Misuse of Drugs Act 1971 (Temporary Class Drug) Order 2016

Lord Kennedy of Southwark Excerpts

Tuesday 12th July 2016 Grand Committee

[The Advocate-General for Scotland (Lord Keen of Elie) (Con)]

My Lords, I thank the Advisory Council on the Misuse of Drugs for its expert advice, which informed the order we are considering today, which was laid in Parliament on 15 June.

If the order is made, seven methylphenidate-based compounds, as well as their simple derivatives, will be subject to temporary control under Section 2A of the Misuse of Drugs Act 1971 for a further 12 months, thereby maintaining the offences concerning their production and distribution. These compounds were controlled for 12 months under a previous temporary class drug order, which expired on 26 June 2016. The new TCDO came into effect on 27 June and will remain in effect for 12 months, subject to Parliament’s approval.

We are seeking to extend the temporary control following a request from the ACMD for additional time to strengthen its evidence base. This will give it the opportunity to consider the most recent data, including data from festivals, drug-related deaths and information from the drugs early warning system. The additional 12 months will allow the ACMD to consider whether these drugs should be made subject to full control under the Misuse of Drugs Act 1971. The ACMD notes that the initial TCDO has had a positive effect. Police Scotland has reported that in Edinburgh, where there had been reported injecting practices and an outbreak of infections involving some of these substances, there has been a reduction in harms.

These seven compounds are thought to be highly potent stimulants, similar to methylphenidate, a class B drug. One of these substances, ethylphenidate, had previously been marketed online as an alternative to cocaine. Their harms are reported to include anxiety, paranoia, visual disturbance, chest pain and a strong urge to re-dose. Other reported harms include anti-social and violent behaviour, loss of fine motor control, a high risk of bacterial infection and local tissue damage from injecting.

The order enables UK law enforcement to continue action against traffickers and suppliers of temporary class drugs while the ACMD gathers evidence. The order also sends out a clear message to the public, especially to young people, that these drugs and the brand names associated with them carry serious health risks. We know that the change in the law cannot on its own deter all those inclined to use or experiment with these drugs. However, we expect the TCDO to continue to have a notable impact on their availability, and in turn on demand for them, as we have seen with other substances controlled under a TCDO.

We know that legislation alone is not enough and continue to take action across education, prevention, treatment and recovery in order to reduce harmful drug use. We will continue to update our public health messages to inform the public of the harms caused by these substances, using the latest evidence gathered from early warning systems. In these circumstances, I commend the order to your Lordships.

[Lord Kennedy of Southwark (Lab)]

My Lords, as we have heard, the order seeks to renew a temporary control order on the substances listed in the paper for another year, while further work is undertaken and a decision is made on what should happen in the long term. I have no issue with the order whatever. All I would say is that I hope that in granting this temporary ban for another year, we are able within that time to gather the information that the council has asked for, so that it can come back to us to recommend a permanent ban. Clearly, these drugs are harmful to health, and it is important, as the noble and learned Lord said, that education, treatment and advice are made available to young people so that they understand the harm that they can do to themselves and to others by taking them. I am happy to support the order and hope that sooner rather than later we will be able to deal with this issue permanently.

[Lord Keen of Elie]

I am obliged to the noble Lord. I should explain that generally speaking the council has to be helped to make a recommendation about six months before the expiry of a TCDO in order for there to be time to transpose the prohibition into the Act itself. It was therefore thought necessary in the present case that there should be an extension. I do not believe that it is anticipated that a further extension will be required, because further evidence of harm has become available and is now being analysed.

Modern Slavery (Transparency in Supply Chains) Bill [HL]

Lord Kennedy of Southwark Excerpts

Friday 8th July 2016 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, I start my remarks today, as other noble Lords have, by congratulating the noble Baroness, Lady Young of Hornsey, on securing second place in the Private Member’s Bill ballot and on securing the Second Reading of her Bill today. Last year, the Modern Slavery Act became law; it is a good piece of legislation, and noble Lords on all sides of the House made important contributions to ensuring we have a sound piece of legislation that will tackle the exploitation of people through human trafficking and slavery. The Bill before us seeks to build on that landmark legislation and strengthen it further. The Bill has my support and, I wish it speedy progress through your Lordships’ House.

Worldwide there are estimated to be approximately 21 million people, or three out of every 1,000 people on the planet, in jobs that they were coerced or deceived into taking and which they cannot leave. Research undertaken by the International Labour Organisation found that the Asia-Pacific region accounts for the largest number of forced labourers in the world, at 11.7 million, which equates to 56% of the global total, followed by Africa with 18% and then Latin America with 9% of the victims. They also found that the lowest number of victims were in the developed economies and in the European Union, with 1.5 victims per 1,000 inhabitants. They found that 90% of the victims were exploited by the private economy, by individuals or enterprises. Of these, 68% are victims of forced labour exploitation in activities such as agriculture, construction, domestic work or manufacturing, and 22% are victims of sexual exploitation. Some 26% of the victims of forced labour are below the age of 18, and the majority are in their place of origin or residence, while those people moved across borders were more heavily associated with sexual exploitation.

The figures are truly shocking and the situation in the United Kingdom is on an unbelievable scale. As the noble Lord, Lord Smith of Hindhead, said, the Government’s own estimate puts the total number of people in slavery in the, UK at around 13,000, of which approximately 3,000 are thought to be under the age of 18. Some experts believe that this figure is a massive underrepresentation of the true figure, and the thought that there could be even more victims in the UK is truly shocking.

As I said, the Bill seeks to build on the Modern Slavery Act 2015. It has only four clauses and one schedule, but they are extremely important and seek to move our legislation in this area further forward. Clause 1 would bring public bodies within the scope of the Modern Slavery Act and require them to prepare a slavery and human trafficking statement every year. I agree with the noble Baroness, Lady Young of Hornsey, when she spoke of the widespread abuse of various services provided by public bodies through contractors and subcontractors. As the noble Baroness said, public bodies have a combined purchasing budget of approximately £45 billion per year. I also agreed with the noble and learned Baroness, Lady Butler-Sloss, when she asked why the obligation should not be extended to the public sector. Public bodies spend large amounts of public money purchasing goods and services, and this clause would put the same obligations on them as we are expecting commercial organisations of a certain size to follow. Surely it must be right that we require public bodies to publish a statement so that we can see what action they are taking to combat slavery in the supply chains they purchase from.

Clause 1 also requires the Secretary of State to publish a list of all commercial organisations that are required to publish a statement. This was a matter under much consideration last year, and for some reason the Government were resistant to being required to publish such a list. The compromise I recall was that we were told that some other body in the voluntary sector may publish a list. The right reverend Prelate the Bishop of Derby was right when he said that the Government should not hesitate in finding the tools for business to get these matters right. The Government should produce such a list and categorise it in sectors, so that it is as easy as possible to access the information; that seems the most sensible way forward. I hope the noble and learned Lord, Lord Keen of Ellie, will be able to confirm that the Government have reflected on this since last year and are prepared to move on it. It always seemed odd to me that, having required commercial organisations to produce these statements in their annual accounts, the Government were not prepared to bring them all together in one easy and accessible place. We learned today from the noble Baroness, Lady Young of Hornsey, that an industry has been created which creates hosting statements, provides model text and statements and charges fees for preparing them; that should concern us all. Again, I agree with the right reverend Prelate that good practice is to encourage business to act responsibly and to stamp out slavery through chains. So far, that is voluntary; we need the support of the Government at all times to help deliver that.

Clause 2 would require contracting authorities to exclude from the participation in the procurement process companies that had not produced a slavery and human trafficking statement when they were required to do so. Why would any contracting organisation want to do business with a commercial organisation that had fallen down on its obligations in this respect? Clause 3 would require the Secretary of State to produce guidance to comply with the changes to regulations brought in by the Bill. Again, it is important to ensure that proper clarity is given to contracting organisations so that they can be clear how they go about implementing these requirements.

The Bill is an important step in the fight against modern slavery in all its forms. It seeks to improve on legislation passed last year, which will always have to be kept under review to ensure we are at the forefront against the exploitation of human beings all around the world.

In conclusion, this is a very good Bill, as are the other Bills before us today. They are all to be referred to a Committee of the Whole House. I checked with the clerk, and it would be quite proper to refer some Private Members’ Bills to a Grand Committee, which would help to speed things along. We have only so many Fridays, and many Bills get lost here and do not have a chance because they get clogged up in waiting for days in Committee and on Report. Again, I ask the Government—I particularly look to the noble Lord, Lord Ashton of Hyde, when he goes back to talk to his colleagues in the Whips’ Office—why we cannot in future make use of the Moses Room and a Grand Committee and have these Private Members’ Bills there on Fridays. That would be a good step forward.

I congratulate the noble Baroness, Lady Young of Hornsey, on her excellent Bill and wish it speedy progress through this House.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

Monday 4th July 2016 Lords Chamber

Moved by

[Lord Kennedy of Southwark]

33: Clause 4, page 15, line 43, at end insert—
“(g) how the operators of the franchise will seek to increase passenger representation through the life of the plan.”

[Lord Kennedy of Southwark (Lab)]

My Lords, as this is the first time I have spoken in today’s Committee debate, I declare that I am an elected councillor in the London Borough of Lewisham.

The two amendments in this group are in my name and that of my noble friend Lady Jones of Whitchurch. As regards franchises and enhanced partnerships respectively, they would require operators to set out how they will seek to increase passenger representation. As I said in previous debates, this Bill is very technical in parts but the issues we are talking about today, and that of buses in general, are about people and delivering a reasonably priced local service which delivers for them and their local communities, and keeps places alive and vibrant by connecting communities with other communities and enabling people to travel to work, go to school and enjoy leisure activities. For all that to happen in a responsive manner, we need mechanisms in place to hear the voice of the passenger at a local level. I am fully aware that we have a body—Passenger Focus—which provides a voice for England outside London, but I am talking about what happens at a very local level. It is important that people and communities are able to discuss their experiences face to face and say what they want. That can include working with Passenger Focus at a local level or perhaps other arrangements.

Operators and local transport authorities often carry out surveys and other work and meet local councillors and MPs. That is always very welcome. However, what is proposed in these amendments is the need to ensure that the views of passengers are taken into account, and to make provision in the Bill for the planning of these services. I beg to move.

[Earl Attlee]

My Lords, I shall try to be brief. These amendments are what are often termed “no-brainers”. As the noble Lord, Lord Kennedy, explained, the purpose of these amendments is to ensure greater participation and involvement with passenger groups in the process for developing a franchise scheme and the consultation and throughout the life of an enhanced partnership scheme. During Second Reading, a number of noble Lords commented that there was little mention of passengers in the Bill, so these amendments address that point.

I know that bus operators do a huge amount of work to ensure that they engage with the people who actually use their services. After all, who are they providing their services for? They are for passengers. On what basis would bus operators, and local authorities for that matter, not want to seek the views and opinions of the people who will be using their services?

