Concerns for smaller school bus operators

CONCERNS some bus operators in the South could be disadvantaged by the latest school route tender process are being examined by the Ministry of Education.

Opposition National Party education spokeswoman Nikki Kaye has raised the issue, claiming smaller school transport operators were ‘‘worried’’ they could not compete with large operators under the Government’s new school transport tender system.

Tender requirements on the ministry’s website indicate routes will be grouped ‘‘to encourage economies of scale and simplify engagement between the school, transport operator and ministry’’.

The latest round of contracts is expected to go to tender on October 12, and cover about 1500 daily bus routes and 700 ‘‘technology’’ routes nationwide.

Contracts last went to tender in 2008 and expire at the end of next year.

School bus provision in the South is dominated by national players Ritchies and Go Bus, although 15 companies provide services, including three midsized operators.

They are Dunedinbased Otago Road Services; McDermott Coachlines, which has depots in Invercargill and Winton; and Pearsons Coachlines, which provides 35 school routes in North Otago, and South and Mid Canterbury, from depots in Oamaru and Ashburton.

Pearsons managing director Murray Pearson was reluctant to comment on the tender process due to its proximity, but did say he was unconcerned with what he had learned so far.

‘‘We haven’t received any formal paperwork from the Government yet, so it’s early days to draw conclusions. Obviously, the process is commercially sensitive for us, so I’d rather not say any more at this stage.’’

McDermott Coachlines director Alister McDermott also declined to comment, although he indicated only smaller operators were likely to be affected.

The tender opening date follows the Bus & Coach Association’s annual conference next week.

Chief executive Barry Kidd said he was aware of concerns raised by smaller operators, which his organisation had moved to address.

‘‘BCA is in discussions with ministry officials and ministers’ offices to improve the tender process, particularly for smaller, mainly regional bus operators. We hope the problems identified by smaller providers will be resolved.’’

Overseeing the process for the Government is Associate Minister of Education, Jenny Salesa, who came in for criticism from Ms Kaye after she backed down from meeting industry representatives recently.

Ms Salesa told the Otago Daily

the process had not been finalised.

‘‘We are considering advice from the ministry and no decisions have been made yet. The tender process hasn’t been finalised so it wouldn’t be appropriate to comment further.’’