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Thursday
Sep092010

Two Major UK Bus Companies Receive Ban for Ignoring Proper Business Procedures

Every business has regulations it must adhere to.  It always pays to abide by them because not doing so can result in heavy fines in some cases.

This was indeed the case in Glasgow recently, when two major bus companies were reprimanded over breaking regulations that permit fair play within the industry.  First Glasgow and Arriva West were both found to have engaged in activities including blocking bus stops.  This meant that other buses could not pull in and take the passengers waiting to get on.

I was also intrigued to read that these same companies were found to be guilty of blocking the traffic in the process.  As a result of the inquiry into these complaints no new services can now be offered by First Glasgow or Arriva West for the next six months.  The same punishment was also applied to another smaller company operating in the area.

There has been some ill feeling between the large and the small bus companies in the area for some time.  Each party feels the other one is trying to take a bigger chunk of their business, leading to an inquiry into the possible monopoly enjoyed by the bigger group of companies.

I will be interested to see what the outcome of the inquiry being run by the Competition Commission will be.  Hopefully the matter will be resolved fairly soon, but I wonder whether we have heard the end of the story just yet.  The six month ban should give these two companies something to think about.

Here at St Matthew we advise all kinds of businesses on tax matters and other associated topics.  Contact us now for expert advice.

 



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