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SCOTLAND PLC: Transport in Scotland

Road building is becoming an issue again all over the UK, as the New Labour government restarts the programme abandoned years ago by the Tories – at the same time as claiming to take climate change seriously.

The Scottish Executive plans to spend a minimum of £1 billion on the M74 extension and the Aberdeen bypass, while public transport initiatives continue to struggle for funds. The Executive says it aims to be spending 70% of all transport spending on public transport by 2007. However, based on the Executive's own draft budget 2005/6, Greens point out that the true level of spending is less than 50%, not counting the M74 PFI motorway project. At First Minister's Question Time in November 2004, the Green co-convener Shiona Baird MSP also exposed items such as 'roadworks and road haulage' funding being sneaked into Executive budget lines as 'public transport'.


Public/Private Profiteering

Each of the four regions of Scotland (North-East, 'Highlands and Islands', West, and South-East) has created a transport planning partnership between local councils and industry groups such as Chambers of Commerce. The partnerships then create transport strategies which give an overall direction to the decisions made by individual councils. Councils presumably find it very difficult to reject the proposals of these partnerships as they are represented on them. This is a blatant case of industry getting special access to decision makers that isn't available to individuals or citizens' groups.

For example, the North East of Scotland Transport Partnership (NESTRANS) is 'a public/private partnership - made up of the Aberdeen City Council, Aberdeenshire Council, Scottish Enterprise Grampian and Aberdeen and Grampian Chamber of Commerce. It is working to develop an integrated transport strategy for the North East over a 16-year period'.1

Current and impending road projects:2

  • A1 Haddington-Dunbar
  • A701 Edinburgh City bypass, Midlothian
  • A830 Arisaig - Kinsadel
  • A96 Fochabers - Mosstodloch
  • Aberdeen western bypass
  • M74 Northern Extension, Glasgow.
  • M77 Fenwick-Malletsheugh & Glasgow Southern Orbital

The A701 route is home to the Bilston Glen protest site where campaigners have been occupying the land since summer 2002.3 The road is a controversial scheme that will go through greenbelt land and is likely to lead to further development through increased access to nearby retail and science parks4. Campaigners have also criticised the plan because it will increase access, and offer room for expansion, to the Roslin Institute, the biotech research centre who cloned Dolly the (now dead) sheep.5 The road is likely to be a PFI scheme.

The M74 is another PFI project which has met with massive resistance from local communities. At the time of printing, no information was available on who has the contract. Visit the Corporate Watch website for updates.


Jacobs Babtie

Formerly Babtie Group Ltd, acquired by Jacobs Engineering Group Inc in 2004, Jacobs Babtie describes itself as 'a leading technical and management consultancy operating in transport and development, environment and utilities, property and facilities, defence and energy, and partnerships and outsourcings markets both in the UK and internationally'.6 The Glasgow-based company is involved in the following road building projects:


  • Aberdeen western bypass (as the contractors)
  • A701 Edinburgh City bypass, Midlothian (Iain Murray is the designer)
  • A876 Kincardine Bridge - A985 Kincardine eastern link road (Iain Murray is the engineer)
  • M77 Fenwick-Malletsheugh & Glasgow Southern Orbital (monitoring construction and operation)

Like all companies who pride themselves on 'outsourcing' and PFI/PPP involvement, Jacobs Babtie works in a wide range of areas, from administering the London Congestion Charge to work on shiplift jetties at Faslane.

Balfour Beatty

Balfour Beatty is the fifteenth largest construction company in the world and 2nd largest in the UK. It is the UK's leading PPP/PFI concessionaire/contractor, and its executives are currently on trial for their role in the Hatfield rail disaster.7 The company is involved in the following Scottish roads:


  • A1 Haddington-Dunbar (as contractors with Carl Bro)
  • M77 Fenwick-Malletsheugh & Glasgow Southern Orbital (as contractors)8

RJ McLeod

Also based in Glasgow, with an annual turnover in excess of £50m.9 Over 2003-4, the company was contracted by the UK Atomic Energy Association (UKAEA) to construct a new police command and control building at Dounreay nuclear power plant near Thurso on Scotland's northern coast, now being decommissioned. It was described as 'one of the major construction projects required to support the Dounreay Site Restoration Plan' and cost around £4m.10 In 2004 it completed the A876 Kincardine Bridge - A985 Kincardine eastern link road.

