FORTY jobs have been lost as a Darlington bus company has gone into liquidation.

The Green Bus Company withdrew its services on its eight routes last Sunday.

However, Darlington Borough Council has said all the bus routes will be reinstated today using different bus companies.

Richard Cranmer, the managing director of Green Bus, based at Banks Road, Darlington, said he was forced to go into voluntary liquidation because the company was not profitable.

He blamed the increased price of diesel, which has risen by 16p a gallon from when Green Bus first started 18 months ago.

High insurance prices were also making it very difficult for independent bus companies to operate as well, he said.

Mr Cranmer also admitted he may have been over-ambitious and overestimated how much money the company would make initially.

However, he said the company, which was the first one in Darlington to install closed-circuit television cameras and low-access for wheelchairs, was becoming more and more popular and in April, 50,000 people travelled on his buses.

He said: "I really want to express my gratitude and thanks to all the staff and passengers on our services."

Problems with the company started when Arriva won the contract for two Green Bus routes.

Mr Cranmer said Green Bus's bid for the contracts was higher than other companies but he said he would have kept bus fares cheaper for passengers.

He said: "It's a really difficult market place for a small operator.

"Although our tenders were higher it depends on how you think people should pay.

"Our way, everybody would have paid through local taxation, but when you put the fares up, it's the individual passenger who has to pay."

The buses and equipment are being sold as part of the liquidation process.

A statement from Darlington council said: "All Green Bus services which were withdrawn last Sunday will recommence on Thursday morning.

"All timetables, routes and fares are unchanged."