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North East Combined Authority for Transport

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markydh

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The R reg darts in Newcastle have all been withdrawn now following the cascade of 54 and 56 reg darts from Sunderland. However the new gas buses in Sunderland will have no effect in Newcastle as these are directly replacing T reg MANs based at Wheatsheaf
 
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Jonny

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I am with Ainsworth as finding the omission of Teeside as a potential problem.

Teeside (or at least the ex-Cleveland County Council area) operates as a separate conurbation and probably wants to "stay out" anyway so I can't see that as an issue. As for Darlington, the local council went their own way in the 1990s.

Also, to build Teeside into the NECAT area would probably unbalance it, Newcastle, Sunderland and Durham are large enough to maintain an area and the boundaries do look a lot better in terms of (not) cutting between settlements. As someone who lives in the proposed area, I cannot see how the Teeside boroughs would fit.

For instance, why would Teeside be bothered about improvements in stopping services on the ECML North of Darlington, that's the sort of thing that NECAT is likely to be involved in...
 

TheGrandWazoo

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I don't think I'd agree that Stagecoach have the best routes, with Go Ahead having all of suburban Gateshead, most of North Tyneside and a fair wedge of South Tyneside (away from the South Shields town services) and plenty of presence in Sunderland. Stagecoach do have stratospheric fares though and an interesting view on what they can run competitive. I doubt Nexus have forgotten what Stagecoach did to them with the daytime 15/32 routes, claiming they were uncommercial and demanding they be tendered only to decide that they were commercial after all when Nexus gave the contract to somebody else.

Go Ahead don't have the best history in terms of telling the truth, shall we say, so take everything they say with a huge dollop of salt. Whilst they want us all to forget about the anti-competitive practices they shared with Arriva, I don't think Nexus have.

I don't quite understand how new buses in Sunderland gets rid of the R-reg Darts (cascaded from Sunderland 18 months ago) or the T-reg MAN/ALX300s in Newcastle. Not that I 100% care anymore, I moved to London in March.

Arriva don't make much money because of where they operate.



I guess it depends where you look.

In West Yorkshire, where I'm originally from, the PTE bought plenty of new buses from Roe's, both Olympians and Atlanteans. The last of those only went out of service a year or two ago. West Yorkshire Road Car also bought plenty of Olympians and National 2s, as did Yorkshire Woollen/West Riding.



I don't know what Metroline's profit margin is, but I would be surprised if it is much higher than the 5-10% that you see elsewhere in London. Currency fluctuations with Singapore will affect Comfort DelGro's overall profitability.

My point about RATP is not that they have shareholders to satisfy, more that if Souter wants to take his bat and ball home then other operators will gladly step in. Although the absence of shareholders at RATP rather undermines your argument that you need shareholder investment to expand; RATP are expanding rather rapidly (and are doing a better job with Metrolink than Stagecoach did).

I did wonder who this was but now I realise. Hello David, who used to post on the Omnibuses Blog. I see you're still doing your bit in ignoring the facts you don't like and only picking out the information that particularly justifies your Souter hating tendencies!

Now, you're the man who though the 685 was THE premium and lucrative route along the Tyne Valley, despite it being single decked every hour whilst the 10 was every 20 mins. Therefore, I'm struggling to think that the idea you're proposing that Stagecoach DON'T have the best routes is anything but laughable. That's not to say that Go Ahead don't have good routes, but Stagecoach have absolutely killer routes like the 1, 38/39/40 etc that require deckers working every 10 mins or better, aided by the fact that they serve the western part of Newcastle where the Metro doesn't go. As for Stagecoach's fares....across the UK, they're generally regarded as better value than the other large groups.

The subject of registering services commercially after losing the tender. Everyone does it. In Dorset, First registered the Weymouth to Axminster Sunday service after losing it to Go Ahead; Go Ahead registered the Dorchester town services after losing the tender to RATP Yellow Buses.

Go-Ahead's results are a matter of public record. You can dig them out if you wish. Whereas, if you want to be really disingenuous, try Nexus who love to mention the millions of public money that are spent on bus services....they include BSOG (possibly fair enough) but subsidised bus services (i.e. actually paying a firm to provide a facility, the cheek) and concessionary/school fares (i.e. charging people to use a bus service!!).

As was said by others, and as you indeed alluded to, the new buses in Sunderland will be used to replace directly or cascade to Newcastle. That's not difficult to understand.

As for the NBC/Corporations, you said you didn't remember fleets struggling for buses. I didn't say that no fleets received new vehicles but the fact that the NBC was struggling for new vehicles for fleets because the 1979 Tory government were no longer prepared to underwrite losses. In fact, the northern NBC fleets received new vehicles (but not in the same numbers as the 1970's) but that some of those were used to cascade midlife vehicles to weaker NBC fleets that couldn't afford new vehicles. Ribble/East Midland cascaded to Lincolnshire, United and Northern to Devon General, Yorkshire Traction to Southern National, PMT to North Devon, United and West Riding to Bristol Omnibus among others. However, if you reckon the NBC wasn't struggling for new vehicles, then sorry you just don't know your facts.

As for the PTEs, they were funded via the Metropolitan council whose means of spending was merely to keep on increasing the rates of the populace. The government stopped that in the mid 1980s with rate capping, and it eventually led to the abolition of the Metropolitan counties. Funnily enough, one of the first things that Yorkshire Rider then did at de-regulation was to get rid of some of their newest deckers with X and Y reg Olympians being sold to firms such as Metrobus and Wilts & Dorset!

Well, of course, if you have shareholders then you will have their dividends to find. That goes without saying but the idea that you can expect RATP to save the day....?

First of all, 70% of the UK's buses are operated by the big 5 groups. Of these, 4 are listed and the fifth (DB/Arriva) have to meet hurdle rates in line with the other 4 (i.e. got to be commercially justifiable). The other major operators....Transdev is listed, as is CDG. The vast, vast majority of the UK's buses are operated by listed groups so if you think that T&W and anywhere else who fancies QCs will get them for 5% or so, then you're sadly wrong. RATP and other businesses have managed to go for 5% on other operations because they're capital light. A fair bit of RATP's business is the provision of people (e.g. employing staff, and managing them) for which they get paid a management fee. However, Nexus fancy that but expecting the operator to also make the investment. It just doesn't make sense.

I don't particularly care for Brian Souter's morals or religious beliefs, but that's not what Nexus's proposals are about. As Souter said this week, this could be the thin end of the wedge. If Nexus can take this, who and where next? Then operators are left with a carcass of less marginal areas (e.g. imagine if First lost the lucrative Manchester and Yorkshire ops and were left with the provincial stuff like FDC and First Essex?)
 

Tetchytyke

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Damn, you saw me from another blog. Oh noes.

