The North East wants to follow Greater Manchester’s lead in taking control of its bus services away from private companies and back into public hands.
In a crucial decision on Wednesday, a judge ruled in favour of mayor Andy Burham’s plans to create a London-style franchising system in which private operators will have to bid to run services – with fares, timetables and routes set by local authorities instead.
Bus firms Stagecoach and Rotala had claimed the scheme was “irrational” as they brought a judicial review against it, but it has now been deemed lawful.
Go here for the latest regional affairs and North East politics news
The ruling has been hailed as a green light for the rest of the North to follow suit and create transport networks that put “people ahead of profit”.
This week's news comes as bus routes are being hit with major cuts amid a public transport funding crisis, with fears that North East operators will slash their mileage by up to 17% over the coming months.
Unlike areas like Manchester and Liverpool, the North East does not currently have the necessary powers devolved from the government to implement a franchise model.
Such powers could form part of a burgeoning new devolution deal for the region, though any move to a franchising scheme would take several years to bring to fruition.
Gateshead Council leader Martin Gannon confirmed that a return to total public control over buses “remains the ambition” of local transport chiefs and that they would be “closely studying” Greater Manchester’s progress.
Coun Gannon, who chairs the North East Joint Transport Committee, said: “The system envisaged in Manchester will see the introduction of a fully integrated transport system, with public oversight of timetables and routes, consistent, integrated and cheaper fares, cross subsidy of less profitable routes from more profitable routes and better connection with both rail and metro.
“This is very similar to the integrated public transport system that Tyne and Wear enjoyed in the 80s and its reintroduction remains the ambition of the North East Joint Transport Committee.
“My congratulations to Greater Manchester on this important step. The North East will be closely studying Greater Manchester’s implementation of their franchising scheme.”
Previous plans for a ‘Quality Contract Scheme’ in which Metro operator Nexus would have taken control over buses across Tyne and Wear failed in 2015 – when it was deemed that it did not represent value for money and could not demonstrate it would increase passenger numbers.
North East councils are currently in the process of launching a formal ‘enhanced partnership’ with the region’s bus operators.
That will mean a closer working relationship with elected leaders having more influence over issues like bus routes and service changes – but the operators will still be free to set their own ticket prices and cannot be compelled to offer extra services.
Martin Gilbert, managing director of Go North East, said that a franchise system would be a "huge waste of public money" and that he believes the current model in the region "offers the best value for taxpayers and passengers".
He added: "I don't want this to become a distraction from the very important job of recovering passenger numbers and dealing with the serious challenges of congestion and air quality.
"People will cite a London model, but I would say look at the cost to the taxpayer – if the money is there then great, but it comes at a huge cost."
The Confederation of Passenger Transport tweeted that Greater Manchester "will be spending well over £130m on set up costs and the franchise system will take a few years to set up", claiming that the enhanced partnership model "can deliver the majority of things, far quicker and with little risk to the public purse".
Mr Burnham said on Wednesday that the ruling on his proposals was “truly fantastic news for everyone outside London who wishes to see a return to a bus service that puts people ahead of profit”.
He added: “We know that this result is important not just for Greater Manchester, but for other city-regions too; such as Liverpool City Region and South Yorkshire who have both announced that they are taking steps to introduce a franchised bus network. We hope that this judgement today will pave the way for them to progress with their ambitions to bring buses under public control. This ruling is a green light for the North to retake control of its bus and public transport system."
Go here for the latest regional affairs and North East politics news
