I'm confused by your first paragraph; Central Government de-regulated buses in the 1980s - not PTEs!
I never said anything about money finding its way into bus users pockets; my concern is purely revenue abstraction accelerating the spiral of bus service cuts. FTR, there also seems to be a change in pricing policy, as I thought all individual rail fares - certainly off-peak - worked on the basis of Returns being a token 10p more than singles. However, when I arrived at my local station this morning, a sudden 7 minute delay on the incoming train meant I stood in the booking office out of the rain. In the few minutes after the train should have departed, four passengers turned up; one had a pre-paid ticket; one bought a Day Return to Manchester (after complaining she had been told the fare rises weren't happening!) at £4.10; but the other two (arriving seperately) bought singles at just £3.30. For comparison, the equivalent bus fares are £3.50 single and £4.50 DaySaver.
Yes, it was Central Government (apologies - my typo)
Perhaps if bus companies tried selling return fares at a decent discount, compared to the single - as opposed to the old scam of not offering return tickets - just an expensive "all day rover" on the pretence that everyone wants to travel around and around on the bus all day, they might generate some more revenue. Perhaps if they came to agreements with their fellow companies, meaning that their rovers and tickets could be used on each-others buses, that might also generate more passenger use, and might arrest the decline in non-London bus usage that predates the PTE's. No - they'd rather press the Government to hobble the opposition.
It's a shame that Government has fallen for the bus companies sob story that their problems are down to rail fares.