Bus Services Bill [Lords]

Andrew Jones Excerpts

2nd reading: House of Commons
Wednesday 1st March 2017 Commons Chamber

[Andy Burnham]

It is interesting, is it not? I read the Second Reading debate and that point was put to the then Secretary of State many times, and, Kuala Lumpur notwithstanding, there was no other evidence to support the major changes. I seem to remember that there are plenty of rickshaws in Kuala Lumpur, but I do not know whether he was including that in his argument.

That Secretary of State and his Government inflicted an ideological experiment on the country without evidence to support it. The facts show that it has been an unmitigated disaster for the travelling public. Today, Members on both sides of the House should at least agree to call time on it and give the various parts of the country the powers they need to correct it.

I want to say something about coverage and quality of services. I know, as my hon. Friend the Member for Manchester, Withington (Jeff Smith) said in his excellent speech—I wish I could have been in that café with him while Eric Cantona played chess; it was a great image—that in parts of his constituency, particularly as it goes into the centre of town, buses are nose to tail. Particularly as they get towards Oxford Road in Manchester, people can see that the bus congestion is just ridiculous. I was with the vice-chancellor of Manchester University last week and she told me that the record number of buses that students had counted along Oxford Road was 34 continuously nose to tail. Of course, that has a terrible effect on traffic congestion in the city centre and it simply does not work.

We have saturation on the lucrative routes, as the bus companies see them, but, as we have heard today, they abandon more isolated areas that do not make a profit for them. The Higherfold estate in my constituency, which is in an isolated area, has constantly had problems with services being unilaterally withdrawn. Then there is an attempt to hold the passenger transport authority to account by saying, “Give us a subsidy or there is no service at all.” That leads to large subsidies for the bus companies that operate in such a way.

A year ago, a Mrs Healy wrote to me to say that the withdrawal of the 12 and 15 services from Leigh meant that her son could no longer get to work in Little Hulton and he had lost his job. No notice was given of the withdrawal of that service. This has a real impact on people’s lives and, as my hon. Friend the Member for Wythenshawe and Sale East said, because many people in this Chamber do not use buses they might not understand how detrimental poor bus services can be to some people.

My hon. Friend the Member for Manchester, Withington mentioned the Arrowfield estate. I recently went there to meet the Arrowfield and Hough End residents group, who told me about the withdrawal of the 84 service, which he mentioned and which, I think, served Withington hospital. The group said that that service had been withdrawn without any formal consultation with the community and the new service that was meant to replace it stopped at 5.30 in the evening, meaning that people could not get home from work. It is not acceptable for the public to be treated in this way.

Then, of course, there is the cost. In London between 1995 and 2016, fares rose in real terms by 36%, but in metropolitan areas, particularly Greater Manchester, fares rose by 60%. As we have heard today, the fare for a single journey can often cost more than £3. Because of the free-for-all, because operators are all running different ticketing systems and because of the chaos, we cannot have an integrated Oyster-style system, so, again, the public lose out.

During a consultation with young people in Bury a few months ago, I asked about the issues facing them, and the cost of transport came up again and again. I asked them whether they travelled on buses and whether they could afford it—this goes back to a point made by my hon. Friend the Member for Wythenshawe and Sale East—and the answer was that it was cheaper to get an Uber. If there are four of them, they can get an Uber together and it is cheaper than the bus.

Is it any wonder that the roads of Greater Manchester are becoming more and more congested as every year goes by? As the quality and the coverage of our bus service has gone down and the cost has gone up during the past 30 years, congestion has got worse and worse. That is affecting the air quality in Greater Manchester, and it means that Greater Manchester is in breach of the standards—the legal limits—for nitrogen dioxide. This simply cannot carry on, and I welcome the focus in the Bill on air quality.

I hope that the Government will go further and give Greater Manchester the powers to introduce a clean air zone. I ask the Minister: what reason can there be for the Government to exclude Greater Manchester from the list of places that they have allowed to introduce clean air zones, other than cost? Cost is not a good enough reason. It is not good enough that children are breathing in polluted air on the way to school. We look forward to his and the Government’s help in solving that problem.

