Plymouth CityBus up for sale?
Yesterday – within hours of the authority announcing that it was looking into releasing some or all of its shares in Plymouth CityBus – First Devon and Cornwall and taxi company boss John Preece both expressed interest in acquiring the company.
Plymouth CityBus' 485 staff members were told of the proposal at about 6am yesterday, just before starting work, and that they would not be affected while discussions took place.
The council Cabinet will meet next week to discuss the sell-off proposals.
Following a full scrutiny process, the full council will have the final decision, with the company possibly being offered for sale by the autumn.
Cllr Pengelly said: "I will say that Plymouth CityBus will not be sold unless a sensible offer is put forward.
"This process will simply see us testing the market to see what it's worth.
"Running a bus company is not core council business and we're one of the few councils in the country to still own one.
"During these tough economic times, it would be irresponsible not to find out exactly what our assets are worth and to do that, we need to offer it to the market. After all, something's only worth what someone's prepared to pay for it.
"Most councils took the decision to sell their bus companies many years ago after deregulation in 1986.
"We're prepared to spark controversial debates if it means the people of Plymouth will benefit."
She reiterated that no decision had been made on the company's future.
Marc Reddy, managing director of First Devon and Cornwall, said: "We're always interested in opportunities to expand our business in the South West.
"If and when Plymouth Citybus is offered for sale, naturally we would be interested in it."
A report to Cabinet recommends the authority offers CityBus shares for sale to see how much the company is worth, and gauge market interest.
The authority is considering its options for the future ownership of Plymouth CityBus. Those include keeping all the shares, selling some while retaining a majority shareholding or selling all the shares.
A report to Cabinet suggests the city council would receive millions of pounds if a sale were to take place, which could then be invested in front-line services through its capital programme.
However, Roger Creagh-Osborne, the Green Party spokesman for Plymouth and Cornwall, said he was sceptical.
"It's far more appropriate to keep CityBus in public ownership and manage it for the good of the city," he said.
"The impact on passengers and fares could be less than beneficial.
"It's really cutting off their nose to spite their face.
"They have a very useful resource for the city in the form of CityBus. Plymouth City Council needs to manage it for the good of the city and not simply let it go to pay off debts."
Only 13 council-owned bus companies now exist in the country, with most authorities having disposed of their bus fleets. In Eastbourne Stagecoach has just added 12 new buses to the local fleet within days of acquiring the company.
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