High Speed 2 (Economic Affairs Committee Report)

Lord Shipley Excerpts

Thursday 23rd January 2020 Lords Chamber

[Lord Shipley (LD)]

My Lords, this has been a constructive debate. Some very important points have been made, particularly on appraisal methodologies, governance, cost, what speeds are necessary, the role of Old Oak Common and the poor state of the current network. But I agree with the noble Lord, Lord Kerslake; taking everything into consideration, we must take the long-term view and press ahead.

To work effectively, HS2 needs to be fully integrated with Northern Powerhouse Rail and the Midlands rail hub and must link with Scotland as currently planned. It can become the backbone of the UK’s rail system, improving capacity and connectivity. In the face of climate change, HS2 is a major opportunity to encourage a modal shift from road and air to rail. It is now 120 years since a new railway line was built north of London. High-speed rail operates from London under the channel, but it does not operate north of London. It is time that it did.

It has been said that it is hard to estimate the impact of HS2 on growth. I am sure that that is true, but it is equally true that without it there would still be an impact on growth, because growth would be lower in the north and the Midlands. An unfortunate outcome of the current review for the north would be the construction of only the London to Birmingham route, with the development land value uplift concentrated in that area and private sector investment attracted there and not further north. There would then be no hope of the levelling up that the Prime Minister has promised.

This week there have been reports that the Midlands to Leeds spur is at risk of being abandoned or changed. The Y axis was specifically designed to meet the growth and connectivity needs of the east side of the country, linking all the cities across the north and the Midlands.

I was a member of the Economic Affairs Committee when it produced its first report into the economic case for HS2 in 2015. I remember being surprised to discover that there was no budget to link some HS2 stations with their local infrastructure, on the grounds that the costings for HS2 related only to HS2 itself. There are costs in joining HS2 to surrounding cities and towns, and that mistake has presumably been corrected, but that question takes me on to local transport schemes more generally.

The north of England should not have to choose between local improvements and HS2. Local improvements are more short term; HS2 is a much more longer-term project. It has been reported that some newly elected MPs in the north of England want HS2 scrapped in favour of local transport schemes. But they should not have to choose. In any case, they should bear in mind that new local transport schemes need connectivity with high-quality national networks, and private sector investment in those areas needs connectivity, particularly for freight.

HS2, as we have heard, is a national project, but that will be true only if its delivery includes improvements to the track of conventional lines when these are used. I am referring in particular to the east coast main line, which needs four tracks north to Newcastle, not just two, as far as this is feasible, to increase capacity for HS2 trains on that part of the line.

I repeat that we need to avoid short-term thinking. There are potentially large benefits in HS2 in capacity, not least for freight, and potentially huge benefits in connectivity across the north and the Midlands. In March the Chancellor will introduce his Budget, and he is on record as saying that there will be £100 billion for infrastructure investment. Presumably that sum will be for the lifetime of this Parliament, and it will be invested in schemes which will deliver the levelling up that the Prime Minister has promised.

The Economic Affairs Committee said in its report that the Government’s priority for investment in British rail infrastructure should be the north of England. I concur with that conclusion. But the report also points out that representatives from northern cities said that the Northern Powerhouse Rail programme could not be completed without the second phase of HS2 being built. They are right, and it is a very important point. The two projects must be treated as one programme.

Flybe

Lord Shipley Excerpts

Tuesday 14th January 2020 Lords Chamber

[Baroness Vere of Norbiton]

I am sure that the noble Baroness is well aware of the reason that aviation fuel has no tax on it. The International Civil Aviation Organization is absolutely critical in getting the global aviation industry to work as a whole in many areas, including counterterrorism and climate change. If we are to reduce carbon emissions, we will need the members of ICAO to work together to achieve it. Under the Chicago convention, which set up ICAO, no nation can put tax on aviation fuel.

[Lord Shipley (LD)]

My Lords, the Minister said that the Government would look at all the options. Perhaps I may suggest that they take a look at the landing charges at large airports for smaller commercial airlines. They might be subject to PSOs, but the overall issue of the cost base of small commercial airlines is particularly relevant.

[Baroness Vere of Norbiton]

The noble Lord makes a very important point, but of course landing charges are set on a commercial basis.

Sub-national Transport Body (Transport for the North) Regulations 2017

Lord Shipley Excerpts

Monday 18th December 2017 Lords Chamber

Speaking with a strong, unified voice will be fundamental to bringing our cities closer together and creating a modern, reliable and improved transport system in the north. I beg to move.

