More on the Ipswich Buses Sale

Update: Ipswich council seems set to retain control by selling a portion (49%) of Ipswich Buses only

Ipswich Buses looks set to pass from public to Go Ahead ownership. It’s an interesting fact that the MP for Ipswich is a junior transport minister...

With the potential sale of Islwyn Borough Transport and Ipswich Buses, the number of arms-length municipal operators reduces to single figures. The announcement of both was something of a surprise. Neither council went through the “traditional” sales route. Why should that be?

Ipswich Buses presents itself well, with a strong, modern & developing web appearance

The most plausible explanation is to avoid Chesterbus-type issues. When Chester council announced a bidding process, it sparked a strong reaction from one of Chester’s “country” operators, Arriva. Arriva made an offer to take over and improve Chesterbus’ services, leaving the council with land receipts. This resulted in Chester council accusing Arriva of being anti-competitive. Its costly end was in the courts and resulted in an Arriva onslaught on Chesterbus’ key area, Blacon.

Thereafter, councils had to consider their options very carefully. The advice Plymouth council received was to seek a market testing ahead of any decision to sell. Such legal side-stepping failed to guard against increased competition from First, who might have most to fear from a PLC taking charge at Milehouse. There emerged a strong reaction by First Devon & Cornwall, in the form of Ugobus Phase 3.

It’s tempting to suggest that Caerphilly and Ipswich have learnt not just from Chester but also Plymouth. The process may have started ahead of First's Plymothian Ugobus intentions. In Ipswich’s case, the council will know that “country” operator First is a strong, national group, specialising in urban transport. However logical a single operator—Brighton-style—might be, the council will know that the OFT would never accede to First buying Ipswich Buses. The council might conclude that First may feel threatened by an incomer in the same way Arriva was in Chester and First in Plymouth. Rather than risk destabilising the local network and potentially reducing Ipswich Buses’ selling price, it might therefore be better to go about matters in private rather than public.

What about local democracy? By not declaring its hand, are Caerphilly and Ipswich preventing residents from entering the debate? This is a serious point. Plymouth’s was probably the liveliest to date, also making full use of the internet. A petition had 25,000 signatories. According to one Plymouth MP, the campaign had “overwhelming support from people in Plymouth, including many Conservative voters and Plymouth’s Labour councillors”.

Ultimately, such a groundswell failed to persuade the council who, after all, represent the city & its subjects, representatives elected to make difficult decisions for their areas as a whole.

The government’s response to the Plymouth campaign was clear. Ipswich’s Chris Mole MP, a transport minister, declared that decisions were best taken by locally elected people.

In addition, we also know that the government proposes councils sell assets, where they can, and for the best prices. Going public too early may reduce that price.

At this point, it’s tempting to ask, who’s next? It’s no longer possible to monitor the minutiae of those people who visit this blog but one search term yesterday did attract my attention. It was “Chester Bus v Arriva”. Drilling down, it was from a well-known firm of specialist solicitors, with offices in London, Edinburgh & Glasgow. I might be getting five from putting two and two together, but is there anyone else out there currently looking at selling?

Meanwhile, the Ipswich sale will develop along a predictable path. There will be opposition from those who can only see withdrawals and fares rises resulting. The weaker voice will be from those who suggest that Go Ahead would not wish to invest millions in Ipswich only to see the network untangle; and who feel that life will be more secure if Ipswich was part of a bigger shoal of fish in the pond.