If all of this were not bad enough in the experience of the travelling public, we are paying through the nose for it as well. A £100 million subsidy has been given to the bus companies annually, while at the same time they have been paying out large dividends to their shareholders. This system really does not work for the public in any meaningful way. As I say, it is time to call time on what is a failed ideological experiment.

I give credit to Sir Howard Bernstein, who has been mentioned, and Sir Richard Leese and Lord Peter Smith, as well as other leaders of Greater Manchester, who in my view were right to insist that the Bill should be part of the devolution deal that was done with Greater Manchester. I pay tribute to the former Chancellor, the right hon. Member for Tatton (Mr Osborne), for agreeing to that request, and indeed to the current Minister and the Secretary of State for sticking by the deal and making sure that the Bill was put before the House.

However, I want to press the Minister and the Government on a number of concerns. An issue that several colleagues have raised today is the decision to reintroduce the clause that will restrict municipal ownership of bus companies. As my hon. Friend the Member for Nottingham South (Lilian Greenwood) said, why restrict people, because we could at least have that as an option? From my point of view, as someone who might consider using the franchising powers, to have the fall-back option of a publicly owned company being able to come in and provide the service if there were no bidders on the terms sought would provide leverage, would it not? It would do so if they knew they could run a service because they had such an option up their sleeve. I say to the Minister that nobody wants anything to happen to the Bill that might disrupt its passage, but the Government should surely give people such flexibility so that they can make full use of the powers proposed in it.

Another issue I want to mention is the one raised by my hon. Friend the Member for Blackley and Broughton. He talked about the regulations that have been published very recently—within the past couple of days—relating to the Bill. They state that the powers in the Bill can be given to a metropolitan mayoral area only if a “compelling case” is presented—not just a viable case, but a compelling one. In his winding-up speech, the Minister needs to spell out precisely what that means. Is he erecting a high hurdle to prevent metropolitan mayors from using the powers in the Bill?

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

indicated dissent.

[Andy Burnham]

The Minister shakes his head, but I want to see more reassurance than that. If he wants to intervene and say more about it now, he is more than welcome to do so. We cannot have such obstacles placed in our way that may actually limit our ability to use the welcome powers in the Bill.

I see that the right hon. Member for Chipping Barnet (Mrs Villiers) has retaken her seat, and I do not want to finish without making some reference to her speech. Frankly, I did find it quite difficult to listen to at times. She said that it was right for London to have the powers it gained by being exempted from the original deregulation measures because London is so different. I will tell her one way in which London is different: for every £1 in transport investment that we receive in the whole of the north of England, London gets £6. That inequality has existed for many decades. Consequently, people in London have several public transport options. They can use high-quality commuter trains, the tube network, the docklands light railway, regulated buses, and the bike scheme and dedicated cycle lanes. My constituents have no such choice. They are stuck with using the bus if they do not have a car. That is the difference. It is so wrong of the right hon. Lady to say that what is acceptable for her constituents is not right for Opposition Members’ constituents, who are stuck in their cars.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is with great pleasure that I close this Second Reading debate. We have had a very good debate about a very good Bill, and it has been fantastic to hear such enthusiasm for buses on both sides of the Chamber. I thank right hon. and hon. Members for their keen participation and engagement. It is clear that we all want buses to thrive because of their impact on our local communities.

As my right hon. Friend the Secretary of State set out, the aim of the Bill is to increase bus passenger numbers and to improve services by creating new options and opportunities. It also delivers on our devolution deals so that local authorities and bus operators can work together on a bus strategy that works locally. That is how local authorities can work to cut congestion, support businesses and improve air quality, and it is how operators can increase their patronage. The Bill will build on good practice to make sure that we have an industry that is open and accessible to all.

Many Members—particularly my hon. Friends the Members for Bolton West (Chris Green) and for Bath (Ben Howlett), and the hon. Member for Kilmarnock and Loudoun (Alan Brown)—welcomed the introduction of a requirement to provide on-board information throughout Great Britain, which will mean that all passengers, particularly disabled passengers, will be able to board a bus with confidence. Many colleagues have said how everybody benefits from that—I completely agree.

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

Although, of course, we support this initiative, will the Minister confirm that small rural operators that are struggling to keep costs down and vital lifeline services alive might be exempted from the initial provision of the audio-visual services?

