Bus Services Bill [ Lords ] (First sitting)

Debate between Bridget Phillipson and Graham Stringer

Committee Debate: 1st sitting : House of Commons
Tuesday 14th March 2017 Public Bill Committees

[Bridget Phillipson]

Yes, the north-east has a combined authority. It has gone through the process of further devolution. The sticking point was the Mayor. As I understand it from the Government’s guidance, the difference with Cornwall is that bus franchising was agreed to as part of that devolution deal. Unfortunately, that was not on the table for the north-east. I wish Cornwall well and am glad that it will have those powers. I ask only for a bit of parity, so that we in the north-east get the powers that Cornwall will enjoy. That is symptomatic of the Government’s patchwork approach to devolution, which is borne out not by different local circumstances, but often simply by reaching convenient deals depending on the politics of the situation, rather than ensuring that the best service is delivered for all people.

I ask the Minister to talk a bit more about the difference in approach, because I do not fully grasp why the north-east should not have those powers. Though I take on board his point that unnecessary hurdles should not be put in the way, I am concerned that, to start the process, we will require that approach from the authority. If that case is put forward, I hope that it will not be something that the Department and Ministers seek to frustrate, because the issue is important for the people I represent.

This is a welcome step. Bus services are incredibly important for our country. We mention them too little, although I have tried to play my part in the past few years in talking about them at every given opportunity. The people I represent have only buses to rely upon; they have no access to rail or light rail. Getting this right, and having a system that is fair and works for everybody, is absolutely vital. I hope that Ministers are sincere in their commitment to ensure that areas that seek out these franchising powers will be able to do so, that their case is considered carefully and seriously and that we do not seek to frustrate a process that would lead to real benefits for areas such as the north-east—and not simply in terms of individual routes or services. If the Government are genuine in their commitment to create the so-called northern powerhouse and to see areas such as the north-east thrive and reach our economic potential, we need these powers to deliver real change. We need to link buses to other forms of transport so that we can have tickets and fares that work across all operators, which we do not have at the moment. We need routes where local people can have a say.

The Minister talked about investment in lower-emissions vehicles and has talked previously about investing in smart ticketing. Again, I welcome those steps; but were it not for significant taxpayer investment, that would not have happened in areas such as the north-east. Some of the smart-ticketing schemes that he has come to see in Tyne and Wear came about through taxpayer investment. I welcome that, but bus operators will rarely do these things out of the goodness of their hearts. Where we have significant investment from the taxpayer, it is right that we ensure there is value for money and accountability. I hope that I can work with the Minister and others in the region to get the best possible deal for the north-east, that he looks carefully at what the transport authority may wish to put forward in the months ahead and that we can reach a solution where local people get the service they need and our economy is supported to grow.

[Graham Stringer]

I agree completely with my two hon. Friends. I will try not to repeat the excellent points they have made. I have a nuanced difference with my hon. Friend the Member for Houghton and Sunderland South when she says that the objectives of the Transport Act 1985, which deregulated buses, were the same as the objectives under discussion today. I have been around long enough to have talked to the people who advised the Government and drafted the Bill that eventually led to deregulation, and there is no doubt that they were ideologically driven. They had no idea what the outcome would be when they proposed the deregulation process. They had a belief, which has turned out not to have come to fruition, that if we had competition on the road, that would lead to a better outcome.

The evidence that I, as a member of the Transport Committee, have seen and individual right hon. and hon. Members will have seen—this is worth bearing in mind during the whole debate—is that over the 31 years that it has been there, the deregulated bus system has been a disaster for many bus users. It will be possible to find small instances up and down the country of bus services having improved, but in the overall scenario there has been a dramatic fall.

It is worth considering how we got to the current hotch-potch of schemes. The Government, in the form of the right hon. Member for Tatton (Mr Osborne), who was then Chancellor of the Exchequer, wanted elected Mayors as part of the drive to get the economic potential out of our major urban regions, which have been neglected since even before bus deregulation took place. By and large, most councillors whom I know do not like the idea of elected Mayors. It is not a fashionable thing to say at the moment, but I agree with the right hon. Member for Tatton that elected Mayors are an improvement in the democratic process, because they provide a focus for accountability. However, should that really be the only criterion that we use to determine whether locally elected people can have the powers to improve their bus services? I think that it is a very odd criterion to use. The six areas that have got the powers have done that deal—they have negotiated with the Government—and we have ended up in the situation we have. In supporting the Bill, I respect that deal, but it does allow us, during this debate, to reflect on what we are losing or not gaining during the process.