Stagecoach have some very good routes in Newcastle, the 62/63 and 39/40 in particular. Even if when I first moved to Newcastle they'd just cascaded all their modern Trident deckers down to Manchester, at least they now have appropriate buses on those routes. But then so do Go North East, especially the 21, 56 and 58 in Gateshead and all the buses to Cobalt.

But as a random aside, if the 10 service to Hexham is the elite service (despite taking 30 minutes longer than the 685 from Hexham and Corbridge), why have Go just cut the frequency by 50%? And why are Go using the spare PVR to have a real attack on Arriva with their new X85?

I don't know if Stagecoach fares are better value or worse value than other companies. I guess that comes down to price perception. There's so little competition it's impossible to really judge. I guess I deeply resented paying an extra three quid a week because I needed a Megarider+, as that was clearly just profiteering. I was in Cambridge this weekend and I think £1.60 each way from the railway station to the city centre was expensive (and compares very unfavourably with the £1 fare First in Bristol charge for the equivalent journey).

I don't like Busways. The fares are extremely high and the service quality and reliability just isn't there. It hasn't been for as long as I've lived in Newcastle. The punctuality on the 22 was a joke (still is for all I know). Other people on Omnibuses said the same thing, that Busways was the worst Stagecoach operation. I don't know if it is or it isn't, but if the rest of Stagecoach is like Busways then I don't know how anyone has a good word to say about them.

As for the NBC cascading vehicles, isn't that exactly what happens now? Stagecoach cascade ALX300s from Manchester to Newcastle, as well as the cascade of the Darts from Sunderland. Go Ahead cascade ex-London Tridents up to Chester le Street for use on the X24, as well as the ex-London Citaro artics and the ex-Oxford Volvo Renowns on the 57. First Kernow's entire fleet seems to comprise of buses cascaded from elsewhere.

Finally, I don't know if 5% is achievable (I doubt Nexus genuinely think it is, but you don't start negotiations from the price you want). But there are plenty of operators only too willing to pile in to London. London's buses are run on contracts as onerous, if not more so, than anything you'll find in a QBC.
 

Robertj21a

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Damn, you saw me from another blog. Oh noes.

Stagecoach have some very good routes in Newcastle, the 62/63 and 39/40 in particular. Even if when I first moved to Newcastle they'd just cascaded all their modern Trident deckers down to Manchester, at least they now have appropriate buses on those routes. But then so do Go North East, especially the 21, 56 and 58 in Gateshead and all the buses to Cobalt.

But as a random aside, if the 10 service to Hexham is the elite service (despite taking 30 minutes longer than the 685 from Hexham and Corbridge), why have Go just cut the frequency by 50%? And why are Go using the spare PVR to have a real attack on Arriva with their new X85?

I don't know if Stagecoach fares are better value or worse value than other companies. I guess that comes down to price perception. There's so little competition it's impossible to really judge. I guess I deeply resented paying an extra three quid a week because I needed a Megarider+, as that was clearly just profiteering. I was in Cambridge this weekend and I think £1.60 each way from the railway station to the city centre was expensive (and compares very unfavourably with the £1 fare First in Bristol charge for the equivalent journey).

I don't like Busways. The fares are extremely high and the service quality and reliability just isn't there. It hasn't been for as long as I've lived in Newcastle. The punctuality on the 22 was a joke (still is for all I know). Other people on Omnibuses said the same thing, that Busways was the worst Stagecoach operation. I don't know if it is or it isn't, but if the rest of Stagecoach is like Busways then I don't know how anyone has a good word to say about them.

As for the NBC cascading vehicles, isn't that exactly what happens now? Stagecoach cascade ALX300s from Manchester to Newcastle, as well as the cascade of the Darts from Sunderland. Go Ahead cascade ex-London Tridents up to Chester le Street for use on the X24, as well as the ex-London Citaro artics and the ex-Oxford Volvo Renowns on the 57. First Kernow's entire fleet seems to comprise of buses cascaded from elsewhere.

Finally, I don't know if 5% is achievable (I doubt Nexus genuinely think it is, but you don't start negotiations from the price you want). But there are plenty of operators only too willing to pile in to London. London's buses are run on contracts as onerous, if not more so, than anything you'll find in a QBC.


I'm surprised to see your adverse comments on Stagecoach Busways as I've always found them perfectly acceptable (but I don't live in the North East). If they have a problem (real, not just your perception) I would expect it to be sorted out very quickly - Brian Souter can be fast, and decisive. If, as you seem to be suggesting, this has been a longer term concern then it may be your perception rather than fact.

Robert
.
 

TheGrandWazoo

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Damn, you saw me from another blog. Oh noes.

Stagecoach have some very good routes in Newcastle, the 62/63 and 39/40 in particular. Even if when I first moved to Newcastle they'd just cascaded all their modern Trident deckers down to Manchester, at least they now have appropriate buses on those routes. But then so do Go North East, especially the 21, 56 and 58 in Gateshead and all the buses to Cobalt.

But as a random aside, if the 10 service to Hexham is the elite service (despite taking 30 minutes longer than the 685 from Hexham and Corbridge), why have Go just cut the frequency by 50%? And why are Go using the spare PVR to have a real attack on Arriva with their new X85?

I don't know if Stagecoach fares are better value or worse value than other companies. I guess that comes down to price perception. There's so little competition it's impossible to really judge. I guess I deeply resented paying an extra three quid a week because I needed a Megarider+, as that was clearly just profiteering. I was in Cambridge this weekend and I think £1.60 each way from the railway station to the city centre was expensive (and compares very unfavourably with the £1 fare First in Bristol charge for the equivalent journey).

I don't like Busways. The fares are extremely high and the service quality and reliability just isn't there. It hasn't been for as long as I've lived in Newcastle. The punctuality on the 22 was a joke (still is for all I know). Other people on Omnibuses said the same thing, that Busways was the worst Stagecoach operation. I don't know if it is or it isn't, but if the rest of Stagecoach is like Busways then I don't know how anyone has a good word to say about them.

As for the NBC cascading vehicles, isn't that exactly what happens now? Stagecoach cascade ALX300s from Manchester to Newcastle, as well as the cascade of the Darts from Sunderland. Go Ahead cascade ex-London Tridents up to Chester le Street for use on the X24, as well as the ex-London Citaro artics and the ex-Oxford Volvo Renowns on the 57. First Kernow's entire fleet seems to comprise of buses cascaded from elsewhere.

Finally, I don't know if 5% is achievable (I doubt Nexus genuinely think it is, but you don't start negotiations from the price you want). But there are plenty of operators only too willing to pile in to London. London's buses are run on contracts as onerous, if not more so, than anything you'll find in a QBC.

You don’t like Busways….understatement of the century!! Yes, you’ve been spotted and you’re still as inaccurate now as you were then. Whilst you may have lived in the north east for a while, you’re guilty of either not knowing your facts, or deliberately misrepresenting them.

