Bus Services Bill [Lords]

Clive Betts Excerpts

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

[Chris Grayling]

The essence of the Bill is that franchising will be available to mayoral authorities automatically, but to deliver change, they will still have to demonstrate that it would benefit passengers. They will have a legal duty to do that, otherwise their decision will be subject to judicial review. Other authorities will have a duty to demonstrate to the Secretary of State that they will transform services to get permission to make a change. Ultimately, the Bill is about the passenger, who has to come first.

Bus networks in England’s six metropolitan areas are estimated to generate £2.5 billion of economic benefits every year. They are a lifeline for many rural communities, which I will talk about shortly.

Let me make it very clear: the Bill does not introduce wholesale re-regulation of the bus market. It is not a return to a pre-1986 world of local councils running bus services. Private operators will continue to dominate the bus market. They will still deliver services, whether through the current arrangements, improved partnerships or franchising. The aim of the Bill is to increase bus passenger numbers and to improve bus services by giving local authorities and operators new options. The Bill builds on existing partnership powers, making them more attractive and easier to use, and introduces new, enhanced partnership scheme powers, which will enable local authorities to work with bus operators and introduce a set of standards for bus services in their areas. They both operate in a deregulated environment where commercial operators can make decisions about where and when buses run.

The Bill also refreshes bus franchising powers, honours our devolution deal commitments and recognises the successes of the franchising model that was introduced for London in 1984. One of those successes is the easy access that London bus passengers have to information about their bus services, with over 500 smartphone apps available. The Bill will make it easier for passengers throughout England to get such information on timetables, fares and routes. That is particularly valuable in rural areas where bus services may be less frequent.

[Mr Clive Betts (Sheffield South East) (Lab)]

In 1986, South Yorkshire had a renowned bus service. It was cheap, frequent and comprehensive and 268 million passenger journeys were made. Since deregulation, that figure has fallen by 62% to 102 million. I welcome the regulatory powers in the Bill, but if the Secretary of State does not extend them beyond mayoral combined authorities, what criteria will he use to judge other requests for franchising from areas that do not automatically get it under the Bill?

[Chris Grayling]

As I said earlier, there has to be a point of accountability. That is the mayor in a mayoral authority and the Secretary of State in other areas. Any change must deliver benefits to passengers. Since 1986, this country is more prosperous, with broader car use. We want improved public transport, particularly in cities, where there is congestion and better bus services can make a real difference. We will offer those cities the opportunities to develop schemes that they believe will work for them locally, but we are clear that any change should deliver benefits to the public.

--- Later in debate ---

[Andy McDonald]

Suggesting that we will not extend assistance to 16 to 18-year-olds says more about the hon. Gentleman’s attitude towards young people than it does about Opposition Members.

Under the current system, bus companies determine their routes and provision of services on a commercial basis, which means that commercially unprofitable but socially valuable services are left for local authorities to support. Since 2010, more than 2,400 routes have been downgraded or withdrawn. A combination of Government cuts and commercial operators deciding provision on a commercial basis means that individuals or communities become isolated, cut off from employment, education, healthcare, and friends and family.

[Mr Betts]

The Secretary of State derided what was happening before deregulation when, in fact, bus services were affordable and available. My hon. Friend makes a very good point. Under the current arrangements, we often see bus companies over-competing on the main routes, but providing no services at all to the wider-spread communities. With regulation, we can use the same resources and the same number of buses to provide a better service to those currently disenfranchised communities.

[Andy McDonald]

My hon. Friend makes an entirely proper point. That problem is repeated throughout this country. People on our outlying estates do not even have access to bus services, because those services are run on narrow channels. Operators exploit those narrow routes for the singular purpose of maximising commercial profit, and they do not give a hang about the socially important things such as ensuring that people are connected in their communities.