[Andrew Jones]

We will work through the phasing of the introduction of the requirement, but we do not want to hold back from it. There is a slight cost implication for operators, but we think that that will be more than offset by the extra patronage they will secure if people are more able to use the buses. This is a business-generating approach, but we will treat the issues for the smaller operators with great sensitivity. We have taken a very deliberate approach, and I hope that the hon. Gentleman and the hon. Member for Kilmarnock and Loudoun will appreciate that it focuses on the information to be provided, not on any particular technology. We hope to consult on how to take this forward later in the year.

Many colleagues have welcomed the provisions on open data, and the Bill will ensure that passengers know how much their fares will cost and at what time to catch their bus. That important aspect of the Bill will benefit passengers right across England, as my hon. Friend the Member for Cheadle (Mary Robinson) and the hon. Member for Wakefield (Mary Creagh), among others, rightly recognised. Personally, I think that it is one of the most exciting parts of the Bill.

By introducing new advanced ticketing schemes, the Bill ensures that new and existing developments in technology can be accommodated. That will enable multi-operator ticketing schemes to be introduced so that passengers can purchase tickets that will be accepted by different operators across scheme areas, and across different transport modes, such as rail or tram. Many colleagues have highlighted how complex catching buses can be—if multiple tickets need to be bought, for example—and we hope that the ticketing provisions will get rid of that problem.

One of the key proposals in the Bill is the new enhanced partnership. As the hon. Member for Liverpool, Riverside (Mrs Ellman) recognised, some partnerships are already working very effectively right across our country. That is true—we all know that—but more can be done. Providing the opportunity for improved co-operation between local authorities and bus operators will mean a more integrated transport network for urban and rural communities. Passengers, local communities, local businesses and the environment will benefit from improvements in bus services—from improvements in emission standards through to clearer ticketing options—while operators will be left with their commercial freedoms.

There has been a lot of discussion about bus franchising today. It is clear that there is a variety of views in the House, but I think that there is clear agreement that the existing powers under the quality contract scheme have not worked effectively. As my right hon. Friend the Secretary of State set out, our intention is that the Bill will give mayoral combined authorities the automatic choice to use new powers to franchise bus services in their areas. I assure the hon. Members for Liverpool, Riverside, for Blackley and Broughton (Graham Stringer) and for Manchester, Withington (Jeff Smith) that areas with directly elected Mayors can decide for themselves whether to take up the franchising powers in the Bill. There is no need for further reference to the Secretary of State.

[Jonathan Reynolds]

As the Minister acknowledges, there is consensus in the House about making sure, as the Bill proceeds, that the powers are workable and effective. One important point is how pension liabilities will be affected if the franchise changes from one operator to another. Will the Minister, either on Report or in writing to interested Members, provide clarification about that?

[Andrew Jones]

I would be very happy to provide clarification. Throughout the development of the policies, we have been looking to protect workers who transfer in that way. We have put that right at the heart of our discussions in policy development, and I am happy to share that information with the hon. Gentleman and any other interested colleague.

Several hon. Members asked about this, so let me confirm once more that the decision about whether a case to proceed with franchising is compelling is entirely for the Mayor. We should perhaps thank the right hon. Member for Leigh (Andy Burnham) for sharing the news that he is a mayoral candidate—I do not think anybody knew that until today.

Hon. Members have talked about the guidance for consultations. Some guidance for mayoral combined authorities on establishing a case for franchising has been published, but let me be clear that it is still the Mayor who will take the decision. Our guidance merely aims to assist mayoral combined authorities in establishing a well-evidenced case—that is an important point.

Several colleagues asked what such a case might comprise, so let me add a little detail. We have a number of criteria that we would expect authorities that may be able to apply for franchising powers to demonstrate: that the authority has a clear plan to make bus services better for passengers; that the authority covers an area that is sufficiently wide to make franchising work in practice; that the authority has the powers to make franchising a success, which might mean control over parking or planning policy; that the authority has sufficiently strong governance arrangements in place; and that the authority has the resources and funding to deliver franchising successfully. Those are some of the criteria we will consider when looking, case by case, at which authorities will be able to apply for and secure franchising.

[Mrs Ellman]

Will the hon. Gentleman confirm that Ministers will look on such applications in a positive light, rather than looking at the case made with a view to rejecting it?