[Lord Shipley (LD)]

My Lords, I strongly welcome the regulations. I am glad that the Government are bringing them forward, and I echo the words of the Minister when she said that some excellent work had been done by Transport for the North since its inception.

I shall raise two issues. The first relates to the constituent authorities and the definition of them. There is a list of them on the second page of the regulations. What happens if the structures change? There could be different structures of combined authorities, for example. How easy might it be to change the regulations to reflect any structural changes to those constituent authorities? I am thinking in particular of the North East Combined Authority and North of Tyne, but also of the discussions going on in Yorkshire.

The Minister is absolutely right that the main function of Transport for the North is to prepare a transport strategy for its area. It is hugely welcome that there will be one; as the Minister said, it will be by the north for the north. However, I would like to ask the Minister about money. Does she accept that the north of England has not had its fair share of investment in recent years? Given that, does she accept that one of the key roles for Transport for the North will be to define and prioritise the resources needed across the north of England? In that event, do the Government accept that there would be little point in Transport for the North doing a lot of work and raising expectations if the Government do not meet the financial consequences of that work?

[Lord Liddle (Lab)]

My Lords, I declare an interest as a member of Cumbria County Council and, more particularly, as a railwayman’s son from Carlisle. I, too, welcome the establishment of Transport for the North. I think it is excellent that we will now have a planning and co-ordinating body that will bring some coherence and, we hope, a transport strategy for the north.

I follow up what the noble Lord, Lord Shipley, said about resources. In repeating the statement, the noble Baroness referred to a sum of £260 million for which Transport for the North would be responsible. What caught my eye in the recent Budget Statement was paragraph 4.53 on infrastructure delivery, which talks about the Infrastructure and Projects Authority setting out a 10-year projection of public and private investment in infrastructure in Britain of around £600 billion.

The interesting question is how much of this £600 billion will come under the purview of Transport for the North. I very much look forward to the noble Baroness being able to tell me in her reply. Mr Hammond promised some worthwhile things in the Budget. For instance, in the transforming cities fund, there was £243 million for Greater Manchester and £134 million for the Liverpool City Region. There was a £300 million fund for ensuring the links between HS2 and other infrastructure in both the north and the Midlands, but £300 million is not very much. Of course, there is the new rolling stock for the Metro—one of the finest achievements of my friend the noble Lord, Lord Rodgers, when he was Transport Secretary in the Callaghan Government.

We need more information. My county of Cumbria has vast unmet infrastructure needs. I have a letter here that I could read out about Cumbria’s requirements for road investment. I am conscious of the requirement for rail investment. The west coast main line has been modernised, but the coastal railway, which goes through some of the most beautiful country in England, up to Sellafield and then on to Carlisle, is back in the 19th century in its infrastructure. Yet we are talking about a new nuclear power station being built in west Cumbria and how we try to relieve traffic congestion in the Lake District. These questions need to be addressed, and they will all cost money.

I say just three things on money. First, in my view, London and the south-east should make a bigger contribution. They constitute one of the richest parts of Europe, and I would like the Mayor of London given power to raise more money through property taxation in London for infrastructure investment. Secondly, as long as you stick to the traditional cost-benefit analyses of how transport schemes are assessed, you will always end up with London and south-east projects at the top of the list. That is because there is not a broad enough conception of public value in how transport projects are assessed.

Thirdly, I do not want the Secretary of State for Transport telling us that he has no money in his budget, because that has been exposed as a total fallacy by his decision on the east coast franchise in the last few weeks. He has basically allowed Virgin and Stagecoach to run away with hundreds of millions of pounds that they owed on their franchise payments—possibly as high as £1.5 billion, I am told. He has allowed them to run away with that, because he was not prepared to go along to the House of Commons and admit that their franchise had failed. That is money that could have been spent on transport projects in the north of England; it has not been spent—and what is the explanation?

HS2: North of England and Scotland

Lord Shipley Excerpts

Thursday 23rd February 2017 Lords Chamber

Asked by

[Lord Shipley]

To ask Her Majesty’s Government what plans they have to ensure that HS2 will maximise links between cities in the north of England and with Scotland.

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

My Lords, HS2 will have a transformational effect on journey times between cities in the north of England and with Scotland. To build on the opportunities HS2 provides, northern powerhouse rail is being planned to spread connectivity across the north of England. In addition, the Department for Transport is working closely with Transport Scotland to study all options with strong business cases to further improve capacity, reliability, resilience and journey times between Scotland and northern England.

