Bus Services Bill [HL]

Earl Attlee Excerpts

Monday 4th July 2016 Lords Chamber

[Earl Attlee (Con)]

My Lords, while it is clearly right to explore these issues, I strongly urge the Minister to resist these amendments. The noble Baroness, Lady Jones, mentioned London, but she will know that London is almost a city state. The circumstances are very different, and with very different funding arrangements. She mentioned the lower profit available to operators in London, but the reason for that is that they are taking less risk than in a non-regulated service.

This is all about accountability. If we are not careful, we might well find ourselves hurtling down the same avenues as we did during the debates on the Cities and Local Government Devolution Bill last year. Combined authorities with elected mayors, or any other local authority with an elected mayor, are very different beasts from local authorities that have not gone down the route of having an elected mayor. The appointment of a directly elected mayor provides those authorities with a considerable battalion of powers where they have agreed devolution deals with the Government. That of course includes the power to franchise local bus services.

Authorities with agreed devolution deals already have the necessary consent to pursue their new bus franchising powers and will be allowed to do so when the relevant parts of this Bill are brought into operation. However, I do not believe that that should be the case for other local authorities. They have not been through the process of acquiring what could be said to be a higher status in terms of local accountability. It is a fact that those authorities with elected mayors and agreed devolution deals already have the powers by virtue of that process. We know that the process is not necessarily straightforward and requires hard-fought agreement between the authorities that comprise those areas.

[Lord Woolmer of Leeds (Lab)]

The noble Earl emphasised mayoral combined authorities and mayoral powers. Why, then, has Cornwall—which is not going for a mayoral model—been promised franchising powers?

[Earl Attlee]

My Lords, I do not know that, but I expect the Minister will tell us.

The agreement between the authorities that comprise those areas is hard fought. Some tough battles are still extant where devolution deals just could not be worked through. Through their earlier legislation, the Government have established a process for a new kind of local authority, which has wide-ranging powers but first has to satisfy the Government that the right kind of structures and accountability are in place. The amendments would give the same wide-ranging powers to local authorities that have not taken those brave and often difficult political steps.

I am afraid therefore that I disagree with those noble Lords who say that this Bill treats local authorities without elected mayors or an agreed devolution deal differently from those who have. There is no unfairness here. It is a simple fact that authorities with elected mayors and agreed devolution deals already have government approval to introduce bus franchising; other local authorities do not. What would be unfair, I believe, is allowing any local authority access to bus franchising powers without having gone through the democratic process of electing a mayor and acquiring government agreement to a devolution deal. I am not at all convinced by the arguments put forward for these amendments and the Minister has my full support should he ask the Committee to resist them.

[Baroness Randerson (LD)]

My Lords, the amendment to which I have added my name, along with the noble Baroness, Lady Jones, would remove the power of the Secretary of State to decide what other local authorities, along with mayoral authorities, may have franchising powers. The report of the Delegated Powers and Regulatory Reform Committee states that it is,

“puzzled by the implication in the memorandum that mayoral combined authorities have expressed an interest in pursuing a franchising approach, given that there are currently no combined authorities with a mayor”.

Although an order has been made preparing Greater Manchester for this situation, its mayor will not be elected until 2017. I would be interested to hear the Minister’s response on exactly what the provision in the Explanatory Memorandum refers to. Does it refer to Manchester or other areas? Even more fundamentally, why should a mayor be any better at running bus services than a designated executive member within a transport authority? After all, the previous Mayor of London did not have a glorious record when running the buses. A great deal of resources were wasted on the “Boris bus”, and the fact that London buses run very well is down to the experience and expertise built up over many years by Transport for London. Compare the record to which I have just referred with that of Reading, which has an excellent municipal bus service run on a traditional civic structure, and has had the wisdom to invest well in its bus services over the years and maintain its municipal service operating at arm’s length from the council.

