Southern Rail

Debate between Earl Attlee and Lord Bradshaw

Tuesday 10th January 2017 Lords Chamber

[Lord Bradshaw (LD)]

My Lords—

[Earl Attlee (Con)]

My Lords, did I hear the Minister correctly?

Bus Services Bill [HL]

Debate between Earl Attlee and Lord Bradshaw

Report: 1st sitting: House of Lords
Wednesday 12th October 2016 Lords Chamber

[Lord Bradshaw]

I hope the Minister may be able to agree with me on this occasion, which will make a slight change to the proceedings. The Competition and Markets Authority has adopted a very strange response to the letting of railway franchises and has created, in the case of the northern franchise and Arriva buses, a situation which has cost the taxpayer and the companies millions of pounds in looking at the overlap between Northern’s rail services and those of Arriva buses. The northern train franchise had gone out to consultation some time before. The Competition and Markets Authority had sight of that, and after some extremely complicated negotiations, the franchise was let. Immediately, the Competition and Markets Authority started to nitpick over the franchise, saying there was a bit of overlap here and a bit of overlap there. In none of the cases was it a significant issue.

In the Bill, the Competition and Markets Authority is nominated as a consultee in some cases. The purpose of this amendment is to say that if there is a consultation over a franchise, or for that matter over an advanced quality partnership or a railway franchise, there should be some restriction on the ability of the Competition and Markets Authority, having been a consultee, to reopen the matter. It wastes a huge amount of time setting up a franchise if the authority comes back again to raise points that are small or trivial in contrast to the large scale of the businesses concerned. I have not said it should not get involved, but I have tried to lay down in this amendment some conditions or limitations on when it should become involved, and I believe it should have to have received significant complaints. I do not think it received any in the course of its intervention between Arriva trains and Arriva buses. Secondly, there would need to have consequently been a significantly adverse effect on competition.

It is important that we have a Competition and Markets Authority, but it should concern itself with real matters of competition in or between industries that restrict competition between large-scale participants. I do not think the law was ever meant to deal with very small-scale altercations between bus companies and train companies. In any event, Arriva gave undertakings that it would not alter fares in a way which diminished competition—not that in most cases any real competition existed. I hope the Minister may give us a reasoned answer to this, because what we have in mind is a lot of unnecessary and expensive bureaucracy that is likely to surround the franchising services. Provided that they have had the opportunity to be involved beforehand, it is quite wrong that after the event, they should be able to come back again and raise what are virtually trivial points. I beg to move.

[Earl Attlee]

My Lords, I am grateful to the noble Lord, Lord Bradshaw, for introducing his amendment. I find it quite interesting and I look forward to what counsel the Minister gives us. I understand why the noble Lord has put the tests in new subsections 5A(a) and (b), but I am worried that subsection 5A(a),

“unless … it has received complaints about the operation of the franchise”,

could be used as part of a spoiling process by an aggrieved third party. On subsection 5A(b),

“unless … there has consequently been a significant adverse effect on competition”—

admittedly, it talks about an adverse effect—the problem I have is that it is bound to have an effect on competition because it eliminates competition. So I have a lot of sympathy with the noble Lord’s amendment, subject to what the Minister says, but if we are going to go down that route the tests might need better drafting. It will be very interesting to see how the Minister advises the House.

Bus Services Bill [HL]

Debate between Earl Attlee and Lord Bradshaw

Wednesday 29th June 2016 Lords Chamber

[Earl Attlee (Con)]

My Lords, the noble Lord, Lord Bradley, asked my noble friend whether he is confident that the Bill will pass. I hope that my noble friend can be rather more definitive than I can, but I see no reason why it will not pass, although obviously we will want to look at it closely.

The noble Baroness, Lady Randerson, talked about impact assessments. I find it a little odd in government—I am talking generally here—that one has a gem of a policy idea, one consults internally within government, publishes a Bill, puts it before Parliament and then publishes the impact assessment. Surely you should have a gem of an idea, then make an impact assessment and use that to inform discussion internally in government. Of course, as the policy develops, the impact assessment may need to be revised, but having it turn up at the last moment devalues having one at all. That is very much a general point, not a criticism of my noble friend.

[Lord Bradshaw (LD)]

My Lords, on reflection, I think that this Bill—and I have now studied it a lot—is really nothing to do with the quality of bus services generally. It is a device which has been drawn up by officials because the Chancellor promised to devolve the operation of bus services in certain areas which elect a mayor so that they can go for franchising. If you read the Bill carefully, I think you will find that it will be very difficult for them to achieve that, because there are a lot of obstacles in the way of any franchised service.

My main concern is for areas outside metropolitan areas. The bus service is in a terrible state. All sectors are now recording declines in services. They will get worse, because cuts are being made all the time. When I spoke at Second Reading, I said that more money must be found from somewhere. I realise that the Government are not willing to spend any money and that therefore this is about redirecting the money which is spent. At Second Reading, the Minister drew my attention to the fact that bus service operators grant was to be devolved to local operators. This is a very particular question: is bus services operators grant to be devolved only to the areas that get franchising? Will rural areas get any share of that money? Will it be ring-fenced if it is devolved? Because if not, if it is added to various block grants, it will be absorbed in meeting the Government’s underfunding of all sorts of other services for which local authorities are responsible.

I, too, received the rural proofing in the impact assessment. It is absolutely pathetic. The document is huge, but the intellectual input into it is minuscule. All it says about rural proofing is, to summarise, that local authorities have to decide for themselves how the resources allocated to them are spent. If they want to spend them on bus services, they have to take that away from another cause.

I suggest that the Minister carefully considers the effects of isolation and loneliness on people living in remote rural areas—and there are a lot of them. I use buses every day. I travel on one some days, and there are a dozen old rural dwellers who I know are lonely. The only time they get out is when they go on a bus. I am sure they all voted for Brexit because they are of that generation, but that rather does not cover the point—I am not sure they would be grateful and would suddenly support the other side if they restored their service. Their service is vital; I honestly believe their lives would be hugely diminished without it.