Plans have been unveiled which could lead to a sell-off of a slice of Cardiff Bus , netting tens of millions of pounds (link below.)
http://icwales.icnetwork.co.uk/0100news/0200wales/tm_headline=bus-service-could-go-private%26method=full%26objectid=19746067%26siteid=50082-name_page.htmlUp to 40 per cent of the council-owned company could be disposed of to a private partner but the council is stressing the present comprehensive range of services would be maintained.
The proposals , which could also include selling-off County Hall and the city^s heliport , are part of a radical series of measures drawn up by council chief executive Byron Davies aimed at massive efficiency improvements and bringing in additional funding.
Mr Davies said: ^We have been looking at the possibility of a potential partner for Cardiff Bus but with the council retaining majority control. We would expect our partners to grow the existing business and provide an even better service for the people of Cardiff. It would be in their interests to do so.^
Cardiff Bus Chairman Steve Pantak said: ^While I understand a minority shareholding would be involved, I believe this would be the thin edge of the wedge and will open the door to full privatisation of Cardiff Bus which will gradually reduce the service to customers."
^Any private company would expect a return of at least 15 per cent on turnover."
^The only way that can be met is through increased fares and/or a large reduction in marginal services which Cardiff Bus operates as a sort of dividend for the owners, the people of Cardiff."
^This looks like a fire sale to deal with a short-term financial position.^