I give another example: the Mayor of Liverpool, in his wisdom, shut all the bus lanes. I do not think those are examples of mayors’ wonderful wisdom trumping other forms of local government organisation. I am puzzled about the position in which this Bill puts Cornwall, because, as the noble Lord said, Cornwall was promised franchising as part of its devolution deal but now, according to the Bill, has to get the Secretary of State’s permission to go ahead with franchising. Previously in Committee, My noble friend Lady Scott referred to Jersey as an excellent example of how franchising can work, even with small authorities. Jersey has 80 buses and a population of 100,000, but has increased bus passenger usage by 32% since it had franchising, saved more than £1 million a year in public subsidy, added five routes and increased the frequency of its buses. That is an example of franchising working in a very small locality. Therefore, I very much hope that the Secretary of State will accept our arguments, agree to look at this issue and consider whether the need for the Secretary of State to intervene can be removed from the Bill. I hope the Minister can give us hope in this regard.

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[Lord Horam (Con)]

My Lords, I agree that there is no distinction, really, in accountability terms between a mayor and a councillor who is considering these matters. I strongly agreed with the remarks of the noble Baroness, Lady Jones, about London and London franchising. I live in London and I can certainly attest that what she said about that is entirely correct. London buses are, frankly, marvellous. Whether you congratulate Boris—poor chap, he is receiving rather a bad press at the moment so I might as well praise him for his new buses—or Thomas Heatherwick, who actually designed them, they are absolutely superb. Whether you praise Thomas Heatherwick, Boris Johnson or Ken Livingstone, London really works from a bus point of view. In fact, my wife said to me the other day, “You’re becoming a bus junkie”. I actually took a bus to go one stage because the bus routes give you priority over cars, et cetera, so it really does work. Therefore, I am emphatically in favour of the Bill, which tries to extend franchising to the rest of the country, which I think badly needs it.

However, I am, frankly, horrified by Clause 4, which submits everything—apart from the one aspect of mayors with combined authorities—to the requirement that the Secretary of State should process it. It means that a council which wants to put on a new bus service from, let us say, Little Dribbling to Nether Wallop has to take it to the Secretary of State. That is absolute nonsense. I was a Minister of Transport in a Labour Government a long time ago and this system does not work. You need to get somebody who knows the situation locally, understands it well and can take a decision. Okay, there are always a few problems and occasionally things go wrong, but pushing it up to a civil servant and then to a Minister, who probably has no knowledge of the situation you are talking about, does not work. All it does is congest the Government at the top level.

I saw the other day that Prime Minister David Cameron was complaining that in comparison with Angela Merkel, he had much more to do because he had to take decisions about education, transport, the NHS and so forth and she did not; in Germany it was all farmed out to the Länder. This is why. We are taking all these absurdly detailed decisions at government level. Although my experience is quite different from that of the noble Lord, Lord True—his is extensively in local government, mine is not—from the point of view of a government Minister, it is nonsense, frankly. It simply does not work.

The noble Earl, Lord Attlee, tried his best to give a reason, which was about accountability. There is no difference between the accountability of an elected mayor and that of an elected councillor. It is a simple fact. They are both elected; they are both responsible to the local electorate. There is no distinction that I can see. I am not surprised that the Delegated Powers Committee said that there was no adequate explanation. I looked through the Explanatory Notes, hoping to find some rationale for this procedure, and there is none. Therefore, we have a real problem here and the Government really have to think again.

Another difficulty is that quite apart from overcentralisation, the British Civil Service seems to go in for too much complexity. If we raise the bar too high, either because things have to be processed up or because we put in a lot of regulations, which are sometimes unnecessary—they are no doubt sensible in some ways and no doubt advisable; none the less there is more and more regulation—it becomes likely that lots of local authorities which could use these powers will simply say, “Oh, it’s too much trouble. We don’t want to bother with all that. We won’t do it”. There are easy ways to get out of it and then blame the Government. When people ask, “Why isn’t there a decent bus service here?” they can say, “Because the Government made it so complicated”. It is an easy way out for them.

Therefore, while, like my noble friend Lord True, I am in no way criticising my noble friend on the Front Bench, who has his job to do and who does it extremely well, I believe that between now and Report in September the Government should look at this and extensively modernise it. If they do not, I do not think, frankly, that they have much chance of getting it through this House.

