(8 years ago)
Lords ChamberMy Lords, I wish to support the noble Lord, as I did in Committee. I echo his comments about the Minister’s willingness to meet the concerns that we have raised here. However, there is a big difference between consulting—which could frankly just mean writing to the national park authorities and ignoring what they say—and a genuine process of taking into account the work that they have been doing in their areas, particularly in public transport. I hope that in the spirit of the way the Minister has behaved so far, he will take this extra step.
My Lords, I thank the noble Lord for his amendment and the noble Baroness for her contribution. The amendment would make national park authorities relevant authorities as far as new Section 123B is concerned. As the noble Lord pointed out, this section deals with the business case and primarily concerns the authorities that will be making a franchising scheme with transport powers.
I would like to clarify where we stand on this point and on the question that the noble Lord raised. To be clear—I hope this gives a level of reassurance to the noble Lord—the Bill requires the franchising authority to think about the impacts of bus franchising on neighbouring local transport authorities, and this should ensure that cross-boundary services are carefully considered. Regarding his point and that of the noble Baroness on the business case, the provisions we have already made in the Bill will ensure that any authority looking to proceed down this line will pay due consideration because it is now a statutory requirement. I therefore feel that the Bill has been strengthened to reflect the noble Lord’s concerns.
I am always happy to meet with the noble Lord to further understand elements that he wishes to raise. I think the guidance is playing an important part in this and while we have included national parks specifically when it comes to franchising in terms of the actual statutory consultee, we will also bring notice to appropriate authorities when they are considering the overall proposal in the first place. I hope that with this assurance—and I always welcome meeting with the noble Lord—he will at this juncture be minded to withdraw his amendment.
Again, I do not think I can give a blanket assurance. The auditor is there to see that due process has been followed, and that decision will be subject to public scrutiny. Any auditor is there to do a job and will do it to professional standards. I hope that, based on the assurances I have given, the noble Baroness is minded to withdraw her amendment.
I thank noble Lords who have spoken in the debate. Their response suggests that I was right to return to this question, and indeed the Minister’s response would also suggest that I was right to do so. There is widespread agreement that this is a difficult issue. Of course, it is not just about a potential loss of taxpayers’ money if the scheme goes forward. These schemes are extremely expensive even to start developing, so it is essential that local authorities have sound financial advice all the way through about the financial viability—and, given the relationship with the Competition and Markets Authority, about the legal liabilities—before they embark down this route.
On the question of freedom of information, although I understand that each application has to be treated separately, there are exemptions in the legislation for commercial agreements. My nervousness is simply caused by the fact that every time someone asks questions about a potential franchising scheme, they receive a blanket, “No, we can’t talk about that because it is commercially sensitive”. I am not sure that I would put the same reliance on freedom of information as a transparency tool in this case as the Minister does. Nevertheless, I am confident that he has taken the issue seriously and that his officials are working on the guidance and with local authorities and auditors—so I thank him and other noble Lords for that and I beg leave to withdraw the amendment.
(8 years ago)
Lords ChamberMy Lords, I certainly agree with the noble Baroness that local bus services act as a lifeline to many and have a real community worth, as we have said previously.
The amendment would, in effect, require operators who are planning to cancel a service to continue to operate that service for a period of six months. As I have said previously, this is likely to be to the financial detriment of the operator or the local transport authority. It would also require a traffic commissioner, whose primary role concerns road safety, to take a decision on the value of a service to the local community. A six-month moratorium on cancelling a service would apply only where a service is stopped rather than varied. An operator who wished to avoid the moratorium could reduce a regular bus service to one that operated very infrequently. Operators of registered bus services are already obliged to give at least 56 days’ notice of their intention to cancel or vary a bus service to a traffic commissioner.
Clause 18 gives the Secretary of State the power to make regulations which will enable local transport authorities to require certain information about a service from an operator who intends to vary or cancel the service. It is designed to enable local transport authorities to obtain information which they require and which will allow them to respond more effectively to the needs of bus passengers. The information they will be able to obtain can be used, for example, to inform the procurement of a replacement service by the authority or to assist community transport operators in designing new alternative services.
It is the responsibility of a local transport authority—not a traffic commissioner—to determine what bus services a local community needs. That is why the Government cannot support the amendment.
