SCHOOL bus contracts in rural South Australia are being granted to large companies, leaving small regional operators and drivers out of work.
The State Government wants to save money on public services - a policy that has resulted in a significant number of contracts awarded to interstate-owned companies.
It has all but signed the death knell for many smaller bus operators in SA, some of whom have been driving children to and from school for more than 50 years.
Lofty Coaches owner operator Dean McGinty, Mount Barker, has lost 10 of 11 school runs and expects the last to be taken from him when it goes up for tender.
"It's basically destroyed our business," he said.
"We've got nothing to do any more. It's what I call a hostile takeover."
Mr McGinty bought the business - which has been operating for 25 years - four years ago.
Until the government chose not to renew his education contracts, he employed 17 bus drivers. He now employs two.
"There's quite a bit of unrest in the community at the moment," Mr McGinty said.
"A lot of the drivers were locals. Most of them knew the kids- they'd been driving them for 10 years and might even be their neighbours.
"It's a very close-knit service, that's different to other services."
A parliamentary inquiry into school bus contracts is under way after the Bus and Coach Association SA held two rallies at Parliament House last year and presented 15,000 signatures to the Legislative Council.
Association executive director Sonia St Alban said she was not satisfied that smaller and regional operators were being treated fairly in the tendering process and hoped the inquiry would bring results.
The Select Committee on School Bus Contracts held its first sitting last week and senior education bureaucrats were asked to explain why contracts were not being re-awarded to their long-term operators.
A Department for Education and Child Development spokesperson told Stock Journal that almost 70 per cent of contracts had been awarded to incumbent operators.
She said the successful companies were accredited to operate in SA, including Australian Transit Enterprises, a Queensland and Victorian-owned company. It was awarded 54 routes from 169 school runs that had been granted to 33 different operators so far.
"Where there was more than one tender application, important factors such as references from schools, safety, how businesses would be supporting local communities in terms of jobs and purchasing consumables, recognition of prior service and responsible use of taxpayers' money were taken into account," the spokesperson said.
She added that ATE had eight school bus contracts in SA before the contract renewal process began, and also won contracts for runs where existing operators did not express interest.
But committee chairman and Liberal MLC David Ridgway said he did not believe DECD had a full understanding of the role school buses played in rural communities.
"They spoke about a weighting system, based on an whether an existing contractor buys their tyres or gets furnished locally, for example" he said.
"But I don't believe there is enough weighting on what those vehicles supply in other areas of the community, such as in-kind services, and the fact those buses are there at a moment's notice if community groups need them.
"They don't fully understand the nuances in regional communities and how important it is to have that service."
Mr Ridgway also questioned the fairness of the government's 'equal footing' policy, which sought to make decisions based on value.
"We have the most uncompetitive place in the nation to do business, with our workcover, and payroll tax, and yet the government's response is, we can't prop up local business," he said.
*Full report in Stock Journal, February 9 issue, 2012.
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