High Speed Rail (London-West Midlands) Bill

Lord Bradshaw Excerpts

Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting: House of Lords & Report stage: House of Lords
Tuesday 10th January 2017 Grand Committee

[Lord Bradshaw (LD)]

If I may just follow up a few of the points made by my noble friend, we have discussed before the question of a link between Euston, St Pancras and King’s Cross. When I was deputy general manager at Euston back in the far-off days, it was being discussed—it is one of these projects that seems always to be under discussion but is never carried out. I am looking for something like the link you get between terminals in airports; that is, a wide, well-lit way of getting between the two stations with a travelator or similar device for your luggage. I am not looking for some form of futuristic railway, just a convenient, out-of-the-weather way for moving you and your luggage between the two places.

There will be a lot of time to think about this, because there will be a long period when Old Oak Common will be the London terminal for HS2. There can be dispute about how Old Oak Common could be used, but there will be six platforms there and the trains from Birmingham, which will take only 38 minutes, can almost be described as commuter trains. They will not require huge amounts of servicing at Old Oak Common, it will be possible to turn trains back there very quickly, and Euston may well not be needed until after phase 2A of HS2, so there is plenty of time to think about it and get it in place.

My noble friend commented on connections to HS1. I know that people in the south of England feel that it is very difficult for them to use it: they have to make a big journey. That will be alleviated if the Government could—again, they could work on this contemporaneously with the work on HS2—strengthen the link along the south coast between Brighton and Ashford. There are bits of that railway that need sorting out. I hope we can get some sort of assurance about what the Government intend to do.

Those are questions, not things that we will have disputes on, but we want to know what the Government envisage that they will do, in the long term, about the problems here.

[Lord Berkeley (Lab)]

My Lords, my Amendment 9 is grouped, although I am not sure it is closely connected to what the two previous speakers have been discussing. It would delete one of the amendments that the Select Committee proposed in its report. Let me make it quite clear: I do not criticise the Select Committee on this issue; I am sure its amendments are just what is needed. I ask the Minister, however: is it not a bit unusual for a Select Committee’s amendments to be incorporated in a Bill without debate? I had assumed that they might have been tabled for debate today, and we could have debated and no doubt approved them, but it was surprising that a new issue of the Bill was published in the past week as a result of the amendments being included. This may not be a question for the Minister—it may be a question for the Chairman of Committees or someone else—but it is something that we should debate. Perhaps it will be different next time, if there are to be more committees such as this.

While I am on my feet, the Minister kindly briefed us on progress just before we broke up for Christmas. One question that many asked him was: were the Government going to respond to the excellent report from the Select Committee? It would have been nice to have their response before Committee today. We have not had it, but can he assure me that we will receive it in good time for Report?

--- Later in debate ---

I will not go on. I think that I have set out the reasons for tabling these amendments, but I urge the Minister to undertake this independent cost analysis and everything else that goes with it before the construction starts. Otherwise, in a couple of years, whoever is the Minister will say, “Sorry. It’s going ahead and we’ll need more money”. I can see Ministers in this Government and probably in any other Government saying, “Well, if you want more money, you’d better find it from the other railway budget”. That would be a complete disaster. I beg to move.

[Lord Bradshaw]

I support what the noble Lord, Lord Berkeley, has said. The scheme as envisaged is extravagant, and this is not a time when we can afford extravagance. There is a good case for having an independent assessment of the costs, particularly to consider such things as how long this railway can terminate at Old Oak Common, which would set aside a considerable sum of money. If a connection has to be made to Euston, how can that be done in the most economical way? I do not believe that that issue has been addressed. We are not talking about small sums of money; we are talking about billions of pounds.

One thing that I was told about the Bill was that people had made assumptions about the time it took to turn round a train from the north that was heading in the direction of London. I have run a lot of London stations. I can assure noble Lords that, with the number of trains that it is proposed to run from Manchester to Old Oak Common, it would be quite easy, given the six platforms there, to turn the trains round. What one has to factor in is the capacity at Old Oak Common. That means that there has to be a sufficient number of people to service the trains. Special attention also needs to be given to the access to and from the platforms.

I rather agree with the noble Lord, Lord Berkeley, about the Handsacre link, which seems to cost a lot of money. I certainly agree on the issue about speed. There is a complete misapprehension of the value of journey time savings when we talk about savings of two minutes or less, yet that structure holds up the whole of our transport evaluation, whether in road, rail or anything else—the biggest factor to be taken into consideration is the value of the small time savings, which are all added together and form a colossal sum. However, people making a journey do not take into consideration whether they are going to be two minutes quicker, because in lots of modes of transport unpredictability is a much bigger factor than the journey time saving.

I also want to probe—to push very hard—on the time savings. We should be very careful about speeds which go much above 125 miles per hour, possibly up to 150. It costs a lot once you push speeds towards the upper end of the limit. I am happy to join the noble Lord, Lord Berkeley, in his call for independent costings, but there is also a need for re-evaluation of the economic basis on which the line is to be built.