We are losing the opportunity genuinely to devolve powers and improve bus services. If only the Minister, who is a completely reasonable man, had been there 31 years ago, we might not have ended up in this situation, in which he has to defend centralism in the name of devolving to authorities.

I listened carefully to the five points that the Minister made which local authorities that want the powers will have to observe. I ask him whether any council or councillors who wanted to re-regulate buses via a franchising system would not have to follow those rules anyway. Would they not have to show that they had the necessary resources and that there was clear accountability? Would they not have to consult? Would they not have to know what area they were dealing with? Would they not have to have an effective decision-making process and to show that the plans were sustainable? If they did not do that, they could be challenged in the courts.

The reality is that it is not just councillors who do not like the idea of elected Mayors. The bus industry does not like the idea of franchising. It is not that we are losing competition—the fact is that the large companies are operating without competition in many areas. The measure introduces competition off-road, probably more efficiently and effectively, and the bus companies do not like it.

If an authority that has been granted the powers to bring in a regulated franchise system does not follow the rules, the bus companies would be straight in front of the courts claiming that councillors had not carried out their proper responsibilities or their fiduciary duties and there would be a judicial review. I have talked to bus companies, which have been looking at the Human Rights Act 1998 and all sorts of ways to try to stop this process. In a sense, the Minister is making bricks without straw.

I do not think that the reasons that have been given are good enough to carry on centralising. Another belief underlying the Bill is that somehow elected politicians and officials at a central level are somehow more competent and effective than elected councillors and officials at local level. Can the Minister give evidence of that?

If we look at the huge mistakes that central Government have made—I could just go through different computer schemes without looking at other areas—it is extraordinarily difficult to make the case that centralism works better than localism. This is not a party political point; it is a point about decentralisation. I have been around local government and central Government long enough to know that there are enormous differences in quality at both levels. Some councillors, to put it politely—I could use offensive words—are not as effective or as good as they could be. I have also met Ministers and civil servants at a national level of whom the same could be said. In principle, it is better for people closer to the ground to be able to make those decisions. We are where we are in the negotiations, but if the Minister is serious about devolution, that is where we should end up.

If this is really a Bill about devolving power, will we end up with more civil servants working on these programmes? There are pages and pages of guidance. If we ask for all sorts of consultations that would happen at a local level anyway, are we not just switching resources in a wasteful way to central government? I know why we are where we are on this. There was a negotiation to get what local authorities in certain areas knew they needed—better bus services—and the objective of the then Chancellor of the Exchequer was, as he saw it, to improve the structure of local government to make it more economically dynamic.

The Bill allows us to shine a light on what has happened in the bus industry, which has lost two-thirds of passengers in urban areas. By allowing decisions to be made locally, we could achieve a more immediate improvement in bus services in all parts of the country. If the electorate’s representatives want it, presumably it would mean that the electorate in those areas want it. There may be some areas that do not want it, but that should be a local matter.

Bus Services

Debate between Bridget Phillipson and Graham Stringer

Tuesday 17th June 2014 Westminster Hall

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Dorries. I congratulate my hon. Friend the Member for Corby (Andy Sawford) on securing this important debate. Our constituencies are in many ways different, being at opposite ends of the country, but we seem to share many of the same problems with local bus services.

My constituency is composed of both urban and semi-rural areas—towns, villages and estates spread out across the city of Sunderland—but what we have in common throughout the constituency is the fact that we do not enjoy the benefits of a rail or light rail connection. We entirely depend on local bus services, which is why I have campaigned on the issue since I was elected to Parliament.

For metropolitan areas such as Tyne and Wear, there is a solution: the introduction of a quality contract scheme—a mechanism that would allow the local transport authority to reregulate local bus services if certain criteria were met. That new system would have routes set by the transport authority, with bus operators bidding in an open competition to run services. I am proud that, despite fierce opposition from bus operators, and threats of legal action, the combined authority in Tyne and Wear continues to lead the way. I shall briefly outline why I believe such a scheme has the potential to benefit constituents in other areas, too.

I should perhaps at this point mention that, although my hon. Friend the Member for Corby and I share many problems with bus services, our views diverge when it comes to Stagecoach. I am pleased about its helpful, consensual approach in east Northamptonshire, and I hope it may take the same approach in Tyne and Wear as we press ahead with options for the future of local bus services. I am pleased at my hon. Friend’s experience and I hope that in the fullness of time I shall share that positive experience of co-operation from bus companies in trying to deliver the best to our constituents.