Organisations such as Bus Users UK exist for the very purpose of giving passengers a voice, and do great work with operators, including holding local bus surgeries where passengers can engage directly with operators. Together with operator and local authority open days, these events are invaluable. Passengers are able to give solid feedback to those actually running the services, and in turn operators can inform and explain their decisions. Those decisions may not always be popular, but to my mind people are much more likely to accept a decision if the reasons for it are helpfully and properly explained.

I hope that my noble friend has a piece of paper in front of him marked: “Agree to consider”, or something similar. Even if he cannot advise the Committee to accept the amendments in the form that we see them today, I hope he will agree with the sentiment and spirit in which they have been brought forward so that we might see some government amendment which would achieve the same effect, at a later stage.

--- Later in debate ---

[Lord Ahmad of Wimbledon]

I have already said that I am open to discussing how we move this matter forward. I hope that I am indicating that I believe we should proceed in a collaborative way on the passage of the Bill through Committee and Report. I am happy to discuss with the noble Baroness and the noble Lord, Lord Kennedy, how we can develop this amendment to reflect the intent behind it, which I share and which I am sure she shares, and also incorporate the issues raised by the noble Baroness. On that basis, I hope that the noble Lord is minded to withdraw his amendment.

[Lord Kennedy of Southwark]

I thank the noble Lord for that very helpful response. When we tabled the amendments we should have included the advanced partnerships and the current arrangement, as the noble Lord mentioned, but is he saying that, through the discussions that will take place over the coming days and weeks, we will seek to agree an amendment that will deal with the issues raised here?

[Lord Ahmad of Wimbledon]

It is certainly my intention to discuss with the noble Lord and the noble Baroness how best to take this forward. Yes, if it needs to be in the Bill, that is something we can discuss. I am sure we can overcome the drafting issues and it is important to reflect the points raised by the noble Baroness, Lady Randerson, in any amendment that comes forward.

[Lord Kennedy of Southwark]

That is very helpful. I am very happy to get involved in discussions on an amendment that we are all happy with and can work with, and which delivers the aim expressed across the Committee today of making sure that passengers are properly involved. However, what I do not want to see at the end of those discussions is a note in guidance, because, importantly, that does not have the same strength as something in the Bill.

[Earl Attlee]

Will the Minister take great care to make sure that everyone who has an interest in the Bill is included in these discussions? Sometimes it is possible for people to fall out of the loop and not be fully involved.

[Lord Ahmad of Wimbledon]

I give my noble friend that assurance. I will go further and say that I never forget my noble friend when it comes to such discussions. He has made a very valid contribution throughout this debate and I am sure he will continue to do so in debates going forward. Any noble Lord has an open invitation to meetings, as I have said, as we look to strengthen the provisions of the Bill and the services it provides.

[Lord Kennedy of Southwark]

I thank the noble Lord for those very helpful responses. I am very pleased to have received support from the noble Earl, Lord Attlee, and the noble Baroness, Lady Randerson. It is beneficial that local transport authorities and operators seek the views of their passengers, who are, in fact, their customers. Being sensitive to the needs of your customers is usually good practice for any business or public service and benefits everybody concerned, particularly the providers of the service. A role for bus passengers, as the noble Baroness, Lady Randerson, said, is important and needs to be in the Bill. I am very pleased with the comments of the noble Lord, Lord Ahmad of Wimbledon, and look forward to our discussions. I hope that we can agree an amendment we can all be happy with during Report.

[Lord Ahmad of Wimbledon]

Before the noble Lord sits down, let me assure him that that is the Government’s intention with all the provisions we have discussed. Putting passengers at the heart of what we seek to do is a key part of delivering either the franchising model or the partnership model. Importantly, as I said, the current amendment does not incorporate, for example, the issues around the status quo.

I know the noble Lord is working with me to ensure that that is what we do. That is certainly the intention—one that is resonating around the Chamber. Given that assurance and the positive nature of the debate, I think the noble Lord is moving towards formally withdrawing his amendment.

[Lord Kennedy of Southwark]

I thank the noble Lord again for his very helpful comments. I beg leave to withdraw the amendment.

Amendment 33 withdrawn.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

Monday 4th July 2016 Lords Chamber

Moved by

[Lord Kennedy of Southwark]

34: Clause 4, page 15, line 43, at end insert—
“(g) the extent to which not-for-profit bus operators can be integrated into a proposed scheme in order to contribute to the long term sustainability of the scheme.”

[Lord Kennedy of Southwark (Lab)]

My Lords, Amendment 34 is proposed by me and my noble friend Lady Jones of Whitchurch. It would require the franchising authority or authorities to give consideration when drawing up a scheme to how the not-for-profit sector could be involved, the purpose being to contribute to the long-term sustainability of the franchising scheme, which, one hopes, will give local people a better bus service than they enjoy at present. The not-for-profit sector is thriving in a variety of areas. Expanding this model in the delivery of bus services is one way to contribute to ending the decline in bus services and routes that we have seen over many years, especially outside London, and which has been the subject of discussion during consideration of this Bill. It can complement other providers and deliver on a smaller scale bus routes that really benefit local communities and that can boost the local economy, connecting people with jobs, shops, schools and other services that they may not have had access to in recent years. Our amendment would require any assessment to include such proposals.

I hope that the noble Lord, Lord Ahmad of Wimbledon, does not have “resist” in his notes against this amendment. He has been very responsive today and in our previous day in Committee, and I hope he continues in that vein. Perhaps he will say to us that the amendment is not necessary, or suggest that it might be included in guidance. Of course, it could be in guidance, but as I hope he can see, that would not have the weight of its being clearly in the Bill.

We all want to see better bus services, and this Bill is a very positive step forward, but we need to go a little further to strengthen the proposals in some areas, as this amendment would certainly do. It would make it easier for different models of service to come into play and give a better bus service for all. I beg to move.

[Earl Attlee (Con)]

My Lords, not-for-profit bus services, or community transport, cover a wide spectrum of services, including those operated by charities. I am the first to praise the extraordinary work the sector does for people who need a lot of support in their daily lives—drivers who walk users to their door to make sure they have not lost their keys and then carry their shopping into the hall are local heroes. The sector can also plug a few gaps in services for the general public where there are not enough passengers to make a route a commercial proposition and the hard-pushed local authority does not have sufficient resources to fund a standard bus service.

However, I urge my noble friend the Minister to resist the amendment. Community transport services are not subject to the same regulatory regime as local bus services. Their drivers are not subject to the same stringent training regime as those driving registered services, nor do they need to satisfy many of the other compliance requirements set down by the traffic commissioner.

Services operated under Section 19 of the Transport Act 1985—it is mainly this type of service we are talking about with this amendment—are exempt from many safety and fair competition rules so long as they are not provided to the general public. So how on earth can they contribute to the success or otherwise of a franchise?

The whole issue of services operated under Section 19 and indeed Section 22, permits has been a bone of contention for many years with the EU. If community transport operators were required to enter the local bus market and operate under the same rules as operators of registered services, it would be a different matter, but they are not. There is no level playing field and, at the moment, community transport operators are able to operate more cheaply but without the regulatory safeguards in place for other operators. I therefore urge my noble friend to resist the amendment as gently as he can.

--- Later in debate ---

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

My Lords, I thank the noble Lord, Lord Kennedy, for his amendment, which would require franchising authorities to consider, as part of the assessment of their proposed franchising scheme, the extent to which not-for-profit bus operators can be integrated into a franchising scheme to contribute to its sustainability. Let me say at the outset that I sympathise with the aims of his amendment. I recognise the good services that community bus service operators and other not-for-profit bus operators deliver to our communities across the country and know that they often provide flexible and bespoke services which act as a lifeline to many. The intervention from the noble Baroness, Lady Scott, underlined that element.

The Bill recognises the important role that community transport operators play in providing local public transport. Provisions have been included in the Bill to ensure that services operated under community bus permits will not be affected by the introduction of franchising or enhanced partnerships. This will enable them to continue to run their services unaffected by these schemes. I hope noble Lords will agree that these provisions are sensible and that they will help ensure that community bus providers can continue to deliver their valuable services to our local communities.

Even with these protective provisions in the Bill, I recognise the valid point the noble Lord, Lord Kennedy, raises, and agree that authorities looking to improve local bus services should consider how services provided by community transport operators can be best integrated to deliver a better overall network of services for passengers.

Let me assure noble Lords that the Bill does not preclude authorities, as they develop their franchising or enhanced partnership proposals, working with community transport and not-for-profit operators to determine how they can best be integrated into the wider network of services, but I agree with the noble Lord that this approach should be encouraged. I am, therefore, of the view that these issues are best covered through further guidance that will be published to complement the provisions of the Bill. I hope the assurances I have given in this contribution enable the noble Lord to withdraw his amendment.

[Lord Kennedy of Southwark]

Will the Minister say a little more about why he thinks that this should be in guidance? He says that authorities can do this, and that is all well and good. Why then is it not going to be in the Bill? Why should it be in guidance? My worry is that guidance is not legislation. Guidance is forgotten over time, things get moved on and revised, and all of a sudden it is not there and gets forgotten about. Why is guidance better than the Bill?

[Lord Ahmad of Wimbledon]

My Lords, I have already said that there are provisions within the Bill that protect that element of community transport and not-for-profit operators. While the noble Lord feels that the guidance is not sufficient, it forms part and parcel of the guidance in support of the Bill, on which these new proposals go forward.

--- Later in debate ---

[Lord Kennedy of Southwark]

I am not sure the Minister answered the point I was making there. I am thinking of organisations such as Hackney Community Transport. If it wants want to provide services elsewhere in the country, like it currently does for TfL, why should that not be in the Bill, rather than in guidance?

[Lord Ahmad of Wimbledon]

I do not think I can add any more. If the noble Lord feels that the strength of what the Government are presenting does not meet what he is suggesting, I suggest we discuss this issue. At the moment, we are minded that existing provisions within the Bill, with the assurance of including such provisions in the guidance, provide the necessary safeguards alluded to by the noble Lord. I hope, with this assurance and the continuing discussions we are having on various aspects of the Bill, that he will be minded to withdraw his amendment.

[Lord Kennedy of Southwark]

I thank the Minister for that contribution. I will take up his kind offer to have a discussion outside the House. He has been very generous with his contribution today and with his time. I appreciate that very much. I thank all noble Lords who have spoken in this short debate. I do not agree with the remarks of the noble Earl, Lord Attlee, as I want to see the not-for-profit sector being able to provide bus services, as elsewhere. I thank the noble Baronesses, Lady Randerson and Lady Scott, for their support. The noble Baroness, Lady Randerson, was spot on in speaking about the needs of rural areas and the widest range of schemes available to deliver those services. As she said, Hackney Community Transport delivers services for TfL, so why cannot it, or other providers in the not-for-profit sector, deliver bus routes elsewhere, in urban or rural areas? This Bill is about improving bus services and my amendment helps in that respect, improving the Bill further and giving further options for the provision of bus services. I will leave it there and look forward to talking it over outside the Chamber, but I may well bring the amendment back on Report. I beg leave to withdraw the amendment.

Amendment 34 withdrawn.

