Greater Manchester: Bus firm loses appeal against public control
- Published
Reform of bus services across northern England can go ahead following the rejection of a legal challenge, Greater Manchester Mayor Andy Burnham has said.
The Court of Appeal has upheld his decision to bring services in the region under public control.
Bus companies Stagecoach and Rotala brought a case against Mr Burnham and the combined authority he leads.
But a High Court judge ruled against the firms in March, and the Court of Appeal rejected a challenge by Rotala.
The operators had accused the Greater Manchester Combined Authority (GMCA) of conducting "a flawed consultation" and said millions of pounds would be spent on the scheme without any tangible benefits to customers.
Mr Burnham said: "This is brilliant news for the people of Greater Manchester, and for anyone across the UK who cares about having a bus service that puts people ahead of shareholder profit.
"We were always very confident that GMCA had followed all correct legal processes and that the decision to franchise buses and bring them under public control was lawful and right.
"We're delighted that we have comprehensively defeated the last legal challenge in the way of bringing buses under public control.
"The Court of Appeal's judgment upholds the original decision of the High Court and unanimously rejects this appeal as without any merit."
'Clear judgement'
He added: "This clear and unanimous judgment is another green light which means that we can now power ahead at full speed to deliver bus franchising across Greater Manchester.
"And I hope that the unanimous rejection of this appeal paves the way for other city regions."
Bus services outside London are deregulated, provided by commercial operators who decide their own routes and timetables, and also retain control over their revenue and profits.
Some local authorities are able to operate franchising schemes, where bus operators can provide services under contract to the local transport authority.
Dismissing the challenge, Lady Justice Andrews said analysis by High Court judge Mr Justice Julian Knowles was "impeccable" and agreed Mr Burnham's decision was "neither unlawful nor irrational".
Rotala said in a statement: "The company has considered the Court of Appeal's judgment in its claim against GMCA and the mayor and, whilst disappointed with the result, it respects the decision of the court and has resolved to take no further steps."
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