[Lord Shipley (LD)]

My Lords, I thank the Minister for his reply and acknowledge the good work being done by various organisations, not least Transport for the North. But I should like to address a specific issue about HS2 and the eastern leg, which as currently planned fails to link Newcastle with Leeds. In addition, Newcastle is the terminus for the HS2 rolling stock on the eastern leg and, as it is the terminus, all passengers on it will have to change trains to travel further north towards Scotland. Would it not be better to have HS2 on the eastern leg linking our cities properly in an integrated fashion that links rail with our cities?

[Lord Ahmad of Wimbledon]

The noble Lord raises an important point about connectivity. In my initial Answer I referred to the important work that was being done by northern powerhouse rail. In that regard, let me assure him that a single strategy is being worked out with northern powerhouse rail, the DfT, Network Rail and HS2 to produce a single strategy—not shortly, but by the end of 2017. That will include all major cities in the north, including Liverpool, Manchester, Hull, Newcastle, Leeds and Sheffield to ensure greater connectivity in that regard.

Railways: East Coast Main Line

Lord Shipley Excerpts

Thursday 8th December 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

We have a range of specialist interests and, somewhat expectedly, the noble Lord rightly raises the important issue of freight. The strategic freight network has spent about £4 million particularly on the southern section of the east coast main line, but he is quite right that the HS2 line, once it is up and running, will free up extra capacity for both passenger services and, importantly, for freight services as well.

[Lord Shipley (LD)]

My Lords, the east coast main line has fewer diversionary routes than other main lines, and is mostly worked by electric trains, which cannot be diverted. Failure of the overhead line equipment is a regular cause of delays, so will the Minister tell the House what plans there are to modernise this?

[Lord Ahmad of Wimbledon]

The noble Lord raises the important issue of electrification, but the new rolling stock will have the adaptability to ensure that challenges are met in that respect and can be headed off in the right way.

Bus Services Bill [HL]

Lord Shipley Excerpts

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

[Baroness Jones of Moulsecoomb]

Why not run them more efficiently in the first place? Public ownership can be very cost effective and much more so because it caters to the needs of the people that it represents. People are saying to councils, “This is what we want”, and private bus companies often do not give it to them.

Limiting the power of local authorities to help their communities, as the noble Earl suggests, is a very undemocratic thing to do—perhaps that is not surprising in an undemocratic House. Clause 21 spoils what is a laudable and well-intentioned Bill. I beg the Minister to ignore what he has heard from behind him and to listen to this side of the House. It is a case of representing people and giving them fuller lives, which private bus companies, because they are in it entirely for profit, just do not see. I beg the Minister to accept the amendment.

[Lord Shipley (LD)]

My Lords, I agree with those who have spoken in support of the removal of Clause 21 from the Bill. The Bill is 83 pages long and the relevant paragraph is two lines long. It says simply, in a clause headed “Bus companies: limitation of powers of authorities in England”:

“A relevant authority may not, in exercise of any of its powers, form a company for the purpose of providing a local service”.

The Minister needs to explain to the House—I agree with my noble friend Lady Randerson that he did not do so satisfactorily in Committee—why this clause needs to be in the Bill, what its purpose is and what problem it seeks to solve or prevent. The noble Earl, Lord Attlee, gave us one reason. He forecast wholesale competition through the franchising route from local authorities; I remind the House of my vice-presidency of the Local Government Association. He was good enough to say that local authorities run bus services extremely well in the limited number of cases where that occurs.

I hope the Minister might explain what the problem actually is that the Government are trying to solve, because five years ago, the Localism Act 2011 increased the powers given to councils alongside their general power of competence, and they have a right to undertake new duties and introduce new policies that are not excluded by existing legislation. Of course, that explains why these two lines are in the Bill; otherwise, councils would have the power to form those companies to provide a local service.

Bus Services Bill [HL]

Lord Shipley Excerpts

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

[Baroness Scott of Needham Market]

My Lords, Amendment 28 returns to the question of an independent audit of proposals for new franchising schemes. I thank the Minister for meeting me in September to discuss this matter and for his subsequent letter. The purpose of the amendment is to provide the House with an opportunity to look again at the question of an independent audit and for the Minister to elaborate and build on the letter that he sent me.

