TRANSPORT giant First has been admonished for mechanical failings which led to one bus catching fire, a wheel falling off another and a bus crashing after its steering wheel failed.

Scotland's Traffic Commissioner, Joan Aitken, issued a formal warning to First East, which operates more than 420 buses in the east of Scotland, following 20 prohibition reports by Government inspectors over the past five years.

These included a collision between a First East bus and another vehicle last February near Livingston after one of the components in the steering wheel corroded and a fire three years ago in which flames were seen coming out of the engine.

Inspectors working for the Vehicle and Operator Services Agency (Vosa) also reported a wheel loss blamed on a "catastrophic failure" of the wheel bearing assembly in September 2008.

After an inquiry, Ms Aitken said she had decided against a tougher penalty such as a fine or reduction of operating licences as she was confident mechanical shortcomings had been addressed. She said there had been a "culture of complacency" at the company, but this was no longer the case.

"I am satisfied there is commitment to the licence undertakings to ensure vehicles are roadworthy and to report defects," Ms Aitken said.

The inquiry heard the bus crash happened as the vehicle was travelling at under 10mph and the steering failed near a roundabout, before hitting a van. Investigations found a worn component which should have been replaced.

Following the engine fire in 2008, annual risk assessments have been introduced to cover vehicles in First East's fleet.

In its defence, the firm pointed to an annual vehicle inspection pass rate of 98% and a good relationship with Vosa inspectors.

Paul Thomas, managing director for First East, said safety was the "number one priority". He added: "We have noted the findings of the Traffic Commissioner. We are pleased she chose to recognise our commitment to safety and that we have made significant improvements in our engineering function in recent years.

"The travelling public can rest assured that as a company we will continue to do everything we can to build upon what is already a very good safety record."