ELECTED regional assemblies would be given tough London-style powers over private bus firms by deciding operators, routes and fares.

The Government is ready to give the North-East and Yorkshire bodies the right to grant bus franchises to stop private companies "cherry-picking" the best routes.

At present, London's transport authority is the only one in the country with the muscle to choose operators, set timetables and decide the level of fares.

Labour MPs have long argued for regulation to be extended to other areas.

In yesterday's 25-year transport plan, Transport Secretary Alistair Darling pledged to grant the extra powers to passenger transport authorities (PTAs) in the large urban areas, including Tyne and Wear.

And a spokesman said: "These powers will also be devolved to regional assemblies, should they be set up in the northern regions.

"This is all about making decisions at a regional level, whether that is over rail, over roads or, in this case, over buses."

Last week, Mr Darling announced that PTAs - and elected assemblies - would have responsibility for deciding timetables and fares for local rail services.

Now assemblies will control private bus firms by applying to the Transport Secretary for the power to draw up "quality contracts".

The contracts have been available since 2000, but only to local authorities that could prove they were the only practical option for running local bus services. None have been awarded.

Now the cumbersome procedure will be streamlined to remove the "only practical option" test for assemblies and allow them to be obtained in only six months, instead of 21.

Crucially, the Bus Service Operators Grant paid to all companies by the Government would then be handed to the assembly to spend as it wished.

And the elected bodies would be able to switch funding from rail to buses - or vice-versa - it if believed it could be more effectively spent.

Buses were deregulated, outside London, in the 1980s by the Tory government. Labour has, until now, refused to reverse the policy.

Local authorities are only able to draw up "service agreements" with bus companies, which left many complaining they had little power.

The new powers emerged as MPs prepared to debate today the orders allowing assembly referendums to take place, by all-postal ballot, on November 4.