The Omnibuses Blog post centred on Arriva and it and the subsequent posts didn’t hardly mentioned Stagecoach. However, a lot was said about the mediocrity of Arriva. Of the big 3 in the north east, Stagecoach is consistently the best in terms of presentation, reliability, fleet profile etc. I accept that compared to some of the best Stagecoach fleets (e.g. Devon, Gloucester), they’re a bit average and especially so on Teesside, but still better than others like East Kent. You’re complaining about them using R regs on fairly peripheral work (and are just about to be replaced) whilst Go NE use kit the same age on major cross country work like the Consett – Stanley – Sunderland service. As for fares, amusing that you’ve picked out Bristol who’ve just had to drop their fares because of a petition…if Newcastle is that bad, why no online agitation there? :o

The reason why the V reg Tridents were swapped with MANs from Manchester was because of a massive vandalism problem with one getting burnt out after a fire was set in the rear of the upstairs. Did you not know that?

As regards the 685 and the 602/10, this was explained on the Omnibuses Blog to you. At the risk of getting very detailed, I’ll explain it again. The traditional Hexham – Prudhoe – Newcastle service (was 602 now 10) was always double deck worked on a 30 min frequency. Arriva ran it into the ground, with loadings declining so that it gained ex Scottish B10BLEs. When Go Ahead took on Hexham depot, they recast the service as part of the 10/11 service with a 20 min frequency operated by Citaros. In April 2013, they dropped the frequency but upped the service to double decks with wifi and leather seats etc. Meanwhile, the 685 continued on its hourly service (Hexham – Heddon – Newcastle) as it always had.

Throughout the 1970s through to the 2000s, the 602 had four sets of new deckers on a 30 min frequency (NBC era VRs, ECW Olympians, new M reg Olympians and then W reg Tridents). Meanwhile, the hourly 685 only got Leopard coaches, some H reg Deltas that were quickly moved and replaced with some ageing Tigers before the R reg Daf coaches arrived that worked the service for 15 years. Just because the 685 is quicker, it isn’t as lucrative as the 10/602, as its seats per hour/new vehicle investment demonstrate.
So why did GNE step in? The performance of Arriva on the 685 (widely reported in the local press with no shows, use of bus seated kit such as V reg B10BLEs and newish Pulsars, breakdowns and late running) meant that Go Ahead decided that they would take the opportunity to compete. This uses the four single decks that were used unsuccessfully between Bishop Auckland and Middlesbrough against Arriva. The fact that there was a good five months between the revised 10 frequency and the new X84/X85 being introduced indicates hardly one leading to the other.

And yes, the NBC cascaded vehicles. Yet your point was that you couldn’t recall the NBC struggling to fund new vehicles. So now you understand; it happened when the NBC had to live within its means. Similarly, the municpals/PTEs had to cut their cloth (e.g. fares, new vehicles) and when they didn’t, they were rate capped!

Will Nexus get their 5%? No. Do their figures make sense? No. Was I born and brought up in the North, and know a lot about north east bus services? Could be ;)
 

robertclark125

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Wouldn't Nexus be better looking for money to extend the Tyne and Wear Metro, which terminates at St. James, and doesn't expand to western Newcastle?
 

Tetchytyke

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I lived in Newcastle for over ten years, but now I've moved to London.

Moving the Tridents due to vandalism was, in my opinion, an excuse. Single deckers are cheaper to buy and cheaper to run. Stagecoach have their most modern buses on the 39/40 route (naturally after DfT green fund paid towards them), so what changed? The chavs in Walker are still there.

The T-reg ALX300s are usually out in force on the 30/31/36 diagrams, I'd hardly call the 30/31 a peripheral route in the city.

Fleet presentation from Stagecoach is not bad but not anything special. The 51 MANs are knackered and desperately need a proper internal refresh. As for the contravision on the deckers, whoever thought that was a good idea wants shooting. It wasn't you was it? But fleet presentation doesn't sort out the chronic timekeeping problems that Busways have, especially on the 22 where in my experience 30-minute gaps in service are not uncommon.

As for Go Ahead, they're no better, and pointing out what they do just highlights Nexus' point even more. They still have a fair few R-reg Darts and they're knackered too, as well as the Volvos out in County Durham. Their behaviour in acquiring Hexham depot was disgraceful, as has been well documented.

As for Arriva, I think most people agree they're mired in mediocrity. As for the 10, as I argued before, that route is mainly targeted at the people of Prudhoe and West Gateshead, and that's where the money is on the route. Hexham people would take the faster bus or, more likely, take the train or drive. The problems on the 685 are not confined to Arriva, either; Stagecoach Cumberland regularly stuck the Alexander B10Ms on their 685 diagrams, even before the floods, and even now stick their 55 Darts or the E300s on it regularly.

If First reduced their fares due to a "petition" it'll be the first time in history a bus company listened to passengers. As for "agitation in the north east", there is, and plenty of it. Nexus are agitating because they feel they're being ripped off by the three big bus companies in the area, and rightly so. Plenty of money and plenty of old rope. Nexus are slightly more powerful and influential that somebody having a whinge in the Evening Chronicle, hence why the likes of Souter are being so vocal about it.

Finally, you claim we need "shareholder investment" to get new buses. My point was that the NBC and the PTEs and the corporations were perfectly able to buy new buses in the same fashion that the private companies do. In the past they bought new buses for the profitable bits and cascaded kit downwards. The big bus companies do exactly the same thing. Nothing has changed except fares are 20% higher than they need to be to pay for the shareholder dividends.
 

TheGrandWazoo

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I lived in Newcastle for over ten years, but now I've moved to London.

Moving the Tridents due to vandalism was, in my opinion, an excuse. Single deckers are cheaper to buy and cheaper to run. Stagecoach have their most modern buses on the 39/40 route (naturally after DfT green fund paid towards them), so what changed? The chavs in Walker are still there.

The T-reg ALX300s are usually out in force on the 30/31/36 diagrams, I'd hardly call the 30/31 a peripheral route in the city.

Fleet presentation from Stagecoach is not bad but not anything special. The 51 MANs are knackered and desperately need a proper internal refresh. As for the contravision on the deckers, whoever thought that was a good idea wants shooting. It wasn't you was it? But fleet presentation doesn't sort out the chronic timekeeping problems that Busways have, especially on the 22 where in my experience 30-minute gaps in service are not uncommon.

As for Go Ahead, they're no better, and pointing out what they do just highlights Nexus' point even more. They still have a fair few R-reg Darts and they're knackered too, as well as the Volvos out in County Durham. Their behaviour in acquiring Hexham depot was disgraceful, as has been well documented.