[Lord Framlingham (Con)]

My Lords, we have dealt with only two amendments so far, and any member of the public sitting listening to the Committee will be asking themselves: “Why on earth are you going ahead with this project?”. All we have are problems, which seem to me almost insurmountable; we have no answers to them. When we ask about the trek from St Pancras to Euston, the answer is, apparently, offer £3 million to the local authority as a prize if it can come up with the answer. That does not sound to me like much of a solution.

I know that this is not Second Reading, but we must ask ourselves whether there is any sense in going ahead with this whole project. We have not yet dealt with the environmental problems, which will be huge and last for years. We have heard from the noble Lord, Lord Berkeley, whose amendment I support, that the whole scheme is not properly costed and nobody knows what will happen in the long run.

The Minister described it as a vital scheme. It is not. The money could be much better spent on all sorts of things: hospitals, schools, or Liverpool-to-Hull transport. If we pursue it, I think we will regret it for a long time. As this matter proceeds, I hope that your Lordships’ House will think it through very carefully and perhaps have second thoughts about proceeding with the whole scheme.

Southern Rail

Lord Bradshaw Excerpts

Monday 12th December 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

The noble Lord raises the specific issue of the contract. I assure him that when we have directly raised issues about the failures of this line, as noble Lords will be aware, GTR has raised the issue of force majeure. We have now gone further and are looking at each case of force majeure, which impacts on 10,000 separate train lines, and which it raised between April and June of this year, to see whether they stack up. The DfT is currently looking at that report to ensure that, every time that is claimed on that contract, it is looked at extensively and we can respond accordingly. Until we have completed that exercise, we cannot hold GTR in breach, because we have to establish whether the basis for it claiming force majeure is valid.

[Lord Bradshaw (LD)]

My Lords, will the Minister consider that there is a case for people being summoned to ACAS, not asked whether they would care to come along? The unions are inflicting awful, personal damage on people. A decent industrial relations strategy would let ACAS issue a summons, not an invitation, and it would then have the power to act as an arbitrator in those cases and give a pendulum arbitration decision that would be binding on both sides.

[Lord Ahmad of Wimbledon]

My Lords, industrial relations in this country to a large extent have been dictated by the fact that many people—and rightly so—come willingly to ensure that disputes can be resolved. I hope that all parties concerned in this dispute reflect carefully on their position to ensure that they are acting in people’s true interests. What marks our country’s industrial relations is that, whether you are a union representative, a company representative or an arbiter like ACAS, we come together to resolve disputes amicably and in the best interests of commuters. I hope that that happens in this case.

Railways: Industrial Action

Lord Bradshaw Excerpts

Wednesday 7th December 2016 Lords Chamber

[Lord Bradshaw (LD)]

As an experienced railway manager who has dealt with many such intractable disputes, may I suggest to the Government that they need to move this logjam on both sides? First, any train on which passengers are travelling—these are long trains with 12 coaches—should have a second person who is qualified in the rules and regulations. Secondly, in return for that, the unions should undertake that that person will attend to the needs of passengers, check tickets, help disabled people and generally make himself available instead of sitting in the back cab of the train doing nothing. If that were done, I believe there would be the core of a solution.

[Lord Ahmad of Wimbledon]

The noble Lord is right, but let me assure your Lordships’ House—indeed, I am sure that many noble Lords are aware of this very point—that the changes being implemented ensure that there is no loss of jobs on driver-only operated trains. Those who were conductors are now train supervisors. The duties outlined by the noble Lord are exactly the duties they will undertake.

Train Operating Companies

Lord Bradshaw Excerpts

Tuesday 6th December 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

As the noble Lord points out, we published a rail freight strategy in September. As I am sure he would acknowledge, it reaffirms our commitment to the industry and sets out how we want this business to work. When it comes to any new working arrangements, such as the new alliances on one route that have been announced today, we want to ensure that priority is given to the interests not just of passengers but of freight, which is a crucial part of our country’s economy.

[Lord Bradshaw (LD)]

My Lords, will the Minister tell the House whether this route, when it is changed in nature, will be subject to the Rail Regulator? Will the Rail Regulator determine the charges that people who are not running through trains may have to pay? This route links up three of the main lines of our country and was part of the so-called “electric spine”—which may or may not materialise.

[Lord Ahmad of Wimbledon]

The noble Lord raises an important point about the regulator. The regulator will remain the same as on other networks. On the issue of the pricing structure, again, that will feed into the development of this new working arrangement. Let me assure the noble Lord that on issues of health and safety, which the regulator also oversees, there shall be no compromise and the regulator will continue to have the same role.

