Why the bus industry needs a new SOFA

Until last year David Leeder was on the board of FirstGroup plc, Britain’s biggest bus operator. Here he explains why the bus industry needs a railway-style SOFA (Statement of Funds Available) to give it security in the tough years ahead

Major urban bus operators no longer make the returns they once did

Major urban bus operators no longer make the returns they once did

Quality competition - such as that found in Oxford - is needed

Quality competition - such as that found in Oxford - is needed

David Leeder is an independent investor in the transport sector and vice-chair of the Commission for Integrated Transport. He has held a variety of director-level posts in transport operators in the UK, EU and USA. From 2001 until 2008 he was a main board and executive director of FirstGroup plc.

David Leeder is an independent investor in the transport sector and vice-chair of the Commission for Integrated Transport. He has held a variety of director-level posts in transport operators in the UK, EU and USA. From 2001 until 2008 he was a main board and executive director of FirstGroup plc.

The debate about the appropriate level of ‘bus subsidy’ began well before New Labour took office in 1997 and looks like it will out-last the government itself. The recent ministerial announcement on BSOG (Bus Service Operators’ Grant) ended some of the uncertainty, but also leaves many issues hanging in the air. Whilst a great deal has changed in the bus world since Things Can Only Get Better, the fundamental laws of economics haven’t, so it might be useful to set out...