NL

Could be put out of business, bus operators warn

Plans to change how the government purchases goods could have disastrous consequences for the small businesses that run school buses, a group warns.

The Newfoundland and Labrador government's plans to change how it purchases goods could have disastrous consequences for the small businesses that run school buses, a group warns.

Kerry Noel speaks for the Newfoundland and Labrador School Bus Owners Association. CBC

The Newfoundland and Labrador School Bus Owners Association says independent operators could be put out of business if government follows through with tendering legislation changes that would bring in a procurement system.

Kerry Noel, who speaks for the association, said operators fear that without a long-term contract, they may not be able to get a return on investments that include new safety upgrades.

"We're doing our part. We're just looking for some security down the road," Noel told CBC News.

"If we're going to invest the money, we want to know that we're investing for the long term."

Noel says the government's new procurement system would favour large companies over small, independent operators.

He noted that Newfoundland and Labrador currently has the highest safety standards for school bus operators in the country.