[Andrew Jones]

I can confirm that. Our approach will be one of glass half full rather than glass half empty. We are not trying to get in the way of authorities or others that wish to improve their bus services. The whole point of the Bill is to provide a suite of enabling powers so that authorities can do what is right for their area to put more passengers on buses and provide better networks. We will certainly view all conversations positively.

As my right hon. Friend the Secretary of State made clear, benefits for passengers will need to be at the heart of any authority’s application for franchising powers. Governance, geography and evidence will be critical if authorities are to apply successfully for franchising status. I do not agree with colleagues, including the hon. Members for Middlesbrough (Andy McDonald) and for Nottingham South (Lilian Greenwood), who believe that bus franchising powers should be available to all authorities throughout England automatically.

My right hon. Friend the Member for Chipping Barnet (Mrs Villiers) recognised the very real risks to investment by bus operators that will be created if franchising powers are made automatically available to all local authorities, and the chilling effect that that might have on operators and bus manufacturers such as Wrightbus. I am aware of the quality of that business’s products. My right hon. Friend made her point clearly, drawing on her experience. I agree with the concerns highlighted, which is one reason why we will seek to reverse the changes made in the other place.

I assure my right hon. Friend the Member for Chipping Barnet that, as my hon. Friend the Member for Bolton West recognised, the Bill requires franchising authorities to consider how, in conducting their procurement process for franchising contracts, they will facilitate the involvement of small and medium-sized operators. We—and, I hope, every directly elected Mayor—want to ensure that such operators thrive if franchising is implemented. We have made that clear in the Bill.

I have been interested to hear the range of views about municipal bus companies. I agree with the hon. Member for Nottingham South and others who highlighted that those that have survived deliver great services to their passengers. I believe that there are seven municipal bus companies in England, and I saw one for myself yesterday on a visit to Reading. However, on the whole, private sector bus operators have delivered our local bus services for the past 30 years. We want to ensure that we strike the right balance, with commercial operators continuing to innovate and deliver good services for passengers.

The Bill provides local authorities with substantially more opportunities to influence the provision of local bus services in their area, whether through partnerships or franchising, and we are therefore still of the view that commissioning and the provision of services should be kept separate.

Many colleagues asked about rural services. Through franchising and partnership, the Bill will work for every area of the country—urban and rural. I assure my hon. Friend the Member for North Warwickshire (Craig Tracey), who is a great champion of rural bus services, that the Bill’s partnership powers allow local authorities to work with operators to improve the co-ordination of services, for example to link bus and rail services more closely. A good example of that is under way in Cornwall, which is already working in partnership with operators to ensure that rural areas have bus links to key shopping or employment centres at the right times of day. That is a positive development, which already uses the powers in the Bill. The local operator has invested in its fleet and increased its profitability and patronage in the area.

Several authorities are also planning bus services alongside community transport services and other types of transport, such as home-to-school or patient transport, so that rural connectivity is maximised. That is the sort of innovation that we need across the country and that we are encouraging through our Total Transport pilot scheme, to which the hon. Member for Nottingham South referred. The Government are a strong supporter of community transport.

My hon. Friend the Member for Somerton and Frome (David Warburton) was right to highlight clause 19. When routes are withdrawn, such as the 116 that my hon. Friend the Member for North Warwickshire mentioned, we want local authorities to have the information they need to decide whether and how to provide replacement services. That is exactly what clause 19 aims to achieve.

I do not agree with the hon. Member for Liverpool, Riverside that bus routes should be designated as assets of community value. As the Government explained in our response to the Select Committee report, that would force operators to continue to operate a service for six months, potentially at huge cost, which could act as a disincentive for operators improving or maintaining services, especially in rural areas.

I should like to challenge the myth, which has been perpetrated in the debate by some colleagues, that bus services were flourishing before deregulation in the 1980s and that the decrease in bus passengers started at deregulation. I have gone back and looked at the data. In the 30 years between 1955 and 1985—30 years prior to deregulation—the number of passenger journeys on local bus services in Great Britain fell on average by 2% a year. Since deregulation, the fall has gradually reduced, at an average of just 0.2% a year. The number of passenger journeys fell from 15.5 billion in 1955 to 5.5 billion in 1985. One thing has been clear in the debate: all hon. Members want that trend reversed and for passenger numbers to increase.

