Mcgill's Boss Fires Warning To Spt Over Bus Franchising
The Easdale brothers are ready for a fight.
Having spent the last quarter of a century building up McGill’s, they fear it is under threat from a decision to pursue bus franchising, taken by SPT.
Speaking to the Glasgow Times, in the latest of our Times Talks series, Sandy Easdale, one half of the successful fraternal partnership with his brother James, explained the lengths to which they will go to protect their assets.
In the firm’s Greenock office, where the transport company is headquartered, he is passionate and even emotional on what he sees as a public body attempting to take away his business.
Mr Easdale said SPT will not have it all their own way and roll his firm over.
He said: “We're in the process now of getting a real heavyweight legal team, heavyweight institutions, mega expensive people and brains to now fight this.
“I will fight it with every breath I've got and I will fight it with every penny I've got.”
Given that the brothers have a combined wealth estimated at around £1.4 billion by the UK rich list, that's a lot of pennies.
Buses are not their only interest – with property and other businesses adding to the resources available to them.
He added: “And if that means bringing money in from the rest of your group, that's what I'll do, because the principle of this is so wrong. That’s how I feel about it.”
Under the franchising system, which could take up to seven years to put in place, SPT would set fares, frequency and determine what routes need to be served.
It would also decide who gets to run the buses on the routes.
Mr Easdale feels this means another firm could swoop in and be handed his business.
He said: “From an operator's point of view, what they're asking us to do is actually bid for our own business and everybody else can bid for my business.”
Having taken over the firm as a small enterprise, it has become one of the biggest independent bus operators in the UK.
The scale of what is at stake is outlined when he says: “We've invested more than £200 million in this business in the last 20 to 25 years.
“In infrastructure, buses and training. It's all documented, the money is there.
“We're building a bigger and better business.
“We are not into big dividends. We believe in investment and that's what we've done.”
Following the decision to pursue franchising, SPT said: “Franchising is a proven model for delivery of local bus services across Europe and beyond and provides the greatest certainty of making significant improvement to the network to achieve passenger growth, better accessibility for all and deliver wider public policy outcomes.”
Mr Easdale disagrees.
Not only does he disagree, he is scathing in his assessment of the organisation that would oversee the process.
“Power,” he said, is the reason SPT has pursued this particular agenda – and he suggested that “they are using socialist dogma that the buses will be better off in public hands”.
“I have no doubt,” he added, “that SPT is on a power grab to safeguard SPT itself”.
He also believes the costs will be much higher than the estimates and the taxpayer will have to foot the bill.
He said: “Public enterprise is not as dynamic as private enterprise. We have people who are recognised in the industry as leaders.
“SPT is a Glasgow-centric, little network, tube train with more employees than you can shake a stick at.”
Mr Easdale said McGill’s already runs services on routes with few passengers but where buses are still needed. He said there is already a level of control from the Traffic Commissioner.
“Uncertainty,” he states, is the first hurdle McGill’s, and others, will face.
He added: “On average, we look to the next five years. You don’t order a bus like a fridge, it doesn’t come the next day.
“The waiting time for a bus just now is 18 months to two years. Do I go and spend another £20 million on buses in the next five years or do I keep that £20m and run what I’ve got?
“It is restraining us from making investment in the next five to seven years because there is no certainty.”
He adds: “People might think I’m emotional about this, well I am. It’s £200m of me and my brother’s money.”
He returned to taking his case through the courts and fired a warning to SPT.
“Me and my brother will spend what is needed, this is how passionate about it I am," he said.
“Whether it’s £10m or £50m.
“I will not let anyone come here with a ‘Putinesque’ communistic grab and take my business in any shape of form.”
He said the business empire he and James have built up has been founded on hard work.
Mr Easdale added: “Technically I’ve always worked for myself, since I was 16 after growing up with my dad’s business.
“I’m now 55, I remember the days at 17, slogging my guts out.
“It’s all about the work ethic.”
This article appeared in The Glasgow Times.
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