--- Later in debate ---

[Baroness Randerson]

My Lords, I say in response to the noble Lord, Lord Snape, that of course the arguments he makes about less reputable companies fortify my argument that a lot of these things need to be set out in the Bill, so that we can ensure that only the more reputable companies—those that observe those aspects important to passengers and indeed to our environment—are able to win a franchise.

I say in response to the noble Earl, Lord Attlee, that I cannot understand why bus companies should be immune to the usual rules of business in this country. Increasingly local government services are run through commercial companies in various forms. Many commercial organisations are involved in the provision of a range of local authority services right down, for example, to care for children, the elderly and so on. Local authorities franchise services or commission them and from time to time they will change the companies they are working with; someone loses the contract. There are well-known procedures throughout our public life which account for that to happen, thus enabling a service to be handed over from one organisation to another. I cannot see why bus companies should be exempt from that general run of business.

[Lord Kennedy of Southwark]

My Lords, Amendment 35, which has been proposed by the noble Earl, Lord Attlee, is not one that I can support today. As we have heard, the amendment puts a requirement into the Bill that would require the taking into account of any compensation payable to bus operators whose businesses are wholly or partly expropriated by the scheme. I do not think that there are any plans in the Bill to expropriate anyone’s business. The franchising model will work on similar terms to those which presently operate in London, where private bus operators happily deliver services on routes laid down by TfL. They make profits and the service works well.

I agree with the comments made by the noble Baroness, Lady Randerson, who asked why the bus industry cannot be aligned with the rest of the public sector in terms of contracts being tendered for and then won or lost. People move on and things change. That works in the whole of the rest of the public sector and is certainly the case in local government; I have said before that I am a councillor in Lewisham. I am sure that the noble Lord, Lord Ahmad, will advise the Committee, but I think I am correct in saying that the Government do not anticipate any compensation being required if a franchising authority follows the process as set out in the Bill. For me, the Bill is about improving bus services for passengers and increasing the number of bus journeys being taken by people, thus halting the decline in bus routes and journeys over recent years, and that should be embraced by bus operators. Indeed, they may find that they actually make more money if they increase their routes and more people use them.

I look forward to the Minister’s response and I hope that he will allay the concerns raised by the noble Earl and thus demonstrate to the Committee that the amendment is not necessary.

[Lord Ahmad of Wimbledon]

My Lords, I thank my noble friend Lord Attlee for his amendment, which would require franchising authorities to consider as part of the assessment of their franchising scheme whether it will be,

“more efficient, effective and economic than any other option, taking into account any compensation payable to bus operators whose businesses would be wholly or partially expropriated by the scheme”.

I recognise my noble friend’s desire to ensure that impacts on bus operators are fully considered as franchising schemes are developed. The Bill already addresses many of his concerns, and it may be useful at this point to provide a fuller explanation of proposed new Section 123B, which requires franchising authorities to conduct an assessment of their proposed franchising scheme. I fully acknowledge that moving to a model of franchising is a big decision that will impact on bus operators in the area. That is why the Bill requires authorities that are considering franchising to conduct a thorough assessment of their proposed scheme, including comparing their proposals with other options, which could include partnership proposals and the status quo.

The Bill also requires franchising authorities to think about the effects of the proposed scheme and whether it represents value for money. This will include, of course, consideration of the impacts of the proposal on passengers and bus operators, together with any wider impacts. I hope my noble friend agrees that the provisions in the Bill will require authorities to think carefully about their franchising proposals, compare them to other options and then take a well-reasoned and well-evidenced decision.

I turn to the issue of compensation payable to bus operators that my noble friend referred to. I fully recognise the years of hard work that many bus operators have put into growing and operating their businesses and their concerns about the future. As I have said, the Bill requires authorities to consider both the benefits that franchising could bring for local people, as well as the potential impacts, including those on bus operators. If franchising authorities follow the processes set out in the Bill, local bus operators will have plenty of notice that a franchising scheme is being considered, will be aware of a decision to introduce franchising, and will have more than six months’ notice that services are to be provided under local service contracts. This will enable operators to take any action they think appropriate and to plan ahead in the light of the decision to make a franchising scheme. Incumbent operators will, of course, be able to bid for contracts in any area that decides to move to franchising, and I should reflect that those operators’ knowledge of the local area and local customers is likely to stand them in good stead. In addition, the Bill does not provide franchising authorities with the power to take over the property of any bus operator if a scheme is made—a point made in an earlier debate.

In summary, I am therefore of the view that the Bill already addresses many of my noble friend’s concerns regarding the assessment of the franchising scheme and the need to compare it with other options. He raised the issue of compensation being available to those who do not win contracts, and referred to other schemes, not just franchising. While he makes a valid point, I note that authorities have been able to introduce quality contracts since 2000. This potential risk and impact on bus operators has been around for a significant period. I hope that he has been assured and reassured by some of my comments on the existing provisions in the Bill. I disagree that consideration of compensation should form part of franchising assessments—a point made by other noble Lords—but I hope that this debate has assured him that the Bill includes a thorough and comprehensive assessment process, and that he can withdraw the amendment.

[Lord Kennedy of Southwark]

Can the Minister say more about something I find hard to understand about the amendment? I am a councillor in a London borough and services are tendered for all the time, whether in relation to road repairs, street lighting, refuse collection and so on. People bid for contracts, win them and lose them. If they lose them, the new company takes them on and we do not have debates about paying companies compensation because they have lost their contract. They bid for a price, the council assesses it and a number of factors and makes what it believes is the best decision. I do not see why we are having this dispute or debate. If a company loses a bus route, I do not see why it should be paid compensation. It must have tendered for that route but has lost out in the process to another company that has been deemed to offer better value for money. This is a strange debate.

[Lord Ahmad of Wimbledon]

My noble friend tabled an amendment and it is right that we have a discussion in Committee. I hope that through the provisions in the Bill that I have highlighted—for example, the requirement to give ample notice—his fears are allayed as regards compensating a business franchise that goes out of operation. The Bill contains proper provisions in relation to, for example, giving notice. The noble Lord, Lord Kennedy, and I are on the same page on this.

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[Viscount Younger of Leckie (Con)]

My Lords, I will speak to a group of amendments to Clause 4 and Schedule 2. Amendments 54 to 64 and Amendment 75 relate to the period which must expire before services can be provided under local service contracts. The Bill as introduced provides that at least six months must expire between a contract being awarded and provision of the relevant service, with the aim of providing a suitable period of transition for bus operators. These amendments do not change the policy but merely tidy up the Bill to ensure that this provision is clear.

Amendment 65 makes it clear that where a franchising scheme is varied to add an area which relates to another local authority, that authority must play an active part in the variation processes. This corrects the drafting of the Bill but does not change the policy intention. It has always been the Government’s intention that authorities that will have a franchising scheme covering the whole or part of their combined area should play a part in making or varying the scheme.

Amendment 76 amends the Local Transport Act 2008 to remove provisions relating to quality contract schemes for areas in England which were inserted into the Transport Act 2000. My noble friend Lord Ahmad wrote to noble Lords on 16 June providing notice of the government amendments he would be bringing forward in Committee. That note provides a fuller explanation of the precise changes to the Bill. My noble friend and I are of course happy to discuss these amendments further with colleagues if there are any concerns. I beg to move Amendment 54.

[Lord Kennedy of Southwark]

My Lords, I have no problem with the amendment but I want some further clarification. As I said in our previous discussion on our first day in Committee, we have a whole raft of government amendments and I do not understand why this issue was not sorted out before the Bill came to your Lordships’ House. Yes, the amendment adds the word “minimum”—Amendment 55 is similar—but these are tidying-up amendments and we are at the start of the Bill, not the end. It has been nowhere other than with the department and in this House. I am sure that the noble Lord listens to what all noble Lords say in this House, but it seems that a bit more work should have been done with Ministers before the Bill ever appeared here. Why we are getting these Bills so early, and why was this issue not sorted out before the Bill arrived here?

[Viscount Younger of Leckie]

That is a very reasonable comment. My noble friend Lord Ahmad was asked a similar question during consideration of a previous amendment, and I recall his answer. I will give the same answer, which I hope will be accepted: this Bill has been work in progress. A lot of the time, Bills are not absolutely perfect when they are presented. I will be quite open and honest in saying that it is simply a tidying-up process. I hope the noble Lord will accept that explanation.

[Lord Kennedy of Southwark]

I accept that it is a tidying-up exercise, but my point is that I am surprised that this could not have been sorted out in advance, given that, as we have heard, this Bill has been a long time coming and in preparation in the department. These are not major issues that have been found during our debates: it is just a question of missing words, for example. I could go through the whole raft of government amendments—none is anything major. So I do not understand why we are finding within a matter of days that odd words and phrases that should have been included in the first place are missing from a Bill that, we are told, has been months in preparation, and was due last year.

[Viscount Younger of Leckie]

I am not sure that my follow-up is going to give any further clarity. I simply point out that the Bill as introduced was not sufficiently clear on these points, and these amendments help to bring clarity. It is more fine-tuning and tweaking than anything particularly major.

[Lord Kennedy of Southwark]

That is fine. I will not pursue the point further, but for the Minister to come to the Dispatch Box and say that the Bill was not sufficiently clear, when it has been at least months in preparation, is not the best way to introduce legislation. I will leave it there.

Amendment 54 agreed.

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[Earl Attlee]

My Lords, I am sure that these are sensible and valuable amendments for the Committee to consider. However, they are “Supplementary to the Second Marshalled List”. That means that they must have been tabled on Friday, which means that there is no time for officials to consider a response for the Minister and no time for the Minister to consider the advice of officials. It is a little bit rich for the Opposition Front Bench to tease the Ministers for tabling their late government amendments when it tabled its amendments on Friday.

[Lord Kennedy of Southwark]

The point I was making was the government amendments that were tabled seemed to be making little drafting corrections, inserting odd words. For a Bill that has been in the planning for nearly a year, that seems to me to be remiss.

[Lord Judd (Lab)]

My Lords, late or not, one has to look at the potential and the value of the particular amendment. I am greatly cheered by this amendment. It seems to me that we are in danger of totally losing sight of the ideal of community and the rest. A well co-ordinated, integrated bus service can play a tremendous part in furthering community activity. We just compound the problem of our individualistic society in which community is breaking down because people resort to their cars, go and do their shopping, go back home and watch the television, put on their computer or whatever it is. The fact is that, if we are to have a life worth living, we have got to have community. The bus can potentially be central to that community. I applaud the amendment.

--- Later in debate ---

[Lord Ahmad of Wimbledon]

As long as it was lovely, that is the important point to bear in mind. I thank all noble Lords, particularly the noble Baroness, Lady Jones, and the noble Lord, Lord Berkeley, for tabling their amendments, and acknowledge the noble Baroness, Lady Scott, for bringing this issue to the fore. The amendments aim to ensure that authorities think about the wider social, economic and environmental benefits of establishing a franchising or enhanced partnership scheme and remind authorities of their obligations relating to educational and socially necessary bus services.

