A BUS wars investigation is being carried out by the Government, the Daily Echo can reveal.

A dossier of evidence is being put together including details of the clashes between rival bus firms Blue Star and Black Velvet.

The fierce battle for routes and passengers lead Eastleigh MP Chris Huhne to accuse Blue Star of “predatory behaviour” and report it to the Office of Fair Trading (OFT).

Mr Huhne pressed for the investigation after the Daily Echo revealed fiery run-ins between the two companies.

Bitter The bitter bus war was sparked last year when family-run Black Velvet stepped in to cover a route abandoned by the public transport giant Blue Star.

However, the larger firm hit back by running a service of its own – three minutes ahead.

Just weeks after Black Velvet said it had been squeezed off the route Blue Star announced it would be cutting the service. Black Velvet then started running a shuttle bus between Fair Oak and Eastleigh but stopped a month ago after Blue Star upped its own service and introduced special offers.

Blue Star has since decided to cancel its extra services.

The two Eastleigh-based firms have also been grappling to snatch contracts from each other.

Mr Huhne said: “I’m pleased that the OFT is looking at what seems to me and many constituents to be a clear case of abuse of a dominant local position by Blue Star.

“This is simply unacceptable behaviour where the big operator has used its market power to drive out competition, a better service for passengers, and the extra jobs that would have come from more buses on the route.”

He went on to say he would keep putting pressure on the OFT, raise the issue with councils and be meeting with the traffic commissioner.

In a letter to Mr Huhne, the OFT boss John Fingleton states: “The OFT is currently conducting a market study into local bus services in deregulated markets.

“Part of the evidence submitted to that study has included the examples you give.

“We expect to be able to make a public announcement towards the end of the summer.”

Black Velvet boss Phil Stockley was formerly managing director of Blue Star and took with him his operations manager Taz Kelley and a handful of drivers.

The two Eastleigh-based firms operate on different scales.

Black Velvet has 14 staff, ten routes and has been operating for less than two years.

Blue Star, however, has 150 staff, 25 main routes, runs 67 buses a day and has been on the county roads since the 1920s.

Nobody at Blue Star was available for comment.

Phil Stockley, boss of Black Velvet, said: “The news is encouraging. Depending on what they decide it could mean smaller firms like ourselves would not need to be fearful of being squeezed out or bullied by industry giants.”

“We welcome the OFT getting involved in this issue. It can only be good news.”