The Pollock Free State

Just south of Glasgow's city centre is the M77, the site of which in 1993 – 5 saw a long-running and inspiring campaign which became known as the Pollock Free State. The motorway route passed through an area of public land including some ancient woodland. The protest culminated in the occupation of the site and direct action against the building of the road.


Stagecoach

'Ethics are not irrelevant but some are incompatible with what we have to do, because capitalism is based on greed.' Brian Souter11

The story of Brian Souter and Ann Gloag from Perthshire in Scotland, who founded and own transport multinational Stagecoach, is celebrated as one of rags-to-riches success. The two siblings bought second-hand buses with their father's redundancy payment, and within twenty years established one of the major transportation companies in the world, taking advantage of the privatisation of the National Bus Company in 1985. Stagecoach now has a 16% share of the UK bus market, turnover of £1.5 billion and a group operating profit of £129.8 million.12 Souter and Gloag are now 11th on the Sunday Times' Rich List for Scotland, worth £327 million. They also ranked 132nd in the UK Rich List.

The transport services owned by the group include:


  • Stagecoach local bus services in 60 cities, towns and rural areas in Britain, running 7000 vehicles in 16 regional companies - www.stagecoachbus.com
  • Megabus intercity bus services
  • The Oxford Tube service connecting Oxford with London
  • Southwest Trains, train services in south west England - www.southwesttrains.co.uk
  • A 49% share in Virgin Trains - www.virgintrains.co.uk
  • Island Line, the Isle of Wight train service, and Sheffield Super Tram3 coach services in the USA and Canada (though some services have been sold in 2003) - www.coachusa.com
  • Ferries and buses in New Zealand - www.stagecoach.co.nz

Stagecoach has operated bus services in Malawi and Kenya, which it sold in 1997/8.

Ruthless Business Practices

Stagecoach's success has been achieved partly with the help of business practices that have come under substantial criticism from regulatory bodies.

When local transport was deregulated in the 1980s, Stagecoach used many tactics to defeat its rivals and gain franchises, including temporarily flooding the market, with services which were often cut-price, or even free. In Darlington in 1994, Busways (a Stagecoach company) succeeded in taking over the local authority's bus operation by running free services so that the local authority's company went into administration and Stagecoach's competitors removed their bid. The Monopolies and Mergers Commission (MMC) referred to these actions as 'predatory, deplorable, and against the public interest'.13 On other occasions Stagecoach has been investigated by the MMC, when its acquisitions put it in a powerful enough position in local transport to endanger public interest. In Scotland, these include Strathclyde in 1994,14 and Ayrshire in 1986.15

When Britain's rail infrastructure was privatised, Stagecoach put in bids for every one of the 25 franchises up for sale, and won two of them. According to John Mair, who produced a Granada TV World in Action programme about Brian Souter, 'When the Conservatives offered up the opportunities for arch-capitalism he took them seriously'.16 In September 2004, a Residents' Action Movement in Auckland, New Zealand, wrote an open letter to Auckland Regional Council complaining about Stagecoach's high fares, despite public subsidies for public transport.17

Abuse of workers' rights

Stagecoach has come under much criticism from trade unions over levels of pay and job security, including several strikes in recent years. Stagecoach has also been criticised for its dubious attitude towards labour rights. In the 1980s, during a strike by East Midlands Bus Company workers relating to overtime, Souter threatened to bring in non-unionised labour and the union backed down.18 At a 2002 strike by South West Trains workers, managers were brought in to replace station security staff, causing a security risk to passengers according to the RMT union,19 and Souter threatened to fire 2,500 members of staff to end the strike, advertising for non-unionised staff to replace them.20 At the 2003 Trade Union Congress, Bob Crow of the RMT union led a call for the right to take secondary action and accused Stagecoach of using 'scabs' from around Britain during a recent pay dispute in Devon.21 In this incident, one striker got his ankle broken when a 'scab' driver drove at the picket line.22

