Review finds Isle of Man on-demand minibuses not anti-competitive

Bus Vannin's demand-responsive transport system was introduced in the north of the island in 2018

An on-demand minibus service run by the government in the north of the Isle of Man is "unlikely" to have broken competition rules, a review has found.

The Office of Fair Trading's report said Bus Vannin's services, introduced in 2018, had had a "limited impact" on the local taxi trade.

The results of the investigation of the demand-responsive transport will be laid before Tynwald in March.

Taxi drivers have disputed the findings and called for a further review.

The preliminary investigation looked into Bus Vannin's "demand responsive" service, which was introduced to replace off-peak scheduled bus journeys between Andreas, Bride, Jurby, and Ramsey.

It was trigged after industry body UNITE Taxis made an official complaint in 2019 alleging the government was unfairly competing with the private sector.

The government previously said regular services were "lightly used" in the area, and the change would "enable more efficient use of resources".

'Limited impact'

The review found the pre-booking minibus system had not led to an "material increase" in passenger numbers since off-peak routes were replaced.

Evidence suggested the service had achieved the goal of providing more "accessible transport options", had a "limited impact" on the local taxi trade, and was "unlikely to be anti-competitive".

The same conclusion was reached for another government service, also launched in 2018, to connect fee-paying passengers and patients travelling to off-island medical appointments to the island's ports via minibuses

However, the review accepted the "complaint may have merit" over allegations of state support, with Bus Vannin receiving £125,000 a year to run patient transfers while also providing paid for services.

In response, UNITE Taxis disputed the OFT's assessment of the market, and called for the Council of Ministers to back a further exploration of the matter.