As for Arriva, I think most people agree they're mired in mediocrity. As for the 10, as I argued before, that route is mainly targeted at the people of Prudhoe and West Gateshead, and that's where the money is on the route. Hexham people would take the faster bus or, more likely, take the train or drive. The problems on the 685 are not confined to Arriva, either; Stagecoach Cumberland regularly stuck the Alexander B10Ms on their 685 diagrams, even before the floods, and even now stick their 55 Darts or the E300s on it regularly.

If First reduced their fares due to a "petition" it'll be the first time in history a bus company listened to passengers. As for "agitation in the north east", there is, and plenty of it. Nexus are agitating because they feel they're being ripped off by the three big bus companies in the area, and rightly so. Plenty of money and plenty of old rope. Nexus are slightly more powerful and influential that somebody having a whinge in the Evening Chronicle, hence why the likes of Souter are being so vocal about it.

Finally, you claim we need "shareholder investment" to get new buses. My point was that the NBC and the PTEs and the corporations were perfectly able to buy new buses in the same fashion that the private companies do. In the past they bought new buses for the profitable bits and cascaded kit downwards. The big bus companies do exactly the same thing. Nothing has changed except fares are 20% higher than they need to be to pay for the shareholder dividends.

Oh dear David. You must have forgotten that the Enviros were first brought onto the 62/63, and of course, the 1 has had standard Enviros too. Also, you've forgotten that the GBF only funds the capital difference between standard and hybrid/gas so Stagecoach are still funding a lot of investment in new fleet.

As has been pointed out to you before, the 30/31 used to be double decked routes but the half emptying of the Montagu Estate has severely depressed that service. Guess you'd forgotten that too!

Your opinion on the Tridents? You'll be telling us that in your opinion, that Trident wasn't burnt out but merely singed!! :p Your opinion on Stagecoach is tainted by your hatred of Souter, then you're never going to accept that. However, I know people at Walkergate/Wheatsheaf and it was the case that vandalism was the reason. That said, they clearly couldn't carry on not having deckers and advances in digital recording etc mean they're happier to have new deckers on those routes.

The Tyne Valley routes. Well if you're confining your opinion to those people who only wish to travel from Hexham/Corbridge to Newcastle, then on a narrow point, you'd be right. However, total market and net worth? Then the 10 is much more lucrative which is ONE of the reasons why Go Ahead wanted it but not the 685. Also, Peter Huntley didn't want a shared route with CMS. So despite the fact that one service is traditionally hourly with singles, and the other is half hourly with DDs, you reckon the former is the more lucrative and desirable. Oooh, me ribs :lol:

I don't work for Stagecoach and I wouldn't use contravision if I did but what that has to do with the performance and value of bus services in the Nexus area. I don't like the collusion that eventually happened with Go Ahead/Arriva but you have to remember that the climbdown eventually happened because Go Ahead DID actually begin competing with Arriva. You know, Newcastle to Cramlington to Blyth, and to Ashington? Capitalising on a complacent Arriva so that Go Ahead were a cuckoo that Arriva eventually had to pay to evict - the cost being Hexham depot (and a cash adjustment).

I also don't work for Go Ahead or Arriva. I do know that Go Ahead don't have any R reg Darts.... rather than you forgetting something, you've clearly remembered something from a time ago!

First in Bristol did react to the petition; did you not know that? As regards Nexus' motives, they may be entirely laudable or perhaps it is part of a longstanding agenda to regain the type of control they lost in 1986. I agree that, in particular, Arriva have helped them by providing some ammunition in terms of service delivery, but not Stagecoach and Go Ahead. As for the 22, don't use it and so can't comment on its timekeeping or otherwise; however, my experience of operators in T&W is generally positive.

Now, onto the NBC. You brought this up originally but clearly don't get it, so let's spell it out in simple terms that you get.

The NBC during the 1970s had the benefit of the new bus grant and had massive losses underwritten, especially in the southern territories but also places like Lincolnshire. Was this what you meant by you not recalling NBC firms struggling for new vehicles?

In 1979, that changed and new vehicles were suddenly not longer massively subsidised (by up to 50%) and the massive operating losses were also to be halted. Hence, despite what you said, the NBC was struggling for new buses especially in the south, and that ignores the massive fleet reductions from MAP projects in the early 1980s or the problems would've been worse.

Now, of course, we have the practice of being able to cascade vehicles from strong territories to less lucrative areas. However, what happens if T&W is then followed by GM, West Yorks, etc. Suddenly, you don't have the bedrock of those operations. T&W may be just one area, and in isolation, that isn't as much of an issue but if one goes, where next. That is what the whole issue is with the operators. Arriva might not stand to lose much but what if the next area to do that is Merseyside? THAT is why bus operators are so up in arms about it, not because of the Chronicle, Nexus or anything else - they see it as the thin end of the wedge.

And the need for shareholders? Why do YOU think businesses, whether they be bus operators or brewers, need shareholders? In this case, is it for the capital spend on 500 new vehicles a year that is then recouped over the next 15 years? And get it into your head that in the 1970's/1980's, the whole bus industry was massively subsidised so if you think that the situation then was self funding, then wake up! In 1970, the NBC made an operating loss of £8m - in today's money, that's £104m. So yeah, a lot has changed since then.

I'm glad you think that Nexus has got it's sums right on this, and can have more buses, newer buses, lower fares and do all that by attempting to get bus companies to both source vehicles AND accept 5%. After all, you've got most of the other facts wrong in this thread
 

radamfi

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I don't really see why we should be so hung up on the operator profit margin. The market will decide what the margin is. The authority will specify what services they want to procure, and what type of vehicles are to be run. If Nexus specifies that a route or a group of routes will have new buses, then the operators will price their bids accordingly. If Nexus doesn't specify new buses, then the bids received will be cheaper. No different to everywhere else where they have competitive tendering.

Some people seem to think that GB outside London is the only place where competitive tendering can't work. I don't know anywhere where they have introduced bus privatisation and tendering and then rolled it back to state running because it didn't work. The argument in GB outside London is that this area has gone one step further and introduced free-for-all, extreme deregulation. QCs are still privatisation. It is not communism.

Competitive tendering is not questioned when they are filling in the gaps in the commercial network. New buses have even been specified for tendered services in GB outside London.
 
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TheGrandWazoo

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I don't really see why we should be so hung up on the operator profit margin. The market will decide what the margin is. The authority will specify what services they want to procure, and what type of vehicles are to be run. If Nexus specifies that a route or a group of routes will have new buses, then the operators will price their bids accordingly. If Nexus doesn't specify new buses, then the bids received will be cheaper. No different to everywhere else where they have competitive tendering.

Some people seem to think that GB outside London is the only place where competitive tendering can't work. I don't know anywhere where they have introduced bus privatisation and tendering and then rolled it back to state running because it didn't work. The argument in GB outside London is that this area has gone one step further and introduced free-for-all, extreme deregulation. QCs are still privatisation. It is not communism.

Competitive tendering is not questioned when they are filling in the gaps in the commercial network. New buses have even been specified for tendered services in GB outside London.