[Earl Attlee]

My noble friend Lord Horam observed that the Explanatory Notes do not justify the policy, but my understanding is that that is not the purpose of Explanatory Notes. Explanatory Notes, as I understand it, tell us what the Bill does and how it works and do not seek to justify the policy.

[Lord Horam]

It is not just that the Explanatory Notes, which should explain what each clause does, do not explain why this does what it does; the overview, which we also get, does not explain it either.

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[Lord Kennedy of Southwark (Lab)]

My Lords, as this is the first time I have spoken in today’s Committee debate, I declare that I am an elected councillor in the London Borough of Lewisham.

The two amendments in this group are in my name and that of my noble friend Lady Jones of Whitchurch. As regards franchises and enhanced partnerships respectively, they would require operators to set out how they will seek to increase passenger representation. As I said in previous debates, this Bill is very technical in parts but the issues we are talking about today, and that of buses in general, are about people and delivering a reasonably priced local service which delivers for them and their local communities, and keeps places alive and vibrant by connecting communities with other communities and enabling people to travel to work, go to school and enjoy leisure activities. For all that to happen in a responsive manner, we need mechanisms in place to hear the voice of the passenger at a local level. I am fully aware that we have a body—Passenger Focus—which provides a voice for England outside London, but I am talking about what happens at a very local level. It is important that people and communities are able to discuss their experiences face to face and say what they want. That can include working with Passenger Focus at a local level or perhaps other arrangements.

Operators and local transport authorities often carry out surveys and other work and meet local councillors and MPs. That is always very welcome. However, what is proposed in these amendments is the need to ensure that the views of passengers are taken into account, and to make provision in the Bill for the planning of these services. I beg to move.

[Earl Attlee]

My Lords, I shall try to be brief. These amendments are what are often termed “no-brainers”. As the noble Lord, Lord Kennedy, explained, the purpose of these amendments is to ensure greater participation and involvement with passenger groups in the process for developing a franchise scheme and the consultation and throughout the life of an enhanced partnership scheme. During Second Reading, a number of noble Lords commented that there was little mention of passengers in the Bill, so these amendments address that point.

I know that bus operators do a huge amount of work to ensure that they engage with the people who actually use their services. After all, who are they providing their services for? They are for passengers. On what basis would bus operators, and local authorities for that matter, not want to seek the views and opinions of the people who will be using their services?

Organisations such as Bus Users UK exist for the very purpose of giving passengers a voice, and do great work with operators, including holding local bus surgeries where passengers can engage directly with operators. Together with operator and local authority open days, these events are invaluable. Passengers are able to give solid feedback to those actually running the services, and in turn operators can inform and explain their decisions. Those decisions may not always be popular, but to my mind people are much more likely to accept a decision if the reasons for it are helpfully and properly explained.

I hope that my noble friend has a piece of paper in front of him marked: “Agree to consider”, or something similar. Even if he cannot advise the Committee to accept the amendments in the form that we see them today, I hope he will agree with the sentiment and spirit in which they have been brought forward so that we might see some government amendment which would achieve the same effect, at a later stage.

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[Lord Kennedy of Southwark]

That is very helpful. I am very happy to get involved in discussions on an amendment that we are all happy with and can work with, and which delivers the aim expressed across the Committee today of making sure that passengers are properly involved. However, what I do not want to see at the end of those discussions is a note in guidance, because, importantly, that does not have the same strength as something in the Bill.

[Earl Attlee]

Will the Minister take great care to make sure that everyone who has an interest in the Bill is included in these discussions? Sometimes it is possible for people to fall out of the loop and not be fully involved.

[Lord Ahmad of Wimbledon]

I give my noble friend that assurance. I will go further and say that I never forget my noble friend when it comes to such discussions. He has made a very valid contribution throughout this debate and I am sure he will continue to do so in debates going forward. Any noble Lord has an open invitation to meetings, as I have said, as we look to strengthen the provisions of the Bill and the services it provides.