I appreciate that many local authorities are facing funding issues and have difficult decisions to make about the services they may be able to subsidise. However, there is more than one option open to them. The community transport sector already plays a vital role, as we have all recognised previously, in the provision of local bus services, often with little or no government funding. Community transport operators will be well placed to serve more isolated communities and my department continues to be extremely supportive of that sector.
As noble Lords may be aware, we recently launched a second round of the community minibus fund to provide new vehicles for community groups. The first round of this initiative is providing new minibuses now to more than 300 local groups across England. I also remind noble Lords of the Total Transport initiative, which supports the integration of services commissioned by different agencies, allowing funding to be used more efficiently and better services to be provided to passengers.
I hope it is clear from the case I have outlined that the Government believe in and understand the importance and value of community local bus services and are keen to find ways to ensure that vital bus links continue to be provided. Given the practical examples I have illustrated and the reassurance I have provided, I hope the noble Baroness will feel able to withdraw her amendment.
The Minister referred to the new community transport schemes and the investment in new vehicles. Can he give an assurance that they will be of a size that is legally encompassed within the concessionary fares scheme? This would avoid the problem that we have in Mid Suffolk where the new community transport scheme is using vehicles that are too small to come within the concessionary fares scheme. We have many elderly people with concessionary fares passes but no vehicles on which to use them.
If the noble Baroness will write to me about that case, with which I am not familiar, I will respond in writing to both the specifics and the general point.
(8 years, 4 months ago)
Lords ChamberMy Lords, I thank all noble Lords who have taken part in the discussions. Several times in his contribution the noble Lord, Lord Woolmer, referred to me—I am flattered by the suggestion—as the Secretary of State. I know that there are certain unpredictabilities in government as we move forward into what I said earlier today in answer to a PQ are unpredictable times, but perhaps he is party to something I am not.
I shall respond to a number of issues which noble Lords have raised. I thank the noble Baroness for laying down a series of amendments. As she illustrated, her amendment would enable all authorities listed at proposed new Section 123A(4), rather than just mayoral combined authorities, to access franchising powers without the need for regulations or for the Secretary of State’s consent to be given. Several noble Lords spoke in favour of this, but I also recognise that some voices were not in favour of the amendment. I know from previous meetings with noble Lords that queries have been raised regarding the Government’s stance on mayoral combined authorities and the policy that such authorities should be given automatic access to franchising powers while others would require regulations and the consent of the Secretary of State. It may be helpful if I say a bit more about the Government’s rationale for favouring the mayoral combined authority model, then I will answer some of the specific questions and issues that have been raised.
As I have said before, moving to a model of franchising is a big decision which is likely to have implications for passengers, bus operators and the local authority itself. Our view is that strong governance and accountability are key to making franchising a success, together with a commitment to improving transport and a coherent economic geography. Mayoral combined authorities, when established, will provide centralised decision-making for transport across a relatively wide local geography, be that city areas such as Greater Manchester and Sheffield or regions such as East Anglia. The mayor will be the individual responsible for deciding whether to implement franchising and can be held accountable for that decision. Those factors, together with the fact that transport will be considered at a strategic level, mean that the mayoral combined authority model is well suited to making franchising a success.
However, as the noble Baroness, Lady Jones, noted at Second Reading, the Government do not want to preclude other types of authority becoming franchising authorities in future if there is a compelling case for doing so—I will come on to Cornwall in a moment. The Bill enables other authorities to access franchising powers if regulations so provide and the Secretary of State provides his consent.
The noble Lord, Lord Snape, rightly raised the impact on the bus industry. We are concerned about the impact of uncertainty on the bus industry and want to ensure that bus operators continue to invest and develop services to the benefit of passengers. There were some suggestions during the debate that by establishing the mayoral combined authority model as the preferred model and limiting access in the first instance—I stress that—somehow we are excluding all other authorities. We are not. By limiting access in the first instance to the category of authorities, the bus industry will have greater certainty as to the areas that will have access to franchising powers and will be able to take commercial decisions accordingly.
In addition, as noble Lords have noted, the Secretary of State will also need to provide his consent before any individual authority can access franchising powers. Franchising is a big step which will have implications for local passengers, bus operators and the authority itself, so we want to ensure that franchising is pursued only where it makes sense to do so.
