The proper scope of state intervention in the transport sector is discussed. While the scope for public decision making remains very large in the transport sector, the scope for command-and-control practices is considered to be shrinking. Planning issues will remain important for dealing with transport policy issues, even accepting the increasing role of regulation. The interfaces between land use, infrastructure planning and landscape control are the main areas where a more direct public role has to remain dominant. The effects of the liberalisation of bus services and of separating infrastructure operation from rolling stock on the railways in the UK is discussed. Notwithstanding widespread declarations of liberalised markets in the air transport sector, it remains highly protected (and self-protecting) because of the landing slot allocation regime. The main regulatory policies for infrastructure include regulated privatisation of the assets, competitive tendering of operations, tariff regulation and yardstick competition. Examples of regulatory problems within the transport sector, including congestion charges / access rationing, setting a proper rate of return for regulated companies, the price cap mechanism, regulation of investments, safety / quality regulation, and tariff regulation are considered. It is suggested that public regulation and market competition are closer together than commonly assumed. The market has been built up via a complex set of rules and laws which are continuously evolving along with social values. For the covering abstract of this conference see ITRD E128114.
Abstract