AG's settlement
Editorial

Many times there are questions, concerns and problems that arise from the state's action and their decisions. But in the last two week's the Attorney General's Office has announced that they have settled a federal lawsuit that objected to the merger between First- Group and Laidlaw bus companies.

The AG's office is requiring Laidlaw, now FirstGroup, to sell the Ashburnham Westminster School District's bus contract to another bus company. A requirement so that another company can come and get their legs established in the market before the contract expires in four years and only FirstGroup is around to bid on the contract.

Let us hope the AG's settlement does produce some results in bringing another bus company to the area because if it doesn't work then in five years the school district could be facing an increase that is more than the $200,000 increase it saw with this change of contract.

In December, the two largest bus companies in the country - FirstStudent and Laidlaw - were the only two companies that bid on the transportation contract for the school district.

Laidlaw, headquartered in Naperville, Illinois, is the largest school bus operator in the US. Their bid, which the school district signed, was $1,377,360 for the first year of the contract, which 2.7 percent increases for the second and third year of the contract.

FirstGroup, headquartered in Scotland, is the second largest school bus operator in the US. FirstStudent's bid was $1,561,158 for the first year with a 2.9 percent increase for the next two years.

The details of switch are supposed to be handled by the companies and the school district is supposed to have a seamless transition. If this ends up being the case then this is one time we should step up and thank the state for helping us get lower prices in the long run.

Encouraging competition on these mandated bids is a good thing because it is the only way the towns or the school districts are going to get anything close to a good price on anything they are going to bid.