Latest (27 December): OFT approves Islwyn Borough Transport sale
The industry legend that is Clayton Jones is challenging Caerphilly council. Jones was once one of its councillors. He wonders why it’s selling Islwyn Borough Transport to Stagecoach when it might be worth more on the open market.
He asks why, for example, has Caerphilly council not offered its arms-length operator more generally. Post-Chesterbus, selling councils now seem to go through a process that masquerades first as expressions of interest to see if a sale might be viable. Jones feels that Caerphilly hasn’t done so.
Caerphilly council, on the other hand, may have good reason to follow up the Stagecoach deal. It would net the council some £2mil, while disposing of a loss-making, taxpayer draining operation. Some Islwyn services operate jointly with Stagecoach. Though Jones claims there would be other bidders, the parlous state of IBT’s finances and small fleet probably precludes other big boys. Veolia might be interested but, like Jones’ St David’s Travel, there are allegations and rumours of issues and problems. Jones himself could use IBT as a means of re-establishing himself in the valleys, post the Shamrock sale.
Looking at this dispassionately is the £2mil offered by Stagecoach good value? It’s certainly broadly the sum First paid for troubled Chesterbus. Chesterbus was no star performer but did operate a fleet about *double* Islwyn’s size.
Ultimately, whatever Jones may think or do, the OFT is currently informally considering whether the sale is a good one. Jones apparently offered to buy IBT four years ago. At that stage, the council was not for selling.
Monday, 21 December 2009
Islwyn Sale Hits Buffers?
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7 comments:
The man is a joke - even after his many run in's with the Traffic Commissioners in the past, his new St David's Travel operation has registered routes which it has already failed to operate.
The council has already explained that it felt that advertising the IBT operation could have resulted in competition which devalued the company, so it entered into exclusive negotiations with Stagecoach. Seems an entirely sensible and prudent approach to me.
I would have to agree - Mr Jones talks a good job, but the reality doesn't match the posturing (as indeed it never has done...). It would be an absolute disaster to let this man anywhere near the bus services in the Caerphilly area.
The 'deal' with Stagecoach makes perfect sense and is probably the best way overall to maintain a decent pattern of services in the area.
Maybe Stagecoach might be able to run buses with actual destination equipment, rather than bits of paper like St David's Travel.
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