The issue here is protecting the public against the careless use of local taxpayers’ money. I have always believed in devolution; indeed, I have long thought it was a scandal that our major cities constantly have to go cap-in-hand to government whenever they want to undertake a capital programme. But I am also a great believer in democratic accountability, and there is a real problem in mayoral models in that the very concentration of power in the hands of one individual that makes it such an attractive option to government also runs a significant risk of poor decision-making because it is untested by debates in traditional committees or through effective scrutiny.

The Public Accounts Committee published a report in July in which it said:

“There has been insufficient consideration by central government of local scrutiny arrangements, of accountability to the taxpayer and of the capacity and capability needs of local and central government as a result of devolution”.

The committee went on to talk more about its concerns about capacity issues, particularly financial and technical skills, which have been exacerbated by budget cuts. Providing a requirement for a mayor to give information that proposed new schemes, potentially worth millions of pounds, have been independently audited is an important safeguard. The auditor usually engaged by a local authority may very well have their independence compromised by their wish to hold on to the contract.

Equally importantly in terms of public confidence is that the audit should be seen to be independent. The Public Accounts Committee had this to say:

“Robust and independent scrutiny of the value for money of devolved activities is essential to safeguarding taxpayers’ money, particularly given the abolition of the Audit Commission … Currently, local auditors focus on individual bodies’ financial statements and arrangements for securing value for money, rather than assessing value for money itself”.

In his letter to me, the Minister referred to the guidance on the matter that he had agreed to develop, and I would be grateful to hear more about that today. He referred to the availability of freedom of information as a means of achieving transparency. I wonder whether he can confirm today that such freedom of information requests will not be met with commerciality exemptions. I beg to move.

[Lord Shipley (LD)]

My Lords, I support this amendment, to which my name is attached. My noble friend Lady Scott of Needham Market said that it related to the protection of the public, and I agree entirely with all that she said. I draw the Minister’s attention to the fact that the context is not the same as it was when we debated this matter in Committee, because an amendment was agreed on day one of Report extending franchising powers to all relevant councils and local transport authorities. I supported that in the Lobbies but I have always believed that it must be accompanied by a robust and thorough audit and full scrutiny of any proposal for franchising.

Detailed audit and scrutiny processes exist within mayoral combined authorities because this House wrote into the Cities and Local Government Devolution Act much more comprehensive arrangements for audit and scrutiny than had originally been planned. As my noble friend Lady Scott of Needham Market made clear, it is not as much as we wanted, and many feel that it is not enough—but it is, nevertheless, more than is proposed in the Bill for non-mayoral combined authorities.

I hope that the Minister will give much further consideration to the proposal that there should be full scrutiny and audit of any franchising plan proposed by a council or local transport body which is not a mayoral combined authority. My noble friend Lady Scott received a letter from the Minister dated 5 October which expresses much agreement on the need for the audit process to be credible and open to public scrutiny, and accepts that there must be robust evidence and analysis. Indeed, on page 2 the letter accepts that the process should be independent, and one in which other people will have the right to challenge the report. Clearly the process must be seen to be transparent.

We need an auditor with appropriate professional standing who is clearly independent of the contractor and also has professional knowledge of audit, finance and, crucially, transport. I suggest to the Minister that it will be a rare person indeed who, as auditor to a council or a local transport body, has all those skills. It is my view that a specific appointment should be made.

I accept that this matter could be subject to further discussion during the passage of the Bill and then in the production of guidance—but, now that the House has extended franchising powers to non-mayoral combined authorities, having a robust and independent audit system has become increasingly important.

[Lord Snape (Lab)]

My Lords, I support the views put forward by the two previous speakers. Under previous legislation, there were five main tests for franchising. I do not propose to go over them, but they were fairly stringent. Attempts by local authorities to introduce franchising previously failed those tests.

We are in uncharted territory with the Bill. It does not seem inherently fair that the authority that wants to set up a franchising scheme can be judge and jury for that scheme, which appears to be the current situation. We need a degree of independence in judging the merits or otherwise of such a franchising proposal. Common fairness demands some sort of independent scrutiny of the proposals.

I do not know the Minister’s intention, but I hope that he will see the common sense and fairness behind the noble Baroness’s amendment. If an independent element is not introduced, one can just imagine the number of judicial reviews that will be held—from one end of the country to the other—if bus companies feel that they have been unfairly treated by the franchising authority acting as judge and jury. So the amendment is eminently sensible and I hope that the Minister will act on it.

