Rural Bus Services (South Devon)

Debate between Adrian Sanders and Norman Baker

Tuesday 28th June 2011 Westminster Hall

[Norman Baker]

I hear what my hon. Friend says. The Confederation of Passenger Transport UK said that it was hopeful of incorporating the change without affecting fares or services; I hope that reassures her on that point. I shall deal in a moment with local tendered services, which I suspect are more of a problem for my hon. Friend’s constituents.

The Government are committed to reducing the budget deficit that we inherited, and every sector has to play its part in that. However, the Transport Secretary and I are determined that buses should continue to receive their fair share of funding. We want to encourage more people to use buses, and to make bus travel more attractive in whatever way we can, given the financial envelope within which we have to work.

The Government spend more than £1.2 billion a year on concessionary travel and bus subsidy in England, outside London, of which £15 million or thereabouts is spent in Devon. We remain particularly committed to the concessionary travel entitlement in England for the 11.5 million eligible older and disabled people. I hear my hon. Friend’s suggestion of introducing a small charge to help finances. I can only say that the Prime Minister has made plain the importance that he attaches to the present arrangements—that the concessionary travel arrangements continue to be free for those entitled to them. That obviously remains the Government’s policy.

My Department recently issued new guidance to local transport authorities to help them ensure that bus operators are reimbursed for carrying eligible passengers on a “no better off, no worse off” basis. My hon. Friend referred to the concessionary travel reimbursement arrangements, but the essential legislative requirement that bus companies should be no better off or no worse off has not changed. All that has happened is that the Department has issued new guidance to enable local authorities better to deliver the requirement. They are not obliged to follow that guidance, although they may do so if they wish; but they are obliged to comply with the legislation, which has not changed.

[Mr Sanders]

I raised this matter under the previous Government and suggested, through parliamentary questions, that the cost of a national scheme would be less than lots of local schemes. Will the Minister consider that as a way in which we can reduce the costs overall? It seems crazy that different local authorities pay different rates for the same service.

[Norman Baker]

There is a national arrangement in place in Scotland, which was considered. Responsibility was moved from district councils to county councils, which helped to bring some consistency to services and reduce some of the overheads. However, we have to balance that with our need to pursue a localism agenda, which both coalition parties firmly support. To have a national scheme would counter that and go against our direction of travel.

When the Department was considering the new guidance for the concessionary travel scheme, we took representations from the bus operators and local councils. I then personally amended the guidance to ensure that it reflected the particular challenges of operating in a rural area.

I recognise that the recent local authority funding settlement has been challenging and that in some areas, local councils have responded by taking the axe to local bus services. That badly hits rural areas such as Devon where supported services make up a much higher share of the total than in metropolitan areas. The formula of the Department for Communities and Local Government, which allocates money to local councils, incorporates a sparsity factor, which should help areas such as Devon. The Department is also committed, through the local government resource review, to looking at the entire way in which funding takes place and local moneys are raised from the local taxpayer, and that process is ongoing.

I am naturally concerned when I hear that vulnerable people with few other transport choices have lost their only bus service, or that children have reduced public transport access to the school of their choice. Those are serious and unwelcome developments. As my hon. Friend says, fewer than a quarter of all journeys in Devon are made on supported services. That means that more than three quarters are made on commercial services, which are unaffected by changes to council income or changes in council policy.

When difficult decisions are to be made on local bus services, I am clear that they should be made at a local level and not in Whitehall. The Government set out in the local transport White Paper their commitment to ending top-down decision making and one size fits all solutions. That means that we will see different decisions made in different places across the country depending on the priorities given by elected local members in those areas.

Some councils have taken an almost slash and burn approach to bus services, while others such as East Riding have percentage cuts in single figures. They have been more careful about making decisions that affect bus users. I note that Devon county council has cut its budget for supported bus services by 17% this year. In a consultation that it held called “tough choices”, which I welcomed, savings on bus services were one of the top three areas that were identified by 60% of those who responded. I accept the point that my hon. Friend makes that those who do not use buses will be more likely to identify them for cuts than those who use them. Nevertheless, it was an attempt by the county council to validate the decisions that we are taking, and that is entirely helpful. Other areas have consulted and reached different conclusions. Cornwall, for example, has chosen to keep its morning peak-time concessionary travel entitlement on a countywide basis.