Many colleagues mentioned buses and air quality. I have absolutely no doubt that buses can be a critical ingredient to improving an area’s air quality. As parts of a partnership or franchising area, authorities will be able to specify the emission standards of vehicles. In fact, the Government introduced amendments in the other place to make that clearer. We have supported and will continue to support bus companies with grants to encourage the take-up of low-emission vehicles. Low- emission buses are critical to putting in place good integrated transport systems with low emissions.

The hon. Member for Liverpool, Riverside mentioned the Traffic Management Act 2004. I agree that congestion is a problem that has an adverse impact on local bus services. However, the Government and I remain to be convinced about the case for giving all authorities the powers to install a raft of new cameras on yellow box junctions or elsewhere. In the past few days, I received a letter from a councillor who said that doing that would be a great idea because it would help with council revenue collection, which was exactly what we did not want to hear.

My hon. Friend the Member for Bath asked about tourist buses. As far as I am aware, any arrangements that are already in place can continue unchanged, but I will check that and write to him to confirm it.

We have covered many issues, but I am sure that my speech from the Dispatch Box and hon. Members’ comments have touched on only some of the issues that we will cover in Committee, which I look forward to. The Bill enables improvements where they are needed. It has also been clear from the speeches made by colleagues on both sides of the House that they have been thinking about how the new powers in the Bill will be used to improve services in their areas, which is great and exactly what we want.

The bus industry has made huge strides in making the experience of bus travel more attractive. Many buses have free wi-fi, as well as CCTV and USB charging points. The vast majority of buses are now accessible.

Last year, more than 4.65 billion bus passenger journeys were taken in this country, which was three times as many journeys as on the entire rail network. Buses are as relevant now as they have ever been. I see them playing a very important part in all our transport futures. All good public transport systems will have buses at their heart. There is no shortage of energy, effort and investment in the sector to support a growing bus industry. The purpose of the Bill is to continue that great work to the benefit of bus passengers, and I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

BUS SERVICES BILL [LORDS] (PROGRAMME)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Bus Services Bill [Lords]:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 21 March 2017.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill (including any proceedings on consideration of any message from the Lords) may be programmed.—(Andrew Griffiths.)

Question agreed to.

BUS SERVICES BILL [LORDS] (MONEY)

Queen’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Bus Services Bill [Lords], it is expedient to authorise:

(1) the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under any other Act out of money so provided; and

(2) the payment of sums into the Consolidated Fund.—(Andrew Griffiths.)

Question agreed to.

Business of the House (7 March)

Ordered,

That, at the sitting on Tuesday 7 March, the following shall apply to proceedings on the motion in the name of the Prime Minister relating to the Chair of the UK Statistics Authority and on the motion in the name of Mr David Lidington relating to Standing Orders (Public Business)—

(1) proceedings on each motion may be entered upon at any hour and may continue, though opposed, for one hour;

(2) the Speaker shall put the Questions necessary to dispose of each motion not later than one hour after the commencement of proceedings on that motion;

(3) such Questions shall include the Questions on any Amendments selected by the Speaker which may then be moved; and

(4) Standing Order No. 41A (Deferred divisions) shall not apply.—(Michael Ellis.)

Use of Welsh Language in Parliamentary Proceedings

Resolved,

That this House—

(1) notes the Fourth Report of the Procedure Committee, HC 816, on Use of the Welsh language in the Welsh Grand Committee at Westminster, which builds on more than twenty years of use of the Welsh language in parliamentary proceedings in Wales and at Westminster;

(2) resolves that:—

(a) whilst English is and should remain the language of this House, the use of Welsh be permitted in parliamentary proceedings of Select Committees and of the Welsh Grand Committee held in Wales and at Westminster;

(b) reasonable notice, as determined by the Chair of the relevant committee, shall be given in advance of any proposed use of the Welsh language so as to allow the necessary arrangements to be made;

(c) the Chair shall have power to insist that points of order are made in English; and

(d) the Official Report shall record contributions made in the Welsh language together with their English translation; and

(3) accordingly rescinds the Resolution of 5 June 1996 (Language of Parliamentary Proceedings).—(Michael Ellis.)