Amendments 58A and 99ZA, tabled by the noble Baroness, refer to the Public Services (Social Value) Act 2012, which the noble Baroness, Lady Scott of Needham Market, mentioned in a previous Committee debate. As I have already indicated, and as the noble Baroness has acknowledged, I have written to her on this matter. My understanding is that the Public Services (Social Value) Act 2012 requires authorities which commission certain public services to think about matters relating to securing wider social, economic and environmental benefits in the context of procurement.

I believe that it would be useful to use the guidance that will accompany the Bus Services Bill to remind local authorities of the duty that the Public Services (Social Value) Act 2012 places on them in certain circumstances and to give some guidance on the approach to be taken in relation to procurement activities not covered by the Act. I assure noble Lords that, on the contribution of the noble Baroness, I immediately set the ball in motion. Work is in hand in the Department for Transport to consider how best we achieve this and it is getting some accolades. The noble Lord, Lord Whitty, is not in his place, but it is becoming a fast favourite of the noble Lord.

I also agree that any authority looking to establish a franchising scheme or an enhanced partnership scheme should think carefully about the wider social, economic and environmental benefits that such a scheme could bring. The Bill includes requirements for authorities looking to establish a franchising scheme or an enhanced partnership to think about whether the proposed scheme would contribute to the achievement of relevant policies and to consider the impacts of such a scheme. I hope this has reassured noble Lords that the social, environmental and economic issues will be considered as schemes are developed and that references will be made quite specifically in the guidance that accompanies the Bill to ensure authorities are aware of their obligations under the Public Services (Social Values) Act 2012.

Amendments 58B and 99B, tabled by the noble Lord, Lord Berkeley, relate to educational and socially necessary services. Authorities have certain duties to consider whether to provide socially necessary services, and they also have certain duties with respect to providing home-to-school transport. I agree entirely that authorities should consider these obligations as they develop franchising or enhanced partnership schemes as co-ordinated commissioning of public transport for the whole area can lead to real efficiencies. This is one of the core principles of total transport, and I support it wholeheartedly.

The obligations on local authorities with respect to socially necessary and home-to-school services remain in place regardless of whether franchising, enhanced partnerships, or any other model is employed and I do not think it is necessary to restate these requirements in the Bill. I do however recognise that we can continue to do more to ensure that authorities are reminded of their obligations through the guidance that I have mentioned already.

The other issue raised by the noble Lord’s amendment is that of an authority subsidising certain services which would not otherwise be provided. Authorities already have the ability to do this, and the Bill does not change that. I fully expect that authorities will subsidise certain services in a franchised model for example and confirm that this will be possible under any of the new models proposed through the Bill. The noble Lord, Lord Berkeley, talked about ferries. There is nothing to stop local authorities working with local operators to integrate ferries locally. Merseytravel’s multi-operator ticket already does this. It is unlikely that including a reference to ferries and the 2012 Act in this Bill would fall within the permitted scope, but I will consider the point and will write to the noble Lord if I am not correct in this respect. I hope that the assurances I have given have gone some way to addressing the issues that noble Lords have raised and that the noble Baroness will withdraw the amendment.

[Lord Kennedy of Southwark]

I know the Minister is trying to be very helpful today and we are very grateful to him for that. He has asked my noble friend Lady Jones of Whitchurch to withdraw the amendment. Is he saying that he is going to go away and think about this? I am not clear whether he said that. The amendment that my noble friend moved is important. I am not quite clear what he is saying in asking her to withdraw the amendment.

[Lord Ahmad of Wimbledon]

In the interests of time, if the noble Baroness, Lady Scott, does not mind I shall share the letter I wrote to her with all noble Lords. That should have been done as a matter of course. It will perhaps highlight the Government’s position, but to be clear, the Government are considering the provisions raised in the amendment, but within the guidance which will be in support of the Bill.

[Lord Kennedy of Southwark]

I think I got the letter, but I am afraid I not have actually read it yet. It arrived this morning in my email inbox. I just wanted to be clear what the Minister meant.

[Lord Berkeley]

On that point, has the Minister told the Committee when the guidance might be published in draft form? Will we be able to see it before Report, for example?

[Lord Kennedy of Southwark]

Apparently I did not get the letter after all. I certainly got a letter from the Minister this morning, but it may not be the one that we are talking about.

[Lord Ahmad of Wimbledon]

As I have reflected on before, while we are in the holy month of Ramadan, noble Lords should be thankful that they are not getting emails from me because they would be arriving at about 3 am. If I am writing them, I hope noble Lords are reading them. I will of course confirm when the guidance is due to be published, but I hope I have provided clarity and that the noble Baroness will withdraw her amendment.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

Monday 4th July 2016 Lords Chamber

[Lord Bradley]

My Lords, I shall be brief on this amendment, which pertains to new Section 123X, which is headed:

“Local service contracts: application of TUPE”.

The explanation for the amendment is that it should be possible to ensure that responses to requests for information under this section are provided within a specified timeframe. To ensure that the overall process is achievable in a timely way, the amendment would ensure that an authority could set a timeframe for the provision of such information. It would also reduce the scope for gaming or playing for time to frustrate the development of a franchising scheme. Information under this section of the Bill is essential for the effective introduction of franchising. I would be grateful for the Minister’s views on the timescale appropriate for the provision of this essential information on TUPE arrangements. I beg to move.

[Lord Kennedy of Southwark (Lab)]

My Lords, I will be very brief in saying that we fully support the amendment from my noble friend Lord Bradley. As he said, it aims to ensure that responses are received in a specified time and to reduce the scope to drag things out to play for time. He has the full support of these Benches.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for tabling his amendment, and I appreciate his intentions in bringing it forward. It is important that information on employees is provided in a timely way, so that informed decisions can be taken by the franchising authority.

However, I am not sure whether there is a need for this amendment because subsection (7) sets out the provisions that may be made by regulations made by the Secretary of State. Clause 123X(7)(c), into which this text would be inserted, already makes it clear that the regulations may prescribe the time at which information is to be provided. This would, in effect, set out the timescale within which information must be provided.

Noble Lords will be aware of the policy scoping notes that I circulated on 16 June. These notes summarise our intentions for the use of the regulation-making powers in the Bill. Let me assure noble Lords that on page 22 of that document we confirm our intention that the regulations to which this amendment would apply,

“will also set out the time periods within which operators must comply”,

with the requests made for employee information. Therefore, while appreciating the intent behind this amendment, I trust that with the clarification and reassurance that I have provided to the noble Lord that this matter is already addressed in the Bill and in our plans for secondary legislation, he will be minded to withdraw his amendment.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

Wednesday 29th June 2016 Lords Chamber

We should come on to talk later about congestion, because that is another very serious problem, but if the Minister would answer those questions for a start, I would be very pleased.

[Lord Kennedy of Southwark (Lab)]

My Lords, as this is my first time to speak in Committee, I declare an interest as an elected councillor.

The amendments in this group are almost all proposed by the noble Baroness, Lady Randerson, with support from the noble Lord, Lord Bradshaw, with the exception of Amendment 5, in the names of my noble friends Lord Bradley and Lord Berkeley. They are all seeking to make improvements to the Bill, with important clarifications and additions on the face of the Bill, and we are generally supportive of them. I think it is important to give certainty in legislation and clear direction.

As I said at Second Reading, there is a lot in this Bill that we can support and we will play a constructive role in seeking to make improvements to what is before us to halt the decline in bus use outside London that is all too prevalent and has already been referred to today. Putting passengers at the heart of our discussions on buses must be a priority, as well as ensuring improvements for disabled travellers, advanced ticketing and other measures, which we will discuss in our deliberations over the next few weeks and months.

I very much concur with the comments of the noble Baroness, Lady Randerson, in respect of the impact assessment and on the putting together of the Bill. It is interesting to note that, on the first day in Committee, we already have government amendments. This is a Lords-starter Bill—it has been nowhere near the House of Commons—and, as we have heard, we have been waiting for a very long time for this Bill to arrive, but straightaway we have got a series of government amendments. This is not as bad as the Housing and Planning Act—we have an impact assessment and other information from the Government—but generally the Government need to sharpen up their act when it comes to presenting legislation to Parliament. They often make things much worse for themselves because Members on all sides get very frustrated when they do not have the right bits of paper in the right order in good time, in proper sequence, which then gives them more difficulties. So the Government themselves should reflect carefully how they present legislation to Parliament, because they may find that they make things much easier for themselves if they get it right in the first place, so we do not have to catch up as we go through the discussions.

The first amendment in the name of the noble Baroness, Lady Randerson, changes the emphasis from saying that in making an advanced quality partnership scheme “one or more of” the outcomes will likely be achieved. The outcomes mentioned are,

“an improvement in the quality of local services that benefits persons using those services … a reduction or limitation of traffic congestion, noise or air pollution”,

and an increase in bus use or, at the very least, an end to the,

“decline in the use of local services”.

The amendment proposed by the noble Baroness is more ambitious in saying that we “will achieve” these outcomes, whereas the Government use the words, “are likely to”, which does not seem very ambitious for a new piece of legislation.

The next four amendments in the name of the noble Baroness give specific requirements for issues such as services in rural areas. I very much concur with the comments of the noble Baroness, Lady Scott of Needham Market, in that respect. The amendments refer to “advanced ticketing” and a reduction in pollution, taking into account people with disabilities and other factors, along with geographical location, which should be part of whether a scheme should be made. We are very much supportive of them.

Amendment 5 in this group, proposed by my noble friends Lord Bradley and Lord Berkeley, adds an additional requirement to reduce,

“the deterioration of local services”,

and refers to,

“the maintenance of quality levels of those services”.

It is important to make provision to make sure that there will not be deterioration in services under any new scheme. I very much agree with the comments of my noble friend Lord Bradley today, and in particular agree with him that the Bill needs to be an Act so that the devolution deal for Greater Manchester can be brought into effect—although, of course, given where we are now, I do not think that there will be any problem there whatever. I am sure that the Minister will confirm that when he makes his response.

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

My Lords, I thank all noble Lords who have taken part in this debate on this first group of amendments. On the general point raised by several noble Lords on the impact assessment and its publication and availability yesterday, I assure noble Lords that the intention was not to have a delay in publishing as such. It was reviewed to ensure that additional policies and full detail could be provided. I take the point that noble Lords have made: if a document is produced 24 hours before Committee, that is not the best timing to allow for detailed analysis. A point was made about rural impact, and whether that was considered. Rural-proofing is mentioned in the impact assessment, and some noble Lords have expressed their regret at the very limited assessment. However, open data offer particular opportunities to increase rural services.

On a few other administrative points before I come on to the amendments, I apologise to the noble Baroness, Lady Scott, for not responding in full to her questions. I shall follow them up with immediate effect and ensure that she has a timely response. In fact, I am looking over to the Box with a rather hard stare, if not a glare, to ensure that that is done in advance of the next Committee sitting, which is next week. That is something that I shall follow up with officials.

[Lord Kennedy of Southwark]

This Bill has a lot of support from around the House, and the Government are making life more difficult for themselves by not getting these things out in advance. We have been waiting for this Bill for well over a year. Why has this stuff arrived literally this morning when the department has had a very long time to get it all ready? The situation is of the Government’s own making. A bit more planning would make things much easier. Although this is not the worst example, it is incumbent on the Government to get things out to Members and to the wider public who are interested.