It is up to Devon to prioritise its spending as it sees fit, and it is not for central Government to intervene in that matter. How much it spends on buses, roads and libraries is ultimately a matter for Devon county council. Rather than telling councils what to do, my focus instead is on encouraging bus companies and local transport authorities to work together to deliver improvements that make the bus a more attractive option. They need to improve reliability and produce smarter and more integrated ticketing—to which my hon. Friend referred—reasonable fares and understandable timetables. She will be aware that an application has been made to the local sustainable transport fund in respect of smart ticketing. Decisions on the outcome of that particular application will be made shortly.

I am also keen that local authorities make the most efficient use of their resources. It is a good idea that there is a maximum efficient use of the vehicles that a council may have. We still have cases in which there are adult social care vehicles in one box, public transport vehicles in another box and school buses in a third box, and they are all run by different departments of the council. These days, councils, which need to make efficiency savings, should eliminate those sorts of duplications and that silo mentality. I am not clear what the position is in Devon. I hope that it has identified savings such as that to be made. None the less, those sorts of practices can still be found in local councils up and down the country. Therefore, local councils have a job to do to ensure that they get the best value for money.

My hon. Friend also mentioned community transport. I accept that that is not a panacea for any reduction in bus services, but it can be a useful facility for particular individuals with special needs or for small communities where a bus service would not be practical. We are keen to build up the capacity of community transport organisations, which is why I recently provided local authorities with £10 million of extra funding. Devon county council was given a grant of £425,000 for that purpose. I was pleased to learn that the council has maintained its community transport budget in recognition of the important work that such organisations do at a local level.

I pay tribute to Devon Wheels 2 Work scheme. It is an excellent example of a not-for-profit organisation that provides vital links to education, work and training by loaning motorbikes and scooters at subsidised rates. Other examples can be found across England, and it is exactly the sort of grassroots activity that I would like to see more of and to encourage.

Let me now pick up on some of the points that were made. My hon. Friend made reference to route 111. As she will understand, I am not familiar with that route. However, it is a matter for Devon county council to judge whether or not it is one of the routes that it should support. It is sometimes the case that routes to hospitals are difficult to justify commercially. As people move in and out of hospital, it is difficult to build up a regular clientele for that particular service. It certainly seems that some people have been significantly inconvenienced by the withdrawal of that route, and I hope that she and her colleagues will be able to persuade Devon county council to think again.

As for the integration between the transport authority, Devon county council and the bus operators, I have noted my hon. Friend’s point about 56 days’ notice for changes. That is something that I am currently looking at. No decisions have been made, but it is something that is on the radar. It is up to Devon to decide whether it takes advantage of the terms of the Local Transport Act 2008, which facilitates quality partnerships or even quality contracts. If Devon wants to get more of a handle on bus services, there are powers in legislation available to use should it wish to do so.

My hon. Friend raised other matters that do not fall under the Department for Transport. She will be interested to know that the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning) is introducing proposals for HGV charging, which will, for the first time, capture foreign lorries in terms of what they have to pay to use our motorway network.

My hon. Friend seemed to want to go wider into road charging and almost edged into the Lib Dem manifesto from the last general election, but that is not currently Government policy. She also came up with some interesting ideas on red diesel and hypothecation, which are matters for the Treasury and not the DFT. However, her comments have been noted and I will ensure that they are passed on to the relevant officials at the Treasury.

My hon. Friend also raised an interesting idea, which has been around for some time, about out-of-town supermarkets. I can see why she has raised that matter, and I will make sure that her comments are passed on to colleagues at the Department for Communities and Local Government, who have the lead responsibility for that matter.

I do not have an answer on buses with bike racks, but I will drop her a line to let her know what the legal position is and how we view the matter. Finally, if my hon. Friend wants to bring up some of her constituents to discuss matters, I will ensure that a slot is made available in my diary for her to do that.

Question put and agreed to.

Sustainable Transport

Debate between Adrian Sanders and Norman Baker

Wednesday 19th January 2011 Commons Chamber

[Norman Baker]

I am happy to say that the Government are fully committed to cycling. It features in the coalition agreement and the hon. Gentleman will have noticed the reference to £11 million for Bikeability this year and a further guarantee for the rest of the Parliament, for example. In respect of the specific issue that the hon. Gentleman raises about racing on the road, I am happy to tell him that I had a meeting earlier this week with officials and key interested parties, and we are close to moving that forward to a satisfactory solution.

[Mr Adrian Sanders (Torbay) (LD)]

As the Minister knows, cycle and bus usage tends not to follow local government boundaries. Will the guidance in the scheme encourage cross-border bids, such as to turn the A380 between Newton Abbot and Torquay into a cycle-bus expressway once the Kingskerswell bypass has been built?