[Graham Stringer (Blackley and Broughton) (Lab)]

My hon. Friend is making a powerful case for quality contracts, and I agree with her. The Souter family who own Stagecoach have become billionaires since buses were deregulated. Does my hon. Friend agree that that shows that privatising and deregulating bus services has not helped the travelling public, but has allowed people such as the Souter family to game the system and make bus services worse?

[Bridget Phillipson]

It is my view that deregulation has failed in my area. I am not opposed to bus operators making a profit, although I think the profits made by operators in my region, particularly Stagecoach, are excessive. I want some of that profit to be reinvested into the region and into subsidising services that my constituents depend on to get to hospital, school and other places. I have been disappointed by the approach taken by Stagecoach, but I appreciate that there is much at stake. As my hon. Friend the Member for Corby mentioned, many people are paying careful attention to see what Tyne and Wear will decide, and no doubt Stagecoach has been motivated in its approach by that clear factor. I hope that we will find a way forward.

An investigation in 2011 by the Competition Commission was highly critical of deregulated bus services. It found that there was limited competition between operators, which tended to result in higher prices and lower quality for passengers. The report also found that head-to-head competition for services was unlikely between dominant operators. There was heavy criticism because some bus companies were accused of colluding to avoid direct competition altogether, which resulted in geographic market segregation, including in my area. Just as in the energy market, a small number of companies dominate the bus market; we all know them. A quality contract scheme would create a level playing field, allowing new entrants to break into the market; it would open up competition and deliver better value for the taxpayer and passengers.

Such a scheme would also provide long-term security to bus operators, their staff and bus passengers. Too often, bus companies change or even scrap routes, which frustrates passengers and leaves people isolated and cut off from vital services. It also puts jobs at risk. A clear example of that can be found at the Doxford international business park in my constituency, which houses thousands of staff, many of whom are employed in contact centres. Businesses and staff have told me of their concerns that buses run infrequently after the main evening rush hour and that services do not fit with shift patterns. That leaves staff who work shifts with little choice but to travel by car or risk waiting for an infrequent bus service.

On Friday I visited EE, one of the major businesses that employs staff at Doxford, and heard at first hand what the situation means for staff: those who finish shifts at 8 pm run—literally—out of the door and catch the bus at five past 8. If they miss it, they face a lengthy wait for the next bus. Often staff must come to work far earlier than their shift start time, because unless they catch the hourly bus service they risk the consequences of being late for work. No doubt that affects staff retention as well as business growth and our ability to support the growth of jobs in the region. As we know, the north-east still faces big economic challenges and is the region of the country with the highest unemployment rate. We need to support business growth and job creation, but a public transport system that can support that is essential.

I agree with my hon. Friend the Member for Corby about the challenges for disabled passengers, and particularly those who are blind or partially sighted. I recently took part in a guided walk, which was facilitated by Guide Dogs, to get an understanding of how difficult and disorienting it can be for blind and partially-sighted passengers when they try to access bus services. I travelled on a Go-Ahead bus that was fitted with audiovisual information. I recognise the importance of extending that facility, which is quite unusual in my area. The bus was one of the express bus services that offers it, and although it was far from perfect it is a step in the right direction. Bus operators must do far more to recognise many passengers’ additional needs and make sure that public transport is accessible to everyone.

We have a long way to go on fares and ticketing. A benefit of a quality contract system would be the possibility of introducing a London-style Oyster scheme. Passengers would then have the best fare worked out for them automatically. At the moment there is a huge array of options, with a confusing price structure and different operators offering different fares and tickets that do not work across buses. That discourages people from using buses. Far more must be done to encourage people to use buses, but if that is to happen fares must be affordable and simple. Integrated ticketing is also vital.

Understandably, there is a national focus on our current rail infrastructure, and I agree with that. However, very little attention has been paid to what happens when commuters reach their final rail stop and are confronted with the reality of local bus services or, indeed, to what happens when there is no rail link, only buses, as in my area.

I believe deregulation has failed. Bus companies have a social responsibility to local communities, but, sadly, too many fail to deliver. They vehemently oppose solutions in my area that would give local people a greater say. Their negative campaigning, scaremongering and threats of legal action have gone far beyond rational opposition and are irresponsible. We need action now to help communities and to grow the economy. It is clear to me that that can best be achieved through a quality contract scheme and I hope that later this year Tyne and Wear will be the first area to proceed with one.