[Lord Bradshaw]

To add to what the noble Lord has just said, the Bill is full of econometric analysis, which is extraordinarily time consuming and also almost incomprehensible to anybody who has not had training in it.

--- Later in debate ---

I hope that I have answered the questions raised by noble Lords. While some may have been reassured, I hope that my explanations have been helpful. In that context, I hope that the noble Baroness will withdraw her amendment.

[Lord Kennedy of Southwark]

I return to my previous intervention and that of the noble Lord, Lord Bradshaw. The Minister expressed concern and disappointment, and hoped to do better, but he did not answer the question that either of us raised. I have seen no notes coming over from the Box, and perhaps he cannot answer today, which I would fully understand. However, I hope that he wants to answer the points that we raised and will agree to write to us.

[Lord Bradshaw]

I want it to be absolutely clear that when the bus service operators grant is devolved to the metropolitan authorities, no more money will be available anywhere, other than that which is devolved, and that the bus service operators grant will remain to be paid to operators outside the franchised area. The balance of that money needs to be looked at, because a smaller subsidy within an urban area as a result of a cut in the bus operators grant may make the service vary in quality and run less frequently, but the same amount of money in a rural area is the difference between having a bus service and none at all. The Minister should reflect on this. I would also like to know when the working party set up in April is expected to report and whether it will take any independent advice or whether there will be some internal arrangement to which no one will have access.

--- Later in debate ---

[Baroness Randerson (LD)]

My Lords, I think I can probably help the noble Lord by speaking specifically about Amendments 19 and 68. One of the problems with the Bill is its scattergun approach to giving the Secretary of State additional unspecified powers. As the noble Lord has clearly picked out, these are two examples among dozens of broad powers. The Government have made a list, from (a) to (f), and then they say, “In case we’ve forgotten something, we’ll just give the Secretary of State the power to deal with life, the universe and everything”.

By putting these amendments before your Lordships, we hoped to probe exactly what the regulations might look like. To take up the theme of the Delegated Powers Committee report yet again, I say that the powers are too vague. The Secretary of State is being given very broad powers without specifying properly, even in the Explanatory Memorandum, what those powers will be used for.

Ideally, draft regulations should have been available by now, at least on one or two aspects of the Bill. It is hopelessly optimistic to think that they might be coming out any day now, because we have only just had the impact assessment, and we are still awaiting the response to the Delegated Powers Committee. But that is what we should be doing—looking at drafts to find out about the tenor of a Bill as broad and as dependent on regulation as this one is.

The success of advanced quality partnerships, and of enhanced partnerships and franchising, will stand or fall on the quality of the regulations. If the regulations are too onerous, the Bill will fall into the trap of the 2008 Act and prove impossible for local authorities to manage and implement, and will therefore fail. But the regulations have to be sufficiently ambitious and robust to deliver a true improvement in service.

I have spoken to Amendment 19. Amendment 68 is simply a similar example in the case of franchising. One amendment relates to advanced quality partnerships and the other to franchising. I remind noble Lords of the tenor of the criticism in the Delegated Powers Committee’s report.

[Lord Kennedy of Southwark]

My Lords, Amendment 6, moved by the noble Lord, Lord Bradshaw, seeks to insert a new subsection saying that an operator can provide services only if those services are provided within an advanced quality partnership or another scheme that meets the outcomes set out in subsection (6). I support the amendment, as it seeks to ensure that we get some improvement in bus provision as a result of this legislation, and would leave less to chance.

The noble Lord, Lord Bradshaw, made some important points about congestion, the effect it has on bus services, and the other effects of poor air quality in many areas, including some of our smaller towns, villages and hamlets.

If the Minister is not going to accept the amendment I hope that we shall get a full explanation, because the Bill is driven by the need to improve bus services and save them from further decline outside London, and the amendment would be helpful in that respect.

Amendments 19 and 68, to which the noble Baroness, Lady Randerson, spoke, seek to restrict the power of the Secretary of State to make further provision under regulations about “incidental matters”. We ought to be careful when we give powers to Ministers. I suppose it all depends on who defines “incidental matters” and what the scope of those matters is. I am not against giving sensible and proportionate powers to Ministers, but I also want to see clarity and openness, and these provisions have a feeling of opaqueness about them. So I hope that when the noble Lord, Lord Ahmad, responds, we shall get a much clearer explanation about what is intended here; it will help the House enormously if he can give one.

The noble Baroness, Lady Randerson, was right to raise this issue. It is important that we get these things on the record, so that we can see what the Government intend to do. There may be a number of incidental matters, but if they all come together they could become one quite big matter, so we should be very clear what the Government’s intention is in this respect.

[Lord Woolmer of Leeds (Lab)]

Before the Minister responds, may I take up the point raised by my noble friend Lord Snape? It is true that some small bus operators may have run services that were not desirable or sustainable but, as the impact assessment makes clear, it is also true that there is often little real competition between the large bus operators. They operate, and have operated—certainly in West Yorkshire—in a predatory manner, to reduce competition and squeeze out smaller and new operators. That side of the reality needs to be included in the balance. That is one of the reasons why I support the Bill, why I commend the Government for their frankness in assessing all this, and why, later, I shall speak strongly in favour of franchising.

--- Later in debate ---

I hope that the explanations and the assurance in this regard that the changes introduced under this provision are only incidental will enable the noble Baroness not to move her amendment.

[Lord Kennedy of Southwark]

May I push the Minister a bit further on incidental matters—what does he mean by that? In my contribution I said that you might have one incidental matter but if you have two, three or four it can become quite a big issue. Maybe he cannot do it now, but it would be useful if he could clarify the word “incidental” and what he means by that.

[Lord Ahmad of Wimbledon]

I will of course do so and will write to other noble Lords in that respect.

--- Later in debate ---

[Lord Kennedy of Southwark]

My Lords, Amendment 7 —again in the names of the noble Lord, Lord Bradshaw, and the noble Baroness, Lady Randerson—seeks to put on the face of the Bill another measure that may be specified in the scheme. This one is a requirement to contribute to reducing congestion on bus routes. With increasing bus use and bus service improvements, there will be a reduction in congestion on our roads, particularly in our towns and cities. As the noble Baroness, Lady Randerson, said, that is a win-win measure for us all. It is a welcome prospect for everyone. It means we can breathe cleaner air, there are fewer emissions released which harm our atmosphere, and journey times can be reduced. More people will use buses and car journeys can be reduced, with all the benefits to health; generally this is better for everyone.

The amendment, as I said, puts this aim on the face of the Bill. It is a very good idea; it is one of the proposals that should be specified in the scheme. As my noble friend Lord Berkeley said, I hope the Government can accept this, or at least agree to reflect on it, before we move to Report. It would be remiss if we could not get something like this on the face of the Bill.

As I have said in previous debates, we need to improve our bus services outside London and reverse the decline we have seen in recent years. One of the challenges of the Bill is to reverse that decline and, by improving bus services, we will have cleaner air. Reducing congestion is one of the ways we can have more people on buses and out of their cars.

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords who have contributed. The noble Lord, Lord Snape, talked in his opening remarks about how Ministers before and Ministers today might respond, in terms of what decisions to leave to local authorities, and that this was a matter for them. I did at one point think he had advance notice of part, if not all, of my speaking notes. But undoubtedly, one of the new powers under an advanced quality partnership regime is to allow local authorities to introduce a range of measures to improve bus services. The Bill does not define—

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

Wednesday 29th June 2016 Lords Chamber

[Baroness Randerson (LD)]

My view is that bus drivers are greatly undervalued. They do a hugely complex job. They do not just have to drive the bus safely; they also have to manage the passengers, not all of whom are easy people to deal with. Training and refresher training for drivers is essential. It is very important in dealing with disability and with customers as a whole. At the moment, bus drivers undertaking training do not have to achieve anything. They have to attend, but they do not gain a qualification as a result of achieving a set standard. It is time that we empowered bus drivers, if I can put it that way, with further information, knowledge and skills by making sure that they get regular training of sufficient standard and quality that it enables them to do their difficult job better. They deserve to have the very best possible skills and training to do their job. I support my noble friend’s amendment.

[Lord Kennedy of Southwark (Lab)]

My Lords, this amendment in the name of the noble Lord, Lord Bradshaw, seeks to put in the Bill a provision to provide drivers with continuous training in the standard of service that may be specified in an advanced quality partnership scheme. The noble Lord, Lord Bradshaw, set out very clearly the reasons why this amendment is necessary and welcome, and I agree with the points which the noble Lord and other noble Lords have made.

Anyone in a professional job, particularly one in which there is responsibility for people’s safety, should be given continuous training to ensure that they are delivering their job to the required standard, are aware of particular issues, problems, ideas and practice that have come into play and know how to resolve disputes and issues in a proper manner when they are doing their job. I agree that being a bus driver is not only a responsible job but a very difficult one. I have seen it myself. You get on to the bus and you see the way some people abuse bus drivers. It is dreadful. I come from a family of cab drivers. All my family, other than me, have driven black taxis in London, so I know the problem of dealing with people. Bus driving is a very difficult job, and bus drivers deserve our support.

The amendment could apply to all sorts of things, not only to professional driving standards but to how to deal with difficult and abusive people and how to deal with the prams and wheelchairs issue. As the noble Lord, Lord Bradshaw, said, there is a court case pending. It is a very difficult and sensitive issue. How do you deal with disability issues in general, people travelling home late at night sometimes a bit the worse for wear, young people with no money and other issues? If there are no procedures or training, problems can often occur that can damage the reputation of the company and cause problems for individuals in positions where they are responsible for public safety. All sorts of things come into play. It is important that we have proper professional training for our bus drivers.

This amendment raises a number of important issues, and I hope the Minister will give a full response. If he cannot accept the amendment today, I hope he will agree that this is an important issue that should be looked at and reflected upon. It raises an important issue that we should be sure we deal with properly.

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

My Lords, I once again thank all noble Lords for their participation in this short debate, although I am mindful that the next time I get into a black cab having just finished a debate with the noble Lord, Lord Kennedy, I will be glowing in the remarks I make.

We will, of course, return to the issue of accessibility, which the noble Lord also touched on, at a later stage in our proceedings. I have met various noble Lords on this issue, and I assure the noble Lord, and all noble Lords participating in the debate, that the Government take it very seriously.

One of the new powers under an advanced quality partnership regime allows local authorities to specify the standards of service that operators must meet in order to run local bus services on routes covered by the scheme. These standards are set out in new Section 113E(4) and (5) of the Transport Act 2000, as set out in Clause 1 of the Bill. The amendment proposed by the noble Lord would add to this list of standards of service.

Amendment 10 would allow a local authority to specify the training regime for bus drivers on local services on the routes included in the scheme. Driver training is in two parts. The first is the mandatory training that all bus drivers must undertake in order to hold and retain the appropriate licence to drive buses. The noble Baroness, Lady Randerson, talked about achievement, but I think many bus drivers would say that they do achieve a particular standard. These mandatory training requirements are set out elsewhere in legislation.