Stagecoach workers in different parts of the company receive varying rates of pay, sick pay and leave entitlements, making it harder to organise coordinated campaigns by trade unions on working conditions throughout the company.23

Poor quality of services

Privatised transport facilities have come under much criticism for prioritising profit over public transport needs, convenience and safety. One rail service particularly criticised for poor quality is South West Trains (SWT), run by Stagecoach. Stagecoach has been fined for poor performance, the Advertising Standards Authority (ASA) judged that their literature misinformed about their ability to provide their services. Complaints by passenger groups24 include the running of short trains; the omission of scheduled stops; poor maintenance on trains leading to passenger discomfort and safety risks, including train fires; and the company receiving disproportionate profits, boosted by public subsidy (In 2003, subsidies for SWT rose from £50m to £170m).25 Passenger groups suggest that 'Stagecoach's 8-year history of failure on SWT, and the worsening experiences of passengers, present the risk of a crisis...related to poor reliability, hopelessly inadequate capacity and passenger dissatisfaction'.26

There are serious concerns as to whether a privatised rail system can fulfil public needs, or be accountable. Stagecoach appears to be a company where these concerns are especially valid since it explicitly follows tactics oriented towards profit, not transport users' needs.

Support for homophobia

'We are asking another question about whether homosexual relationships have the same moral values as marriage.'27 Brian Souter on BBC news in 2000

Brian Souter, encouraged by his evangelical Christian beliefs (he is a member of the Church of the Nazarene), uses his wealth and influence in an attempt to exert a political influence. In 2000, he funded and led a campaign against the government's plan to repeal Section 28, the prejudicial and discriminatory law banning local authorities from 'teaching...the acceptability of homosexuality as a pretended family relationship'. This law effectively disabled teachers from dealing with homosexuality or tackling homophobic bullying, experienced by 77% of openly gay and lesbian school students.28 Souter gave £500,000 to a campaign against the repeal of the law, which included a privately-run referendum. Despite the well-funded and promoted campaign, the government succeeded in scrapping Section 28 in 2001.


FIRST

First is a UK-based transport company with 60,000 employees in the UK and the USA, and a turnover of nearly £2.25 billion. It 'runs one in five local bus services in the UK, catering for 2.8 million passengers a day. Chief Executive Moir Lockhead first joined Grampian Regional Transport in Aberdeen in 1985, later leading a management buy-out in 1989. GRT merged with Badgerline Groups in 1995 to form First. Lockhead, a leading Aberdeen entrepreneur, was ranked 22nd in the Sunday Times' 2002 Richlist for Scotland,29 and came 75th in a Scotsman report on Scotland's most powerful people.30 He has been given an OBE. In 2004, First was awarded the franchise for ScotRail, the major rail network in Scotland, despite a warning by the Competition Commission that this might give the company too great a grip over transport in Scotland.31 There were also suggestions by the Conservative Party that Transport Minister Stephen Nicol, who approved the award, had his own interests in First.32

Some of First's operations include:


  • UK Intercity rail services, including First Great Western, TransPennine Express and Hull Trains
  • London commuter services including First Great Western Link
  • Regional services in England including First North Western
  • ScotRail in Scotland - www.firstscotrail.com
  • GB Rail freight freight services
  • Croydon tramlink in London
  • Many local bus services in the UK
  • Services in North America including school buses (First Student) and vehicle maintenance (First Services)

Poor working conditions and services

First's website promises: 'our vision is to Transform Travel – providing public transport services that are safe, reliable, high quality, personal and accessible'.33 The company makes much of its practices of corporate social responsibility, talking about customer choice and safety, and minimising environmental damage.34 Even so, First has had to deal with accusations of poor service and working conditions.

