Bus Services (Hansard, 2 November 1994)

§ Mr. Austin-Walker
To ask the President of the Board of Trade if he will list all the companies currently running bus services in Worthing; and what assessment he has made of the effectiveness and fairness of competition in this area with particular reference to Stagecoach and Cedar Buses.
1129W

§ Mr. Jonathan Evans
Adur Valley Swift Line, Sussex Bus, Sussex Coastline Buses Ltd., and S H Martin trading as Access Cars have services registered to operate in Worthing. Under the competition legislation it is for the Director General of Fair Trading to keep under review the effectiveness of competition and take action if appropriate.

§ Mr. Austin-Walker
To ask the President of the Board of Trade if he will list all the companies currently running bus services in Hastings; what assessment he has made of the effectiveness and fairness of competition in this area; and if he will make a statement on the findings of the Monopolies and Mergers Commission.

§ Mr. Jonathan Evans
Bexhill Buses, Eastbourne Buses, Maidstone and District Motor Services Ltd., Rambler Coaches, and South Coast Buses Ltd. have services registered to operate in Hastings. Under the competition legislation it is for the Director General of Fair Trading to keep under review the effectiveness of competition and take action if appropriate. The acquisition by Stagecoach (Holdings) Ltd.—owners of South Coast Buses—of Formia Ltd. was referred in 1990 to the Monopolies and Mergers Commission, which found that acquisition could be expected to lead to removal of competition, reductions in choice, service quality and frequency and higher fares. Stagecoach has since given undertakings on lines recommended by the MMC to remedy these adverse effects.

§ Mr. Austin-Walker
To ask the President of the Board of Trade how many times Stagecoach South has been investigated by the Office of Fair Trading and by the Monopolies and Mergers Commission; if he will give details of the results of the investigations; and if he will make a statement.

§ Mr. Jonathan Evans
[holding answer 31 October 1994]: The Director General of Fair Trading has conducted one Competition Act investigation involving what is now known as Stagecoach South—"An investigation under Section 3 of the Competition Act 1980 by the DGFT: Southdown Motor Service Ltd.—the registration and operation of services 242 and 262 in Bognor Regis". The Monopolies and Mergers Commission has also reported on this matter—"Southdown Motor Services Ltd.—a report on the conduct of Southdown Motor Services Ltd. in respect of its operations of local bus services on route 262 and 242 in Bognor Regis". The MMC has also reported on two mergers: Stagecoach/Portsmouth Citybus and Stagecoach/Formia Ltd.
Full details of the findings are given in the reports. Copies of which are available in the Library of the House.

§ Mr. Austin-Walker
To ask the President of the Board of Trade if he will conduct an investigation into alleged predatory pricing practices of Stagecoach, with particular reference to similar routes at different prices.

§ Mr. Jonathan Evans
[holding answer 31 October 1994]: It is for the Director General of Fair Trading to consider allegations of anti-competitive practices including predatory pricing.

§ Mr. Austin-Walker
To ask the President of the Board of Trade what assessment he has made of the efficacy of the Office of Fair Trading in halting anti-competitive practices by bus companies; and if he will make a statement.
1130W

§ Mr. Jonathan Evans
[holding answer 31 October 1994]: There is scope for increasing the effectiveness of UK competition law in general and the Deregulation and Contracting Out Bill will do so. But my assessment is that action taken by the competition authorities to limit anti-competitive behaviour under existing law has been broadly effective.

§ Mr. Austin-Walker
To ask the President of the Board of Trade if he will list all the companies currently running bus services in Bognor; what assessment he has made of the effectiveness of competition in this area; if he is satisfied that competition is working effectively; and if he will make a statement on the findings of the Monopolies and Mergers Commission.

§ Mr. Jonathan Evans
[holding answer 31 October 1994]: B. Hand and Sussex Coastline Buses Ltd. have services registered to operate in Bognor Regis. Under the competition legislation it is for the Director General of Fair Trading to keep under review the effectiveness of competition and take action if appropriate. The conduct of Southdown Motor Services Ltd.—now Sussex Coastline Buses Ltd.—in operating certain routes in Bognor Regis was referred to the Monopolies and Mergers Commission in 1992. The MMC found that the anti-competitive conduct of Southdown on one route was the main cause of the withdrawal of a competitor. Sussex Coastline Buses has since given undertakings relating to the operation of this and adjoining routes.