Coach operators claim they are facing ruin because of unfair competition from a new school bus scheme.

And now calls are being made for a level playing field' to prevent companies from going out of business.

The call from the West Yorkshire Coach Operators follows the introduction of the scheme in Ilkley and other parts of the county.

Ilkley was one of the areas chosen to pilot the My Bus scheme, and by the end of 2007, Metro aims to have 150 yellow buses serving more than 300 schools.

The My Bus project, which is being tested in a number of areas in West Yorkshire, was launched following an £18.7m grant from the Department of Transport in 2004.

The scheme, that buses children to and from school, has won praise from Prime Minister Tony Blair.

But it is causing anger among West Yorkshire coach operators, including Kevin Jackson from Menston.

Mr Jackson said a passenger transport executive spokesman had said two years ago that the new buses would be limited to taking children to and from school.

But he argues that My Bus vehicles are being used by schools for other journeys, and are even taking adults on day trips.

He stressed that the My Buses were competing for services already offered by coach operators. And he said ordinary operators were finding it impossible to compete against the taxpayer-funded yellow buses.

He stressed: "It is unfair competition because they are running the buses for virtually nothing. But it is everybody who is paying for them through the rates."

Mr Jackson, said long-standing coach operators were undoubtedly losing work to My Bus, and that this was having a snowball effect on the rest of the industry.

"There are coach operators who are laying people off in West Yorkshire. A lot of smaller operators rely for a good percentage of their work on schools," he said. "But that work is not forthcoming."

He said the WYCO, which is meeting with Metro today is examining whether the My Bus scheme constitutes unfair competition in the open market.

He stressed: "Compensation is not what we are looking for. We are looking for fair trade. We are looking at an unfair wicket which could put people out of work and out of business."

In a letter to Metro, which has also been forwarded to MPs and councillors, the West Yorkshire Coach Operators say that whilst the idea of a home to school service is very laudable, My Bus is now seeking to operate in the private charter market.

They say: "Whilst we accept that competition is good for business, it is not the case when the competition floods the market with equipment it has not had to pay for."

It says My Bus is being funded with tax-payers money, and adds: "We pay taxes and it appears it will be used in an effort to put us out of business. It will be difficult for us to price work against firms who have no equipment costs to worry about."

It claims the service is unfair competition, and adds: "Over many years our members have given a first class service to schools and community groups.

"We hope we can continue to do so, but we would like to compete on a level playing field and not feel that we are being victimised by Metro and a government who have brought this My Bus scheme in."

A Metro spokesman said: "By promoting the availability of My bus vehicles to hire specifically by schools and young peoples groups, Metro is maximising the value that local people get from its yellow bus scheme.

"Rather than having these publicly-funded vehicles stand idle through the school day, weekends and holidays, we are ensuring that they are well-used.

"Yellow buses are available to hire at a consistent year-round price that covers all costs of running the services including, fuel, driver wages, maintenance and booking.

"By providinge popular high-quality fully-accessible, level boarding and all the scheme's safety measures, My bus is developing the market for young people's travel for the future.

"To do this, Metro needs to promote the availability of My Bus vehicles for hire, which is why adverts for the service have appeared where they are likely to be seen by people organising school and other outings.

"Metro is surprised that WYCO had chosen to discuss this issue through the media, when we have a long-scheduled meeting with its representatives this week."