In July 2004, workers at First Bus in South Yorkshire went on strike against low pay, long hours, and poor working conditions.35 The company rejected the workers' ballot decision, threatening to take legal action against them,36 before a new offer was accepted the following month.37 Following the end of the strike, First Bus in South Yorkshire decided to stop collecting union subscriptions, to the anger of the Transport and General Workers' Union.38 There have been other strikes against First over recent years, including one in York in August 2003 over low pay.39

In December 2004, First Bus was accused of failing to maintain coaches operating in the Lothians, and inspectors discovered more 210 defects on vehicles including faulty break systems and doors. Sixteen notices demanding immediate action, and 51 notices demanding action, has been issued to the company. Vehicle inspector Douglas Pew suggested that 'the company has failed to adhere to the agreed statute of its licence'.40 In January 2005, Greater Manchester Passenger Transport Authority (GMPTA) agreed to work with First after the latter reviewed its service,41 following complaints from passengers and criticism from the GMPTA for poor service.42 In 2001, First Great Western was investigated by the Western England Rail Passengers Committee following large numbers of complaints concerning poor service and punctuality.43 In 1999, First defended its profits rise despite being the operator of one of the trains involved in the Paddington rail crash of that year, insisting that profits were not being prioritised above safety.44

The Skye Bridge

The toll booth is in darkness, the central lanes with the toll barriers are closed off, and the outside lanes are now open to free flow of traffic. It's a sight that campaigners have been fighting for since the toll bridge from the Isle of Skye opened in 1995, the local ferry mysteriously closed down, and the islanders found themselves forced to pay the highest toll fees in Europe.

By the end of 2004, crossing the Skye bridge cost £5.70 for a one way ticket. For nine years the islanders had been financial prisoners of the Bank of America, which acquired ownership and control of the bridge after it had been built under the UK's first PFI initiative, costing around £78 million more than independent estimates suggest it needed to.

The people of Skye had to pay a fee to an American bank every time they wanted to go to or from their island, although the costs of the bridge had already been met by the taxpayer and the European Investment Bank. Far from Westminster and national newspapers, out of sight, out of mind, Skye was the ideal location for launching a corrupt, unpopular initiative, in which private companies were granted monopolistic control over public works.

In 1997, before the election, the Scottish Labour party had promised, in a full page ad, to scrap the tolls as soon as possible. These promises were reneged on as soon as the party got into power, ministers announcing that scrapping the tolls would be 'impossible'. But the main campaign group, SKAT, refused to buckle under. Made up of islanders and mainland supporters, SKAT describes itself as a non-political organisation, with members active in all political parties, or in none. 'We fought the Tory Government, and now we fight the Labour one. The issue of the Skye Bridge and its effect on our fragile economy unites all locally based political activists', says the group's website. Non-violent protests, with people paying the toll in pennies or with unmanageable giant cardboard cheques, continued. On 21 December 2004, the Scottish Executive bought the bridge back for £27m and abolished the tolls.

Despite widespread celebration, SKAT continues to campaign to remove the criminal convictions that some supporters received. Other issues are how much the Bank of America has made out of the deal, whether the islanders can recoup the toll fees, and what is next for the rest of Scotland's toll paying bridges, which people are now also seeking to challenge.




