Inquiry on Bus Privatisation Confirms RTBU was Right

A parliamentary inquiry into the privatisation of Sydney Buses has confirmed what bus drivers and commuters have been saying for a long time – that the privatisation of our public transport leads to a poorer service for commuters and workers.

Report Recommends End to Bus Privatisation

The NSW Legislative Council Report on Privatisation of Buses, September 2022 found that bus privatisation in NSW has resulted in less services, prioritising profit over public interest, lower accountability and uneven industrial conditions.

The Report’s findings were: Finding 1

The recent privatisation of bus services has not resulted in any real market competition because the competition occurs only at the tender phase after which time the market for a particular area is monopolised albeit regulated. This creates a potential situation where the market can be characterised as more of an oligopoly than a free market and in those circumstances does not result in the best service for the travelling public. Under public ownership the benefits of such monopoly control can be passed on directly to the public through low fares and increased service provision and direct accountability.

Finding 2

The privatisation of bus services in New South Wales has created an incentive for private companies to sacrifice the needs of more vulnerable people in order to cut costs while still appealing to a wide enough user base to meet their contractual obligations.

Finding 3

The privatisation of bus services in Sydney and Newcastle have resulted in more limited service delivery, higher costs for passengers and worse pay and conditions for bus drivers.

Finding 4

Recent changes to bus services in Sydney and Newcastle, including location of stops, frequency of services and changes to routes, have at times occurred without comprehensive community consultation.

Finding 5

There are instances where private operations have been an obvious success such as on the Central Coast where the operator Red Bus Services is driven not just by profit but also by customer and staff satisfaction. This correlates with the smaller based family ownership and control structure of the company and their historical connection with that community.

Finding 6

The recent privatisation of bus services in NSW has resulted in a two-tier class of workers whereby the wages and conditions of some bus drivers working on exactly the same buses and routes as their colleagues are paid less and have worse conditions because they are employed by the private operator under a separate industrial instrument.

The Report’s key recommendation was:

“That the NSW Government give consideration to taking action to revert bus services to being publiclyowned-and-operated for: • bus services in the four recently privatised Contract Regions in metropolitan Sydney (Contract

Regions 6, 7, 8 and 9) that were previously operated by the State

Transit Authority • bus services delivered under the integrated public service contract for Newcastle. “