Bus Services Bill [HL]

Lord Bradshaw Excerpts

3rd reading (Hansard): House of Lords
Wednesday 23rd November 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Ahmad of Wimbledon) (Con)]

My Lords, in moving Amendment 1, I shall speak also to Amendments 4 and 5 in the name of the noble Lord, Lord Bradshaw, who has tabled a number of amendments that aim to restrict the ability of the Competition and Markets Authority to investigate franchising schemes for a period of two years unless it has received a complaint, or has become aware of a significant adverse effect on competition.

Let me start with government Amendment 1. As noble Lords will recall, the Competition and Markets Authority issued a letter on the Bill on 29 June which contained nine recommendations. Our response to these recommendations was issued on 10 October and is now on the GOV.UK website. One of these recommendations was for the CMA to be listed as a statutory consultee in relation to consulting on franchising proposals. The Government accepted this recommendation and tabled Amendment 1.

The CMA is already a statutory consultee in relation to advanced quality partnership, advanced ticketing and enhanced partnership schemes. I take the view that it would be helpful for franchising authorities to engage with the CMA as they develop their proposals. This should help ensure that the authority developing its franchising proposals is made aware of any potential effects on competition, and the benefits or impacts this could have for bus operators and local people.

I now turn to Amendments 4 and 5 in the name of the noble Lord, Lord Bradshaw. As I mentioned on Report, the CMA will not have any specific powers to block bus franchising schemes. However, it is important to remember that their role is to conduct market studies and investigations in markets where there may be competition and consumer problems, with the aim of improving the situation for passengers. We believe that any restriction of the powers available to the CMA would send the wrong message about its important role in protecting consumers. As such, I urge the noble Lord not to move his amendment.

In addition, as the noble Lord may be aware, Schedule 10 to the Transport Act 2000, which the noble Lord seeks to amend, does not give the CMA the power to investigate franchising schemes. The schedule provides a competition framework in which partnership schemes should operate. As such, the noble Lord’s amendment does not appear in the relevant section of the Bill.

I hope that this explanation and the assurances I have given—we have met in this regard as well—have persuaded the noble Lord, Lord Bradshaw. I know he recognises the important role that the CMA has to play, and that local authorities should look to work with it as proposals are developed to ensure local bus passengers get the best possible services. However, I do not feel that the amendments are necessary as the CMA is not being given any specific powers to block bus franchising schemes. I trust that has reassured the noble Lord to the extent that he is minded not to press his amendments. I beg to move.

[Lord Bradshaw (LD)]

I thank the noble Lord for what I regard as a minimal response to the inquiries I have made. The Competition and Markets Authority seeks to interfere in the proper conduct of business. Can the Minister reflect on the extent to which the authority is working in the public interest or whether it is in the interest of the people employed by the Competition and Markets Authority, to give themselves work? The Minister will be aware of the enormous ongoing inquiry into the Northern Rail franchise, and the effect on Arriva buses. A long time and a lot of expenditure—both public expenditure and that of Arriva—has resulted in a settlement that could probably have been achieved without anything being done by the Competition and Markets Authority. There is very little overlap between the services of Arriva as a bus operator and the services of Arriva as a train operator—and, of course, it won the franchise for a train operation and went ahead without realising that this would be raised. It has been raised and it has cost a lot of money, and a Government who are so anxious to save unnecessary public expenditure should seriously consider what these people are doing.

The future of bus franchises has been covered by what the Minister has said, but when future rail franchises are let—a number are coming along—it would be just as well if the Competition and Markets Authority was, in this case, put into a position where it was a statutory consultee. It should also be told, however, once the franchise had been let and the franchisee is trying to establish services—which takes a long time, because you need rolling stock or buses to run a new franchise—that it should keep out of the way for a time, unless there is a significant public complaint. I am not aware, although I may not be very well informed about it, of a groundswell of opinion in the north of England about the issues that the CMA has raised.

[Lord Snape (Lab)]

Could the noble Lord assist me? He was forthright in his condemnation of the CMA, although he appears to believe that it has a part to play in rail franchising. I do not want to take noble Lords down that road because I would be out of order in doing so. However, it is a slight contradiction in terms, though no more so than in my own party, which is in favour of franchising for buses but against it for trains. I think that is the right way around, but I am not quite sure; perhaps my noble friends could advise me on that.

To stick strictly to the CMA and the Bill, the CMA made nine eminently sensible recommendations, including the one that, somewhat belatedly, the Minister has now decided to accept. Given the noble Lord’s condemnation of the CMA, which of those recommendations does he feel are unnecessary with regard to the Bill?

[Lord Bradshaw]

I am perfectly satisfied with what the Minister has said in so far as it concerns bus franchising, but the bus and rail industries are very much linked together. I am trying to bring to his attention the fact that the work of the CMA in the latest case has probably been fruitless. It has been very expensive and, in future, rail franchising should be subject to the same discipline now proposed for bus services. With that, I should like to withdraw the amendment.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

It may be for the convenience of noble Lords if I remind the House that we are debating government Amendment 1, and the noble Lord, Lord Bradshaw, has been speaking to Amendments 4 and 5, which are grouped with that amendment.