I shall answer some of the specific questions and then come back to any other issues I wish to raise at this juncture.
Before the Minister moves on, will he clarify something for me? I am struggling to understand why the question of certainty for the bus industry has been raised in this context. It seems to me that if we have the situation as pertains in this Bill there will be a raft of local authorities around the country which may at some point have access to these powers, but only if the Secretary of State says so. I am not sure how that adds to certainty. Would it not be more certain if all local authorities had the potential powers to bring this in?
It is not just about local authorities. I have already alluded to other factors. I state again that the geographical nature of the authority applying for franchising powers is important. The noble Baroness’s important point about the Secretary of State approving access to the powers was perhaps not covered in the debate. There would, of course, be instruments introduced in both Houses to allow for discussions on the particular models. I stress that this is an enabling Bill that allows all authorities to have access. It is the Government’s view—noble Lords have expressed views to the contrary—that mayoral authorities are best suited in terms of their governance models and their geography for franchising, which, as I have said, is a big step. At the same time, we have to balance that with the nature of the bus operators. That is the Government’s view. I am not saying that all noble Lords will immediately subscribe to it. That is why we are pursuing the mayoral combined authorities model, but not to the exclusion of others.
The noble Baroness, Lady Jones, raised the response to the Delegated Powers Committee. It is fresh off the press. I know my honourable friend in the other place has today written to the committee outlining the Government’s proposals and I will ensure that full details are made available to all noble Lords. To avoid prolonging this debate if there are specific questions on the letter, I will be pleased to answer either later in Committee or through correspondence, but I think that what I will say will deal with some of the issues and concerns that the DPRRC’s letter raised. The Government’s response from my honourable friend sets out the issues around access to franchising. It also goes further and mentions that the Government are looking to accept the proposals raised by the committee on open data. I am sure the detail is in the letter.
The noble Baroness, Lady Randerson, also mentioned the memo about mayoral combined authorities and said that they have expressed interest. She raised a very valid point about whether they actually exist. The noble Baroness and the Committee were right to pick this up, but I am sure that she will accept that we have been referring to areas which have agreed deals—I referred to Manchester and Liverpool as two examples. We have made it clear in response to previous questions raised by the noble Lord that the deals would be issued in time for those new governance procedures to come on board. Cornwall, where devolution deals are being discussed, illustrates the Government’s willingness to allow the devolution debate to take account of what we are looking to do in terms of bus services. In our discussions to date with Cornwall, franchising is something that it has indicated it would seek to pursue. That is why the Cornwall example has come to the fore, although it would still need to go through the same process that we have illustrated for non-mayoral authorities.
The noble Baroness, Lady Jones, referred to London. As several noble Lords acknowledged, London is very different, and the local government role has been defined for the past 30 years in terms of devolution of powers and financial and investment risks. These have been the major differences between London and other parts of the country.
The noble Baroness talked about the concerns raised by the LGA about the franchising model and whether it makes sense locally. As I have already said, we need to address the concerns. This is about providing access to all authorities, but we need to balance that against the need to provide certainty to the bus industry and to ensure continued investment. I stress again that the Bill provides the ability for other local authorities to access the powers if there is a strong case for doing so.
I have already said that we are in discussions with Cornwall on its devolution deal. The noble Lords, Lord Woolmer and Lord Berkeley, both raised issues pertaining to Cornwall. Cornwall is committed to improve local transport in the wider area, and it has made a strong case for having access to franchising powers. If Cornwall decides that it wishes to pursue franchising, the regulations will be brought forward for discussion via the affirmative procedure. As I have already said in response to the noble Baroness, Lady Scott, it is important to note that in laying out the intent behind the proposals in the Bill the Government have been very clear that they believe that mayoral combined authorities provide a model which is able to take forward the proposals around franchising. However, that does not preclude others doing so. By making the provisions subject to the affirmative procedure, with applications subsequently made to the Secretary of State, we are providing the locks, the vehicles and the necessary checks and balances to ensure that the best deal is done for all local authorities. I shall respond shortly to questions relating to specific procedures relating to the Secretary of State.
