Implementing Performance-Based Quality Contracts in the Bus Sector: Growing Patronage and Post-Transitional Arrangements

This chapter describes how Performance Based Contracts (PBCs) are promoted as a way of delivering services where a competitive process is active at all time involving an incentive structure of patronage payments linked to patronage growth, associated with both growth in all bus users and those switching from the automobile. In addition, compliance with benchmark best-practice satisfies the necessary but is not a sufficient condition that efficient pricing in any institutional setting mimicking the competitive process must be associated with cost efficient service delivery. The proposed PBC framework is based upon a model system that recognizes the obligations of government, as well as the need to provide appropriate incentives to operators to service the market in line with value for )public) money under a tight subsidy regime. In addition, the paper recognizes that the constraints under which the regulator charged with implementing and monitoring a contract regime operates. In New South Wales (NSW, for example, a paramount requirement is for minimum administrative burden based on suitable reliable data provided by bus operators, and the recognition that the Treasury is unlikely to support subsidy growth above changes in the consumer price index.


  • English

Media Info

  • Media Type: Print
  • Features: Appendices; Figures; References; Tables;
  • Pagination: pp 129-153
  • Monograph Title: Competition and Ownership in Land Passenger Transport

Subject/Index Terms

Filing Info

  • Accession Number: 01003315
  • Record Type: Publication
  • ISBN: 0080445802
  • Files: TRIS
  • Created Date: Aug 25 2005 11:04AM