The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)
I congratulate my hon. Friend the Member for Thirsk and Malton (Miss McIntosh) on securing this debate. Buses play a vital role in our economy. More than 2.2 billion bus journeys were made on local buses in England, outside London, in 2012-13. Buses are essential for many people to get to work, to education, to doctors and to hospitals, as my hon. Friend remarked. For many, particularly those in rural areas, the bus is a lifeline and without it they would not be able to access those essential services or go shopping and socialise.
Over half of those who rely on buses outside London do not have access to a car. Customer satisfaction with bus journeys is high—84% are satisfied with their service—and under-21s make up a third of bus passengers, while use among the over-60s is increasing as a result of the national concessionary pass. Furthermore, a recent study by the university of Leeds has reinforced the importance of buses to a healthy, growing economy.
The Government remain committed to improving bus services, and expenditure on buses reflects that: this year, we will spend more than £1 billion on the concessionary travel entitlement and more than £340 million in direct subsidies to bus operators in England; more than £300 million has been allocated to funding major bus projects in the past year; and outside London 42% of the money that goes to bus operators comes from the taxpayer by one mechanism or another. We have provided £70 million through the better bus areas fund to deliver improvements in 24 local authority areas and £20 million to support community transport.
In addition, many bus improvement schemes have been funded as part of the Government’s £600 million local sustainable transport fund, while a total of £95 million has been provided for four rounds of the green bus fund to improve environmental performance. All this demonstrates our commitment. Moreover, as a local North Yorkshire MP, I am pleased that North Yorkshire county council has received more than £5 million in local sustainable transport funding in 2012-15, including for bus improvements in Harrogate and Knaresborough and to boost tourism in Whitby and the Esk valley.
My hon. Friend made the point that initially, when the concessionary scheme was introduced, boroughs such as mine in Scarborough and other popular tourist hotspots felt they were being unfairly treated because they were paying for journeys that started in their area. People going from Leeds or Hull to places such as Scarborough, Malton or Kirbymoorside found that although the council in Hull paid for the journey to the resort, the council in the resort paid for the return journey. The situation has been a lot better since we moved to county-level funding, however, as it means that journeys within North Yorkshire are paid for by North Yorkshire county council.
The central question posed by my hon. Friend was, should pensioners be charged to use their concessionary passes? I believe that this would undermine the basic principle of the concessionary scheme, and many would probably see it as a step too far. Were any Labour Members present for this important Adjournment debate, I believe they would also underline how the principle of the concessionary scheme should be written in stone, not undermined.
Nigel Adams
Has the Minister assessed the cost of means-testing to see who can afford to pay?
Mr Goodwill
As with other benefits, such as the free television licence and the winter fuel allowance, it would be prohibitively expensive to means-test people. Also, if people had to apply for the pass, as with other means-tested pensioner benefits, we might find a much lower uptake.
Miss McIntosh
My central argument is that if it works for rail passengers—they buy a concessionary rail card and get the concessionary travel—why can it not work for bus passengers? I have been led to believe that it cannot work because the law prevents it, so I am asking the Government to change the law. It need not be means-tested—it is not means-tested for rail passengers. We just need to put rail and bus passengers on an equal footing—problem solved.
Mr Goodwill
I recently attended a meeting of my own older people’s forum in Scarborough, and the very same suggestion was made. People said, “We’ve got these bus passes, but what’s the point, if there’s no bus to use. We’d be prepared to pay a nominal charge to use some of these services, if we could retain them.” However, that would require a fundamental change to the way the system works, and it could be the thin end of the wedge, as services up and down the country—not just the ones that needed help to survive, but some of the more commercial ones—might also demand payment. It would change fundamentally the whole basis of the concessionary scheme. We do not at present have a scheme of free travel for pensioners on the railways. The discount available to pensioners or the railcards they can use are something completely different.
Some of the other services, such as the 118 from Filey to Scarborough via Flixton, have three or fewer passengers, so even if we charged passengers an additional £1 to use their passes on those journeys, that would mean only £3 on some of them. Indeed, some of the services in North Yorkshire have no passengers at all. We need to be more intelligent in the way we approach this. For example, the intention is for the F1 and F2 in Filey to be dial-a-ride services to replace the buses. Indeed, there is a successful dial-a-ride service in my constituency which, let us not forget, picks the pensioners up from their homes and takes them to where they need to go. Many people with mobility problems therefore find dial-a-ride to be a superior service to the bus, which requires them to get to a bus stop and wait, often in inclement weather.
Similarly, the 195 from Hovingham to Helmsley via Ampleforth will be reduced to three days a week, running only on Tuesdays, Thursdays and Saturdays, but again, that service currently carries only three or fewer passengers on some of its journeys. Interestingly, I had a telephone call last year from one of my constituents in Sleights—a lady who was a pensioner—who was concerned that the bus service there would be changed and would no longer be adequate. I asked how often she used it and she said, “Well, I don’t use the service myself—I’ve got a car—but the day may come when I do need a service and I’d like it to be there.” There is therefore, to a degree, an aspiration or wish to have a service in case of emergencies or if that person can no longer drive. However, may I suggest that it is not the job of the taxpayer to subsidise a service in case people might want to use it one day?
