provided by Traffic Commissioners, and the ant-monopoly regulation from the Competition Commissioner which usually seems to make this worse for passengers. If the operators behave in the public interest rather than fully commercially, as in Nottingham, then the system just about works. But elsewhere it needs either franchising or an in-house public operator.
I may be missing something here but are you suggesting in house operation and franchising does not need or get government funding for the £2 fare or concessionary travel. That may come as a surprise to Nottingham City Transport and indeed to Transport for Greater Manchester and Transport for London!
 

edwin_m

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I may be missing something here but are you suggesting in house operation and franchising does not need or get government funding for the £2 fare or concessionary travel. That may come as a surprise to Nottingham City Transport and indeed to Transport for Greater Manchester and Transport for London!
The £2 fare, or indeed concessionary fares, is a distortion of the de-regulated market. We've had instances where operators set huge fares because they know virtually all their passengers are on concessions so they expect the council to pay up. We've also had disputes between operators and councils on the level of reimbursement. But as I suggested above, I consider deregulation is a bad idea anyway.

Under a franchise, the public sector sets the fare levels and takes all the money, and contracts with operators to run a specified service for an agreed fee (with various performance and quality bonuses and penalties). The public sector is therefore able to set whatever fares it wishes, either on a broadly self-financing basis or with subsidy if they consider that is appropriate and can afford it. Under deregulation it's extremely difficult for fares to be reduced below commercial levels - and probably including a much larger operator profit margin than under a franchise. I'd like to think also that a regulated network will be easier to understand and use, and attract more passengers, which also helps with the economics.
 

Leedsbusman

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The £2 fare, or indeed concessionary fares, is a distortion of the de-regulated market. We've had instances where operators set huge fares because they know virtually all their passengers are on concessions so they expect the council to pay up. We've also had disputes between operators and councils on the level of reimbursement. But as I suggested above, I consider deregulation is a bad idea anyway.

Under a franchise, the public sector sets the fare levels and takes all the money, and contracts with operators to run a specified service for an agreed fee (with various performance and quality bonuses and penalties). The public sector is therefore able to set whatever fares it wishes, either on a broadly self-financing basis or with subsidy if they consider that is appropriate and can afford it. Under deregulation it's extremely difficult for fares to be reduced below commercial levels - and probably including a much larger operator profit margin than under a franchise. I'd like to think also that a regulated network will be easier to understand and use, and attract more passengers, which also helps with the economics.
The fact that the £2 fare has been in place for two year nearly suggests perhaps it wasn’t that difficult to agree in a commercial market after all.

So far there doesn’t seem to be any evidence that buses are cheaper to run in a franchised environment than a non franchised one.
 

markymark2000

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I may be missing something here but are you suggesting in house operation and franchising does not need or get government funding for the £2 fare or concessionary travel. That may come as a surprise to Nottingham City Transport and indeed to Transport for Greater Manchester and Transport for London!
If there was no concessionary bus pass, bus fares would likely be much lower. Bus fares are mostly set in such a way to get maximum reimbursement per concessionary pass. If bus fares were lower, the £2 scheme wouldn't be needed as much.

So far there doesn’t seem to be any evidence that buses are cheaper to run in a franchised environment than a non franchised one.
In fact, quite the contrary. Previously schools were around 30k per year, it's been reported in another thread that schools in franchising are going for £70-£75k per bus. Significantly higher costs.
Post 344 and 345: https://www.railforums.co.uk/thread...-route-discussion.262963/page-12#post-6930751
 

edwin_m

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The fact that the £2 fare has been in place for two year nearly suggests perhaps it wasn’t that difficult to agree in a commercial market after all.

So far there doesn’t seem to be any evidence that buses are cheaper to run in a franchised environment than a non franchised one.
I never said that it was a problem to agree it. Merely that it distorts the market.

And I never said that buses were cheaper to run. Merely that the operator's profit margin might be less.
 

Man of Kent

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I suspect Nottingham would leave things mostly as they are, as it mostly works quite well. I'm not familiar with these proposals but I believe it is up to each council what model to adopt. They might want to try for more fares integration so there's no penalty for using two different operators on the same day.

Derby may want to do differently, as I believe the bus service there is generally worse, and between them they'll have to find a solution for the rather frequent buses between the two cities.
The franchising powers lie with the East Midlands Combined County Authority, not with the county or city councils.

I'd like to think also that a regulated network will be easier to understand and use.

In what way? Strong commercial routes tend to stick to the main roads and offer direct services for many people. Public authorities are known to bow to pressure to deviate routes to serve communities that have very few passengers. Indeed, most of the MPs speaking in Parliament this week were citing examples of services to smaller communities, many of which had been withdrawn by the tendering authority. The expectation of robbing commercial Peter to pay tendered Paul doesn't take into account that Peter has very little to give these days.
 

edwin_m

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The franchising powers lie with the East Midlands Combined County Authority, not with the county or city councils.



In what way? Strong commercial routes tend to stick to the main roads and offer direct services for many people. Public authorities are known to bow to pressure to deviate routes to serve communities that have very few passengers. Indeed, most of the MPs speaking in Parliament this week were citing examples of services to smaller communities, many of which had been withdrawn by the tendering authority. The expectation of robbing commercial Peter to pay tendered Paul doesn't take into account that Peter has very little to give these days.
I'm sure the councils would have an influence on what was adopted in which area, especially as the majority owner of one of the operators.

