§ Mr. John MarshallTo ask the Secretary of State for Transport what have been the financial results of competitive tendering for bus routes in London.
§ Mr. Peter BottomleyAbout 15 per cent. of London Regional Transport's bus network mileage is currently operated under contracts obtained by competitive tendering. The average cost per bus mile of all tendered services at 31 March 1987 was £1.54, compared with an average cost of £1.99 per bus mile when the services were operated by London Buses Ltd. before tendering. After the additional costs of service improvements and administration are taken into account, LRT estimate that the net savings of the order of 15 per cent. are being realised from the tendering process.