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Private bus operators are best cost-effective solution for governments

In times of economic hardship and government spending cuts, a new study from Canada shows that governments could save up to a fifth on public bus services by switching to private operators instead of increasing fares and taxes or slashing services.

20 May 2013 - A study prepared for the Ontario Motor Coach Association (OMCA) comparing operating costs between private bus operators and government run systems, has found that governments could save 21% by tendering out bus services to private operators. For large transport operations the savings could exceed USD 100 million per year.


OMCA President Doug Switzer commented on the results of the study, highlighting “there is a third alternative for governments trying to choose between service cuts or taxes and fare hikes... governments need to focus on growing services to the public rather than focusing on growing government run public services… It’s time to try new approaches. Engaging private sector operators in a constructive partnership to reduce operating costs and improve service should be an obvious one.”


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