Transport chiefs want to bring bus companies to heel to stop them implementing “unjustified” fare hikes and sudden service changes.

Councillors on the West Yorkshire Integrated Transport Authority (Metro) are being asked to back plans to get a better deal from the taxpayers’ £90 million annual subsidy of bus services and bump up passenger numbers.

The ‘Quality Contract’ scheme would pave the way for the kind of franchised bus network already seen in London and it aims to tackle the findings of an Office of Fair Trading investigation which revealed a range of anti-competitive practices in areas where there are local monopolies.

Transport authority chairman Councillor Ryk Downes said one West Yorkshire bus operator was making a near 20 per cent pre-tax profit margin, while the proposed scheme would give companies the industry norm profit margin of about eight per cent.

He said: “We want to use Quality Contracts to increase bus use, rather than continuing to see price hikes and service withdrawals which are resulting in a decline in the numbers of fare-paying passengers.

“This is not about interfering as the bus operators and some national politicians might say.

“It’s about developing the types of affordable bus services that local people tell us they want and ensuring the experience and skill of bus operators is focused upon delivering services to a consistently high standard through ten year contracts.

“Greater service stability, and the benefits of a properly-integrated public transport system as found in London and European cities, would attract new customers, reduce congestion and protect local transport jobs.

“We want to be able to reward operators for providing a good service while also being in a position to take corrective measures if passengers are let down.”

Councillor Downes said councillors had little influence on the standard of service despite spending more than £90 million of taxpayers’ money supporting bus services in West Yorkshire.

He said: “We have already identified that we could demonstrate better value for taxpayers’ money.

“If Metro was to specify and contract out the services we could afford on the basis of the industry norm pre-tax profit margin of about eight per cent, rather than near 20 per cent that is being made by one local operator.

“If people in London deserve this quality of bus service, then so do the people of West Yorkshire and other major conurbations in England.”

Dave Alexander, managing director for First in West Yorkshire, said: “The debate on Quality Contracts is a distraction from our objective to deliver better bus services for our passengers. This we are striving to do in partnership with Metro and the local authorities.

"We believe that voluntary partnerships between bus companies and local authorities, including Metro, is the way forward to ensure a well-run bus service that benefits all.”

Nigel Eggleton, sales and marketing director for Transdev Keighley & District Bus Company, said it welcomed the opportunity to discuss the best way forward with Metro.

He said: “I think we are all singing from the same hymn sheet and want the very best for our customers in West Yorkshire. We probably need to be a little bit careful in comparing West Yorkshire with the London situation.

"London has a particular set of circumstances, not least of which the difficulty of using the private car from the congestion and parking point of view, so that inevitably increases the use of public transport. There are advantages to what we see in London and there are disadvantages as well.”

Simon Craven, communications director for Arriva, said: “We will study these complex proposals in detail. Comparisons with the regulated London market should also take into account the considerable burden that the London system places on the taxpayer.”

The Quality Contract would allow Metro to specify bus routes, frequencies and fares. Operators would bid to run services, which would be managed through contacts designed to provide consistent high standards across the county.

Complementary measures would include additional bus priority and more high-quality shelters, real-time information, on-bus CCTV and eco-driving initiatives.

The transport authority will consider the plan at a meeting on Friday.