A SCOTTISH council should set up its own bus firm as the private operator reduces services, it is claimed.

Labour councillors in Aberdeen are eyeing a return to Grampian buses almost 30 years after it was privatised in an employee buy-out.

The move comes over changes made by that firm, which has grown into trans-Atlantic transport giant First Group, to its services around the city.

This includes the withdrawal of services to the Kingswells suburb, which has drawn criticism from local MSP Mark McDonald as well as councillors.

Now Labour councillors have tabled a motion asking the local authority’s chief executive to “explore all options available” to allow the council to run its own bus company.

This includes potentially working in partnership with an operator already in possession of a relevant licence.

Councillor Ross Grant, the group’s transport spokesman, said “Over the last five years we have seen bus operators within Aberdeen City renege on running a bus service to certain communities such as Kingswells, the Bridge of Don and Airyhall to name but a few, all to the detriment of passengers who often rely upon a decent bus service to get to and from work.

“My motion, if passed, would allow the council explore options to become a bus operator again and work for the good of our communities.”

He continued: “Many people have commented on how First Bus has a monopoly in this city and I am sure that if Aberdeen City Council is in a position to own and operate a bus company again one of the first things we would look at is the cost of bus fares.”

Grant claims the council should learn from the example of Edinburgh City Council, which part-owns Lothian Buses.

He said: “This successful operation in Edinburgh should give the citizens of Aberdeen the comfort that councils can run good public services and if the motion is approved I look forward to seeing the feasibility study from the chief executive in order to make this a reality.”

The motion also states that the council “notes that bus operators in Aberdeen appear to put profit before the needs of passengers”.

However, a spokesperson for First Aberdeen, a subsidiary of First Group, defended the company’s record and services, saying: “First is a company founded in Aberdeen, our bus operation is one of the city’s largest employers, we are a major contributor to the local economy and move more than 50,000 passengers a day.

“As a commercial operator, services have to be viable and where this is not the case local authorities can already use their powers to procure socially necessary services.

“At a time of increasing pressure on the public purse, this remains a cost effective option.”

Deregulation of bus services by the Thatcher government in 1986 allowed private firms to snap up municipal operations around the UK.

Then-general manager Moir Lockhead led a buyout of Grampian Regional Transport three years later and the company went on to expand by purchasing six other companies in Scotland and England.

First Bus was created a merger with a Somerset-based group in 1995, with Aberdeen chosen as the firm’s headquarters.

Expansion continued and three years later the company began its first foreign investment by taking charge of some services in Hong Kong.

It later moved into the provision of school buses in America, eventually going on to take a controlling stake Greyhound Lines, the biggest coach operation in North America.

Ventures in Ireland, Denmark and Sweden followed, with the firm also winning the London Tramlink concession and a number of UK rail franchises, which included ScotRail.