No you don't. The enabling legislation says that from date X all services within area Y will be subject to franchise competition. The existing operators have the choice of bidding for franchises and if they lose or decide not to bid they have the option of taking their assets away or selling them off. There is the option of TUPE transfer for existing crews.
New entrants would also have the opportunity to bid for franchises, and if they won they would have to invest in buses, depots and crews (unless transferred from the previous incumbent). But that's no more costly, and considerably less risky, than trying to break into the existing deregulated market.
I can't see any way the existing operators could sue for loss of business, any more than, say, pubs can sue if their licences are revoked, provided the process is carried out according to the rules and does not unfairly discriminate between operators.
A pub losing it's license is akin to an operator losing it's O license.
However, removing an asset from a company is a completely different thing. I think you'll find that the operators will challenge through the courts including Europe. Basically, you cannot remove someone's business from them without compensation. As was quoted in the Guardian regarding Jeremy Corbyn's wish to take the energy businesses into public control...
Such a policy would face many hurdles, such as compatibility with EU law, but if it was implemented how much might it cost? In his interview, Mr Corbyn suggests that the government could take a majority equity stake in the utility companies. However, under stock exchange rules, once a stock holding hits 30% an offer for the whole company must be made. Therefore, we assume that all of the equity would be acquired.
And don't just think that assets is just depots and buses. The biggest one is the intangible worth of the business - "goodwill".
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Sorry to say it but this is rather true. My best example usually relates to the abysmal revenue controls exercised by TfL with their 'bendy buses' - absolutely hopeless and quite clearly ignorant of how it is done across Europe/World. In addition, the 'Borismaster' could well be the 'we always did it that way, we aren't changing' - after all, who on earth would have seriously suggested putting conductors back on buses (but not giving them revenue control duties).
Someone has already mentioned Karlsruhe, an excellent system that shows what can be done - but then so can just about everywhere in Switzerland, Austria, Germany, Poland etc etc.
Where I am coming from is perhaps a bit more centerist..... I see some excellent practices on the continent - in the last year, I have seen some really good stuff in Italy and some stuff that had it happened in the UK, this thread would go into meltdown.
I think the fact is that Europe does some stuff really well. Some of that "best practice" is actually relatively straight-forward to do but we just fail to do it. In terms of bus/rail integration, there's a good example in Buses magazine showing the lovely piazza outside Reading station. However, we can remember when it was a functional if slightly ropey bus interchange point. Even more criminal is the decision of Cardiff City Council to remove the main bus station from outside the station - a central location close to shops AND providing modal interchange. All thanks to the good aldermen of the city!!
However, there are other things that we do well. Having travelled on buses last year in Iceland, Cyprus and Italy, I can say that most comfortable and well appointed vehicles I've been on have been in the UK. They may not have double glazing but at least they had comfortable seating!
There are many areas that the continent have ahead of us, some where the UK is better. However, it's a miracle given how little we actually spend in central government expenditure and THAT is my main point. It is all very good citing these examples elsewhere - they've spent the money. We think that we can't or, worse still, can indulge in cross subsidy which is demonstrably damaging.
I am not some sort of rabid, free marketeer Tory. Far from it. I just wish when the Labour government from 1997 onwards had the chance, they could've been really bold. Instead, they milked the fuel duty escalator, didn't hypothecate the cash for transport, created a slush fund for rural buses (which was wasted) to appease the rural roads lobby, and then created an underfunded concessionary pass scheme that would now be political suicide to remove. Instead, the spend is reduced by simply cutting block grants so subsidised services are lost to everyone.
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I think you are implying that you need to have had such experience in order to realise that it is impossible to have excellent local transport and high patronage levels.
But it is possible. I've seen it with my own eyes. I travel on such networks regularly.
No, but it's easy to see the superficial. It's a bit like the Top Gear "how hard can it be...."
Well, the people who do it will testify it's bloody hard. I have friends in the industry - we did our transport degrees together. The stories they tell would open your eyes; I took the decision to go elsewhere as the money is better