My noble friend Lord True asked why competent authorities cannot come together when they have franchising powers. I assure him that nothing in the Bill prevents this. They can make their case, and the Government will listen. Whether it is me or Ministers at a more senior level, we want to ensure that the competence powers needed are in place to make franchising accessible to whatever type of authority. I stress again that the economic geography of the authorities coming together is an important and attractive part of this. I assure noble Lords that we have no intention of excluding any particular local authority in this respect.
The noble Lord, Lord Snape, asked what would happen to investment under franchising. I have already talked about the concerns of bus companies. When franchising is implemented, authorities will be able to specify things such as vehicle age, but they will need to ensure that a scheme remains affordable. The noble Lord also asked about the Competition and Markets Authority. We have received several recommendations from the CMA. We are considering them and will respond shortly.
The noble Lord, Lord Woolmer, asked about the regulations to allow certain categories of authority. I have answered this in part already. We want to make franchising powers available only where there is a real desire to use them. Regulations will be made only if at least one authority from that category makes its case to government. The Secretary of State will then need to give consent to individual authorities which want to use the powers.
We have talked, to some degree, about criteria, and I am conscious that in response, to the noble Baroness’s question, and I think, to the noble Lord, Lord Woolmer, who also asked about this, I gave a commitment at Second Reading to publish the criteria which the Government and the Secretary of State will use. We will make the detailed criteria available before Report. At this juncture, I can share some of the headlines. There will be, in essence, four key factors that the Secretary of State will consider: first, the powers the authority has; secondly, the governance arrangements which are in place; thirdly, the economic geography of the area; and fourthly, the track record and ability of the area to deliver upon this. There is further detail to follow and, as I have said, I will seek to ensure that that is published before Report.
During this debate, I have talked about a number of factors, including the importance of powers of governance, the arrangements the authority has in place, the economic geography of the area and the track record which I have just alluded to. I hope that, in part, this has helped reassure noble Lords that the Government’s policy has been determined with the interests of passengers and the continued health of the bus industry in mind. It is about balancing and ensuring that local authorities that we believe have the governance arrangements in place and are able to take forward franchising are able to do so, but not to the exclusion of others. I believe that with the measures we have in place, the affirmative procedures of debate in this House about other authorities that seek to apply and the criteria that the Secretary of State will apply in decisions, I have been able to reassure some noble Lords that the Government’s policy has been determined with the interests of passengers in mind. With those reassurances, I hope the noble Baroness will withdraw her amendment.
(8 years, 4 months ago)
Lords ChamberI am grateful to all noble Lords who have taken part in the debate on this set of amendments, and to the Minister for his customary care and courtesy. However, I am afraid that I am not entirely reassured, as I think that there is a fundamental misunderstanding about what constitutes being independent. I recognise that you would, of course, go to a reputable firm of auditors. However, the person who sets the contract and pays the bill for the audit retains ultimate control. That is always the way. Anyone who has worked in this area knows that there are all sorts of ways in which the process can be subverted. This is a very important issue and involves great risk for the taxpayer, particularly in these mayoral models, where we know that the oversight of the mayoral function is not as strong as it used to be in the old days when people like me had committees which spent a lot of time going through these things. Given particularly the concerns expressed in the Public Accounts Committee report published on Friday, I think there is a need to return to this question, at least informally.
The noble Baroness again raises a very valid point. Once we have established our full response to the concerns of the Public Accounts Committee, we will be in a better position. As I said, I welcome further discussions in this respect, because I do not think that we disagree; to use the words of the noble Baroness, Lady Randerson, this is a matter of perception which can be addressed. Once we have responded more formally, I am happy to have those discussions with the noble Baroness.
It is certainly an issue of our time that perception is pretty much everything.
With that, I look forward to future discussions and beg leave to withdraw the amendment.
My Lords, just to pick up on a couple of points, whenever you see something that can be improved, at whatever time, improve it. It is as simple as that, and better early than late, as long as time lines are met. We have heard about the inspiration of the noble Baroness, Lady Scott, and the ingenuity of the noble Baroness, Lady Jones. Indeed, this issue came up during the previous discussion. I am not sure whether the noble Baronesses received my letter in that respect—
Yes, I received a letter on the questions about rural public transport, which I raised at Second Reading, and a positive response on this issue. I did not mention it because I thought I would leave the noble Lord to take the glory.