The problem is that Nexus's sums are predicated on achieving that margin reduction in a "robbing Peter to pay Paul" cross subsidy. The view being espoused is that you get lower fares (well, a third of people will actually pay more), newer buses, more buses and all without any more funding or taxation.

That's why profit margin is so important, with the 20% of Busways often mentioned yet the other operators are nearer to 12% (Go Ahead) or a barely profitable Arriva.

And if you take the profitable bits and reduce them to single digit margins, what then of the other parts of the country that are inherently weaker?

As a guide, rail operators and third party freight logistics (e.g. DHL working for Tesco) work on c.4% profit margins and that's WITHOUT the capital investment so how Nexus reckon they'll get 5% without providing either the depots or fleet is anyone's guess. Yet that is what they are banking on!

Yes, you can have new vehicles and tenders are often specified for them but someone has to pay. What Nexus believe is that you can do it by squeezing the operators but the margin they want and what they can get look some way apart. Also, firms can afford one or two low margin areas but why bother if everything is driven down to 5% AND you're responsible for capital spend? If someone else is laying out the cash, then that's a different matter but that ain't what's being proposed, and nor is the London scale of investment!
 

radamfi

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If 5% margin isn't enough to pay for new buses, then of course the margin will go higher. The operators won't bid unless they can make a decent enough profit. If Stagecoach, First etc. don't want to bid then someone else will. I'm still struggling to understand the problem here.
 

tbtc

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Excuse my ignorance, but what was the reason for the "war" between Arriva and Go-Ahead in Ashington, Cramlington etc?

Was this before or after Go-Ahead sold their Bishop Auckland operations to Arriva?
 

Robertj21a

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If 5% margin isn't enough to pay for new buses, then of course the margin will go higher. The operators won't bid unless they can make a decent enough profit. If Stagecoach, First etc. don't want to bid then someone else will. I'm still struggling to understand the problem here.


Surely a 5% profit margin would hardly ever support the purchase of new vehicles ?

If Nexus want to keep to a 5% margin (with the operators supplying new vehicles too), then they'll only get an operator who has 'lost the plot', or who needs to go spectacularly bust, quickly, in an attempt to cover up financial difficulties elsewhere ?

Nexus need to rethink their whole approach.

Robert
 

radamfi

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The operators will know whether they need to buy new buses, and if so, they can price their bid accordingly. They won't bid so low that they won't be able to buy new buses. That's the same whether it is in Newcastle, London or Eindhoven.
 

Tetchytyke

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Go Ahead bought the local independent operator Northumbria Coaches in Ashington, and used that purchase to start to compete against Arriva in central Northumberland. They basically attacked Arriva on their main route from Ashington to Newcastle, using ex-National Express coaches. They also tried to attack Arriva in the Tyne Valley, going head to head on what were then Arriva's 602 and 604 services. They never made much of a headway in the Tyne Valley beyond the Gateshead border, nor did the hopeless Kimberley Coaches (t/a Tyne Blue Line).

Essentially Go Ahead under Huntley tried to attack Arriva to gain leverage in the Tyne Valley, using their existing base in Winlaton. Rather than fight a costly bus war, Arriva and Go Ahead colluded to "carve up" Northumberland. The ex-Northumbria Coaches depot went to Arriva, whilst the Hexham depot went to Go Ahead.

Bishop Auckland wasn't really relevant in this, although Huntley later considered the sale to be a big mistake. Go Ahead are now trying to compete with Arriva again in Bishop Auckland, using an outstation at Crook, and they're not really making much headway as far as I can tell. My knowledge may be ten months out of date, as I now live in London.

I don't know whether Nexus have done their sums correctly or not. I would be astounded if they genuinely expect to get 5% margin, but of course you don't go into negotiations with a starting point of what you want. But margins in London are typically much lower than they are in the north east, and there are no shortage of operators wanting to run in London. There are also no shortage of new buses in London. Indeed, the modernity of the fleet in London means that places like the north east get the cast offs; look at the shonky T-reg Tridents Arriva now have in Newcastle.

The NBC bought new buses for the profitable bits and cascaded downwards to the less profitable bits. Same with the PTEs and corporations. The big bus operators do exactly the same thing, with fleets in Cornwall largely being knackered old relics from elsewhere. Nothing's changed. Why we need shareholders who, in Stagecoach's case, have taken a billion notes out of the business, I don't know, especially as the profit margin is, of course, after depreciation.
 

TheGrandWazoo

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Go Ahead bought the local independent operator Northumbria Coaches in Ashington, and used that purchase to start to compete against Arriva in central Northumberland. They basically attacked Arriva on their main route from Ashington to Newcastle, using ex-National Express coaches. They also tried to attack Arriva in the Tyne Valley, going head to head on what were then Arriva's 602 and 604 services. They never made much of a headway in the Tyne Valley beyond the Gateshead border, nor did the hopeless Kimberley Coaches (t/a Tyne Blue Line).

Essentially Go Ahead under Huntley tried to attack Arriva to gain leverage in the Tyne Valley, using their existing base in Winlaton. Rather than fight a costly bus war, Arriva and Go Ahead colluded to "carve up" Northumberland. The ex-Northumbria Coaches depot went to Arriva, whilst the Hexham depot went to Go Ahead.

Bishop Auckland wasn't really relevant in this, although Huntley later considered the sale to be a big mistake. Go Ahead are now trying to compete with Arriva again in Bishop Auckland, using an outstation at Crook, and they're not really making much headway as far as I can tell. My knowledge may be ten months out of date, as I now live in London.

I don't know whether Nexus have done their sums correctly or not. I would be astounded if they genuinely expect to get 5% margin, but of course you don't go into negotiations with a starting point of what you want. But margins in London are typically much lower than they are in the north east, and there are no shortage of operators wanting to run in London. There are also no shortage of new buses in London. Indeed, the modernity of the fleet in London means that places like the north east get the cast offs; look at the shonky T-reg Tridents Arriva now have in Newcastle.

The NBC bought new buses for the profitable bits and cascaded downwards to the less profitable bits. Same with the PTEs and corporations. The big bus operators do exactly the same thing, with fleets in Cornwall largely being knackered old relics from elsewhere. Nothing's changed. Why we need shareholders who, in Stagecoach's case, have taken a billion notes out of the business, I don't know, especially as the profit margin is, of course, after depreciation.

You are priceless, David, you really are. The amusing thing is one particular line "Bishop Auckland wasn't really relevant in this, although Huntley later considered the sale to be a big mistake.". Now was me who told you about Huntley's views on the Omnibuses Blog, and actually corrected you on linking the Bishop sale with later events. For you to "demonstrate your knowledge" by quoting my words ....... well, you have to laugh :lol::lol::lol:

However, you've also got your facts wrong, again. TBL started running the 603 with Arriva retaliating with their X64 Prudhoe to Newcastle express. Now Peter Huntley was already less than impressed with Arriva, so getting caught up in a war not of his making was not exactly something that cheered him. However, it may also have been the justification to exploit the weakness of Arriva. Also, whilst the Ashington Express was one service, it was hardly the main service - surely the Bargain Bus services from Blyth to Newcastle had more of an effect?

