You see, I’m originally from Latvia. And back there only major bus and train routes are operated by the state. All the smaller and inter city routes are operated by private companies, sometimes at a loss. And sometimes cheaper than tax funded services.
But there’s another example - private train companies across the EU. Just check some basic routes like Verona to Venezia or Barcelona to Madrid and you’ll see that all the cheaper options are from private companies.
The state-run services are never cheap (even when tax funded), never modern and never reliable. It’s just the way public transport works.
The EU has the Public Service Obligation law. So it’s an agreement to keep the rail routes that went private under obligation to be a public good, where, yes they do give private companies a monopoly on a certain route, but often the lines and sometimes even cars are owned by the government. But they impose regulations and price caps.
So, again, it’s the state shoveling off the cost of running the day to day operations, while empowering a company to take the reins under pretty strict guidelines because the service is public. They’re given subsidies to operate and it still saves the government money, as well as assuring the lines that aren’t profitable enough for the state to run on their own are still running under government contract with private companies.
You see, I’m originally from Latvia. And back there only major bus and train routes are operated by the state. All the smaller and inter city routes are operated by private companies, sometimes at a loss. And sometimes cheaper than tax funded services.
But there’s another example - private train companies across the EU. Just check some basic routes like Verona to Venezia or Barcelona to Madrid and you’ll see that all the cheaper options are from private companies.
The state-run services are never cheap (even when tax funded), never modern and never reliable. It’s just the way public transport works.
That’s…not a very good example.
The EU has the Public Service Obligation law. So it’s an agreement to keep the rail routes that went private under obligation to be a public good, where, yes they do give private companies a monopoly on a certain route, but often the lines and sometimes even cars are owned by the government. But they impose regulations and price caps.
So, again, it’s the state shoveling off the cost of running the day to day operations, while empowering a company to take the reins under pretty strict guidelines because the service is public. They’re given subsidies to operate and it still saves the government money, as well as assuring the lines that aren’t profitable enough for the state to run on their own are still running under government contract with private companies.
So…not the same at all.