Rural Bus Services

Guy Opperman Excerpts

Tuesday 29th April 2014 Commons Chamber

[Richard Drax (South Dorset) (Con)]

We have had green bins in Gloucestershire; perhaps we can have green buses in Dorset.

It is a fact that rural bus services in my constituency are under great pressure, as they are across the country. In urban areas, bus services will continue for as long as demand and passenger numbers ensure their viability, which is highly likely to be the case. Operational costs in those areas are met entirely by revenue, and operators receive no financial support from local authorities. However, out in the sticks, where a lot of my constituency is, there is no commercial incentive to maintain rural bus routes, many of which are underused. Instead, local authorities run so-called tendered services, which form about 20% of the market. Those are mandatory services, providing transport for the old, the disabled, the vulnerable and of course our schoolchildren. They also include buses to isolated communities, rarely used routes and early morning and late night services.

Until recently, those services were tendered for and provided by bus companies. Now, as part of the Government’s localism agenda, local authorities run them. The changes came into effect on 6 April, after which Dorset county council cut just under £1 million from its bus budget of £2.8 million. Consequently, 38 routes have changed, 12 Saturday services have been removed and 10 bus routes have been withdrawn completely, while 39 bus services have remained untouched. It was a difficult exercise for the county council, whose budget has been cut by a third—about £100 million. To its credit, it consulted widely on the changes and proposals were drawn up based on surveys of passenger numbers, to which 1,200 responses were received. The result was that services during the week were reduced to ensure that communities continued to have Saturday services. Dorset county council is also investing £25,000 to help community transport schemes tackle the problem of rural isolation, and it continues to invest almost £2 million a year in bus services.

As I have said, however, savings are beginning to take their toll on rural bus services, which are a lifeline for many of my constituents and others around the country. For example, the No. 103 bus service from Bovington and Wool to Dorchester now runs only once a week on market day, allowing barely two hours in the town. We will all agree that that is too short for shopping, and certainly too short for any appointments.

When cuts are made, evening and Sunday buses go first, and of course, it does not make commercial sense for operators to put on a day service if there is no bus to return on. Go South Coast in Dorset is currently providing a number of services at a loss in an attempt to retain the integrity of its network, but as it says, that situation obviously cannot go on for ever.

A critical player in this whole issue is the bus services operator grant, or BSOG, which sounds a bit like a sort of underground warthog. Since 1966, bus companies have been able to claim back that fuel duty, which in turn has held down passenger fares. Nationally, that amounts to £350 million per year, which the 2002 Commission for Integrated Transport described as

“outstanding outcomes for very little cost.”

Over the years BSOG has been reduced by 30%, and not just by this Government, and with local authorities now funding bus services, less money is available for the commercial operator. As I understand it, BSOG is ring-fenced only until 2017. Operators in South Dorset are warning that any further cuts will inevitably lead to service reductions right across the bus network.

[Guy Opperman (Hexham) (Con)]

I congratulate my hon. Friend on securing this important debate, and I endorse his comments. Like him, I have constituents, whether in Greenhead or Gilsland, who currently have no bus service. Is it incumbent on our county councils to prioritise rural bus services, because without them our constituents are literally left high and dry, and incumbent on us to support innovative schemes such as catch the bus week, which is this week? I have been proud to support that scheme, and I believe it is a good innovation that supports bus services, particularly in rural areas.

[Richard Drax]

I thank my hon. Friend for his wise intervention and I agree with both the points he makes. However, although his efforts to provide some form of service are to be highly praised, such a service does not necessarily fit in with the right timings to get people to or from work, for example. In Wool, the Share and Care system has been set up mainly by retired people. Some 50 drivers provide a service, at a price of about 40p a mile, for those who are stuck at home and need to get to the doctor or to hospital, or to go shopping and do all the everyday things that people in rural communities need to do. That is, one could say, the community in action, which is to be applauded, but it is slightly regrettable that such a basic service as a rural community bus must be provided almost through charity. As I say, however, I applaud the initiative.

--- Later in debate ---

[Richard Drax]

I am grateful for my hon. Friend’s intervention and I agree with her entirely. I wonder whether the Minister will consider the point I was about to make. Obviously, some routes in rural areas are loss-making. When contracts are put out to bus operators, as part of that contract, should they not have to take on board the whole contract and not be allowed, as they currently are, to drop non-profit-making routes? Business plans should be drawn up to take this into account, so that, rather than making x profit the operators make y profit, but essential bus services are retained.

[Guy Opperman]

I utterly endorse the point about not dumping unpopular routes at the first opportunity. However, does my hon. Friend agree that the way forward is surely to take the London example of an integrated transport system with a single card, the Oyster card, that is interchangeable between different operators—some national, some local—which has the benefit of reducing the cost to the provider and, ultimately, the passenger, and brings down the cost of that transport arrangement? Does he welcome the work that is being done to try to extend that around the country, beyond London?

[Richard Drax]

I welcome anything along those lines. I agree with my hon. Friend, and I am sure the Minister can expand on that point and say how far such an arrangement has progressed. We welcome any initiative that creates a better and more integrated bus service, not least for those who are stuck out in the sticks.