Transport Deregulation and Privatization

Introduction
Most governments have intervened in the transport market for many years to
protect customers and employees by introducing quality and safety controls, by
controlling the quantity of services to ensure a comprehensive transport network,
by controlling the price of services, by regulating the entry of new transport
operators and sometimes by public ownership of transport companies.
These controls were built up from the 19th century through to the 1970s to stop the
market creating significant social and financial differences between areas and
groups.
In this operated system, operators were expected to provide some services for
social rather than for commercial reasons.
1844 Railway Act
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Any railway should provide parliamentary trains, at fares not exceeding 1

(old) penny per mile, so as to spread the benefits of cheap mechanized travel
to all sections of the population.

1930 Road Traffic Act

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Introduced a system of road service licenses and fare controls to regulate the
often chaotic and unsafe free market for bus services experienced in the
1920s.

Bus operators were protected from unregulated competition but were expected to
cross-subsidize unprofitable rural services from profits made elsewhere.
Public ownership of transport occurred initially when there were strategic or social
requirements for new routes, especially in thinly populated areas, which the private
sector was unable to finance.