Bus Services Bill [HL]

Lord Shipley Excerpts

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

[Lord Bradshaw (LD)]

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

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

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

[Lord Shipley (LD)]

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

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

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

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

[Lord Kennedy of Southwark (Lab)]

My Lords, as this is my first contribution to the discussion on Report of the Bus Services Bill, I refer noble Lords to my register of interests: I am an elected councillor in the London Borough of Lewisham and a vice-president of the Local Government Association. I should also say that, generally, we on these Benches welcome the provisions in the Bill.

Bus use in London has grown while outside it the picture has been very different. We are hopeful that when the Bill passes into law, it will help to halt the decline in bus use outside London, particularly in rural areas. The two amendments in this group are in the name of my noble friend Lord Whitty. As we have heard, Amendment 1 seeks to place a duty on county councils in non-metropolitan areas to consult on the needs for local bus services. It would require them to issue a consultation document and, following the consultation, to issue an assessment on the need for local bus services in the county and, further, to seek to secure the provision of bus services that address the needs identified that would otherwise not be met, as my noble friend outlined. The amendment is very focused and requires the Secretary of State to issue guidance to assist county councils in making sure that they have properly responded to the outcomes of the consultation. The amendment goes further in setting out what the consultation must address and who, at a minimum, must be consulted. I agree with my noble friend Lord Whitty and the noble Lord, Lord Shipley, about ensuring that employers’ organisations are properly consulted. However, the amendment gives considerable scope to the Secretary of State to set out and shape the consultation to be undertaken.

Amendment 113, also in the name of my noble friend Lord Whitty, would place a requirement on the Government and the Secretary of State to issue a national strategy document within 12 months of the Act coming into force. Noble Lords will recall that that was discussed in Committee. As we have heard, there is no need for the bus industry to be the poor relation of other transport services. I fully support this amendment’s objective of requiring a proper national strategy. As we have heard, this document will set out the objectives, targets, plans and funding mechanisms for the delivery of bus services over the next 10 years. That is a very welcome idea. We have heard and seen the decline in bus services outside London. The Bill is an attempt to halt that decline. It seems sensible for the Government to pull those things together into one document. I hope that the Minister will give a positive response.

--- Later in debate ---

[Lord Kennedy of Southwark]

My Lords, Amendment 14, in my name and that of my noble friend Lady Jones of Whitchurch, returns to a key part of the Bill raised both at Second Reading and in Committee. Under the Bill, only mayoral combined authorities can automatically opt for a franchise scheme if they believe that that is right for their area. All other categories of authority have to seek the permission of the Secretary of State to go down that route; that in turn would need to be approved by the affirmative procedure.

Our amendment, and Amendment 25 in the names of the noble Baroness, Lady Randerson, and the noble Lord, Lord Bradshaw, would put the whole question of franchising on a level playing field. We support the Bill in general, as I have said, and there are many good measures in it which we believe would improve bus services outside London. We have evidence that franchising works here in London and, where an authority thinks that that is the right model for it, we want it to be able to take it up, improving the number of passenger journeys and driving up standards.

With the change of government, I hope that there has been and continues to be a period of reflection on the whole question of mayors and the exclusivity of powers under the Bill that can come only when having a mayor. If an area wants a mayor, that is fine; if it does not, that is fine too. I hope that we can move away from effectively forcing authorities down a certain path if they want to have certain powers to a much more consensual approach, where it can be determined locally what is the best model for a locality and the full suite of powers be available, no matter what model is chosen.

Amendments 24, 26 and 27, also in my name in this group, are complementary, although in my opinion Amendment 25, in the name of the noble Baroness, Lady Randerson, works better. I beg to move.

[Lord Shipley]

I support this group of amendments. The issue is whether a distinction should be drawn between the powers of a mayoral combined authority and an ordinary combined authority, the difference between which is only whether an elected mayor chairs the authority’s meetings. A second issue is whether a distinction should be drawn between a mayoral combined authority and a county council or an integrated transport authority.

It is very difficult to see why the Government are drawing the distinction they are. It is also very difficult to see why other bodies with transport responsibilities are being excluded from an automatic right to propose a franchising scheme without the Secretary of State’s agreement. Devolution of power implies devolving that power and devolving responsibilities associated with it. I would be content with the right to propose franchises to be extended to authorities other than mayoral combined authorities.