[Norman Baker]

I congratulate my hon. Friend on managing to introduce his proposed bypass into the question. The answer to the question about the guidance is yes, it expressly allows councils to work together across boundaries. Indeed, it encourages them to do so.

Oral Answers to Questions

Debate between Adrian Sanders and Norman Baker

Thursday 28th October 2010 Commons Chamber

[Norman Baker]

I hardly know where to start with that question. The fact is that 300,000 jobs have been created in the private sector in the last three months. It does not help the economy if Members talk it down as the hon. Lady does. It is also not true that the bus rapid transit system in Bristol has been put on ice. The section from Ashton Vale to Temple Meads in Bristol city centre is in the development pool and the south Bristol link phases 1 and 2 are in the pre-qualification pool. I hope very much that Bristol city council will work on those schemes in conjunction with my Department.

[Mr Adrian Sanders (Torbay) (LD)]

Given this week’s disappointing news for south Devon of the Kingskerswell bypass being put into the pool rather than being approved after a 50-year campaign for it, might the local authority be able to reduce the cost of it by taking advantage of tax increment financing and regional growth funding? Will local councils be able to use them to help meet the costs of such important road schemes?

[Norman Baker]

I know that my hon. Friend is very keen on this scheme, and that he and other local Members have campaigned strongly in favour of it. We are certainly open to innovative ideas to find alternative funding, whether through the regional growth fund or the incremental system to which he referred, and I look forward to examining those options with his local county council.

Oral Answers to Questions

Debate between Adrian Sanders and Norman Baker

Thursday 17th June 2010 Commons Chamber

[Norman Baker]

The Opposition spokesman perhaps did not hear my original answer, which was that the Government are committed to protecting free bus travel for older people. That is set out very clearly in the coalition agreement and will be our policy.

[Mr Adrian Sanders (Torbay) (LD)]

5. What recent representations he has received on the system of reimbursement to local authorities for their expenditure on the national concessionary bus fare scheme; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

Department for Transport Ministers have recently received general representations about concessionary travel, including from local authority and bus operator representatives. Some of those representations have included funding issues.

[Mr Sanders]

I welcome my hon. Friend to his position. He will be aware that many councils have found it difficult to meet the full costs of the scheme. I successfully lobbied for extra money for my authority, but it is still out of pocket. While lobbying, I uncovered a report that suggested that significant savings could be made if the scheme were administered nationally, with the Government rather than lots of local authorities negotiating with the bus companies. Will he look at that idea to see whether savings can be made?

[Norman Baker]

The previous Government consulted on that very option, and only 23% of respondents were in favour of it, compared with a majority in favour of administration at county council level—the scheme that has now been adopted. The concern is that if the scheme were administered centrally, it might have an impact on the discretionary concessions offered by district councils. We could end up with a national system and local negotiations, thereby increasing administration costs.

Transport (South Devon)

Debate between Adrian Sanders and Norman Baker

Wednesday 9th June 2010 Westminster Hall

[Norman Baker]

I should say that decisions on rail investment are not for me to make in my particular portfolio. However, I can say that the Government are entirely seized of the importance of tourism to the south-west and that that factor will be taken into account in making any decisions about transport infrastructure and any other issues relating to Government investment.

The new train service that I referred to will allow business passengers to travel from London and do a full day’s business in Torbay, as well as cater for people on holiday who prefer not to change trains, which was the point that the hon. Member for Newton Abbot made.

Rolling stock was also raised by my hon. Friend the Member for Torbay. As far as that is concerned, the Department for Transport has recently signed a deed of amendment with First Great Western. That ensures that there will be ongoing funding for 30 vehicles that would otherwise cease to be funded by First Great Western itself. I hope that he will accept that that is good news for the rolling stock for the area.

The Government want to see rail prosper and we certainly value the rail links to the south-west. We do not have individual strategies for each part of the country, but the strategy for the network as a whole is set out in the Department for Transport’s high level output specification document. It is focused on improvements in safety and performance, and, crucially, on providing more capacity.

We made it clear in the coalition agreement that we will grant longer rail franchises, giving train operators more incentive to invest in better services, rolling stock, stations and perhaps even enhancements to the network. We want a better deal for passengers, with fair pricing for rail travel and the rail regulator as a powerful passenger champion. We also want to see Network Rail being made more accountable to its customers, both the train companies and—frankly—ultimately the public at large.

