ABSTRACT
This chapter focuses on the differences in the approach adopted to the regulation of the bus and rail industries, including on liberalisation of competition. It discusses these differences to the privatisation models adopted for the two industries. The chapter outlines how the policies set out in the Government’s July White Paper, A New Deal for Transport, and addresses perceived weaknesses in regulation. A key issue for the future, flagged by the Rail Regulator in his Second Consultation Document on the Periodic Review is the need to give Railtrack adequate incentive to invest in improving the capacity and quality of the network. The framework established for the regulation of local bus services was deliberately minimalist. The licensing regime continued to focus on safety. The regulatory framework adopted for the privatised rail industry is in marked contrast to that for local bus services. An important distinction can be drawn between the nature of privatisation in the bus and rail industries.