My concern relates in part to a later amendment, Amendment 28, about the independence of the audit function. If we have a robust audit system in place to examine proposed franchising schemes, it is much easier to allow other authorities, beyond mayoral combined authorities, to propose the franchising route. If a local transport body feels that franchising is right for it, and if it is subject to that rigorous independent scrutiny, it should be allowed to proceed.

There is an issue about the future of elected mayors where some combined authorities have turned into mayoral combined authorities and others have not. There could well be a change of heart within the Government anyway about the application of elected mayors—whether they will be compulsory in areas with substantial devolved powers. We are writing now into legislation that the extra powers that go with the right to franchise can go only to mayoral combined authorities, when not all combined authorities may end up being mayoral.

I hope that the Minister will look carefully at this because there is a very strong case to extend the power to franchise to authorities other than just mayoral combined authorities.

[Lord Horam (Con)]

My Lords, I am a very strong supporter of the Bill and, like the previous speaker, I do not see why its benefits should be confined to mayoral combined authorities—why other authorities such as county councils cannot automatically invoke a franchise in the same way as mayoral combined authorities. That argument, which was stated at some length in Committee, has only been added to in the intervening time. First, we have Brexit, which means that there is far more for the Government to do than was ever envisaged when the Bill was first thought of; and, secondly, there has been a change of government, which means that there is perhaps less drive for the mayoral combined authorities, as opposed to other authorities, then under the previous regime. For both those reasons, we should think again about this proposal and widen it as far as possible so that everyone has the opportunity to franchise. After all, we all want bus services to be better, and this is a way to do it.

I hope that the Government will think again, either here or in another place, about taking a more relaxed attitude to the clause.

Bus Services Bill [HL]

Lord Shipley Excerpts

Wednesday 20th July 2016 Lords Chamber

[Baroness Randerson]

My Lords, I shall address Amendments 85 and 86 tabled in my name. Once again these amendments are an attempt to firm up the Bill by ensuring that enhanced partnerships take into account the list of factors specified on page 39, which at the moment suggests that they “may specify” those factors. The list includes such fundamental things as tickets and entitlement to travel. We believe that enhanced partnerships have to take these into account. We are saying not that problems have to be solved in a particular way but that enhanced partnerships must take account of this. We are not prescribing the solutions.

Amendment 86 specifies that emission levels must be included in the factors that vehicles must meet and that disabled access arrangements must be taken into account. We have raised these issues before. Once again, this is a very basic reference to simple principles that really need to be taken into account in a Bill that will become an Act in 2016 and will probably suit the industry for the next 20 or 30 years, as the previous Act did. If we want to look ahead, we have to look at the society we are serving to ensure that the factors that are so important, such as emission levels, are considered in every circumstance, not just by the best operators and the most thoughtful local authorities.

[Lord Shipley (LD)]

My Lords, I support the amendment tabled by my noble friend Lady Randerson. It may appear to be an issue of semantics on the term “may specify” in new Section 138C, to which the amendment relates. The noble Lord, Lord Berkeley, wishes to amend the words to “must specify” and my noble friend Lady Randerson prefers the words “must consider”. I think the term “must consider” is better. “Must” is stronger than “may” and “consider” does not require a specification. I am not sure it is necessary to require an enhanced partnership to define or specify what a ticket looks like.

There are two issues in the long list of possible requirements in new Section 138C. Some have a national standard. They may relate to issues such as emissions, which my noble friend Lady Randerson has talked about, and they should apply across the country. Others are simply best left to the local arrangements and definitions of what seems appropriate. I hope that when we come to understand a little better what the list of requirements in new subsections (3) and (4) amounts to, we can get some closer definitions.

I understand that it is not necessary for this to be in the Bill, but the issue will arise in the context of statutory guidance. In that context, having read the list of requirements, it is helpful to consider what the appearance of a vehicle being used to provide local services should be. I do not fully understand whether the appearance refers to, say, the colour of a vehicle. In London, buses are red; in other places, buses in the same transport authority can be different colours. It is important that those matters are considered. Of course, appearance could relate to the number of times a bus is washed. On the appearance of a bus, if it gets dirty in winter, we prefer to have windows that people can see out of. I understand that this is a very small example, but we need to be a bit clearer about what the list of requirements actually is and, if they are requirements, whether they must or may be specified, and whether they must be considered. Having read all this very carefully, I have come to the conclusion that the words “must consider” are a better way of explaining what should be done.

I look forward to hearing the Minister’s response so we can understand a little better what this means by the time we reach Report.

