Bus Services Bill [HL]

Baroness Scott of Needham Market Excerpts

Wednesday 8th June 2016 Lords Chamber

[Baroness Scott of Needham Market (LD)]

My Lords, it is 16 years almost to the day since I made my maiden speech in this House. At the time I was chair of the Local Government Association transport executive, so it was quite natural to make my debut in the Second Reading debate of the Transport Bill 2000. Nowadays, I am that rare being in your Lordships’ House, a vice-president of the LGA. I declare that interest.

The 2000 Act was a wide-ranging piece of legislation and contained an extensive section on the bus industry that was based on a big piece of work, From Workhorse to Thoroughbred: A Better Role for Bus Travel. It was intended to be a major advance for the bus industry. Sadly, it is now available only on the National Archives website. Clearly, it failed in its ambitions because, as we have heard, the bus industry as a whole is in some trouble.

The 2000 Act created a quality partnerships and contract framework which, if we are honest, was not fit for purpose. It omitted the two single most important things for passengers: the fares they pay and the frequency of the buses. My noble friend Lord Bradshaw and I argued at the time that what was needed was a franchising model more on the lines of London, which gave local authorities all the powers that they needed, including enforcement. It is worth reflecting on some work done by the campaign group Greener Journeys, which highlights that average traffic speeds in our cities have now fallen below 10 mph. This of course creates a vicious circle: as the buses slow down, people stop using them and get into cars, which then makes the problem worse.

The point about London that we made then, and which still applies now, is that it is expensive; it costs money to run a franchising scheme like that. My big fear is that bringing forward this scheme now, when local authorities are in such trouble financially, may doom it to fail because there simply is not the money to do it. Yet, when you look at the figures in London, passenger journeys have increased by 227% since the mid-1980s. If we were able to somehow monetise that in terms of the savings in time, congestion, air quality and so on, it would probably prove to have been good value for money—but that is not the world that we live in.

The Urban Transport Group made the point that the previous legislation, the 2000 Act, was so complex as to be virtually undeliverable—a point also made by the noble Lord, Lord Whitty. It was inevitable that deregulation would result in an emphasis on profit-making routes at the expense of low-income or non-income generating routes. Bus operators are businesses after all and we need them to be successful. It fell to local authorities to subsidise routes where they felt that there was a social value. These routes are now being lost in very large numbers as local authorities become ever more strapped for cash. According to the Campaign for Better Transport, a total of £22.2 million has been cut from supported bus funding in the current year. One in five supported bus services has been cut back since 2010; that is a picture that we recognise right across the country.

Living in rural Suffolk, I see at first hand all the problems that have been highlighted by the Campaign for Better Transport and the Campaign to Protect Rural England and in an excellent report produced by Age UK that has powerful testimony on the impacts of transport poverty. Older people are more dependent on public transport for access to medical appointments, shopping and even the simple human activity of keeping in touch with friends and family. Younger people, too, are struggling with access to transport to look for work or to get to appointments at job centres. There are even instances of people being sanctioned when they have not kept appointments because the transport does not exist. Low-income groups are more reliant on public transport: nationally they make three times as many journeys by bus as those in the highest income groups. As we have also heard, 60% of people with a disability have no car in their household. The situation is bad for anyone in these groups, but for people in these groups living in rural areas, the situation is dire. I would like to hear whether any rural-proofing has been done on these proposals.

I understand that we have to be realistic about financial realities. Indeed, after I was first elected to Suffolk County Council in 1993, we carried out a review of sponsored bus services and found a surprising number where the per-passenger subsidy was significantly higher than a taxi fare would have been—well, you cannot go on like that. When my now husband first came to visit me in my tiny Suffolk village nine years ago, he assumed, as a Londoner, that he would just get a bus from the station. I had to explain that in my village, real-time passenger information says “Thursday”. We do not even have that nowadays, and I can understand why.

What we do have is a rather good demand-responsive community transport system called Suffolk Links, which has recently been used in a case study published by Passenger Focus. But even that is now being seriously impacted by budget cuts and the situation has deteriorated in the short time between the report being produced and published. Suffolk County Council announced a new contract just two weeks ago which has removed the ability of pensioners to use their concessionary passes because it has reduced the vehicle size to a nine-seater, which takes it outside the scope of the concessionary fare scheme. What a shoddy trick to pull on pensioners, and I really hope that the Minister will undertake to have a look at those regulations so that we can bring them back into scope.

Like a number of other noble Lords, I am less than clear about the powers that will go to non-mayoral areas as a result of the Bill. I had understood that franchising powers would automatically go to mayoral areas and that the others would have to go through some sort of application process. But there seems to be some confusion about that so I would appreciate clarity. It is absolutely essential that the regulations are clear and well understood so that local authorities do not embark on a process of expensive work that is doomed to fail from the start because they will not meet the criteria.

I would like to raise a new issue which I do not think anyone has mentioned yet: home-to-school transport. Cuts to school bus services are now generating 100 million extra car journeys every year, according to the Campaign for Better Transport, which also says that 300,000 children outside London have lost their school transport since 2008. Obviously, this is a major access issue in rural areas, but it also impacts on the viability of bus operators because many of them rely on school contracts and use the normal service buses for short periods of time every day during term time.

The provisions in the Bill that relate to passenger information are significant and very welcome. If you want to travel from somewhere to Needham Market—you would, would you not? It is a wonderful place—it is not at all easy to find out how to do that. The rail industry has nailed that. It is still rubbish on tickets and clarity of pricing but at least you can find out how to get from one place to another. It is key for passengers to have this information so that they can use public transport with confidence. It is also essential at a more technical level, if franchising is going to work properly for both the operators and local authorities, to really understand the data about how bus services are being used and how they make money.

When I was heavily involved in transport matters, we had a major problem with the competition authorities. I would like confirmation from the Minister that the department is confident that this issue has been sorted. Basically, the competition authorities stopped public transport operators talking to each other. When I was dealing with this in Suffolk, I could not get local bus operators together in the same room because they were so paranoid that they were going to fall foul of anti-competition laws. Clearly, if the sharing of data and so on is going to work, operators have to be confident that they can do it.

The future for bus services across large parts of England is pretty bleak unless we do something fairly dramatic. The Department for Transport’s own figures predict that by 2040 bus journeys will have dropped faster than journeys by any other form of transport. This could severely impact England’s rural and vulnerable populations, and increase congestion and CO₂. It is an enormous task to halt this decline. Whether or not the Bill can do it remains to be seen, but it is a step in the right direction. I congratulate the Government on bringing it forward. It is absolutely right that it has started its life in this House because there are things that we can do to improve it.