By franchised routes being easier to understand, I should have explained that I was thinking of places without a dominant operator. Even in exemplary Nottingham:
  • The tram and NCT have a common fare cap under Nottingham Contactless, though it's higher than the cap for a single operator, but Trentbarton have their own separate system.
  • Trentbarton is touch on touch off (at least in normal times without the £2 fare), NCT is touch on boarding and the tram is touch before boarding (and pay again if you touch after alighting) except for short hops where the opposite applies.
  • All three honour the Robin Hood Card, but last time I looked the fares and caps were different from contactless, but I suspect contactless has taken its market and it will die off before long (they've recently abandoned the top-up machines).
  • Cash fares aren't interavailable between operators.
  • No co-ordination of timetables.
  • Both bus operators run vehicles in all colours of the rainbow so for the casual observer it's difficult to work out who runs what.
  • All operator offer single-operator period tickets that are cheaper than interavailable ones.
The above are either true now or have been true in the recent past. To be honest, now being a fairly occasional bus user I've given up trying to keep track of all this.

I accept that cities with one dominant operator can apply a coherent network brand - except of course for the routes they aren't interested in which will generally be tendered to a different operator. And TfL, as by far the largest and oldest franchise network, could do with some better marketing and route branding so people can make sense of the spaghetti network.
 

Simon75

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Why has Manchester/London got franchising, rather than regulated (ie pre 1986 with GM Buses,, London Transport)
 

317 forever

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How can you be sure about that? I once had a good conversation with a Stagecoach area manager who said that a proportion of profits gained from a notably well-used interurban route would allow to plug losses from others which were just below breaking-even, including the one which I raised the question of cross-funding.

While cross-subsidising is not possible in the deregulated environment, tolerating an amount of loss on certain routes would also uphold their responsibility for providing a social good for communities with less frequent bus routes. That said, all bus companies have varying lengths of tolerance for how much losses they want to make on top of their profits, so they want to be mindful of keeping their finances afloat!
I had noticed how First and Arriva seemed to dump routes that they did not consider highly profitable, creating some "2 tier" networks in which the big boys, typically Stock Exchange listed, would run the most profitable routes while independents would run the less profitable routes. The loss making routes would go out to tender, where the Authority was willing to subsidise them.

Stagecoach and Go-Ahead seemed more willing to provide comprehensive subsidy-free networks, plus tenders won where applicable.
 

mangad

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Why has Manchester/London got franchising, rather than regulated (ie pre 1986 with GM Buses,, London Transport)
Franchising is a regulated system. Control over fares, service levels etc lies with the authority not the operators. Franchising is merely about deciding who runs the services and at what cost.
 

317 forever

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The rural areas will normally be administratively tied to the nearest large town. So this is where network-level tendering would work; the town buses are in the same job lot as the rural buses.

If, say, Harrogate went down this route you’d tender the Harrogate town services alongside both the 36 and the rural stuff to Pateley Bridge, Ilkley, Skipton, Wetherby etc. And that’s where you would get the cross-subsidy; the revenue from the 36 would reduce the overall contract price.

== Doublepost prevention - post automatically merged: ==


Same as what happens in Greater Manchester. Some cross-border services have been included in the franchising (e.g. Wigan-Chorley, Oldham-Huddersfield) where the route is predominantly in the franchising area. Other cross-border services (e.g. WitchWay, Rochdale-Halifax) have not where the route is predominantly not in the franchising area.

== Doublepost prevention - post automatically merged: ==


That would be an excellent example of where it would work. That region has a commercial network in the tourist traps of the central Lakes but it has almost nothing elsewhere. By contrast to the central Lakes Caldbeck and Hesket Newmarket- two significant villages in the National Park at its the northern edge- have one bus a week.
It depends to a large extent on where the operational depot is. So, route 184 from Oldham to Huddersfield, based at Oldham, is included in the Bee Network. Conversely, route 590 from Rochdale to Halifax, based at Halifax, is excluded.
 

mangad

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It depends to a large extent on where the operational depot is. So, route 184 from Oldham to Huddersfield, based at Oldham, is included in the Bee Network. Conversely, route 590 from Rochdale to Halifax, based at Halifax, is excluded.
Definitely if it's run from a big depot in Greater Manchester it becomes Bee Network. Routes run from outside, like High Peak's 199, remain non-Beed.

184 is a slightly unusual case as it was operated by First West Yorkshire but they withdrew from it very recently - around the time of the Bee Network coming in in Oldham - so it was moved into the Bee Network.
 

158756

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Definitely if it's run from a big depot in Greater Manchester it becomes Bee Network. Routes run from outside, like High Peak's 199, remain non-Beed.

184 is a slightly unusual case as it was operated by First West Yorkshire but they withdrew from it very recently - around the time of the Bee Network coming in in Oldham - so it was moved into the Bee Network.

And in the case of the 184 it's debatable if the Bee Network is the right place for it. It was previously coordinated with the local services at the Yorkshire end, which the Bee Network isn't interested in. The 590 on the other hand since it's been cut back to Todmorden would probably make more sense joining the Bee Network.
 
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