The second area, which noble Lords also mentioned in various contributions, is customer training. Such training is generally a matter for the employer. In this case, the driver is often the sole customer face of the bus company, and how they deal with passengers can have a big impact on how that bus service, and the bus operator more generally, is perceived. Noble Lords have referred to dealing with those with disabilities, and dealing with wheelchairs and pushchairs. Of course, as has been mentioned, there is a court case pending on that subject—so noble Lords will appreciate that there is little I can say at this time. How bus drivers are perceived, in terms of the service customers get from the driver, is often how the operator is also then perceived. Good customer training ultimately benefits the bus operators, and by providing a better service they increase the number of passengers.

In presenting this amendment, the noble Lord may also have had disability awareness training in mind. The mandatory disability awareness training provisions of EU Regulation 181/2011, due to come into force in 2018, would have required all bus drivers to undergo disability awareness training. But I am mindful of the situation that we now find ourselves in. Let me assure noble Lords that we are considering how to take forward the issue of such training in the longer term in the light of the referendum result. This important issue cannot be considered piecemeal, so the Bill is perhaps not the appropriate place to start that process. As I have already said, we are looking into how we can ensure that those mandatory requirements are met.

However, in practice, as noble Lords will know, most bus drivers already undertake this training as part of their certificate of professional competence, for which they must complete 35 hours of training in every five-year period. This is another obligation under a European law which we will need to consider over the coming months. We are also developing guidance on disability awareness training to provide consistency across the industry.

In view of this, I believe that, other than with the mandatory requirements, it should be for the bus company, as the employer, to decide what further training is most appropriate, taking into account the type of service, where it runs, and the range of passengers using the service. I hope that with that explanation, and with the assurance that we are looking at certain requirements in the light of the result of the referendum vote last week, the noble Lord will feel minded to withdraw his amendment.

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[Lord Kennedy of Southwark]

My Lords, this group of amendments in the name of the noble Earl, Lord Listowel, seeks to provide free bus travel to homeless families placed in accommodation outside the local authority they normally reside in, with free bus travel under the various schemes referred to in the Bill. These amendments raise an important point, which is that homelessness and the housing crisis is resulting in people and families being housed in temporary accommodation, many miles away from where they normally reside.

As the noble Earl said, this then brings a whole raft of problems—about living in isolation; about being part of the community and then being taken away from that community; and about having to change schools or make a very long journey to get to school or work, or to see family and friends. Bus fares then become prohibitively expensive. The noble Earl raises a valid point in his amendments, but I think that the situation is much worse, particularly for homeless families in London. These families can find themselves sent to Birmingham, Derby, Nottingham and other cities in England and Wales, hundreds of miles away from the place they normally reside, way beyond the distance of a reasonable bus journey.

This is no way to treat people. We have to deal with the housing crisis so that people can have stability in their lives and live in homes they can either rent or buy, be that in the public or private sector. These homes need to be warm, safe, dry and affordable. We all know the rents charged in London can be truly shocking. Our society needs to create a situation where people can live together side by side, in homes where they can be part of the community.

My view is that these amendments raise an important issue due to the crisis we face. I am not sure they solve the practical problem, but I do think the noble Earl is right to highlight this issue. The reality is that people’s other problems are compounded by their being placed so far away. That is the difficulty. I do not know whether assisting with bus travel will deal with these matters. As the noble Earl said at the end of his remarks, the issue of cost comes into this too, as implementing the proposal could be prohibitively expensive.

[Lord Ahmad of Wimbledon]

My Lords, I join the noble Lord, Lord Kennedy, in thanking the noble Earl for bringing this important issue to the fore. As the noble Lord, Lord Kennedy, has said, the amendments in front of us require operators of services delivered under franchising or enhanced partnerships, or advanced quality partnerships, to provide free bus travel for the homeless families placed outside of their local authority area. Like the noble Lord, I am sympathetic to the broad aims of the amendment and know that buses provide a lifeline for many in our local communities. However, having listened very carefully to the noble Earl, I think there may be more appropriate ways to address the issue, and I will of course pass on the issues he has raised to my noble friend Lord Freud.

As I have said before, this Bill will enable devolution. Reflecting on the noble Earl’s contribution, I would say that it will give local areas more control over their bus services. The issue highlighted may be another of the issues that particular authorities are looking to address. If so, they will be able to explore the options open to them through the tools provided in the Bill. I remain concerned that, as drafted, the amendment will perhaps unnecessarily tie the hands of authorities looking to implement franchising, advanced quality partnerships or enhanced partnerships. I fully accept that that is not the intention of the noble Earl’s amendment in requiring authorities to provide free travel where the benefit is not available in other parts of the country. However, like the noble Lord, Lord Kennedy, I believe it is an important point to raise.

I hope our discussion today and my comments have indicated to the noble Earl that we are sympathetic to the broad aims of the amendment. However, I maintain that there are more effective ways of tackling the problem that he has raised. I hope this has assured him to the extent that he feels able to withdraw the amendment.

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[Lord Ahmad of Wimbledon]

My Lords, I will speak also to Amendments 18, 57 and 58, relating to Clauses 1 and 4.

Amendment 57 amends new Section 123H to make it clear that a franchising scheme cannot co-exist in an area where an enhanced partnership or advanced quality partnership scheme is in operation. The amendment is intended to tidy up the Bill rather than change the policy outcome.

Advanced partnership schemes and enhanced partnership schemes operate in a deregulated market. In such a market, operators can plan bus routes and charge their own fares. Both schemes require local services to comply with certain standards but do not allow the authority to dictate what services should be provided and at what price.

Under a franchising scheme, the deregulated bus market is suspended and services can operate in the franchised area only if they are run under contract or a permit or are an interim service. In practice, therefore, the partnership arrangements would cease to have effect when a franchising scheme came into force in the same area. The amendment provides for an enhanced partnership plan, enhanced partnership scheme or advanced quality partnership scheme to be revoked or varied so that it ceases to relate to the area in which the franchising scheme is being introduced.

Amendment 58 amends new Section 123H to provide that the authority or authorities to whose area or combined area the varied plan or scheme continues to relate may vary the remainder plan or scheme as they consider appropriate. The amendment stipulates that authorities varying an enhanced partnership plan or scheme in these circumstances do not have to satisfy all the tests described in the section that deals with variation of an enhanced partnership plan or scheme. For example, they will no longer have to have regard to the desirability of varying a plan so as to include in the area to which the plan relates any part of another authority’s area. However, the authority would still need to seek the support of operators and could vary the plan or scheme only if a sufficient number of operators did not object.

Amendments 14 and 18 make consequential amendments to new Sections 113F(4) and 113M(6) respectively. The reference to “section 123H(6)” has been deleted as a consequence of Section 123H(6) being removed by Amendment 57.

The letter explaining these government amendments was sent to noble Lords on, I believe, 16 June. I beg to move.

[Lord Kennedy of Southwark]

I am not against the amendments as such. I made the point in earlier contributions that this is a Lords starter Bill, and here we are on the first day in Committee and the noble Lord comes to the Dispatch Box with some tidying-up amendments. It would be useful if he could explain to the Committee how the Bill got here. I assume that there is a meeting in the department in which things are looked at and signed off, with people saying at some point, “We think the Bill is all ready to go”. However, it has been in this House for three weeks and we have a raft of these tidying-up amendments. That says to me that there is surely something wrong with the signing-off process in the department. The Government have already uncovered issues and problems that should perhaps have been discovered before the Bill was brought to the House. So it would be helpful if the noble Lord could explain who signed off the Bill and how it got here. Maybe that needs to be looked at, because clearly something has gone amiss.

[Lord Ahmad of Wimbledon]

My Lords, as the noble Lord knows, Bills are drafted and consultations and further discussions are held. If any piece of legislation can be improved, no matter at what stage—this applies to any Government and any piece of legislation—I think that Governments are duty bound to introduce amendments that provide clarification or stipulate changes. This is not unprecedented. It is not the first, and will not be the last, time that changes are effected by the Government at different stages. We would be living in a rather perfect world if the first draft of any Bill went through unamended without any government amendments, consequential or administrative. I take on board his comment that we are on the first day in Committee and that there is a series of amendments, but it is better to do it early rather than late.

[Lord Kennedy of Southwark]

I thank the Minister for that answer. Of course no Bill is perfect. I accept that entirely. If it can be improved then we want to improve it. My point was more about the procedures in getting here. Most Bills that come here start in the other place. They have had a pretty good going over there and we give them a good going over here. Your Lordships’ debates highlight issues that the departments then reflect on. Here there has not been not much reflection but clearly, between the moment you published the Bill and coming here today, you found that there are some issues. I am glad that you have spotted them, but that says to me that maybe the procedures are not as good as they should be.

[Earl Attlee (Con)]

My Lords, the noble Lord needs to be quite careful because he does not know what is going to happen in a few years’ time. He may find himself in my noble friend’s position, dealing with exactly the same problem. Then I will enjoy teasing the noble Lord.

[Lord Kennedy of Southwark]

My Lords, I hope that very much. I am not so sure how long I shall be here at the present time but I am sure, if the position were reversed, I would probably give a very similar answer to the one the noble Lord has given.

Amendment 14 agreed.

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[Lord Berkeley]

My Lords, I, too, support the amendment. This is one of these usual discussions that we have in this House on lists and on who should be included and who should not.

There are many similarities between the list on page 5 and that on page 42. Amendment 91, which my noble friend will probably speak to, makes the extraordinary suggestion of adding in the customer or the customer’s representative. That is missing from both lists. It is quite extraordinary that stakeholders and their representatives—whether it is any of the bus passenger representative groups, local or national—are not included. As my noble friend said, they might be,

“such other persons as the authority or authorities think fit”,

but I think that we all know of instances where authorities have chosen not to consult a particular body of stakeholders because they do not like them for some reason. That is not a good reason, but it happens and I have plenty of experience of it happening. It would therefore be good to include the two amendments in my noble friend Lord Whitty’s name and the two similar amendments to do with stakeholders’ involvement.

While I am on my feet, I might say that it is interesting that paragraph (d) in both lists refers to “a traffic commissioner”. If I lived in Cornwall, it would be no good consulting a traffic commissioner for the south-east of England. He or she as a traffic commissioner would probably not know much about the area. Given that the subsequent paragraph in each list states,

“the chief officer of police for each police area covering the whole or part of that area”,

it seems to me that the traffic commissioner should be relevant to wherever the services will run. I have not put down an amendment on this, but perhaps the Minister will consider it for the next stage.

[Lord Kennedy of Southwark]

Amendments 16 and 46, in the name of my noble friend Lord Whitty, and Amendment 92, in my name and that of my noble friend Lady Jones of Whitchurch, would require consultation on an advanced quality partnership or franchising scheme to include recognised trade unions or other representatives elected or appointed by employees affected by the proposals.

Both Section 113G(3), on page 5, and Section 123E(4), on page 17, list who should be consulted. It is both surprising and disappointing that the recognised representatives of the employees are not included in this list. These amendments seek to correct that, and I hope that the Government will give their full support to this, since why would we not want to hear from the employees? They have an absolute wealth of knowledge and experience that would be very valuable to the company in putting these schemes together, and it seems obvious that we would want to include them. I am in full agreement with the comments of all my noble friends who have spoken in this short debate and I look forward to what I hope will be a positive response.