Remember that Go Ahead not only purchased NC but also Jayline, and that provided a base to largely push Arriva out of East Durham. The facts are that Go Ahead began to exploit the situation. Arriva were outmanoeuvred and the face saving way was to sell Hexham, hence why after the "genuine" competition, there was then the pseudo competition with the 154 and X21.

Now, onto the macro picture, and this is where you really show your lack of understanding.

"There are also no shortage of new buses in London. Indeed, the modernity of the fleet in London means that places like the north east get the cast offs; look at the shonky T-reg Tridents Arriva now have in Newcastle."

Firstly, they're not Tridents but we'll let that pass. Of more importance is the truly colossal amount of public money that is being spent by TfL. What Nexus are saying is that they don't need any public money (directly or taxation) but can achieve a redistribution of existing margins. Moreover, Nexus's sums rely on achieving a margin actually lower than London. That's why they don't stack up....how can you not get that?

Also, you ask why shareholder funds are required? That's how business works, selling shares to fund business growth and investment - I can't believe I have to explain that. For example....

ComfortDelGro win a new London bus route, and it requires 15 new ADL 400s. To keep the maths easy, that's £3m. That investment needs to be found up front but the revenue comes over time. Therefore, they use the funds from share capital to finance that investment. Now over time, they depreciate those vehicles and they make money, of which some of the money is then used to provide shareholder dividends.

And, of course, it's an ongoing process so even when you've paid them off after 15 years, you then need to reinvest. In addition, if you are CDG and you've decided to buy First's London fleet.....where did that money come from? If you think you can do that from retained profits, then sorry, go away and do some research.

I take it that you don't work in business, do you?
 

Tetchytyke

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However, you've also got your facts wrong, again. TBL started running the 603 with Arriva retaliating with their X64 Prudhoe to Newcastle express.

Think you need to go back and look at when Go extended the buses (11 I think) from Crawcrook to Prudhoe, before cutting it back again. The 11 only went back to Prudhoe with the sale of Hexham depot, and that was basically a re-badged 604.


Firstly, they're not Tridents but we'll let that pass. Of more importance is the truly colossal amount of public money that is being spent by TfL. What Nexus are saying is that they don't need any public money (directly or taxation) but can achieve a redistribution of existing margins. Moreover, Nexus's sums rely on achieving a margin actually lower than London. That's why they don't stack up....how can you not get that?

Also, you ask why shareholder funds are required? That's how business works, selling shares to fund business growth and investment - I can't believe I have to explain that. For example....

Nexus are setting out an unrealistic starting negotiating position, but then so are the bus companies. Nexus won't really want 5% any more than Go Ahead will take their bat and ball home.

Secondly, most companies seem to raise capital these days through leveraging, or indeed through simply leasing their buses. First are up the creek without a paddle because they are over-leveraged, the same applies to National Express; it's been a long time since share capital was raised in either business. Share capital is only created when new shares are created, and this is not a regular occurrence as the existing shares become devalued.
 
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tbtc

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So, and excuse my ignorance again, was the Bishop Auckland "squabble" unconnected to the Ashington/ Hexham stuff?

I was naively thinking that things had settled down in the north east of England, with the three big operators (Arriva, Go-Ahead, Stagecoach) settling down better (Arriva taking over from Stagecoach in Darlington and from Go-Ahead in Bishop Auckland, the split of the 723 etc seemed to mark out the territories a bit better, compared to how confused the map used to be).
 

TheGrandWazoo

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So, and excuse my ignorance again, was the Bishop Auckland "squabble" unconnected to the Ashington/ Hexham stuff?

I was naively thinking that things had settled down in the north east of England, with the three big operators (Arriva, Go-Ahead, Stagecoach) settling down better (Arriva taking over from Stagecoach in Darlington and from Go-Ahead in Bishop Auckland, the split of the 723 etc seemed to mark out the territories a bit better, compared to how confused the map used to be).

Right here goes. The big 3 had traditionally kept to their own defined areas. Competition had come and gone in all parts of the region though never at the levels in T&W experienced in other metropolitan areas.

In 2006, Arriva purchased the Go Ahead (former OK operations) in Bishop Auckland. GNE hadn't really invested much in them (a bit low margin) other than the main then 724 service. Also, the depot in North Bondgate required a fair bit of work to get up to modern standards. Hence, they decided to sell to Arriva who felt they could exploit economies of scale with their Bishop depot at Cockton Hill. They didn't take on all the operations, with schools work being left to Weardale and Garnetts, whilst Go Ahead retained the 724 Bishop to Newcastle route. Arriva didn't take the fleet, instead drafting some ex London Olympians and ex Merseyside B6s to join some Metroriders spare from the closure of the Richmond operations a month beforehand.

Peter Huntley came in to Go Ahead in 2006 but the sale had been agreed beforehand; something I understand he regretted. I also understand that there was some frustration and ill feeling between both Arriva and GNE for various reasons. That was Bishop Auckland sorted - nothing to do with Ashington or Hexham or anything!

Now, the 723 was one of the last vestiges of joint operation in the North East. Most of the joint services (X1/X10/230/231/X46) had already gone and Peter Huntley apparently wasn't keen on joint operation as it makes it difficult in terms of satisfying the competition commission, but also publicity and promotion. Hence, the opportunity was taken to split the 723 at Durham. Arriva retained the number and service south of Durham, whilst the northern section became recast with others as GNE 21.

GNE under Huntley then set about rebranding their routes etc, but also inherited the impact of the TBL/Arriva war that affected GNE's routes on the Tyne Valley, and finally ended with TBL's demise in 2007. Annoyed both by that and Arriva not then pulling the X64, in 2007 GNE started running services from Blyth via Cram to Newcastle, and then expanded with various other competitive services from the D8 (Durham to Newton Hall), the 31 (Peterlee to Hartlepool) etc, and another Northumberland route (Ashington to Newcastle). The Northumberland operations were based on the Northumbria Coaches fleet that they purchased who had run a number of tendered and semi-tendered routes largely based on Morpeth after Arriva had closed that depot in 2003/4.

Then you have the phoney war of Arriva registering the 154 Saltwell Park circular and the X21 Newcastle to Durham before an agreement to swap the former NC fleet for the Hexham depot of ANE (except its 5 vehicle 685 share) in March 2010. All seemingly quiet until the exposure of collusion between GNE and ANE in the latter stages of the Northumberland bus war in 2011.

