Operators take note: the future of bus subsidy really does hang in the balance

Life for the humble bus operator is getting ever tougher. Ben Colson argues that recently announced plans to reform the Bus Service Operators Grant, in addition to a variety of other government policy initiatives, are creating a legislative burden that threatens to fundamentally undermine the industry’s economics.

Bus operators, including Norfolk Green, are investing in new vehicles but the fuel efficiency does not match the vehicles they replace. Now secretary of state Geoff Hoon (right) has announced reform of the Bus Service Operators Grant that will see operators vastly out of pocket for operating new vehicles

Bus operators, including Norfolk Green, are investing in new vehicles but the fuel efficiency does not match the vehicles they replace. Now secretary of state Geoff Hoon (right) has announced reform of the Bus Service Operators Grant that will see operators vastly out of pocket for operating new vehicles

Ever since the present government came to power, it has hankered for the opportunity to cut subsidy to bus services. Of course they wouldn’t put it that way, they would say to reform the way subsidies are distributed, but the end game really is to reduce the cost to the Treasury.

It seems more than a little odd, then, that when the business minister says that the government is here to help businesses work through the impact of the recession, at the very same time the department decides to...