[Lord Kennedy of Southwark (Lab)]

My Lords, as this is the first time I have spoken in Committee today I draw the Committee’s attention to my being a member of a local authority and a vice-president of the Local Government Association. I am very supportive of Amendment 84A, moved by my noble friend Lord Berkeley, which seeks to put in the Bill a requirement that an enhanced partnership scheme,

“must state the minimum standards of service to be provided”.

It seems sensible that we should state clearly what the expected minimum standards are for a scheme. My noble friend laid out clearly the reasons why. I hope the noble Lord, Lord Ahmad of Wimbledon, will give a positive response.

I am supportive of the other amendments in the group as well. Amendment 84B, again in the name of my noble friend Lord Berkeley, would toughen up the clause by replacing “may” with “must”. All of us want to see the Bill become law and improve the bus services provided to people outside London. Where we can, being much clearer and certain on what is to be done is helpful. In this respect, removing “may” and inserting “must” is helpful. Amendments 85 and 86 in the names of the noble Baroness, Lady Randerson, and the noble Lord, Lord Bradshaw, would place a requirement on enhanced partnership schemes to consider what are the other requirements or standards to be provided.

The final amendment in this group is in my name and that of my noble friend Lady Jones of Whitchurch. It seeks to add a further provision on the collection of qualitative performance measures, specifying that these could include matters of passenger satisfaction. The service that passengers receive in all respects should be measured and taken account of. If people are unhappy about the cleanliness of their bus or other matters when they travel, that should be taken account of by the authorities. I look forward to the noble Lord’s response to these amendments.

--- Later in debate ---

[Earl Attlee]

My Lords, I very much support the inclusion of Clause 21 in the Bill, so I cannot support the noble Lord, Lord Kennedy, and the noble Baroness in seeking its removal.

Municipal bus companies—to be honest, there are only a few—served a very useful purpose prior to the deregulation of the market. Among those remaining in existence, there are indeed some great operators. Reading Buses and Nottingham City Transport, for example, consistently provide excellent services and win award after award. I hope that I am not doing others a disservice by not specifically mentioning their hard work and achievements. I agree with some of the compliments paid to these operators by the noble Baroness, Lady Randerson.

I know that the mood music surrounding this clause has caused some concerns about the future existence of the remaining local authority-owned companies. This is simply extremely unhelpful and unfortunate. I hope that my noble friend the Minister will state very firmly that those existing companies have nothing to fear and that he will be able to reassure them and the Committee that there is nothing in this Bill that threatens their existence.

The noble Lord, Lord Kennedy, asked, “What is wrong?”. In the case of a local authority looking to go down the franchise route, the authority invites a bid for the contract. Its own company submits a bid—it would be rather odd if it did not. Preparing bids is an expensive and time-consuming business. So who has paid for the local authority-owned company to bid? Yes, the local authority that owns it. Would the local authority award the contract to the company it owns? You bet it would. Otherwise it would put its own company out of business. To me this all smells of state aid.

So again we are back to fairness and level playing fields. Allowing a franchise authority to create its own company, which would then bid and win that franchise, almost by the back door, is simply wrong. My counsel is that Clause 21 should stand part of the Bill.

[Lord Shipley]

My Lords, I could not agree less with the noble Earl, Lord Attlee, on this matter. The grounds that he has produced seem to relate to a potential conflict of interest where the local authority is a franchising authority. Clearly, there could be—but, of course, not all contracting will relate to franchises. A whole set of partnership arrangements will be possible. The noble Earl is asking the wrong question, if I may say so.

I remind the Committee of my vice-presidency of the Local Government Association. Clause 21 is a very bad clause and I hope that the Minister understands that it will become a major issue on Report if the matter is not resolved. The clause is headed, “Bus companies: limitation of powers of authorities in England”. Of course, it does not apply in Wales, where local authorities would have the right to continue to create companies if they wished to. But that right to form a company exists now and it seems to have worked. So it is not clear why the Government have decided to include this clause in the Bill, which is otherwise, as the noble Lord, Lord Whitty, pointed out, by and large very good in many respects. Many of the amendments we have been discussing are matters of detail that would enhance what is already a good Bill.

I remind the Minister that five years ago this House passed the Localism Act 2011, which granted an extension of powers to local authorities with an associated general power of competence. That is not to say that local authorities then take on that power and start creating lots of companies, but it means that they have the power to do so should there be an occasion when it seems necessary and in the public interest so to do. It is therefore wrong in principle to remove the right of local councils to do that.