HS2 Update

Lord Bradshaw Excerpts

Tuesday 15th November 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

What we probably have now is ensuring that there is proper consultation. I suggest to the noble Lord that planning laws have moved on since the Victorian age. The issue of airports was raised previously. I remember travelling to other parts of the world where they were building six runways, and it was suggested to me that we had had a challenge over the last 40 years in building a single runway. I am acutely aware, as are the Government, of the importance of pressing ahead with these infrastructure projects while ensuring that we effectively consult and adhere to the planning requirements presented by such large infrastructure projects.

[Lord Bradshaw (LD)]

My Lords, I support my noble friend on the question of Sheffield. On most parts of the continent, high-speed railways go on the conventional railway for the last bit of their journey, often a small bit. By so doing, they reinforce all the connections that that railway has with other railways, and with buses, where people actually want to go. We should take very seriously the point that Sheffield will be infinitely better off with a station in the city centre, even if it means that the journey will be a minute or two slower—after all, that is what we are talking about.

Secondly, having listened to the discussion, I bring to the Minister’s attention that the east coast main line is unreliable and it will become more so because of the increased pressure on it. At present the Government are in the process of purchasing a new fleet of trains. These are all electric trains, other than the bits that go to Scotland and places such as Hull. The main artery between Newcastle, Leeds and London is going to have trains that cannot be diverted on to diversionary routes when the inevitable infrastructure failures occur or when repairs have to be done. For the sake of the north of England, I ask him to go back and talk to his officials about the good sense of the decision they have made, and whether the decision can be revised to produce on the east coast main line more bi-mode trains.

[Lord Ahmad of Wimbledon]

I will certainly come back to the noble Lord on his point about the east coast main line, but on his earlier point about Sheffield, I reiterate that the Government are minded to accept David Higgins’s recommendation that HS2 should serve Sheffield city centre. We have also had several meetings about this with the noble Lord, Lord Kerslake, who I do not think is in his place, and we share the noble Lord’s opinion about the importance of providing that city link; the Government are certainly minded to do so.

Bus Services Bill [HL]

Lord Bradshaw Excerpts

Report: 2nd sitting (Hansard - part two): House of Lords
Monday 24th October 2016 Lords Chamber

Moved by

[Lord Bradshaw]

95: Clause 12, page 61, line 18, at end insert—
“( ) If a traffic commissioner considers that the operator of a registered service has failed to comply with a condition attached to the service permit, the traffic commissioner may cancel the registration of that service.”

[Lord Bradshaw (LD)]

My Lords, this amendment is designed to ensure that when a franchise or an enhanced quality partnership is in place, it will not be undermined by an operator—probably operating across the borders of the franchise but maybe even within it—using vehicles that do not comply with the franchising agreement. Most of us know areas of the country where some of the buses that are in competition with the main operator fall well below the standards—the vehicles are noisy, dirty and probably do not conform to up-to-date emissions regulations. I am moving this amendment to ensure that a traffic commissioner’s powers will enable him to enforce the standards laid down by either the statutory partnership or the enhanced quality partnership. I beg to move.

[Baroness Randerson (LD)]

My Lords, this amendment reflects the importance that we on these Benches believe lies in the role of traffic commissioners and the enforcement that they have the power to undertake. If you look at their annual report, you will see that the traffic commissioners themselves complain of being overstretched. It is important, therefore, that we give them an express requirement to enforce regulations at a time when we are likely to see bus companies with a lower quality of service possibly impinging on the better bus companies that provide the very best service. I simply wanted to briefly underline the importance that we see in this simple amendment.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for tabling his amendment. On the final point raised by the noble Lord, Lord Hunt, I say that training is incumbent on every element of this Bill. Where we can improve training, that should be the focus of how we move forward in this area.

Administration of service permits are intended to be used to allow commercial services that do not operate under a franchise contract to operate in a franchised area. They are most likely to be used for cross-boundary services, but an operator can also apply for them to provide other services that a franchised network of services does not cover. Under the Bill, the franchising authority, rather than the traffic commissioner, will be responsible for dealing with applications for service permits, and new Section 123R of the Transport Act 2000 enables that franchising authority to attach conditions to service permits in certain circumstances.

I totally agree with the noble Lord’s objective that there should be a sanction for operators who do not comply with such conditions. The Bill already achieves this by enabling local authorities to revoke or suspend a service permit if the holder has failed to comply with a permit condition. This can be found in the new Section 123S to the Transport Act 2000, on page 26 of the Bill.

The amendment would also add a power for the traffic commissioner to cancel the registration of a service if the operator has failed to comply with its service permit. Under new Section 123J of the Transport Act 2000, no services that operate within a franchised area are registered with the traffic commissioner, including those operated under service permits, so this addition would have no practical effect. For services of this nature in a franchised area, the permit effectively replaces the registration and the local authority has the powers that it needs to deal with the issue that the noble Lord raises.

I hope that the explanation I have given about the provisions already in the Bill reassures the noble Lord that the intent of his amendment, which I agree with, is already captured in Clause 4, and that he will be content to withdraw his amendment on that basis.

[Lord Bradshaw]

I am very grateful for what the noble Lord has said. It has clarified the situation: if any of these statutory partnerships come into effect, there will be means by which to make sure that people abide by the rules. I beg leave to withdraw the amendment.

Amendment 95 withdrawn.

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Moved by

[Lord Bradshaw]

114: Before Clause 22, insert the following new Clause—
“Rural bus services: concessionary travel
(1) A local transport authority must—(a) in making a scheme under Part 2 of the Transport Act 2000 (local services), or(b) in carrying out any functions related to the provision of local bus services,ensure that, in making provision for the reimbursement of operators of local services in respect of concessionary bus travel, rural areas are given greater weighting over urban areas.(2) In this section, “rural areas” and “urban areas” are distinguished with reference to the Rural Urban Classification.”

[Lord Bradshaw]

I return to the subject which we have spoken about throughout the Bill: how deep rural bus services might be saved from the way they are being reduced in present circumstances—and, with the various threats to local government funding, are likely to be further reduced in future. I do not intend to press my amendment to a Division, but I would like to have the Minister’s views on it.

The concessionary fare money that the Government dispense, which is a large sum of money—we are talking about hundreds of millions of pounds—is divided up among transport authorities in such a way that it generally comes down to a sum of money spent on concessionary fares in each area. This means that many busy rural routes, profitable routes, attract concessionary fare revenue; whereas deep rural routes, which are mostly used by concessionary fare holders, pass holders, receive the same sum as the authority gives to its urban routes. Of course, a lot more people use urban routes, and I suggest a small top-slicing of the concessionary fare revenue granted to urban routes, so that a little bit is instead devoted to the rural routes. Because far more people travel on urban than rural buses, a small top-slicing of the money for urban buses would amount to a huge increase in concessionary fare revenue earned by operators of rural services.

I am mindful that there are a number of EU rules about state aid. We have to be careful that we do not leave anybody with a profit as a result, but many of the rural routes are not the sorts of routes from which anybody makes very much money. My object in moving the amendment is to ask the Minister—he and I will meet fairly soon—whether this might not be a way of supporting the rural routes in this country. The Government would not have to find more money; they would simply have to redistribute the money that they are already spending. I beg to move.

[Baroness Randerson]

My Lords, my noble friend has devised a very neat way of assisting bus services in rural areas. The problem that rural bus operators face is the demography of those areas, as they almost always have a very much older profile of bus passenger, which means that those routes rarely carry large numbers of fare-paying passengers. The concessionary recompense given to bus operators is cumbersome and inadequate, and that makes it very difficult for rural operators to make a profit. There is a long record of rural operators going out of business. We are suggesting a weighting towards rural areas that would hardly be felt by operators in urban areas because the actual number of rural passengers is very low as a percentage of the total. For rural operators this scheme could be the difference between survival and going out of business. I urge the Minister to respond positively to the efforts made by my noble friend Lord Bradshaw to suggest a mechanism to support bus services in rural areas.

[Lord Ahmad of Wimbledon]

I thank noble Lords for their brief contributions to this short debate. The noble Lord, Lord Bradshaw, has tabled an amendment on rural bus services and concessionary travel. As I have said before during the progress of this Bill, rural bus services play a vital role in helping people to get to work and school and in ensuring that they can access a wide range of services and leisure opportunities. Indeed, this issue has been raised in the House before. I believe that the noble Baroness, Lady Scott—who is not in her place at the moment—raised it on Second Reading.

I think we all accept that the loss of a local bus service, particularly in rural areas, can leave people isolated or dependent on friends and family to help them travel. However, commercial services in rural areas can be the most difficult to provide because of the need to achieve the critical mass of passengers required for a regular service. As I have said before, we are confident that the Bill provides significant opportunities for rural areas, and I again draw the noble Lord’s attention to the specific guidance which the Government have now published in which those opportunities are set out.

I turn specifically to the amendment. It would perhaps be useful to remind noble Lords that reimbursement by local authorities to operators is made on a no-better, no-worse-off basis. That means that operators are already fairly compensated for the cost of providing concessionary travel in both urban and rural areas. I believe that the reimbursement mechanism that is now in place is fit for purpose, as evidenced by the large decrease in reimbursement appeals that we have seen over the last few years since the new reimbursement guidance came into force.

If the noble Lord is seeking greater reimbursement for operators for their rural as opposed to urban services, we would be concerned that the amendment would lead to a distortion in the concessionary travel scheme because it is reimbursed on the principle of “no better, no worse off” to which I alluded a few moments ago. It is for that reason that we cannot support this amendment.

I finish by saying that the Government provide, as I indicated previously, significant funding for local bus services. We have talked before about BSOG and the £300 million to local authorities. The Department for Communities and Local Government intends to increase support for more sparsely populated rural areas by more than quadrupling the rural services delivery grant from £15.5 million to £65 million by 2019-20. That again underlines the importance of rural services—a sentiment which I know we all share. On the basis of my explanation, I hope the noble Lord will withdraw his amendment.

[Lord Bradshaw]

I thank the Minister for that. I am not sure that I fully accept his logic. The no-better, no-worse-off rule is a fairly crude one because it is very difficult to tell. It is based on using large numbers of figures from all over the country and ignores the plight of the rural areas, which need more money. It is not coming from local authorities; it is decreasingly coming from them. The people who have these concessionary fare passes wish to be able to use them and the whole structure of the concessionary fare scheme needs to be revisited because it is clumsy and does not take account of the great differences there are in the nature of bus services in different parts of the country.

I have stressed that these rural services will never be run by anybody who expects to get very rich. They will always be marginal services. All I am trying to do is to move them up to a better status than they now have under the concessionary fare scheme so that far more of them might survive. The Minister referred to other things that have been done to support rural services but those are only small amounts compared with what could be done if the concessionary fare scheme were revisited. I heard the Minister but I would like to talk to him about this in some detail later, because it is a very technical subject and I do not want to bore people. On the understanding that we will have a meeting, I shall add that to the agenda if I may, so that I can explore the matter further. With that, I beg leave to withdraw the amendment.

Amendment 114 withdrawn.

Bus Services Bill [HL]

Lord Bradshaw Excerpts

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

[Lord Bradshaw (LD)]

Like the noble Lord, Lord Whitty, I live in a rural area. I travel on the bus every day and I have noticed that, for the bus services in the county of Oxfordshire that have been cut and which the county council has decided in future not to subsidise, the people who were using the bus services concerned were mostly concessionary fare holders. I could get on a bus with 16 or 17 people yet nobody was paying a fare. But those 16 or 17 people valued that bus as a contact with civilisation. I am quite clear that these are not people who have a car; many do not have access to a car, but they formed the staple part of the bus route. The bus operator was able to extend the day somewhat in the knowledge that he would receive a subsidy and a reasonable concessionary fare for carrying the people using the bus.

I know that the Government are not likely today to spray money at the problem, but I ask them—and I have put this in Amendment 114, which we are not discussing today, because it seems to me that there is a case—to make concessionary fares weighted in favour of deep rural areas. The gearing is such that a fraction of a penny on major bus services, if targeted at deep rural services, would solve the problem without the Government having to spend any more money. There are problems, but I do not believe that they are insuperable. I know that operators have to be no better off and no worse off. That is very difficult to tell, but we can assume that if an operator has the subsidy withdrawn and its concessionary fare level is kept low, the natural result will be that it is worse off.

There will also no doubt be some obstruction from those operating bus services in urban areas, but I am talking about taking a very thin top-slice off the concessionary fares that are used in urban areas and devoting those to deep rural buses, where subsidy has been withdrawn and where this appears to be the only way of maintaining a decent bus service. Otherwise, I support what the noble Lord, Lord Whitty, has said. I too have some doubts about whether the beleaguered local authorities will have the resources to undertake the survey, but it should be among their duties to look after not just the core of their county but the peripheries as well.

[Lord Shipley (LD)]

My Lords, I support the comments of the noble Lord, Lord Whitty, who I thought made an excellent case for Amendments 1 and 113 in his name and, in so doing, I should say that I am the vice-president of the Local Government Association. I simply add a little for the Minster to take away, because the noble Lord, Lord Whitty, talked a great deal about the importance of bus services for employment opportunities and for training purposes.

In the consultation that is talked about—a huge amount of consultation will take place on this Bill, not just in terms of this amendment—one type of organisation that should be automatically consulted is employers’ organisations. There can be huge problems for people who often are on a low income, live in remote places and have no access to a car and who, therefore, need to be able to get to employment and training opportunities, often at unsocial hours, by public transport. Therefore, it is important to consult those people. Proposed new subsection (4)(d)(iv) in Amendment 1 refers to,

“organisations, or types of organisation, specified by the Secretary of State in regulations made by statutory instrument”.

I hope very much that employers’ organisations and jobcentres will be included in that list.

--- Later in debate ---

Moved by

[Lord Bradshaw]

3: Clause 1, page 2, line 40, at end insert—
“(11 ) Where a local transport authority or authorities make an advanced quality partnership scheme, the Secretary of State may by order make provision to confer upon that authority or authorities the functions to enforce traffic offences. (12) The Secretary of State may make an order under subsection (11) only if a proposal for the making of the order in relation to the local transport authority or authorities has been made to the Secretary of State by the appropriate authority or authorities.”

[Lord Bradshaw]

It will not come as a surprise to any of your Lordships to know that the bus industry is in quite deep crisis. The number of passengers is falling, bus speeds are declining, and the quality of service that buses offer is getting worse. Considering that we want more people to use buses, the causes of the congestion afflicting the bus industry need to be addressed.

In a letter to me on 8 August, the Minister said that mayoral combined authorities will have the ability to seek additional functions or equivalent legislative provisions to enforce moving traffic offences if they wish. The enforcement of moving traffic offences is an extremely important power. Provisions were made in the Traffic Management Act 2004 for that power to be granted to local authorities but London and recently Cardiff—which is outside the scope of our discussions this afternoon—are the only two places to adopt this ability to tackle the points of traffic congestion that really hold up buses.

Oddly, the Minister’s letter makes no reference to authorities that seek not franchises but advanced quality partnerships. If the Government are willing to grant those powers to franchising authorities, they should be willing to grant them to authorities that decide instead to go for advanced quality partnerships. My amendment would give effect to this so that, if a local authority wanted, it might apply to the Secretary of State for permission to adopt the provisions in the Traffic Management Act.

This amendment is very important to the bus industry which, as I said, suffers severely from traffic congestion. That, among other things, is leading to services being withdrawn because they cannot be operated profitably. More buses are needed to maintain the service, the buses go slower and carry fewer people, and they become less profitable. I beg to move.

[Baroness Randerson]

My Lords, there is a bit of a conundrum at the heart of the Government’s attitude to this. They offer franchising powers to local authorities and, according to the Minister’s letter to my noble friend Lord Bradshaw, they offer additional powers to ensure that such franchising works well. That is logical but surely the most effective and efficient way forward is to ensure that those local authorities that do not want to go for franchising—it will be difficult and complex anyway—are enabled to make their bus service as efficient as possible to avoid the necessity for franchising. If you take that situation together with the views of the Competition and Markets Authority that franchising should be gone for only in very extreme situations—we will return to that later today—there is a bit of a contradiction. I cannot see why the Government are so unwilling to use statutory powers that already exist to implement the provisions of the 2004 Act.

It is not as if we do not have evidence that those powers work. They work in London and I can give noble Lords an assurance that they are beginning to work well in Cardiff. Those powers were given to Cardiff because it was part of the devolution settlement that Cardiff could ask for them. I was actually the Minister in the Wales Office who took that through this House in order to ensure that Cardiff had those powers. Noble Lords will probably be aware that I live in Cardiff so I have personal experience of the way in which the system is working.

Clearly, these powers are having an impact. You can measure that impact in the number of people who are fined for contravening the local road traffic regulations. It is clear that motorists started off with a brazen disregard for bus lanes, yellow boxes, right turns that they should be not making and so on, but that they learned pretty quickly. We know that because the fines start off very high but fall off pretty quickly. By the way, the council also learned because it started moving the cameras round. When it moves the cameras, the amount taken in fines goes up; then, after a while, people have learned and it goes down again. We want a very low level of fines because we want people to obey the rules. This is having an impact. All we are asking is that the Government use existing legislation to give local authorities the tools to do the job, whether they are going for franchising or any other partnership arrangement.

The evidence right across the country, as my noble friend has said, is of increased traffic congestion slowing down bus travel. The impact on passengers and bus companies is considerable. I draw noble Lords’ attention to a discussion I had with an operator in Bristol which said that it had had to put on well over 30 additional buses to maintain existing timetables because of congestion, and that much of that congestion is avoidable—if people do not park in bus lanes or drive along them, and so on. Of course, the financial impact on bus companies of having to put on additional buses is passed on to the passengers. The combination of higher fares and slower journeys deters people from using the buses. To my mind, it is only sensible to use the powers that exist.

--- Later in debate ---

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords who have taken part in this debate on Amendment 3. In moving his amendment, the noble Lord, Lord Bradshaw, reiterated that it would give all areas where an advanced quality partnership scheme is in place the powers to enforce moving traffic offences. I agree with him that congestion can have a major impact on local bus services, as other noble Lords have said, but I would also stress that local authorities have many options to address it, from infrastructure measures and technological solutions to the enforcement of moving traffic offences in bus lanes.

For instance, local authorities can designate bus lanes to provide dedicated road space for buses, enabling them to bypass traffic queues. Buses can also be exempted from restrictions such as no-entry signs. This can allow buses to benefit from a shorter, more convenient route than other traffic, sometimes by bypassing locations where there are known congestion issues. These are exactly the sorts of measures that local authorities can bring to an advanced quality partnership as their side of the bargain. I also confirm that English local authorities outside London that can enforce parking violations already have the powers to enforce bus lane contraventions, including moving traffic violations in bus lanes. This means that over 90% of the 293 English local authorities outside London can already enforce bus lanes.

I recognise that the noble Lord’s amendment would broaden these powers further and allow the enforcement of moving traffic contraventions, such as at yellow box junctions. There are already provisions available, as noble Lords know, in Part 6 of the Traffic Management Act 2004 to permit enforcement of other moving traffic violations by English local authorities outside London. Although the Government have made no current decisions on whether to bring these powers forward, we discuss them regularly with the Local Government Association and other key organisations—as I am sure noble Lords recognise, since we have many a vice-chair of the LGA here. Given the existing powers available to local authorities and the existence of Part 6 of the Traffic Management Act, additional legislation in this context, particularly where it relates solely to the narrowest type of partnership, is not necessary.

A question was asked about why only franchised areas or mayoral combined authorities can get this power. First, the devolution orders for mayoral combined authorities provide a legal mechanism to grant these powers to enforce moving traffic offences to those authorities. The mechanism does not exist for all types of authority. I assure noble Lords that we will continue to consider the case to grant these powers to all local authorities. However, for the time being, I cannot accept this amendment. I hope my explanation and the reassurance I have provided will allow the noble Lord to withdraw his amendment.

[Lord Bradshaw]

I am very sorry to disappoint the Minister. When local authorities, such as Reading, for example, have powers to enforce bus lanes, they still have great problems enforcing things such as yellow box junctions and right turns. This legislation passed on to the statute book 12 years ago and it is time that it was brought into effect. I wish to test the opinion of the House.

--- Later in debate ---

Moved by

[Lord Bradshaw]

12: Schedule 1, page 76, line 39, at end insert—
“( ) In paragraph 5 (investigations of CMA), at the beginning insert “Subject to paragraph 5A,”.”

[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.

--- Later in debate ---

[Lord Bradshaw]

I am sorry, but those assurances do not satisfy me at all. The fact is that the Competition and Markets Authority defines markets very narrowly. It takes a town—Morpeth, for example—and looks in minute detail at what is going on. Of course you can find anomalies, but that does not mean that they are prejudicing choice or competition.

This whole matter requires much further study. I have not seen the letter of 10 October to which the Minister referred, and I will of course study it. He has not given me the assurances I want. He has not referred to the almost disputatious relationship that the department has with the CMA over the northern franchise.

[Lord Ahmad of Wimbledon]

I thank the noble Lord for giving way. When he has read the letter, I am very willing to meet him between now and Third Reading to see how we can address his further concerns, if he is not satisfied with the Government’s response. I assure him that our intention in accepting Amendment 34 is that the statutory consultation happens in advance, as we have said in relation to other consultees.

[Lord Bradshaw]

I thank the Minister for that. It would be sensible for me to accept his suggestion of a meeting, but I have serious reservations about the role of the Competition and Markets Authority, particularly as it affects the transport industry. Perhaps, in preparation for the meeting, he will find out how many inquiries the Competition and Markets Authority has made into the local transport market, as opposed to large-scale industries such as steel or cement. He will find that a totally disproportionate amount of its time has been spent investigating the transport sector, often in minute detail.

With that offer of a meeting, I will beg leave to withdraw the amendment, but reserve the right to return to this matter at Third Reading.

Amendment 12 withdrawn.

Airports: London

Lord Bradshaw Excerpts

Tuesday 11th October 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

As the noble Lord is aware, the previous Prime Minister made that statement when he was looking at a very different proposition. Since then, as the noble Lord is also aware, the commission has reported and presented three viable options. The Government will be looking to make a call on south-east capacity shortly.

[Lord Bradshaw (LD)]

My Lords, will the Minister give consideration, apart from all this metropolitan stuff, to the interests of regional airports in this country, particularly Birmingham, which, when we have HS2, will be as close to London as is Heathrow or Gatwick? This is the sort of thing that is stalking up and it is likely to be ready before the runaway at Heathrow.

[Lord Ahmad of Wimbledon]

The noble Lord raises an important issue about regional connectivity and regional airports. I had the opportunity to visit Birmingham last week and I saw its plans. The noble Lord is quite right that, once HS2 has been built, it will take 30-odd minutes to go from London Euston to Birmingham. That underlines the importance of ensuring that our national infrastructure supports the general infrastructure of aviation. The regional connectivity of airports will be in my review of the airport policy framework.

Transport: London Bridge Station

Lord Bradshaw Excerpts

Tuesday 13th January 2015 Lords Chamber

[Baroness Kramer]

My Lords, I always think that it is exciting to look at opportunities to use the River Thames. However, one of the problems is that the Thames winds and bends around loops, which often means that journeys, rather than being quick, are fairly slow. However, Transport for London is always interested in looking at any proposed use of the Thames, and so are we.

[Lord Bradshaw (LD)]

Does the Minister agree that for decades there has been tremendous underinvestment in the railway, which is now busier than ever, and that the party opposite did not do much while it was in office to help the situation? Does this not pinpoint the imperative of getting HS2 working—where you can build a railway without having to inconvenience passengers—so that something new comes on stream to relieve the congestion?

[Baroness Kramer]

I agree with everything that my noble friend has just said.