Setting the market free: deregulation of the bus industry. 4th Smeed Memorial Lecture, 29th October 1987.

[FIRST PARAGRAPH]Though he was not himself an economist, Reuben Smeed is well known to transport economists as the chairman of a committee which, in the early sixties, examined the use of congestion charges to obtain a rational use of scarce urban road capacity. (1) The Smeed report showed that in the absence of a proper road congestion pricing system there would be an excessive use of the private car, and, by implication, a sub optimum level of use of public transport. Although, to the best of my knowledge, Reuben never turned his mind to the issues of public transport regulation, the ready acceptance of public transport regulation and subsidy as second best proxies for road pricing in the late sixties and seventies was, I believe, founded on the Smeed logic.