Then in early 2012, Arriva cut a load of mileage in the South West Durham. GNE decided to set up an outbase in Crook (ironically at the Weardale depot set up to operate schools cast aside by Arriva in 2006). They reallocated the former 724 service (now recast and rebranded as Pronto and running Bishop - Durham - Sunderland like the old pre1986 X3) there from Chester le Street, took on the surrendered Arriva services from Coundon to Bishop to Woodhouse Close, and started a Crook - Bishop - West Auckland - Darlington express OK1.

Arriva responded to the latter with their own X1, omitting West but instead via Shildon. To cover West, they upped their own 6 service from 15 to 12 min frequency which also aimed to hit Pronto over the Bishop to Durham leg. GNE then amended the OK1, dropping Bishop to Crook but extending from Darlington to Middlesbrough. Unlike the Arriva X66, this was quicker by omitting Stockton but it still got pulled in mid 2013.

The Bishop situation is that the 6 still runs every 12 mins, and the GNE (OK18) local service still runs but in essence, competition has largely gone. Instead, GNE decided that they'd capitalise on the bad service and bad press from the Arriva turns on the 685 Carlisle to Hexham to Newcastle by reallocating the four ex OK1 vehicles to Hexham. Now, no one believes that the X84/X85/685 can justify a bus every 20 mins (rather than the hourly it has always had) from Hexham to Newcastle. Instead, the belief is more that Stagecoach and Arriva will get so hacked off with GNE that the 685 will be truncated at Hexham and Stagecoach operate Carlisle to Hexham, and GNE hoping they can eventually force ANE out.

Whether that strategy comes to pass, who knows. Had to do a lot of dredging there but that's fairly comprehensive.
--- old post above --- --- new post below ---
Secondly, most companies seem to raise capital these days through leveraging, or indeed through simply leasing their buses. First are up the creek without a paddle because they are over-leveraged, the same applies to National Express; it's been a long time since share capital was raised in either business. Share capital is only created when new shares are created, and this is not a regular occurrence as the existing shares become devalued.

Are you really saying that? You can't be so dumb, surely? If you lease vehicles, you're paying on a weekly/monthly basis. However, the lease company are having to find the capital from somewhere? Leasing gives you added flexibility (if you lose routes) but is more expensive. That's why most bus companies prefer to buy outright (shakes head)
 

tbtc

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Right here goes. The big 3 had traditionally kept to their own defined areas. Competition had come and gone in all parts of the region though never at the levels in T&W experienced in other metropolitan areas.

In 2006, Arriva purchased the Go Ahead (former OK operations) in Bishop Auckland. GNE hadn't really invested much in them (a bit low margin) other than the main then 724 service. Also, the depot in North Bondgate required a fair bit of work to get up to modern standards. Hence, they decided to sell to Arriva who felt they could exploit economies of scale with their Bishop depot at Cockton Hill. They didn't take on all the operations, with schools work being left to Weardale and Garnetts, whilst Go Ahead retained the 724 Bishop to Newcastle route. Arriva didn't take the fleet, instead drafting some ex London Olympians and ex Merseyside B6s to join some Metroriders spare from the closure of the Richmond operations a month beforehand.

Peter Huntley came in to Go Ahead in 2006 but the sale had been agreed beforehand; something I understand he regretted. I also understand that there was some frustration and ill feeling between both Arriva and GNE for various reasons. That was Bishop Auckland sorted - nothing to do with Ashington or Hexham or anything!

Now, the 723 was one of the last vestiges of joint operation in the North East. Most of the joint services (X1/X10/230/231/X46) had already gone and Peter Huntley apparently wasn't keen on joint operation as it makes it difficult in terms of satisfying the competition commission, but also publicity and promotion. Hence, the opportunity was taken to split the 723 at Durham. Arriva retained the number and service south of Durham, whilst the northern section became recast with others as GNE 21.

GNE under Huntley then set about rebranding their routes etc, but also inherited the impact of the TBL/Arriva war that affected GNE's routes on the Tyne Valley, and finally ended with TBL's demise in 2007. Annoyed both by that and Arriva not then pulling the X64, in 2007 GNE started running services from Blyth via Cram to Newcastle, and then expanded with various other competitive services from the D8 (Durham to Newton Hall), the 31 (Peterlee to Hartlepool) etc, and another Northumberland route (Ashington to Newcastle). The Northumberland operations were based on the Northumbria Coaches fleet that they purchased who had run a number of tendered and semi-tendered routes largely based on Morpeth after Arriva had closed that depot in 2003/4.

Then you have the phoney war of Arriva registering the 154 Saltwell Park circular and the X21 Newcastle to Durham before an agreement to swap the former NC fleet for the Hexham depot of ANE (except its 5 vehicle 685 share) in March 2010. All seemingly quiet until the exposure of collusion between GNE and ANE in the latter stages of the Northumberland bus war in 2011.

Then in early 2012, Arriva cut a load of mileage in the South West Durham. GNE decided to set up an outbase in Crook (ironically at the Weardale depot set up to operate schools cast aside by Arriva in 2006). They reallocated the former 724 service (now recast and rebranded as Pronto and running Bishop - Durham - Sunderland like the old pre1986 X3) there from Chester le Street, took on the surrendered Arriva services from Coundon to Bishop to Woodhouse Close, and started a Crook - Bishop - West Auckland - Darlington express OK1.

Arriva responded to the latter with their own X1, omitting West but instead via Shildon. To cover West, they upped their own 6 service from 15 to 12 min frequency which also aimed to hit Pronto over the Bishop to Durham leg. GNE then amended the OK1, dropping Bishop to Crook but extending from Darlington to Middlesbrough. Unlike the Arriva X66, this was quicker by omitting Stockton but it still got pulled in mid 2013.

The Bishop situation is that the 6 still runs every 12 mins, and the GNE (OK18) local service still runs but in essence, competition has largely gone. Instead, GNE decided that they'd capitalise on the bad service and bad press from the Arriva turns on the 685 Carlisle to Hexham to Newcastle by reallocating the four ex OK1 vehicles to Hexham. Now, no one believes that the X84/X85/685 can justify a bus every 20 mins (rather than the hourly it has always had) from Hexham to Newcastle. Instead, the belief is more that Stagecoach and Arriva will get so hacked off with GNE that the 685 will be truncated at Hexham and Stagecoach operate Carlisle to Hexham, and GNE hoping they can eventually force ANE out.

Whether that strategy comes to pass, who knows. Had to do a lot of dredging there but that's fairly comprehensive

That's very interesting, appreciate that time taken to type all of that out.

Since most "Bus" sites are full of fleet news (unusual workings, repaints, arguments about the noise of engines...), I find it hard to keep up with the bigger developments - you've painted an interesting picture there :)
 

Tetchytyke

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Had to do a lot of dredging there but that's fairly comprehensive.

Definitely comprehensive, sums most of it up, and accurately too.