References
  1. Nestrans, www.nestrans.org.uk/ Similar groups exist in the west of Scotland (http://www/westrans.gov.uk) and the Highlands and Islands (www.hitrans.org.uk).
  2. Road Alert, www.roadalert.org.uk Last viewed 22.03.05
  3. Bilston Glen Anti-Bypass Protest Site, www.bilstonglen-abs.org.uk/ Last viewed 22.03.05
  4. Edinburgh Evening News, April 14, 1999
  5. Roslin Institute, Edinburgh, www.roslin.ac.uk/ Last viewed 22.03.05. Also see 'Biotech' section.
  6. Jacobs Babtie company website, www.jacobsbabtie.com/ Last viewed 22.03.05
  7. Laura Peek, 'Bosses knew of faulty rail 21 months before crash at Hatfield' 1.2.05 The Times
    www.timesonline.co.uk/printFriendly/0,,1-2-1465121-2,00.html last viewed 31.3.05
  8. For more info see Corporate Watch's Construction Industry Overview www.corporatewatch.org.uk/profiles/construction/construction.htm; www.balfourbeatty.com/
  9. RJ McLeod company website, www.rjmcleod.co.uk/roads.htm last viewed 23.3.05
  10. Caithness Community website, www.caithness.org/fpb/dounreay/archive2003.htm last viewed 23.3.05
  11. From Scotland on Sunday Quoted by Bob Chaundy, 'Brain Souter: Stagecoach's Straightman,' BBC News 21.01.00 http://news.bbc.co.uk/1/hi/uk/612409.stm Last viewed 23.03.05
  12. Stagecoach Group website, 'Consolidated Profit and loss Account Year ended 30 April 2004'
    www.stagecoach.com/sgc/investorinfo/kfd/ Last viewed 23.03.05
  13. Competition Commission, 1995, 'The Supply of Bus Services in the Northeast of England'
    www.competition-commission.org.uk/rep_pub/reports/1995/371bus.htm Last viewed 23.03.05
  14. Competition Commission, 1994, 'Summary of Stagecoach Holdings plc and SB holdings limited: A Report on the Merger Situation', www.competition-commission.org.uk/rep_pub/reports/1994/stagesb.htm, Viewed 23.03.05
  15. Competition Commission, 1986, 'Summary of Stagecoach Holdings plc and Ayrshire Bus Owners (A1 Services) Limited: A report on the Merger Situation'
    www.competition-commission.org.uk/rep_pub/reports/1995/stagea1.htm, Last viewed 23.03.05
  16. Bob Chaundy, 'Brain Souter: Stagecoach's Straightman,' BBC News 21.01.00
    http://news.bbc.co.uk/1/hi/uk/612409.stm Last viewed 23.03.05
  17. Press Release: Residents Action Movement, 'Fundamental Transport Problems not Tackled,' Scoop 01.07.04 www.scoop.co.nz/mason/archive/scoop/stories/72/62/200409130944.744d0336.html Last viewed 23.03.05
  18. BBC News, 'Ruthless Drive for Profits,' 28.01.02 http://news.bbc.co.uk/1/hi/uk/1786864.stm Last viewed 23.03.05
  19. BBC News, 'Rail Chaos for Second Day,' 28.01.02 http://news.bbc.co.uk/1/hi/england/1785960.stm Last viewed 23.03.05
  20. Kamal Ahmed, 'Railmen warned of Mass Sackings,' The Observer, 27.01.02,
    http://observer.guardian.co.uk/uk_news/story/0,,640340,00.html Last viewed 23.03.05
  21. 374 Kevin Maguire and David Gow, 'Unions seek better rights for strikers,' The Guardian 09.09.03, http://politics.guardian.co.uk/unions/story/0,12189,1038429,00.html , Last viewed 23.03.05
  22. Socialist Party, 'Devon Stagecoach Bus Drivers Strike week 2' www.beacon.ndirect.co.uk/SPDSC/RMT2.htm Last viewed 23.03.05
  23. Lawrie Coombes, 'Stagecoach Robbery,' Weekly Worker 409 22.11.01 www.cpgb.org.uk/worker/409/stagecoach.html, Last viewed 23.03.05;
    'TGWU: Stagecoach South bus workers say they've had enough of divide and rule on pay':
    www.tgwu.org.uk/Templates/News.asp?NodeID=91265&int1stParentNodeID=42438&int2ndParentNodeID=89396&Action=Display Last viewed 01.02.05