So I hope the Minister will understand the strength of feeling about this issue, and I hope that he will be able to explain to the House why the Government think it is necessary to strike out a power that local government currently has, which has served local government well and would potentially improve public transport networks rather than make them worse.

[Lord Berkeley]

My Lords, my reading of this clause is that even those authorities that are running bus services now will not be able to do so in future. That is very serious. To respond to the point made by the noble Earl, Lord Attlee, if a local authority wishes to run a bus service, it does not need a franchise itself: it can just run the service. Ditto, it does not have to have an enhanced partnership with itself: it can just run the service. So it seems to me that if the local authority wanted to run the service it could just do it if this clause was not there. It does not need to have a conflict of interest.

I support all noble Lords on this side of the House who have spoken. This is a really bad clause. It has many similarities with the railway industry, which we can go into. I very much hope that we will see the end of it quite soon.

National Networks: National Policy Statement

Lord Shipley Excerpts

Tuesday 20th January 2015 Grand Committee

[Lord Shipley (LD)]

My Lords, I welcome the Government’s response to the public consultation. It is clear, as my noble friend said, that there has been significant scrutiny. There is evidence that the draft has benefited from that, and the quality of the responses received has clearly been helpful in achieving that.

I place on record that infrastructure investment under this Government has risen over recent years and commend the Government for their commitment to achieving that and rebalancing the economy as they seek to do, because it is important to recognise that transport planning helps to drive growth in all parts of the UK.

I want to raise two specific issues. One relates to integration of transport systems across the UK; the other is a specific query relating to freight. I note that most organisations responding were supportive or neutral. It is noteworthy in paragraph 12 of the executive summary that there were requests for the NPS to adopt a more integrated approach across transport modes. In paragraph 4.11 of the Government’s response, they acknowledge that the,

“professional planning community and scheme promoters also wanted the NPS to provide spatial specificity highlighting where development and specific schemes were needed”.

The Minister rightly referred to that.

I understand that transport strategy, as is made clear in paragraph 4.16, is,

“beyond the scope of this consultation”.

That is understandable, because the NPS is a planning document which represents the decision-making framework for national road, rail and freight interchange projects. It is fundamental to growth strategies, but it is not a national transport plan, although some parts of it share some similarities with it. My point is that we need a UK-wide strategic transport plan. You can call it that, you can call it a strategy or you can call it a policy, but it needs to be a practical, deliverable statement of policy intent to put the road investment strategy, the rail investment strategy and all other transport strategies into context. That context is connectivity for all parts of the UK to support growth.

Let me give a specific example of what I am getting at by referring to the planning for HS2. I have been puzzled by paragraph 1.9 in the section on the policy context that says that it,

“does not cover High Speed Two”,

because of the hybrid Bill process, although it does set out the,

“policy for development of the road and rail networks and strategic freight interchanges”.

I understand why that is the case given that there is a hybrid Bill for HS2. My query relates to the availability of the plan and the money for connecting existing transport capacity with HS2. As the House of Commons Transport Committee said in recommendation 10, the NPS should,

“make explicit reference to the desirability of connecting HS2 to the classic rail network, so that people from around the UK can benefit from the new high speed rail line”.

My question is: will HS2 link adequately with existing networks and what about the new linkages that will be required where new HS2 stations are constructed outside city centres? I wonder who is doing the thinking on that, who is planning what they will be and who is assessing where the budget will be made available from to pay for it. So that is connectivity. I think that it would be hugely helpful for there to be a UK-wide transport plan that sought to look well into the future, as best we can, about what is needed for all parts of the UK.

I mentioned a specific question in relation to freight. For strategic roads, the NPS covers a very small part of the total number of roads, understandably, but for freight the NPS actually covers two-thirds of freight. My question is whether our policy on connectivity for freight ports is robust enough. Are we clear how—over, say, the next decade—we are going to ensure that all the pinch points, which still exist in some places, that restrict or slow down the connection of goods into ports for export, are assisted? Secondly, on the question of the rail gauge, I have always thought that the work being done by the DfT on rail gauges was sufficient to ensure that containers could move easily to ports. However, there is a question around the potential size of containers and their growth. Although it is true that there may be extra capacity forthcoming through HS2, I wonder what the thinking is on the larger-gauge rail freight systems if they could actually get more freight off the roads and on to rail.