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| Southampton City Council Facebook Page |
by Andrew D Pope, 21st February 2023
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| Southern Daily Echo "Fares will not be increased" |
UPDATE (25/2/23): Neither Councillor Eamonn Keogh, nor Conservative Group of councillors, nor Liberal Democrat councillor, nor Bluestar have responded to our request for comment. We did ask.
The Labour-run Southampton City Council has asked members of the public to celebrate a "new dawn", in the almost Maoist China sense, of a monopoly in buses in Southampton, by going along for a photo opportunity at the Bargate. Yes, that's right, Southampton now has a monopoly for buses with City Reds going under.
Just a day before this "celebration", Labour Councillor Eamonn Keogh who is the Cabinet Member responsible for transport in Southampton, spoke on the Council's Youtube channel from Vincents Walk, near to the Bargate. Councillor Keogh that it was a "sad day" that City Reds had gone, but "fortunately" Bluestar would help bring "innovative" buses to the City. Opposition councillors from the Conservatives and Liberal Democrats have been asked to comment. Councillor Keogh has also been asked for a response. There are currently no independent councillors.
What is a Monopoly and Why Should I Care?
A monopoly is when one company is the only one providing a product or service. In the UK, monopolies are supposed to be regulated and prevented by the Competition and Markets Authority. But not it seems, when it comes to Southampton's buses. Perhaps buses are exempt from competition? But not according the records of the CMA because previous investigations have been undertaken in other parts of England. And various Government guidance has been issued, for example here.
Monopolies are regulated because according to economists who believe in economic theory, and they would say that significant evidence supports the theory, monopolies can abuse their position. Customers can suffer, suppliers can suffer, prices can go up. Nobody can go to a competitor, simply because there are none. Whether this will happen with Southampton's buses remains to be seen. What is the difference between centralised state control, for example in China or the Soviet Union, and a monopoly run by an exclusive company?
Contrary to what many people believe, Southampton City Council does not own or run Southampton's buses. As I discovered when as a City Councillor I ran an Inquiry, and produced a City Council report, into buses and sustainable transport at Southampton General Hospital, the Council subsidises some routes ran by commercial bus operators with public money. Buses used to be run by councils, but that was a long time ago before they were privatised by the Conservative Government.
Now there is no market for buses. Passengers cannot choose between competing bus providers. It is now a monopoly. So what are the differences between public ownership in a monopoly and private ownership in a monopoly? Southampton passengers are about to find out.
City Reds Is Dead and Bluestar Is Now The Only Southampton Bus Company
Yet despite its new dawn of a monopoly, Bluestar has not commented on the monopoly position that they now enjoy, despite being asked directly by me. Bluestar's parent company Go South Coast have also taken over other bus services in the South and West of England, when competitors have gone bust.
When it became clear that City Reds was going to disappear, in January 2023 I contacted Go South Coast's Managing Director Andrew Wickham, whom I had observed praising Southampton City Council and other Council's policies on Twitter. This is strange behaviour for the managing director of a bus company. Mr Wickham has also backed the very unpopular Portswood Broadway closure being promoted by the Labour-run Council, in an email response to Southampton Independents.
Are Local Media Asking The Right Questions?
Nobody seemed to be asking the questions that concern consumers in a monopoly - and in this case let's call them passengers. If local media were asking, the answers did not seem to be being covered in a big way by local media outlets. Of course, any advertising revenue received from Bluestar would not tarnish the editorial or journalistic decisions by those outlets. Surely, those media outlets would always provide impartial and clear information for Southampton residents, regardless of the advertising revenue.
The demise of City Reds has been covered, but the new monopoly has not. The word monopoly was not used in the above article in the Daily Echo (see top of article). Neither does another recent Echo article. And this BBC article, despite the BBC not being a commercial news organisation does not mention the "M" word either! So much for journalism in Southampton? According to the Press Gazette, a recent BBC review of economics coverage found a lack of knowledge and impartiality, so perhaps it is not surprising.
The Bluestar media release to local media outlets may have been caused by the questions that I asked them and not by any questions raised by the Daily Echo. Indeed, the article above reads like a press release. I have asked Bluestar's PR agency.
Will Prices Go Up and Will Services Be Cut?
I asked Mr Wickham about Bluestar's new monopoly position in Southampton, with the question:
"What would your company say to passengers and citizens of our City to assuage any concerns that Bluestar might abuse its monopoly position?"
You may notice in his response below that Mr Wickham does not really answer my question on the monopoly. He does not even mention the monopoly but he does mention the demise of City Reds (First Bus). And he does not rule out price rises. You can draw your own conclusions from his response.
"My team has worked hard to ensure people living and working in the area will continue to enjoy comprehensive bus services here from Sunday 19 February. We are also offering employment to existing Southampton First Bus drivers - with improved pay and conditions - to minimise the impact this decision could have on their livelihoods.
Our investment in a fleet of low emissions buses in the city means those who travel with us enjoy comfortable, convenient, journeys across Southampton - and we are looking forward to welcoming new customers over the coming months. I can assure local people that we will continue to look for ways to improve our offering here.
We have no current plans to increase fares but we must be mindful of the increase in our own costs due to the current high level of inflation, so we will be monitoring this situation continuously and will react accordingly."
Bluestar has been receiving Government subsidies for fares. This will end. Will prices go up then? Will services be cut? Time will tell, especially when the City Council's celebration at the Bargate fades into irrelevance.
What do you think? Get in touch and tell us.