Tyne and Wear's bid to regulate buses fails public interest test

Transport executive Nexus' plans to set fares and routes in North East England have failed a number of public interest tests, the Quality Contracts Scheme Review Board has ruled.

Nexus has proposed franchising bus services in Tyne and Wear by letting contracts with operators and these were scrutinised by the board in the summer. The board, reaching its conclusions, said that Nexus has failed to meet statutory requirements on consultation; cannot demonstrate that it would increase use of buses because its affordability is not demonstrated; and says that the scheme "imposes disproportionate adverse effects on operators".

However, it did decide that the scheme would contribute to the implementation of local transport policy and that service quality would improve.

The ruling on the plans, first mooted over three years ago, was welcomed by bus operators. Stagecoach said: "The franchising scheme failed to satisfy the core test of being economic, efficient and effective." It added that the decision has clear implications for the franchising powers in the Government's devolution programme and urged a transparent public interest for any franchising proposals in the forthcoming Buses Bill.

But the local press saw the decision to knock back franchising as "a major blow".