16/02/2007

A massive cross-party consensus has called on the Competition Commission to rethink its controversial proposals to break up Scotland's inter-city coach network, it emerged today (16 February 2007).

Politicians, transport experts and passenger groups have written to the Commission opposing its plans to force the Stagecoach-Scottish Citylink joint venture to divest some of its lifeline services.

More than 60 MPs, MSPs, local authorities, regional transport partnerships, councillors, passenger groups, trade unions and members of the public have expressed almost universal anger and concern over the Commission's proposals.

The scale of the opposition is revealed today after the consultation period on the Commission's plans closed this week. (A list of key individuals and organisations who have made submissions is attached with this news release and is also available on the Competition Commission’s website).

The Competition Commission plans to force the Stagecoach-Scottish Citylink joint venture to sell off some Saltire Cross services, which link Aberdeen, Glasgow, Inverness and Edinburgh.

But Tom Wileman, Managing Director of the Stagecoach-Scottish Citylink joint venture, said: “It is clear that in every part of Scotland there is universal opposition and anger to the forced sale of part of the joint venture.

“This issue has united the political parties in Scotland and there is a consensus among a whole range of transport experts and the public that the Commission has got it wrong. As many of the responses make clear, the proposals also run counter to the Scottish Executive’s transport policy. The Commission should listen to the people of Scotland and put the interests of passengers first by abandoning these proposals.

“Nearly six months ago, the joint venture gave the Commission a wide range of undertakings on fares and service levels that would have ensured passengers continue to enjoy high-quality, value for money inter-city coach travel on a comprehensive stable network. The Commission has admitted that these undertakings would have been acceptable to it.

“But despite this, the Commission has chosen to go down a path that has cost taxpayers around £1 million, caused huge uncertainty for coach passengers and diverted hundreds of thousands of pounds of valuable investment away from the Scottish coach network.

“We stand by the pledge we made to put our passengers first. Scots have made their voice heard loud and clear. It is time the Competition Commission listened.”

Despite the uncertainty and huge cost of the Commission's ongoing inquiry, the joint venture has pressed ahead with plans to invest £6.5m in a new fleet of 15-metre coaches for Scotland, with the first vehicles coming on stream this month.

Passengers have responded positively to the improvements under the joint venture, with the number of people on the Saltire Cross services up 41% compared to 2006.

Mr Wileman added: “This investment is firm evidence of our good faith and putting the interests of our customers first. But future growth is being put at risk by the Commission's perverse proposals. For our customers' sake, we hope the Commission's final decision puts passengers' practical transport needs before the economic theory found in university textbooks.”

For further information, please contact:
Steve Stewart, Head of Media and Public Affairs, Stagecoach Group
Tel: 01738 442111 or 07764 774680

NOTES TO EDITORS

On 12 September 2005, a new joint venture was created to operate the Scottish services of Stagecoach’s megabus.com and Motorvator, and Braddell PLC’s Scottish Citylink.

Stagecoach acquired 35% of the share capital of Scottish Citylink Limited (“Citylink”) in return for transferring certain rights to the Motorvator and megabus.com operations in Scotland. Braddell PLC owns the remaining 65% of Citylink’s share capital.

The joint venture operates services under the megabus.com and Scottish Citylink brands, and is the leading provider of express coach services in Scotland.

A list of responses to the Competition Commission’s is available on its website at: http://www.competition-commission.org.uk/inquiries/ref2006/citylink/responses_draft_undertakings.htm

Please note that the list of submissions currently posted on the site may not include all submissions received by the Competition Commission.

Submissions have been made by the following individuals and organisations: