Bus Franchising
Debate between Lord Hendy of Richmond Hill and Baroness Garden of Frognal(2 months, 1 week ago)
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The Deputy Speaker (Baroness Garden of Frognal) (LD)
It is the turn of the Minister.
The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)
I thank the noble Lord, Lord Moylan, and the noble Baroness, Lady Randerson, for their comments on this subject. Despite the noble Lord, Lord Moylan, having just congratulated me on my position, I find myself virtually wholly disagreeing with what he said, save only one thing, which is that the quality, frequency and reliability of bus services are very important to all those who use the most popular form of public transport.
The noble Lord raised the issue of the £2 fare cap. As the noble Baroness, Lady Randerson, observes, the money for it runs out in December. The Government are looking urgently at this to determine its future, and we will respond on it as soon as we can.
The noble Lord talked about the TfL system, which of course I am as familiar with as maybe he is, having administrated it for the best part of 15 years. He said that the fares risk is borne by TfL and questions the capacity of local authorities to deliver that. His observations about the capacity of other places in England to do this do not need to be theoretical, because the Mayor of Manchester, a combined authority, has had bus franchising in place for some time.
One of the features which distinguished it in London is being replicated in Manchester: in the last six months alone, the first tranche of franchising in Manchester has produced revenue growth of 5%. It has enabled the introduction of more buses, the service is more reliable, and a night bus service has been introduced. Those are features which occur because of the comprehensive network, its promise of stability, its consistent information, ticketing and planning, a closer interaction with traffic authorities to allow buses to progress more freely, and the introduction of real-time information. Those are all features that local authorities can deliver if they choose to go down the franchising road.
The noble Lord questions the capacity of local authorities to put in such a system. My department is building its capacity in order to give assistance on the ground to local authorities that want to proceed down this route.
On the full assessment of the impact of this policy, I have already described the interim assessment from Manchester, which is wholly good. Throughout England, in towns and cities and in the countryside, there are huge variations in the quality, volume and reliability of bus services. The Government’s suite of measures, of which the introduction of franchising is one for those local authorities that wish to take advantage of it, will stabilise things so that the quality, frequency and reliability of the bus service is more certain. That will encourage people to travel and give the bus service itself more passenger volume and revenue.
The noble Baroness, Lady Randerson, supports local devolution, and this Government strongly support that too. Franchising is a measure which will be available to all local authorities. They can choose what to do in their particular circumstances. She refers to the end of temporary funding. We certainly have a keenness to amalgamate funding streams; there are several, and it would be easier for local authorities and bus companies to understand one funding stream. We would like to give certainty on multiyear funding, but that must be subject to the parlous state of public finances that this Government have inherited. She is right that giving certainty in this direction will improve the quality, frequency and reliability of bus services in Britain.
Lastly, the noble Baroness refers to young people. Greater local authority control of bus services gives the opportunity for more local authorities to give concessions to young people, where that is justified. There are already concessions for young people, but we agree that getting young people into the habit of public transport usage is extremely important.