TWENTY years after bus deregulation, the question is still being asked: is the free market the best provider of public transport?

As our news analysis tonight makes clear, the system has given York bus passengers reasons to be cheerful. The city is now served by a modern fleet of vehicles after substantial investment by First.

But that has to be judged against the disadvantages. Although deregulation was designed to generate competition and keep fare prices low, the opposite has happened in York.

First has a near monopoly and on many routes is the only operator. That gives the company the freedom to raise prices far above inflation, knowing it has a captive market. It took full advantage this year by hiking fares by as much as 68 per cent. Children's tickets went up more than most, prompting justified outrage among First's customers. What can their council representatives do about these excessive fare increases? Not a lot, it seems. Transport boss Ann Reid has wrung out of First a commitment to reintroduce family tickets and to consider raising the age young people can travel for half price to 18.

Both these developments are welcome. But they will not offset the serious impact the new fares are having on families whose children rely on First buses.

South Yorkshire is looking to introduce quality bus contracts, a method of making operators more accountable. It is a step which places considerable extra responsibility on councils, and is one which York would be reluctant to take. However, if First were to increase fares four times in a year, as it did in Sheffield, there would be a genuine incentive to go down that road.

Updated: 09:42 Wednesday, January 25, 2006