TheGrandWazoo
Veteran Member
Very probably, but I also do not see how the conclusion can be reached that deregulated bus operators have to be "compensated" for the introduction of a regulatory regime.
Nationalisation would be difficult because of the cost of buying the business, but regulation would not be nationalisation. Deregulated operators can choose to compete in the regulated marketplace or they can choose not to, but nobody is stealing their business from them. Nobody is saying Wonga should be compensated because regulation has forced them to lower their interest rates and increase affordability checks, so what is so different about the bus industry?
The report into Nexus' quality contract was interesting, at least in how the panel ripped into every slight inconsistency in Nexus' position whilst taking every half-truth from the bus operators at face value, even after stating that NEBOA were being, to paraphrase, disingenuous. And they still are: it's fascinating how the SmartZone multi-bus operator tickets, promised as an alternative to the Quality Contracts, are only available per council area, given that most commuting here is across council boundaries. I'm dying to hear what the justification for that one is. I don't necessarily think that a Quality Contract was the right route to take, but the current situation is ridiculous.
That said, the biggest issue for bus use around here has to be the complete lack of traffic management from the local councils. This morning it has just taken me 70 minutes on the bus to travel ten miles, a journey I can do in 50 minutes on a bicycle, because of traffic congestion and roadworks. Some of that is the operator's fault- they send the bus down all the congested roads- but mostly it is down to the councils failing to sort out the road infrastructure. I don't care about theplastice-leather seats and the free WiFi (which didn't work), a bus that is slower than a bicycle is never going to attract people.
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And most businesses don't have value other than the physical assets and the ongoing profits. Goodwill is so nebulous as to be meaningless in most situations.
That said, bus operators show no loyalty to their passengers (well, they show 56 days loyalty, which is the minimum required) so how can there be value in loyalty? A bus operator can withdraw a service with very little warning, as plenty of the outlying villages in Tyne and Wear know to their cost, so even if we compensate operators for the value of that loyalty that cost is going to be roughly £0.00.
I know you don't like it but WE SOLD THE FAMILY SILVER. As a country, we took that decision. You may think it's some quirk of fate and that we gave it away. Fair enough - I respect your view. However, we did in full knowledge of what we were doing and, at the time, it was seen as a massively uneconomic industry that was haemorrhaging money.
We can't just decide that because we've sold most of the council housing that now we can simply take it back. That is however laudable the reasoning may be.
Goodwill is clearly important AND it is something that the operators have paid out for. When they've bought businesses, they've paid for the tangible assets AND the inherent worth of the business.
Also, as can be clearly demonstrated, they're making a profit so when you're looking at revenue vs costs, there's clearly a net worth. You cannot say on one hand that Busways makes a ludicrous 20% margin and then say that there is no inherent goodwill - just doesn't make sense.
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So you make a law in 1985, but future governments are not allowed to revoke it. How is that remotely democratic? Should you compensate anyone who suffers by an activity being outlawed? If running a commercial service becomes illegal then that's it.
Not what I said. You can change it but you must compensate businesses.
Also, it's not an activity that is being outlawed. What you are essentially doing is taking someone's business away and giving it to someone else.
If you're talking about democracy, then remind me which government passed the 1985 Act and what was their majority.......
That said, they were assisted by a Labour Party that was riven with division, had lost a previous election relatively closely but then had lurched dramatically to the left before being soundly beaten in the following election. That was under the leadership of an ageing leftist party stalwart but sadly diverted by a cabale of hard left activists..... Thank god that sort of thing couldn't happen today