Government control is most easily exercised in two ways. Firstly, by regulation of the actual transport operations. For example, the laws and regulation. Secondly, by financial direction, both operational (revenue and subsidies) and in terms of capital expenditure or investment. secondlyFor example, the budget for transport proposal.
Regulation, is somehow an administrative legislation that constitutes or constrain rights and allocates responsibilities. It can be distinguished from primary legislation (by Parliament or elected legislative body) on the one hand and judicial decisions on the other hand. Moreover, t is basically steps taken to control the workings of a particular area. This can be seen from the implementation of various laws and acts, rules and regulation in the area of transportation. For instance, the Road Transport Act 1987.
These regulations exist for so many reasons. Part of the reasons, are firstly, they serve as the basis for operations. Framework is provided for the operations of transport systems. Provision of services is also provided especially in rural areas where demand for the service is low and dispersed. Such common examples that might be the ignition to the basis are ‘where to drive, what speed to drive, what to use to get to the destination’, and so on. Secondly, control arising monopolies. Since transport enterprises are natural monopolies, the regulations are made to ensure that the monopolies would not exploit their position at the expenses of the public. For example, the control of air rate imposed domestically in the past. Lastly, control the social cost of transport. This is to ensure the development of the transport industry is in line with the national economic, social and political policies, as when it goes uncontrollable, excessive social costs is to be expected. Such examples related are, the pollution in atmosphere, congestion, accidents, and so on.
Government can execute the regulations through firstly, the...
Please join StudyMode to read the full document