(08 Jul 2013, 7:32 pm)eezypeazy wrote And how do you think GNE invested in the vehicles for the TEN, the forthcoming Mercs for the M1, the Versas for the 58, and the Angels (excluding the bit paid for by Green Bus Fund - ie., the difference between the cost of a diesel bus and the hybrid gubbins), the new Riverside depot... and Arriva are investing in buses and depots, too...
Every business replaces it's fixed assets on a life cycle. Bus operators aren't the exception.
(08 Jul 2013, 7:32 pm)eezypeazy wrote The 'profits' ARE being reinvested. Nexus' financial difficulties are a self-inflicted wound - while costs have been going up, the ITA froze the levy on the five districts and refunded to them some of Nexus' reserves, as well as having to fund the shortfall on the Metro reinvigoration project. Oh, while Metro ridership has been falling and 3 millon extra passengers were carried by bus.
It's hardly self inflicted. At least two thirds of their money has to go back to commercial operators to pay for concessionary travel. That's central government's rules. Not a local PTE. Not to mention the huge budget reductions that have been imposed on local government, with most (having their hand forced in) taking the attitude that the service won't exist if it's not statuary.
(08 Jul 2013, 7:32 pm)eezypeazy wrote The whole reason Margaret Thatcher privatised buses in the first place was because the metropolitan areas like Tyne and Wear were spending money like it was going out of fashion. And they still are. The 'battleship grey' buses that I see carry fresh air through country fields - at my expense! Metro gets 'reinvigorated' yet can't cover its costs and fewer people use it - at my expense!
I agree that the Nexus Buses shouldn't be running. The commercial operators should be running the said services. The whole point in that woman deregulating bus services outside of London was to encourage a free and open market. We've never had that. Operators work on 'turf', with any real competition being resolved behind closed doors after a short time. So we're left with a situation that operators do what they want, and the local PTE is forced into picking up the shortfall. I hate that too.
(08 Jul 2013, 7:32 pm)eezypeazy wrote At least when I buy a bus ticket I can see how GNE, Arriva and Stagecoach are spending some of it on better buses - I wouldn't trust our local councillors to do anything other than spend my hard earned dosh on their own pet projects (ie., a money-hungry tram system that I never use). Nexus' idea of reinvesting profit is to dip into bus fare payers' pockets to give the money to Metro passengers.
You can change your local councillors - that's democracy for you. Whilst I agree that the make up of councils is not ideal, at least they're accountable to their electorate for what they do. Just because you don't use the Metro doesn't mean that it doesn't serve a purpose to others. The scrutiny of each business case they have to raise to get the money for such projects is insane, but it's done to make sure it's 100% accountable and transparent.
(08 Jul 2013, 7:32 pm)eezypeazy wrote Oh, and another thing - while council workers have had their wages frozen for the last four years, bus drivers have had modest (below inflation) increases. If we go for contracts, the austerity will seep from our councils into the bus system. Expect a wage freeze for bus employees, followed by service cuts when the councils run out of money (which they inevitably will).
It's a crying shame that the public sector are still under a pay freeze, and I'm of course disappointed when anyone doesn't receive a cost of living pay increase. It's the bare minimum anyone should get in my view. However, I do think it's jumping the gun even discussing that at this stage. Baring in mind the crap pay offer was made despite bonuses for senior managers and directors. I wonder how generous they were with the fuel bonus payment this year?
(08 Jul 2013, 8:14 pm)citaro5284 wrote All you seem to talk about it Shareholders.......You may not think Shareholders have a place in the bus industry but that is life and it will not change. In this day in age, most successful companies are floated on the Stock Markets around the world and people can buy shares. Let's be honest here, pension funds are main players when it comes to share buying so it pays for pensions. If these pension funds did not buy shares and then get the dividend from these Companies what would happen???
And yes, I am a shareholder!
This has flew way off topic, and certainly not the intention when I originally posted the thread. It was to have a more diverse discussion about recent articles in the press that didn't fall into current threads.
To answer your point on pension schemes though. I take it that'll explain why most DC pension schemes in the UK (and Europe for that matter) are running dry then, if not in deficit? Is that success?