§ Mr. Ryderasked the Secretary of State for Transport whether he will list measures to encourage competition being considered by his Department.
§ Mr. RidleyThe Government have already taken important measures to increase competition in the transport field. The Transport Act 1980 abolished licensing for long distance coach services leading to improved services and lower fares. It also made it easier to introduce new local bus services by placing the onus on those opposing a new service to prove that it would be against the public interest. The Civil Aviation Act 1980 required the Civil Aviation Authority to give greater emphasis to competition between British airlines and to give users' interests equal ranking with those of airlines. This has led to increased competition on domestic routes and a better service for the customer.
The Government have also encouraged a more competitive approach in the public transport industries by seeking reduced subsidy where appropriate and by encouraging full use of contracting out, privatisation and competitive procurement to achieve better value for money for the customer and the tax and ratepayer.
The London Regional Transport Bill in particular offers more scope for private sector involvement in London's public transport. London Regional Transport will be under an obligation to involve independent suppliers in the provision of public transport and other services wherever this makes economic sense. Private operators will also be able to run bus services independently under licence from the Metropolitan Traffic Commissioners, thus loosening the monopolistic position which London Transport has held since 1933.
Looking forward, I am currently reviewing how best to implement the Government's commitment to introduce private capital into the National Bus Company and to relax bus licensing to permit a wider variety of services. The Government also hope to privatise British Airways early in 1985 and the Civil Aviation Authority is reviewing the implications of privatisation for competition and the sound development of the airline industry.
I am also pursuing the goal of greater liberalisation of air transport and road haulage in the European Community.
I am also considering tendering for the design and construction of roads with a view to producing more competition.