Given the upcoming spending review, we are unable to commit today to any further immediate improvements to rail services elsewhere in the south Devon area. However, we will monitor the current usage of rail services and re-evaluate them in the light of the emerging financial situation.

My hon. Friend is also concerned about the road network. I acknowledge the importance that he and others attach to the A380 Kingskerswell bypass scheme, also known as the south Devon link road, and his strong view that it is key to supporting the regeneration of Torbay and the surrounding area. I also note the scheme’s long history; it goes back to 1951, which is, I think, before either of us was born.

The scheme’s promoters—Devon and Torbay county councils, with the support of the other councils to which hon. Members have referred—have made the case for the bypass to the Department. As my hon. Friend acknowledged, progress is well advanced. The view expressed is that the A380 is an important link to south Devon and that the congestion between Penn Inn and Kerswell Gardens affects the business and commercial needs of Torbay throughout the year, as well as the tourist trade in summer.

I understand that the promoters have developed the scheme in recent years on the strength of the priority given to it by the previous Government within their regional funding allocation process. However, any new Government will naturally have their own views on which major schemes should be supported by Government funding, and I am afraid that we will need to consider the scheme in the light of the tough spending review to come. After the public inquiry in July 2009, as my hon. Friend knows, an inspector’s report on the scheme orders was submitted to the Secretary of State for a decision. Given the current uncertainty about funding, we must consider such decisions carefully and will be making a statement on the subject shortly.

It should also be acknowledged that considerable opposition exists alongside the local and regional support for the scheme, as my hon. Friend acknowledged. I am sure that he is aware that several well-organised campaign groups have expressed opposition, including the Campaign for Better Transport, the Campaign to Protect Rural England and the Kingskerswell Alliance, which is made up of residents of Newton Abbot and Kingskerswell. Those groups believe that Devon and Torbay should be considering more sustainable alternatives that have less impact on the environment.

[Mr Sanders]

Can my hon. Friend mention one road-building scheme that has had no objections at all?

[Norman Baker]

I am not aware of any, but it is only fair in a debate of this nature to reflect the comments both for and against the scheme received by the Department, as I hope I am doing. There are strong views on the scheme, and it is important to listen to both sides of the argument, as I am sure my hon. Friend, as a fair man, would acknowledge.

In addition to those issues, we must also consider the wider funding position and what it means for the affordability of a £130 million road scheme. As we are all aware, the current fiscal situation means that we must consider carefully future funding decisions on all transport schemes across England and Wales.

My hon. Friend asked what mechanism is being used to assess which projects should receive funding. As I mentioned, the Government have committed in the coalition agreement to review how decisions are made on which transport projects will be prioritised. We are at the start of that process. Until that is complete and the spending review is concluded, we will not be making any funding approval decisions. I made that point clear in a recent letter to Nick Bye, mayor of Torbay, who wrote to me about the Kingskerswell bypass.

The hon. Member for Totnes asked how many projects are being reviewed and what their total value is. The Government are reviewing all funding approvals made by the previous Government from 1 January 2010, and we hope to conclude that review soon. Additionally, all schemes granted conditional approval or programme entry by the previous Government will be reviewed as part of the spending review. There are 42 such schemes, and the total requested Department for Transport contribution is about £1.5 billion. However, those schemes will not necessarily be given priority over schemes that have not received any previous funding approval. Pending further discussions with our Treasury colleagues, we are not in a position to say how much the Department will want to cut from the total. That is what the spending review is for. However, no one should assume that schemes prioritised under the previous Government’s regional funding allocation process will be funded to the previous published levels.

Finally, in response to my hon. Friend’s question about prioritising schemes that are more advanced, as is this particular road scheme, I am afraid that, for the reasons that I have given, the Department can offer no guarantees. However, I can confirm that priority will be given to projects that align with the Government’s priorities and are affordable.

I understand fully my hon. Friend’s desire for a positive decision on the funding for the Kingskerswell bypass, not least because of how much time has passed since 1951. However, the sad fact is that many other local authorities around the country are in a similar position, wondering what the future holds for their planned transport schemes. I hope that he will acknowledge that the Government need to consider all funding commitments carefully.

As with all other major local transport schemes, the Department can offer no particular assurances at this point regarding future funding, but I give my hon. Friend my personal assurance that, as part of our wider spending review, I will consider carefully the case for the funding of the Kingskerswell bypass and take into account the comments made today by him and hon. Members from nearby constituencies.