Council plans 'arms-length' bus firm for East Lothian Published duration 4 April 2012

image caption First Scotland East said the "difficult decision" followed several years of poor trading performance

East Lothian Council is considering setting up an 'arms-length' bus company following the announcement First Scotland East is withdrawing services.

Councillors and officials also agreed to contact other bus companies with a view to continuing the routes at risk.

The council met the transport minister on Tuesday to seek possible shared solutions with Midlothian, which will also lose services.

Up to 200 First Scotland East jobs are under threat.

The company said the "difficult decision" followed several years of poor trading performance.

The operator, which is part of FirstGroup, plans to discontinue an undisclosed number of services in East Lothian and Midlothian.

It also plans to close its Dalkeith bus depot and "significantly" cut the size of its Musselburgh depot.