Julian Smith
Does the Minister agree that this is a difficult matter for schools such as Upper Wharfedale and Nidderdale High, which rely on children being sent by parents who are out of the catchment area? Public subsidy is needed for those parents and children, yet the council is ripping those services and that subsidy away, causing big trouble for those highly rural schools.
Mr Goodwill
I am aware that that is a problem. Indeed, the problem becomes more acute where there are no spare places on the school bus service, so that those who do not qualify for access to the free bus service—whether they be sixth-formers or people coming from out-of-catchment—find they cannot get on the school bus even if they want to pay. Therefore, cuts to services, particularly those early in the morning or in the evening, can be a problem.
Miss McIntosh
As my hon. Friend knows, Welburn school falls into that category—the bus passes it, but people are not allowed to access it. Has the Department made a comparative assessment of the cost of dial-a-ride, which I understand is much more expensive than the current Filey service? As we have established that there has been a lack of consultation, would it not make sense to sit down with the residents and see which we need to keep and which we can dispense with?
Mr Goodwill
As I understand it, North Yorkshire council has been conducting an extensive consultation and also has the ridership figures. I have looked at some of the figures for some of the services, and one of the big problems is that services are being provided that are not being used by large numbers of people. I understand that North Yorkshire is keen to maintain some sort of service wherever possible, so there might be alternative routes to use or the frequency of some services might be reduced. In one or two cases in Ripon, the operator has considered that it is able to continue to provide a service without subsidy.
The Government also recognise that improvements can and must be made. In March 2012, our “Green Light for Better Buses” paper set out our plan for buses. The proposals include reforming bus subsidy, improving competition, incentivising partnership working and multi-operator ticketing, and making access to bus information and ticketing easier for all. There is no doubt that we are all operating in challenging economic times. The Government want to ensure that the bus market is still attractive to all operators, large and small, urban and rural, by ensuring that funding is allocated in the fairest way, while giving the best value for money to taxpayers.
The bus service operators grant, or BSOG, paid to bus operators, has been provided directly to them in a fairly blunt and untargeted way, relating to fuel consumption. We need to be more intelligent in the way we target some of the support we are giving. Some local authorities have told us that they can make bus subsidy deliver better value for money by working in partnership with their bus operators to grow the bus market. That is what the five better bus areas are intended to do, and the top-up fund available to them will give them an additional incentive to innovate. One of the trailblazers is York. I will watch its progress with interest. I think Bristol would be a good comparator for rural North Yorkshire, given that the Bristol better bus area has a rural hinterland more similar to parts of North Yorkshire.
The policy relies strongly on partnership with commercial bus operators rather than contractual relationships, which is why better bus areas are quite distinct from quality contract schemes, in which all bus services would be tendered and the bus service operators grant automatically devolved to local authorities.
The Government are committed to protecting the national bus travel concession, which is of huge benefit to about 11 million people, allowing free off-peak local travel anywhere in England. The concession gives older and disabled people greater freedom, more independence and a lifeline to their communities, gives them access to facilities in their areas, and helps them to keep in touch with family and friends. It can also bring wider benefits to the economy. The Government recognise that the issue of young people’s travel and the level of fares is a complex one, but, although there is no statutory obligation to provide discount-price travel for young people, many commercial and publicly funded reductions are available.
Bus services in rural areas are not just concerned with levels of public funding. Commercial operators will provide services in areas where there are enough passengers, and overall commercial mileage in very rural areas of England is increasing. However, the Government accept that when that is not feasible, local authorities play a vital role in supporting rural bus services. Indeed, about 28% of bus mileage in predominately rural authorities is operated under contract to them. Authorities such as North Yorkshire county council are best placed to decide what support to provide, in response to local views and need and in the light of their overall funding priorities. It is therefore vital for them to maximise the return on every penny of the funding that they provide. To help with that, in October last year my Department met its commitment to publish revised guidance for local authorities on best practice in the procurement of local bus services and other types of road passenger transport. While I recognise that much innovation and hard work is done by councils all over the country, I believe that there is scope for them to do more, not least by highlighting and sharing some really good practice on which other authorities can draw—and I strongly urge them to do so.
Providing bus transport solutions in rural areas also requires effective use of all available options, whether they be traditional fixed-route bus services, community buses, dial-a-ride, or other types of demand-responsive transport such as taxis. My Department is currently undertaking further work in examining the barriers to better procurement of such services.
Julian Smith
May I urge the Minister and the Department to analyse the performance of organisations, such as the Dales Integrated Transport Alliance in my constituency, which have been given grants as part of the local sustainability fund, which he mentioned, and to think about whether they have provided value for money?
Mr Goodwill
That is exactly the point that I was trying to make when I spoke of sharing best practice and assessing the effectiveness with which different local authorities have deployed the funds that they have been given
The Government believe in buses. Our vision is of a “'better bus” with more of what passengers want: punctual, interconnected services; greener and more fully wheelchair-accessible buses; and widely available smart ticketing. A more attractive, more competitive and greener bus network will encourage more passengers, cut carbon and create growth.
Question put and agreed to.