I received a lovely letter from the Minister, but only this morning.
(10 years, 7 months ago)
Grand CommitteeMy Lords, first, I join all other noble Lords in thanking my noble friend Lord Dundee for giving us an opportunity to discuss this important subject. From listening to the contributions today, it is clear that this has generated a lot of interest across the Committee. The noble Lord, Lord Bach, and my noble friend Lady Eaton, raised the issue of soft power. That is important. Too often we are caught between what initiatives are being taken specifically and sometimes underrate soft power in terms of language, cultural exchanges and so on. That is an important part of city-to-city diplomacy.
I begin by reminding your Lordships of this Government’s commitment to localism. The Government have returned more powers to individuals, communities and local councils than many thought possible. Indeed, my noble friend has acknowledged this. We passed the Localism Act in 2011 to ensure that local people could come up with and implement the most effective solutions to local problems. As a former local councillor with responsibility for culture—in my own patch we had the All England Club—I had experience of the powerful messages that you could send through sport, a point made by my noble friend, and of extending that in city-to-city initiatives.
The Government’s view is that we need to give further control back to our cities and we are already seeing the success that this change has brought about. Only last week, Cambridge joined the ever-increasing number of British cities benefiting from a city deal. As noble Lords are of course aware, under this deal cities, including Cambridge, Manchester, Birmingham, Bristol, Leeds and many other successful cities, will now have greater responsibility for and control over decisions that affect them, and a greater chance to shape their own development.
My noble friend Lord Dundee talked about the importance of city-to-city initiatives, particularly in encouraging active citizenship and general well-being. Giving back power was the start of that process. We now want cities and regions to use the freedom they now have to strengthen their communities and economies. All places are unique. Some places will do that better than others. Some policies will work well; others may take time before they get going. So it is important that local policymakers have the opportunity to discuss among themselves, to share success stories and discuss possible risks and pitfalls.
The Local Government Association encourages this domestically. My noble friend Lady Eaton played an important role in this respect as a former chairman. Its Peer Challenge and Knowledge Hub programmes are good examples of developing better practice through engagement but, as my noble friend Lord Dundee pointed out, and as he knows well from his considerable experience with cities in the sterling work that he has done in the UK and in Croatia, there is much that can be gained from sharing experience internationally, and we have worked hard to develop spaces for cities to share best practice.
In answer to my noble friend’s question, we support fully the strengthening of such initiatives, and city-to-city diplomacy can play an extremely important role in developing local democracy. The UK Government will continue to support institutions facilitating this development. Indeed, my noble friend Lady Stowell of Beeston is currently in Strasbourg to address the Congress of Local and Regional Authorities.
The noble Lord, Lord Shipley, asked about trade. That is a valid issue to raise. UKTI encourages cities to focus directly on activities such as building their local foreign direct investment capacity, understanding their sector or other strengths and establishing inward investment propositions for their area. The noble Lord, Lord Bach, will recognise that many embassies around the world have a UKTI hub to encourage bilateral trade. I hope that point will be welcomed by my noble friend Lady Wilcox.
The Organisation for Economic Co-operation and Development is one of the organisations that provides such spaces for city-to-city diplomacy. It brings together experts to discuss policy challenges and solutions, in relation to both specific cities and wider urban policy. OECD analysis was used to good effect to support the introduction of the city deals that I have already mentioned. Another example of the value provided by OECD co-operation is the project in which Manchester is currently participating. Organised by the Directorate for Public Governance and Territorial Development of the OECD, this project brings together a small group of international cities with the aim of finding best practice for dealing with ageing populations, which is an increasingly relevant topic.
The OECD urban working party directs initiatives, such as the Manchester ageing project, and other OECD work on cities, such as the recent project on green growth in the Benelux. The UK recognises the value of OECD work in this area and plays an active role in the urban working party. The environment was also mentioned quite forcefully and rightfully by my noble friend Lord Dykes.