[Lord Ahmad of Wimbledon]

My Lords, the amendments in the name of the noble Lord, Lord Whitty, would add further requirements to the consultation provisions relating to franchising and the partnership proposals. I thank all noble Lords who have spoken in this brief debate. I sympathise with their aims and I accept that this is an important point to raise. I agree that it is important that employee groups are consulted appropriately on proposals to improve local bus services. I agree particularly that significant changes to local bus services could well impact local bus industry employees, so it is only fair that they are given the opportunity for input in such circumstances.

In that regard, I encourage any authorities thinking of using any of the new tools in the Bill to engage with all the interested parties as proposals are developed. The likely impact on employees will, however, be materially different in the context of franchising, where it is more likely that service patterns, and potentially the operators of those services, will change than under partnerships schemes. So I agree that employee groups and others affected by the proposals should always be consulted formally on franchising schemes and I will consider how best to ensure that the Bill achieves the objectives of Amendment 46, as proposed by the noble Lord.

There are a number of ways in which this might be achieved. These range from the use of statutory guidance to an amendment to the Bill along the lines that the noble Lord proposes. I will take the comments from this short debate back, reflect on them and, I hope, work with the noble Lord to come back with something that represents what has been expressed. To pick up briefly the point raised by the noble Lord, Lord Berkeley, on the need for passenger representatives to be consulted on schemes, this is already included within the advanced quality partnership clauses, the franchising clauses and the enhanced partnership schemes in Clause 9. Coming back to a point made by the noble Baroness, Lady Jones, I hope I have demonstrated that, as Committee progresses, the listening goes beyond acceptance and sympathy to due consideration of some of the valid concerns and issues that noble Lords have raised. I hope that, with that reassurance, the noble Lord is minded to withdraw his amendment.

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[Earl Attlee]

My Lords, I declare an interest as I live near a national park and am affected by its presence. I see no harm in these amendments; in reality, local bus operators can and do work with whomever they need to in devising high-quality bus services. Our national parks are to be treasured. They contain some of the most beautiful and stunning scenery that our country has to offer. We want people to be able to access and enjoy it, and buses can play a vital role in this regard, especially for those without access to a private car. We must not forget that there are many people who do not drive or use a car and so rely on buses for tourism purposes.

I want to see many more people walking in national parks. I do not see enough people walking at home. The noble Baroness, Lady Scott, made an important point about the need for bus services on a Sunday. As the noble Lord, Lord Judd, said, there are already a number of local bus services serving national parks, so in a way collaboration and co-operation between authorities and bus operators is already happening.

Governments of all political persuasions tend to shy away from lists in primary legislation on the basis that they can become overly prescriptive: the more you add to a list, the more you exclude. But the Minister has already succumbed to the persuasion of the noble Lord, Lord Whitty, this evening. Nevertheless, I suspect that the Minister still has the word “resist” on his brief in view of the legal and technical reasons. Yet as I said at the start of my short remarks, I know that bus operators will work with national park authorities, and indeed any authorities, in pursuit of meeting the needs of their passengers to enable them to enjoy the delights of our national parks by bus.

[Lord Kennedy of Southwark]

My Lords, this next group of amendments, which are proposed by my noble friend Lord Judd and supported by the noble Lord, Lord Inglewood, and the noble Lady, Baroness Scott of Needham Market, concern national parks authorities in England and how they need to be involved in any proposals for advanced quality partnership or franchising models.

This whole issue was raised by my noble friend Lord Judd and others at Second Reading of this Bill on 8 June. My noble friend told the House then, and again today, that it was puzzling and not right that transport authorities had a duty to consult relevant local authorities but that did not include national park authorities. Many national parks have seen bus services decline, and that brings problems of people wanting to visit these wonderful, natural and beautiful places by other means of transport. I lived in Nottingham many years ago, not far from the Peak District National Park, and traffic congestion in the summer months was, and still is, a huge problem around the towns of Matlock, Matlock Bath, Ashbourne and Bakewell and many other beautiful places there. I think the bus service in the Peak District could be better. It would add to people’s enjoyment and reduce car use, which is a huge problem, particularly in the summer months, and causes problems for all sorts of people.

To make all that happen, we have to have these authorities properly involved and consulted on what is proposed and how they can work with the authorities to deliver real benefits for the area. As my noble friend Lord Judd said, all public bodies have a statutory duty to take account of the potential effects of their decisions and activities on national parks. Of course, that is not always monitored and enforced effectively, and the greater risk here is that these large and combined transport authorities will not get involved in that and that it will not happen. These amendments, by putting that into the Bill and not into guidance or any other sort of regulation will ensure that there is proper consultation. I do hope that the noble Lord, Lord Ahmad of Wimbledon, will give a positive response tonight and that we can get these amendments into the Bill.

[Lord Ahmad of Wimbledon]

My Lords, I start by thanking the noble Lord, Lord Judd, the noble Baroness, Lady Scott, my noble friend Lord Attlee and, of course, the noble Lord, Lord Kennedy, for their contributions. The noble Lord proposes a number of amendments to the Bill, reflecting the importance of local bus services in promoting opportunities for public enjoyment of our national parks. I thank the noble Lord for tabling these amendments and share his enthusiasm for our country’s national parks. I recognise the negative impact that traffic and congestion can have on the tranquillity and the natural environment of some of our national parks, and I agree that good bus services can help address the problem and increase the number of people who can access the parks in a more sustainable way.

Further, I acknowledge the noble Lord’s stance on this matter and am keen to consider how we can ensure that national park authorities are fully consulted as new approaches to delivering local bus services are developed. I further agree that national park authorities’ views should also be obtained by any authority consulting on a proposal in relation to an area that lies near or within a national park, as the quality of bus services available in the area will have a huge impact on people’s ability to visit their natural environment.

I therefore may cause further surprise to my noble friend by saying that I will now consider how best to ensure that the Bill achieves the objectives outlined by the noble Lord. I hope that with the assurances I have given that I will consider what he has proposed and how we can incorporate the very sentiments he has raised in the Bill, he will feel able to withdraw his amendment.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

Wednesday 8th June 2016 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, I first refer Members to my declaration of interests and declare that I am an elected councillor in the London Borough of Lewisham.

As other noble Lords have said, the Bill is generally welcome and we want it to boost the bus industry outside London when it reaches the statute book, although it is disappointing that we have no regulations. If this is to be another Bill where regulations will not be available until after the legislation has passed, that will be most regrettable. I hope that the Minister can give us some assurances that that will not be the case, as I think noble Lords will be very unhappy at that. It will hamper the progress of the Bill through this House if we cannot see the regulations. The regulations connected with the 2000 and 2008 transport Acts have proved too difficult to enable anyone to introduce bus franchising. We must avoid the same happening here and the welcome intentions in the Bill being lost in consequence.

The bus is an essential mode of public transport, reducing congestion and giving people access to jobs, education and leisure pursuits. Buses are also the quickest way of providing additional public transport. As my noble friend Lord Whitty said, the number of bus journeys taken within the bus industry outside London has declined. That can be pinpointed back to the Transport Act 1985, which deregulated the bus industry outside London and allowed anyone, subject to minimum safety and operating standards, to set up a bus company. I also agree with my noble friend about the effects of the cuts in funding on bus services outside London. We have heard how different things are in London, where bus use has doubled, the industry was not deregulated and a two-tier system operates, with TfL specifying in detail what bus services are to be provided and private companies then delivering those bus services.

The Bill seeks to do a number of things, nearly all of which I support. One part of the Bill that we are unhappy about is Clause 21, which prohibits municipal bus companies being formed in the future. Some of the best bus services in the country are run by municipal operators: look at Nottingham City Transport, which has been UK bus operator of the year three times, the last time in 2014. Nottingham is a city I know very well and which my noble friend Lady Jones of Whitchurch also mentioned. Reading Buses and Ipswich Buses, to name just three in all, also provide an excellent service, but this specific model is prevented from being replicated elsewhere. Why?

Moving on to the more positive aspects of the Bill, we support the franchising of bus networks for mayoral combined authorities. The Bill will allow these authorities to provide bus services as they are provided in London, with the public sector specifying the services and the private sector competing for the contracts. This will enable effective action to be taken to improve services for passengers and halt the decline. We support this although, as many noble Lords have said, we would have wished that there was no insistence on having a mayor to get these powers, with other authorities being allowed only to ask for these powers. We shall explore this further during the next stages of the Bill, as it passes through your Lordships’ House.

There are two other forms of deregulated partnerships in the Bill: advanced quality partnerships and enhanced partnerships. Under the advanced quality partnerships, a local transport authority will commit to bringing in measures that will benefit bus services, such as priority bus schemes. In return, the bus operator must meet set standards for the services which benefit from those facilities. Enhanced partnerships go further, with the local transport authority and the bus operators working to manage the local bus market and seeking to get better outcomes for passengers. But there is, in effect, a veto for the bus companies if they do not agree to the proposal. When it comes to things such as vehicle specifications, ticketing structures and timetabling, this type of scheme could be a very useful tool for improving the services locally, although again the regulations here will also be important, so that what is proposed in the end does not become too difficult to deliver.

We also welcome the section of the Bill that introduces advanced ticketing schemes to enable multi-operator ticketing schemes to be broadened and built on. The sooner we can move on to smart ticketing schemes everywhere, the better. Making data available on bus fares, routes, timetables, tickets and bus company performances on all routes is very welcome and should give passengers, campaigners and transport planners very useful information. However, it needs to be made clear who will be entitled to access what data—I assume that will come with the regulations. I do not see that making the data available will cause the problems the noble Earl, Lord Attlee, spoke about. It will be a good way of helping consumers and the general public, and maybe the noble Lord, Lord Ahmad, can clarify that further when he replies.

[Earl Attlee]

My Lords, I was not referring to the real-time data—I think that would be highly desirable. My problem is with the data on historical passenger demand and so on.

[Lord Kennedy of Southwark]

I thank the noble Earl for that clarification. We will explore these things further as the Bill goes through the House. As I said, the provision and use of data will be vital in improving services for passengers.

We are very supportive of the campaign by the Guide Dogs association for audio-visual systems to be a requirement on all new buses. The noble Lord, Lord Low of Dalston, made a compelling case for the funds to be found quickly to ensure all buses are equipped with this facility. The noble Baroness, Lady Grey-Thompson, rightly spoke about the barriers disabled people face and how practical solutions to the problems are needed. Generally, we want to see disability provision on buses further improved and will explore measures to do that during the further stages of the Bill. I very much agree with the comments of the noble Baroness, Lady Campbell of Surbiton, regarding improved access to buses for people with disabilities.

Ensuring that buses run on the greenest fuel possible will help reduce greenhouse gas emission and generally improve air quality. New powers in the Bill to enable local transport authorities to specify emission standards to be met by local bus services are very welcome, although with the enhanced partnership scheme, there has to be sufficient support again from the bus operators.

