Tuesday, 29 December 2009

Ipswich to Sell

Update: Ipswich council seems set to retain control by selling a portion of Ipswich Buses only

Another municipal is set to bite the dust. The latest is Ipswich Buses, with advanced negotiations believed to find a conclusion in the new year. The local media suggest that Go Ahead is “expected” to be the successful bidder.

It seems that the former labour-controlled council has always rebuffed recent approaches. The current Liberal/Conservative administration seems to have no such qualms, though I recall that when in opposition it wasn’t particularly pro-sell off. What’s probably happened is that a Go Ahead tempting offer has come at a time of relative austerity, resulting in acceptance. Councils need the money.

Views in Ipswich are understandably polarised. There are the usual scaremongers who pessimistically predict fares rises and service cuts. There remain concerns about the “family silver”. These are in the majority. Yet, Ipswich Buses have done a fair few service cuts and fares increases of its own, recently.

What’s interesting is the line Ipswich council has taken. They appear to have done a Caerphilly rather than a “Plymouth”. By that I mean Ipswich hasn’t gone through any of the pain or consultation (depending upon your view) of a structured process that has resulted in first a declaration that a sale may be possible and then a tendered, market testing. There’s currently a challenge to the sale of Caerphilly’s Islwyn to Stagecoach. The results will be relevant to Ipswich. The behind-doors decision no doubt follows competitive activity upon the announcement of a sale against both Chesterbus and Plymouth Citybus.

We should’ve realised earlier that something was up when a number of people checked in to Omnibuses after searching for the “sell off of Ipswich Buses” or similar. You never know whether such terms are speculative, cranky or correct. In this case, they were correct.

Honestly, you don’t expect news of quite this magnitude over Christmas!

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