My noble friend Lady Wilcox mentioned the Council of Europe. It has a strong track record and has an important role to play in city-to-city diplomacy. With the Congress of Local and Regional Authorities and the European Committee on Democracy and Governance, the Council of Europe can facilitate direct exchanges between cities and local authorities and allow national Governments and local authorities to take a step back and address strategic challenges faced by cities and regions in Europe. As noble Lords will know, the UK sends a sizeable delegation of local and municipal officials to the congress. The delegation, with a mandate of four years, is made up of 18 full members and 18 substitute members from local authorities and the devolved Administrations.
The UK is also represented at the European Committee on Democracy and Governance, which we chaired until January 2014. During our chairmanship of the Council of Europe in 2011-12, the UK achieved wide consensus on our priority of streamlining the Council of Europe’s activities on local democracy to ensure the effective co-ordination of activities and the efficient use of resources. The creation of the Centre of Expertise for Local Government Reform marked another step forward in the Council of Europe’s capacity to help cities and regions develop best practice through co-operation.
Within the European Union there are many opportunities for city-to-city diplomacy. I assure noble Lords that the Government, through attending various EU meetings, seek to disseminate information from EU presidency meetings designed to spread good practice among cities.
Noble Lords will be aware of the Committee of the Regions, which provides further opportunities. It aims to shape future EU policy decisions by getting involved in policy-making at an early stage and has greater influence now than before the Lisbon treaty. The UK appreciates the importance of ensuring that the impact of EU legislation on local issues is understood. The UK delegation promotes UK local government and devolved Administration interests in EU law-making and decision-taking.
The ERD fund is another key tool in facilitating city-to-city contact. The ongoing negotiations on the new sustainable urban development programme illustrate how this Government are working hard in Brussels to make sure that UK cities can access this tool. When our cities and regions are able to work with the fund, it is clear that engagement is worth while.
Using funds from the EU and national Governments, Glasgow is yet another example of a city now working with 11 partner cities to promote the employability of young people in the labour market. Birmingham is leading a group of 10 cities as they develop links between creative industries across Europe. Manchester is one of six cities sharing work on how to use financial instruments better in municipal planning. Here in London, Westminster local authority is engaging with Barcelona, Dublin and five other cities to promote urban markets as key drivers of economic development, urban regeneration and sustainable living.
My noble friend Lady Scott and, I believe, my noble friend Lord Dykes talked of EU funding for regions and cities. I have already illustrated some of the instruments that are available. EU funding has been valuable in city-to-city diplomacy but we must continue to make sure that access to this funding is available for our cities. The co-operation seen in the frameworks for the Council of Europe and the OECD are examples of this. Specific mention was made of the North Sea Commission and that UK representation was declining in that respect. The Government have introduced measures allowing local authorities more and greater control over their budgets, and they can now appropriately prioritise their spending. If those local authorities see the value of the North Sea Commission, they can of course pursue that.
I apologise for interrupting the noble Lord but is he aware that when the Secretary of State in another place makes comments from the Floor of the Chamber criticising individual local authorities for participating in travel abroad, it really does not help the Government’s case?
I am sure that has been noted in Hansard and I will write specifically to my noble friend in that respect.
My noble friend Lady Eaton talked about sporting links and the noble Lord, Lord Bach, talked about soft power. I have already alluded to the fact that this is an important part of city-to-city diplomacy. The Olympic Games in London in 2012 were an excellent sporting spectacle from which all cities could learn—indeed, we are sharing experiences across the world. The noble Lord, Lord Anderson, and the noble Viscount, Lord Falkland, also raised concerns that twinning is declining, in part due to budget constraints. This Government have brought in a raft of measures intended to give local authorities more control over and responsibility for their budgets, and we allow them to decide on their spending priorities as they are directly accountable to their electorate. City-to-city diplomacy has provided twinning schemes and I fully acknowledge the worth of those that have been set up.
I am increasingly aware that we are running slightly short of time. The exchange of views between cities should, of course, lead to stronger communities, more effective policing and more proactive education for young people. However, as my noble friend Lady Wilcox said, these new initiatives should not lead to increased bureaucracy. We can see that when conditions are created that allow city and local authorities to interact and co-operate on areas close to them, best practice develops and our cities thrive.
My noble friend Lord Dundee has made a powerful and persuasive argument, which I know Ministers and officials across Whitehall will reflect on. I pay tribute to the leadership that he has shown on this issue and look forward to further efforts to strengthen the role of city-to-city diplomacy in the future.