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The Effects of Bus Deregulation on Costs

The Effects of Bus Deregulation on Costs

This paper attempts to explain how published cost savings have been achieved and particularly the impact of changes in wages and working practices within the context of deregulation and privatisation. Amongst metropolitan PTCs almost 19 per cent of a total unit cost reduction of 31 per cent was achieved by productivity improvements. Reductions in wages can only account for 4-8 per cent of cost savings while non-labour costs account for less than 5 per cent. The process of privatisation may be the most influential factor in reducing costs.

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