Are you really saying that? You can't be so dumb, surely? If you lease vehicles, you're paying on a weekly/monthly basis. However, the lease company are having to find the capital from somewhere?

I believe Arriva lease quite a few of their buses, although that could well be a tax dodge as they lease them from the VDL merchant owned by, er, Arriva.

But share capital only gets created when shares are created, as share capital is based on the actual worth of the share, not the market price for that share. This doesn't happen too often as shareholders don't like to see their shares devalued. Even in a situation like Barclays Bank shareholders resist it, even when the alternative is financial meltdown.

The money has to come from somewhere, you're quite right, but that tends to be leveraging the business rather than issuing new shares. This is how the ROSCOs operate in the rail industry, and many of the delays in the Thameslink order from Siemens relate to the ability to raise finance at reasonable rates. It's also how National Express funded their rapid expansion, even if they did late come unstuck by over-leveraging their business.
 
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TheGrandWazoo

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Definitely comprehensive, sums most of it up, and accurately too.



I believe Arriva lease quite a few of their buses, although that could well be a tax dodge as they lease them from the VDL merchant owned by, er, Arriva.

But share capital only gets created when shares are created, as share capital is based on the actual worth of the share, not the market price for that share. This doesn't happen too often as shareholders don't like to see their shares devalued. Even in a situation like Barclays Bank shareholders resist it, even when the alternative is financial meltdown.

The money has to come from somewhere, you're quite right, but that tends to be leveraging the business rather than issuing new shares. This is how the ROSCOs operate in the rail industry, and many of the delays in the Thameslink order from Siemens relate to the ability to raise finance at reasonable rates. It's also how National Express funded their rapid expansion, even if they did late come unstuck by over-leveraging their business.

Jesus wept.

Let's begin at the beginning. Businesses begin as a sole trader or limited company (but with all capital held by the owners). They then seek to grow their business so sell shares. People buy the shares - these are called shareholders. They do this, not for altruistic reasons normally, but to make money in the long run either in the form of an increase in the value of their shares and/or dividends paid out.

Now, this allows investment in the business. However, businesses will also seek to borrow from banks against the value of the business or leveraging, as you've discussed. However, should a business cease to provide adequate returns to shareholders (e.g. stop paying dividends) then that can impact on the net worth of the business, depressing the share price and resulting in more onerous terms on borrowing from banks etc. Therefore, don't pay shareholders back on their original investment and the cost of borrowing will go up!

Also, shareholders can be approached for additional funds to either finance new acquisitions or rectify financial problems, such as the recent First Group share issue. Again, I ask you....do you work in a commercial business, and do you work in a financial capacity, or are you just googling vague financial terms?

As for Arriva leasing Daf buses? You're just trying to muddy the waters, whilst avoiding the point that irrespective of whether it is the operator buying outright or leasing, the capital has to be found from somewhere Therefore, Nexus reckoning that they'll get 5% or close to it is hogwash, and if they can't do that, then that undermines their business case in entirety.

Leasing is inherently more expensive and that is why businesses tend to purchase their vehicles outright? However, such is the exposure in London that some operators lease as they can't easily move vehicles to provincial fleets; ComfortDelGro is a prime example of this. Hence they lease. However, the lease company must still find the money to buy outright (money costs remember) and then also protect themselves from having a load of mid-life kit returned to them. Margin is built in either across the term and/or with early redemption clauses as a result.

Now, back to you and the NBC. I don't dispute that cascading hasn't always happened. However, your point was that in some utopian past, the NBC didn't struggle for new vehicles, and that even in the days when it was getting new vehicles wholesale, this was at a truly massive level of subsidy. This was both indirect (with the new bus grant discounting new buses by nearly 50%) and directly with the NBC receiving massive government subsidy. In 1975, the NBC lost £19m and that was after local government subsidies and fuel duty rebate. So whilst they may not have struggled for new buses then, the cost to the taxpayer was completely unsustainable.

Therefore, after 1981 when the nbg was stopped, the NBC did reduce its new vehicle intake overall. Whilst this was especially pronounced in the south of England, the northern firms were also affected. From 1976 to 1981, United received nearly 150 VRs, 50 LHs and 170 Leyland Nationals, so about 60 a year. From 1982 to 1985, it was 62 Olympians and 15 Nationals and a Leyland Tiger Cub, so about 20 a year.

So please, stop banging on about the halcyon days of the NBC and municipals/PTEs. They were massively subsidised, directly and indirectly.
 

Tetchytyke

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From 1976 to 1981, United received nearly 150 VRs, 50 LHs and 170 Leyland Nationals, so about 60 a year. From 1982 to 1985, it was 62 Olympians and 15 Nationals and a Leyland Tiger Cub, so about 20 a year.

Well naturally it would tail off. There are only so many new VRs one division needs.

So please, stop banging on about the halcyon days of the NBC and municipals/PTEs. They were massively subsidised, directly and indirectly.

But the commercial operators aren't heavily subsidised, you mean?

According to DafT's own figures, in the 2012/13 financial year a total of £413,116,554.13 was paid out to operators in BSOG. Nearly half a billion quid in subsidy, right there.

But of course the "free market" is working perfectly, and anyone who thinks the corporate bus operators are robbing us blind is naïve.
 

TheGrandWazoo

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Well naturally it would tail off. There are only so many new VRs one division needs.



But the commercial operators aren't heavily subsidised, you mean?

According to DafT's own figures, in the 2012/13 financial year a total of £413,116,554.13 was paid out to operators in BSOG. Nearly half a billion quid in subsidy, right there.

But of course the "free market" is working perfectly, and anyone who thinks the corporate bus operators are robbing us blind is naïve.

David, I do shake my head.

Firstly, I never claimed that the free market was perfect. However, it was YOU who claimed that the NBC never struggled to buy new buses when, in truth, it was only able to do so because of massive amounts of public money. Nor does it get away from the fact that Nexus are coming up with a Mom's Apple Pie proposal with all of the downsides (like an unrealistic margin expectation that their figures rely on).

Now, I'm old enough to both remember travelling on the NBC and, in fact, I have a lot to thank it for, as my dad was an NBC driver, so that put food on the table and my mum still benefits from his pension. However, don't tell me it was some sepia tinted utopia. It wasn't.

You mention about the Bristol VRs and that because the investment had been made, then they didn't need as many new buses. Firstly, I mentioned both deckers and singles, and surely consistent investment would mean that there would be a requirement year on year.....Hmmm.... you don't think it might have been more to do with the Viable Network Project (later christened Market Analysis Project) schemes that saw fleets cut by c.15-20% overnight during 1980/81? Such was the unabashed success of the NBC.

I'll leave it with you

ps You work out the inflation adjusted figures for the NBC, then add in the figures for all municipals/PTEs/London Transport/independents, and then tell me it's less than £411m. Think not
 
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