  24. South Hampshire Rail Users Group www.shrug.info/
  25. 'Soaring Subsidy for South West Trains Is 'Extraordinary' says Hampshire MEP '
    Eastleigh Liberal Democrats, June 2003 www.eastleighlibdems.org.uk/news/32.html, Last viewed 23.03.05
  26. 'Memorandum by the South Hampshire Rail Users Group on Passenger Rail Franchising to the Select Committee on Transport, Local Government and the Regions,' September 2001, Last viewed 23.03.05
    www.parliament.the-stationery-office.co.uk/pa/cm200102/cmselect/cmtlgr/239/239ap13.htm
  27. BBC News, 'Brian Souter Interview: Full Transcript,' 10.03.00 http://news.bbc.co.uk/1/hi/scotland/673478.stm Last viewed 23.03.05
  28. International Socialist Archives, 'Editorial: Scrap Section 28,' www.redflag.org.uk/articles/isfive/is5sect28.html
  29. George Kerevan, 'People Power', The Scotsman 18.06.03,
    http://news.scotsman.com/topics.cfm?tid=897&id=669202003 Last viewed 23.03.05
  30. 'Scotland's Most Powerful,' The Scotsman 27.04.03,
    http://news.scotsman.com/topics.cfm?tid=529&id=470422003 Last viewed 23.03.05
  31. Iain Dey, 'FirstGroup gets the go-ahead for ScotRail bid' The Scotsman 29.04.04
    http://thescotsman.scotsman.com/business.cfm?id=481392004 Last viewed 23.03.05
    Competition Commission, 'FirstGroup/ScotRail Inquiry,' 27.02.04,
    www.competition-commission.org.uk/press_rel/latest/2004/feb/html/06-04.htm, Last viewed 23.03.05
  32. BBC News, 'Tories highlight minister's links', 11.06.04 http://news.bbc.co.uk/1/hi/scotland/3799139.stm last viewed 23.03.05
  33. First company website, 'Company Information,' www.firstgroup.com/corpfirst/company/companyprofile.php Last viewed 23.03.05
  34. First company website, 'Corporate Responsibility' www.firstgroup.com/corpfirst/responsibility/responsibility.php Last viewed 23.03.05
  35. Bill Ronksley, 'First Bus Dispute re: Pay', LabourNet UK, 01.08.04www.labournet.net/ukunion/0408/shefftuc1.html Last viewed 23.03.05
  36. BBC News, 'Bus Strike Ballot was "Improper,"' 05.08.04
    http://news.bbc.co.uk/1/hi/england/south_yorkshire/3539240.stm Last viewed 23.03.05
  37. Martin Mayer, 'First Bus Dispute Victory,' LabourNet UK, 09.08.04,
    www.labournet.net/ukunion/0408/bus2.html Last viewed 23.03.05
  38. BBC News, 'New Row at Strike-Hit Bus Company,' 20.08.04
    http://news.bbc.co.uk/1/hi/england/south_yorkshire/3582064.stm Last viewed 23.03.05
  39. York City Council, 'Press Releases: Alternative Transport - First Bus Strike,' 18.08.03
    www.york.gov.uk/cgi-bin/wn_document.pl?type=3720; BBC News,' City Braced for Bus Strikes' 27.08.2004, http://news.bbc.co.uk/1/hi/england/north_yorkshire/3183939.stm Last viewed 23.03.05
  40. Gareth Edwards, 'First Bus is Accused Over Vehicle "Failings"', The Scotsman 07.12.04,
    http://news.scotsman.com/edinburgh.cfm?id=1402402004 Last viewed 23.03.05
  41. Greater Manchester Passenger Transport Association, 'Transport Bosses Monitor First's Performance,' 10.01.05
    www.gmpte.com/content.cfm?subcategory_id=103073&news_id=2290748 , Last viewed 23.03.05
  42. BBC News, 'Act Over "Intolerable" buses,' 23.03.04, http://news.bbc.co.uk/1/hi/england/manchester/3559445.stm Last viewed 23.03.05
  43. BBC News, 'Watchdog Investigates Train Company,' 17.09.01, http://news.bbc.co.uk/1/hi/uk/1548058.stm Last viewed 23.03.05
  44. BBC News, First Group Defends Profit Rise, 09.11.99, http://news.bbc.co.uk/1/hi/business/the_company_file/511201.stm Last viewed 23.03.05

 
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