Rural Bus Services

Elizabeth Truss Excerpts

Tuesday 11th October 2011 Westminster Hall

[Brandon Lewis]

My hon. Friend makes a strong point. To highlight his point about the elderly population, in the next 15 years in Great Yarmouth alone it is estimated that the number of residents of pensionable age will increase by 35%. Given the rural community across Norfolk, that figure highlights how important access to transport is for people of that generation. As I touched on earlier, access is also important for young people in rural areas, where there are issues around deprivation and where we are trying to stimulate and grow the economy and increase youth employment.

A flat-rate charge, which was mentioned, would raise approximately £5 million a year in Norfolk alone. That would safeguard all rural services and the wider network across the county. However, the Department for Transport thus far seems to have adopted quite a negative response to that suggestion. The Department has written to all councils saying that

“requesting voluntary donations to protect a particular route,”

is illegal, and doubts whether they are, in reality, voluntary. The basis of that is that the claim of a threat of removal of a service, without a donation, is tantamount to coercion. There is a very fine line to be drawn.

Other options include making the bus pass liable to an annual fee. A study by Leeds university found that 56% of pass holders did not use it over a five-week period. I have met numerous people recently who have raised the fact that, although they are of an age to have a bus pass and do have one, they never actually use it. The administration cost of issuing passes that are not required, therefore, could be saved. Should the taxpayer provide concessionary passes to those who are still in full-time employment? I made the point earlier about whether the pass is issued at the correct age. I urge the Minister to extend the validity of cards from five years to 10, so that county councils such as Norfolk, whose renewals are due in 2013, do not face the cost of renewing the concessionary passes. For Norfolk county council, that cost is approximately £250,000. That could be better spent on providing rural transport services.

The coalition Government were left with a formal bear trap—a system of transport that is simply not sustainable. The Department for Communities and Local Government and the Department for Transport have both had to deal with a complicated and convoluted form of funding that many organisations have struggled to understand fully. I have a request for Norfolk in particular, but for rural areas in general. We appreciate that money is scarce. As much as we would like to call for the money—the £6 million shortfall in Lancashire, and approximately £4 million in Kent, Norfolk, Devon, Hampshire and other counties this year—we appreciate that the Department for Transport, or the Treasury, does not have the ability to wave a magic wand and deliver such a response. Although county councils might not appreciate this, I suspect that if they felt there was some certainty in the years ahead, they would be able to find ways of dealing with the situation in the short term.

There was a feeling in some county councils, such as Norfolk, that there must simply have been a mistake in the funding formula this year, to lead to such variations from previous years. Sorting out funding in the future does not just require a magic wand. It is vital to ensure access for rural areas and to prevent further rural deprivation and poverty. We need to find a better balance of funding. At present, the system is overly beneficial to urban areas and hugely detrimental to rural areas. Will the Minister find a better balance next year to ensure that rural areas, as I and a range of hon. Members have mentioned, are not so adversely affected in the years ahead? With an ageing population in particular, this cannot be tolerated. It will be detrimental to youth employment in rural areas, to economic growth in such areas, to families and to our country.

[Elizabeth Truss (South West Norfolk) (Con)]

I congratulate my hon. Friend on securing this important debate. This is a huge issue in my post bag, as I am sure it is for hon. Members across Norfolk. I agree completely with his point about flexibility. It is not just about the amount of money that we are spending; it is also about how that money is spent. How will flexibility help to deliver more on-demand bus services and better integration with rail services? Two rail services go through the South West Norfolk constituency—the Fen line and the Norwich-Cambridge line. There is an opportunity to integrate those services better with local transport.

[Brandon Lewis]

I thank my hon. Friend for her intervention. As I said earlier, we need to ask the Department to find ways of allowing local authorities to be more flexible, having a national structure through which local authorities can allow people to use their concessionary pass on other forms of transport. More forms of public transport, more community transport options, allowing local authorities to be more flexible and—I appreciate that I am moving beyond the subject of the debate—even moving beyond focusing only on buses, may go a long way to solve this problem. As we have heard, in some very remote areas of low population, bus usage may not be the most cost-effective way of providing transport. We need to allow local authorities to be able to use funding to allow people to use concessionary travel passes, and have access to other forms of transport that may deliver a better demand-driven service that is also more cost-effective for the taxpayer.

The Eastern Daily Press and the Great Yarmouth Mercury, two excellent bastions of journalism in Norfolk, have been superb in supporting the fair fares campaign, which in just a few days has already garnered more than 2,500 signatures. I call on everybody across Norfolk, who has access to the internet or who can get hold of a copy of either of these excellent newspapers, to join the petition and let us have their support in moving forward to get fairer funding for transport services across Norfolk. I know colleagues have similar views about their own rural areas.

Will the Minister, for next year’s funding round, find more ways to simplify the system? It would be ideal for the system to be planted in one Department in a clear, transparent system that people can understand, to allow concessionary passes to be used beyond the traditional methods, and for local authorities to have more flexibility to provide better, different and more progressive forms of transport that can be more demand-driven and cost-effective for the taxpayer. That would protect rural transport services for the future, and for the use of everybody.