As other noble Lords have said, the Bill hardly mentions passengers. We think that is wrong, as bus services should be all about passengers. I want to see an enhanced role for Passenger Focus and possibly something in the Bill concerning how passengers can be more fully involved and consulted locally about the services they rely on.

In conclusion, generally we welcome the Bill, but it can go further and can be improved. We look forward to working with the Government and noble Lords on all sides of the House to improve the Bill, to clarify and probe the intention of the Government, and to see it on the statute book making a real difference to people and communities locally by improving the bus services they rely on.

Riot Compensation Bill

Lord Kennedy of Southwark Excerpts

Friday 26th February 2016 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, first, I thank the noble Lord, Lord Trefgarne, for bringing this Bill before the House today. After being on the statute book for 130 years and in that time rarely used, it is not surprising that the Riot (Damages) Act 1886 is no longer fit for purpose.

The riots in August 2011 were a terrible event which I hope will never happen again. They resulted in five people losing their lives, criminality, theft and violent disorder on an unprecedented scale in recent years, and in London alone the damage was estimated to be half a billion pounds. As we have heard, the language of the Act is not what we expect today, which makes it difficult for people to understand and helps no one, as the noble Lord, Lord Trefgarne, said. There are of course important omissions in the Act; for understandable reasons there is no mention of motor vehicles, no consideration of interim compensation for victims while claims are processed, no consideration of “new for old” replacement of damaged goods, and no powers for the police to delegate the administration of the compensation process.

The present legal framework for compensating victims of riots has simply proved inadequate, so it is right that we carefully consider how the financial burden of any future riot is managed. As we have heard, there is an established principle that the police are liable for damages incurred during riots. The thinking here is of course that there is an implied contract between the public and the police, which again, the noble Lord, Lord Trefgarne, referred to.

In the other place my honourable friends Mr Steve Reed and Mr David Lammy have worked tirelessly on this issue. Both their constituencies were badly affected by the 2011 riots. Mr Reed used the Freedom of Information Act to show that, three years after the riots, 133 victims in London had yet to receive a penny in compensation from the police. Victims are still waiting for £40 million to be paid, which is unacceptable. The Prime Minister of course promised that no one would be left out of pocket but some of the victims have been waiting far too long already for that promise to be met.

The Government have recognised the problems that people have had in receiving compensation, commissioning the independent review chaired by Neil Kinghan. The Kinghan review was published in September 2013 and made a series of recommendations, including that the principle that the police are strictly liable for damages incurred during riots should be maintained. It recommended that legislation ought to protect insurers so as not to deter people from taking out insurance policies, or to inflate insurance costs. It recommended that payments to insurance firms should be limited to businesses insured with an annual turnover of less than £2 million, and it suggested that legislation should allow the police to delegate the administering of claims to a body made up of insurance professionals rather than having to do it themselves. A further important recommendation was that allowance be made for compensating at the cost of replacement goods; that is, “old for new”, as is the case in many modern insurance policies. It was judged by the review that the Act should be replaced.

While we support the principle that the police ought to be strictly liable for damages incurred during the course of a riot, it is important that our police forces are not asked to promise a blank cheque. It is impossible for police forces to plan and budget for the possibility of having to compensate victims of riots without some understanding of the likely costs they will have to bear. To deal with this problem, the Kinghan review originally proposed that insurers would be able to claim only for businesses with an annual turnover lower than £2 million. The Bill instead of course places a £1 million cap on the total claim that can be made, and removes any reference to company turnover, which we think is right.

As I said at the start of my remarks, we welcome the Bill, notwithstanding the very valid points made by noble Lords in this debate. The present arrangements for dealing with compensation after riots are clearly inadequate and a new legal framework is required. We must not fail victims of any future riots as, unfortunately, so many victims of the 2011 riots have been let down and are still waiting for proper redress today.

[The Minister of State, Home Office (Lord Bates) (Con)]

My Lords, I, too, join noble Lords in paying tribute to my noble friend Lord Trefgarne on securing, bringing forward and outlining the Bill with such clarity today. The noble and learned Lord, Lord Brown of Eaton-under-Heywood, spoke of his profound regret when he discovered that he was to speak after the noble Lord, Lord Pannick, in this debate, such was the noble Lord’s powerful exposition. It is a challenge for me to have to come to the Dispatch Box after the noble Lord, Lord Pannick, the noble and learned Lord, Lord Brown, and my noble friend Lord Deben’s historical exposition of Lord Mansfield’s conflict of interest. I was led to believe that this would be an uncontroversial Friday morning Bill but of course it has not turned out to be quite like that. I will try to address a number of the issues.

I am sure that we are very thankful that serious rioting continues to be a rare occurrence in this country, but that is not a reason to be complacent. History has told us that a breakdown in order can occur at any time and we should not wait until victims are waiting for assistance before we improve the system to put in place support for them. The Government have used the time since the last serious riots to undertake an independent review followed by public consultation and to use these to create careful and considered new legislation. Her Majesty’s Government wholeheartedly support these measures, which represent the best possible replacement for the outdated and unsuitable Riot (Damages) Act.

The Bill addresses the need to protect public funds from unlimited liability while continuing to offer a vital safety net to communities recovering from the devastating effects of rioting. Based on the experiences of claimants, claims handlers and insurers, the Bill has been drafted in a way which is designed to be more flexible and responsive to the practical challenges that people face after a riot.

It is the Government’s intention that regulations will further enhance the measures set out in the Bill by providing the necessary details for claims handlers to improve consistency in decision-making and allowing flexibility for measures to be updated and adjusted in future. On that point, I say to the noble Lord, Lord Pannick, that the regulations will of course come before your Lordships’ House. In addition, the Government expect to produce guidance for both the public and claims handlers, as well as publicising these reforms so that potential claimants are well aware of the provisions in place to support them.

Having set out the Government’s position on that, I shall try to address some of the issues that were raised when the noble Lord, Lord Pannick, read the Riot Act in relation to the Bill. First, he made a number of detailed observations about apparent anomalies and differences in the way that highways and other issues are tackled. Rather than attempt to address these points individually, I shall be happy to write to him about them, placing a copy in the Library.

The noble Lord asked whether there was any hard evidence that people may not get insurance. In areas affected by riots, people can get insurance. However, the 2011 riots showed that a number of claimants simply could not afford insurance and, if the Act had not been in place, hundreds—not thousands—of people would have gone without compensation.

On the question of whether to allow the right to a judicial review of a case, the intention is to allow a right of appeal to a First-tier Tribunal. This is simply to enable more people to obtain an independent decision. The ability to take court action through a judicial review would have been beyond the financial ability of many who would have made a riot compensation claim.

In terms of police liability, the independent reviewer concluded that on balance, while the cause of riots can vary, their occurrence indicates a breakdown in law and order, and it is the responsibility of the police to prevent such a breakdown. This is a principle on which the 1886 Act is based and it remains valid today.

The noble Lord, Lord Pannick, then turned to international comparisons, saying that this was without precedent around the world. There is of course comparable legislation in Northern Ireland. The only other country where this legislation is in place that we have been able to come up with is Sweden.

On balance, for all the reasons that have rightly been identified, the Bill seeks to look at the outdated, anomalous and anachronistic legislation covering these important areas and seeks to update it for the modern era to ensure that, on the mercifully rare occasions when law and order breaks down and people’s lives and properties are affected, they have a means of redress which is both swift and fair for their purposes. The Government support the Bill.

[Lord Kennedy of Southwark]

I mentioned the victims of the 2011 riots and the fact that my honourable friend Steve Reed has found out that many victims have still not had a penny nearly three years after making a claim. Will the noble Lord confirm that he will talk to his right honourable friend the Prime Minister about that? Frankly, it is outrageous that three years on not a penny has been paid in some cases.

[Lord Bates]

Some cases are still going through the courts. They are the subject of litigation and controversy, and therefore I am not able to comment on them. Perhaps in the letter that we are going to write in response to some of the detailed points raised by the noble Lord, Lord Pannick, we can provide an update on where we are more generally in relation to compensation that is being paid.

[Lord Kennedy of Southwark]

That would be helpful. The noble Lord has used the word “swift” many times. Considering where we are now, I would not say that things have been dealt with swiftly.

[Lord Bates]

Perhaps that was not the best word to use. I am trying to recall the figure but I think that about 4,000 people have had their claims settled. Whenever there is an occurrence of this kind there will of course be significant disputes, often between the insurers and the authorities, about where liability rests. It may be that an individual has been compensated but the insurer is seeking to recover the amount. However, I will certainly look into that because, if matters have not been dealt with swiftly, the intention is that they certainly should be in future.

Immigration: Students

Lord Kennedy of Southwark Excerpts

Thursday 25th February 2016 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, I start by thanking the noble Baroness, Lady Sharp of Guildford, for securing this Question for Short Debate. I also congratulate the noble Baroness, Lady Brown of Cambridge, on an excellent maiden speech. She brings a wealth of experience from the higher education, engineering and science fields. I hope that this is the first of very many contributions she will make to your Lordships’ House.

It is not possible in the short time that I have to do this subject justice. I find myself agreeing with almost all the remarks made by noble Lords in this debate. The UK attracts a large number of international students coming to study here for a year or more. We have some of the best universities in the world, offering fantastic courses, leading to highly sought-after qualifications. We are, though, in a very competitive marketplace and it is the duty of the Government to do everything in their power to make the UK an even more attractive destination for international students.

I am not asking the Government to change how the net migration figures are reported as this is an internationally recognised definition, but they can do more. Looking at the net migration target that they have set themselves is one example. The Government have created a conflict for themselves entirely of their own making—it does not have to be there—by wanting to boost international student numbers while reducing their net migration targets. As the noble Baroness, Lady Sharp of Guildford, said, that is wholly incompatible. I also agree with her suggestion that we should consider adopting the US system of recording these data.

The Government’s ambition for growth in this sector is not as ambitious as that of our competitors. Our visa system is more restrictive and the UK is losing out needlessly. Shortly, I am sure that the noble Lord, Lord Bates, will tell us that there is no cap on the number of bona fide international students coming to study in the UK, but the fact is that our numbers have been relatively stagnant in recent years compared to our competitors, which have seen significant growth. The United States has seen an increase of 10% and Australia 8.9% in international student numbers, in comparison to growth of 0.6% in the UK over the same period.

We need to make our system for getting international students into the UK more welcoming and streamlined like our competitors, particularly the United States of America, as the noble Baroness, Lady Brown of Cambridge, said. People need to feel more welcome. The fall by 50% in the number of Indian students coming to study in the UK is of particular concern. Surveys have shown that the general public do not perceive international students as immigrants, and they bring a significant boost to our economy measured in billions of pounds. International students who study here and have a good experience return home with a very favourable view of the UK. That is of enormous benefit to us, as my noble friend Lady Bakewell said. She rightly pointed out how important that is in terms of our soft power influence in the world.

My time is nearly up so I again thank the noble Baroness, Lady Sharp of Guildford, for enabling us to have this debate. I hope that we can return to the subject very soon as we need to keep impressing upon the Government that it is in our country’s interest that it acts on this sooner rather than later.