Bill Hiron on bus industry evolution, SME operators, and preserving transport heritage

Leon's latest guest on the Lunch with Leon podcast is Bill Hiron, former chair of ALBUM (Association of Local Bus Managers), owner of the independent bus operator Stevensons of Essex, and a veteran with a long and distinguished career in the bus industry. This episode, dedicated to the memory of Clive Birch MBE, explores the changing landscape of bus services and the vital role of SME operators.

The conversation begins with reminiscences about how Leon and Bill first met as competitors in the London bus market during the 1980s.

"We were cutthroat competitors," Bill recalls, but adds that they were "making decent margins" in what both agree were "the best of times" for the London bus market.

They reflect on how the introduction of tendering in London transformed the capital's bus services from the days when London Transport was considered "good" if it delivered 80% of its scheduled mileage. Bill notes that tendering "did exactly what it set out to do. It improved quality dramatically. It reduced costs at least, initially... you couldn't have asked for a better solution to London's problems."

On the topic of public versus private sector roles, Bill emphasises the importance of clear boundaries.

"The right division is the private sector does what it does best, which is to recruit and run the labour force, own the assets, provide the vehicles and deliver it. And what the public sector does is to plan and to do strategy and to think about fares and ticketing," Bill said.

The discussion shifts to Bill's journey from the corporate world to becoming an independent operator. After leaving First Group in 2000, Bill explains how he ended up purchasing Stevensons.

"I'd always had in the back of my mind a desire to own my own company," he said.

What started as a small operation with about 10 vehicles has now grown to around 140 buses. Last year, Bill sold the company to an employee ownership trust, ensuring its independence while recognising the team's contribution to its success.

When discussing the future of SME operators in the current political climate, Bill highlights their importance.

"The SME sector that does survive is generally of good quality. It's very local. It's connected to its market. It ticks all the social value boxes because it's locally owned, locally managed... and of course, it's much closer to its customers, inevitably, than the big groups are."

Both Leon and Bill express concerns about the Buses Bill working its way through Parliament, particularly the provisions for local authorities to establish new "Lab-Cos" (laboratory companies) with the power to directly award contracts to themselves. Bill questions whether this is good for either competition or the public purse.

"The country is littered with the carcasses of failed local authority companies... It's actually very easy to lose a lot of money running buses if you don't know what you're doing."

As the former chair of ALBUM, Bill shares how the organisation has evolved, particularly during COVID, to become "recognised as the voice of the SME sector" within the industry. He promotes the upcoming ALBUM conference in Nottingham (12th-14th May), emphasising that it's open to non-members and offers a valuable opportunity to exchange ideas.

The episode concludes with a discussion about The Bus Archive in Droitwich, which Bill will officially open on May 31st. This repository contains the papers of the bus industry, offering insights not just into transport history but British social history as a whole. As Leon explains, "The social history, immigration changes in the whole workforce, the move from an industrial Great Britain to financial services Great Britain... All this stuff is contained inside the bus archive."

Throughout the conversation, Bill's passion for the industry and advocacy for smaller operators shines through, reflecting his decades of experience and commitment to maintaining a diverse and effective bus sector.

To listen to the full Episode, visit here: https://podcasts.apple.com/gb/podcast/bill-hiron/id1526820389?i=1000706471936