TWO of Scotland's main bus companies have been warned their licences

could be revoked if the condition of their vehicles is not improved.

Glasgow-based Clydeside 2000 and Kelvin Central Buses, of Motherwell,

had to appear at a Department of Transport disciplinary inquiry. The

employee-owned companies were given a year in which to prove that steps

taken to put matters right had succeeded.

The Scottish Traffic Commissioner, Mr Michael Betts, told the inquiry

in Glasgow that he had considered revoking or suspending their licences.

Of Kelvin, he said: ''There is considerable public concern about bus

and coach safety at the moment. The company must prove it has got its

systems in place.''

He directed that Clydeside's licence to operate 375 buses should

require renewal next June, a year early, because he needed to be

satisfied action taken by the company was proven.

The inquiry heard that complaints from drivers employed by Clydeside

over the condition of their vehicles had prompted an investigation by

the Department of Transport.

Mr George Watson, general manager of Clydeside, blamed part of the bus

maintenance problems on inheriting a fairly aged fleet on privatisation.

Kelvin's engineering director, Mr Tony Williamson, said the company

had embarked on an investment programme in new vehicles. Some #2.3m was

being spent.