THE boss of McGill’s Bus Service has called for a radical change to Scottish transport policy as the company reported a plunge in profits in its latest financial year.

Greenock-based McGill’s cited worsening road congestion, disruption caused by roadworks, cheap car parking and falling high street footfall as profits dropped to £384,056 in the year ended December 31, down from £2.03 million the year before. Turnover remained broadly steady at £39.5m.

The company, which runs bus services throughout Largs, Inverclyde, Glasgow, Renfrewshire, East Renfrewshire and North and South Lanarkshire, said last year saw it continue to observe the pressures it has faced since the end of 2014 when “patronage” began to “fall dramatically”.

Managing director Ralph Roberts said: “The epicentre of this footfall reduction is in west central Scotland, where congestion is at its worst. Ultimately, we have seen three years of declining footfall on some key corridors across the business. 2017 saw a continuation of that.”

He added: “It’s not just a McGill’s issue – it’s industry-wide.”

Mr Roberts’ comments come as the Scottish Parliament consults on a new Transport (Scotland) Bill, under which ministers are bidding to make “Scotland’s transport network, cleaner, smarter and more accessible than ever before”.

The McGill’s chief, who has given evidence to the Parliament’s Rural Economy and Connectivity Committee, said: “The first thing they (the government) have to do is acknowledge there is a problem. There is no quick fix to this. It has taken almost decades to get to this situation we have with roads.”

Mr Roberts went on: “It is going to take policy to change that. Only when they do that can we start working with local authorities, [and] with utilities who are digging up roads and causing mass disruption out there. It is not just bus passengers that get disruption, it is any road user.

“And part of that problem is that the infrastructure is swamped in many areas.

“There are a whole number of policy measures that need to take place in order for us to start reversing the flow. It is going to take quite some time.”

Having been in contact with policy makers at Holyrood, Mr Roberts expressed concern that politicians are more concerned with introducing to Scotland the same ticketing regime that operates in London than on improving infrastructure. He acknowledged it is achievable for Scotland to have such ticketing, but pointed out that Transport for London takes responsibility for this in the UK capital. He also said there are workplace parking levies and congestion charging in force in London, where parking is more tightly controlled.

Mr Roberts said: “The industry cannot achieve this alone. There needs to be some input from government, whether local or national.”

Noting that the level of subsidy the bus sector receives in Scotland is eclipsed by the resources it is afforded in London and Manchester, Mr Roberts said: “We have peppercorn levels of subsidy in Scotland. The public sector gets a very good deal.”

Mr Roberts said the bus industry commissioned KPMG to report on the challenges facing the bus sector. It concluded that factors outside the industry’s control were responsible for 75 per cent of the reasons why bus fares are going up. Mr Roberts said the document offers a “starter for 10” to policymakers looking for ideas to “create a better environment” for bus operators.

Despite the challenges, Mr Roberts said the company’s accounts for 2017 show that McGill’s remains in “rude health”. But he said McGill’s is having to put more and more of the surpluses it generates into supporting routes which are effectively loss-making, in order to maintain its social commitments.

The company, owned by brothers James and Sandy Easdale, made commitments totalling £3.8 million for new vehicles last year, when it introduced 27 new buses to its fleet. The average lifespan of its buses ranges from 12 to 15 years.

The accounts state that McGill’s employed an average of 814 staff last year, down from 831 last time, with payroll costs booked at £21.5m, broadly in line with the previous year.

Dividends of £3.35m were paid to shareholders during the period.