Transport: North-east

Iain Wright Excerpts

Wednesday 23rd November 2016 Westminster Hall

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

I beg to move,

That this House has considered transport in the North East.

It is a pleasure to serve under your chairmanship, Sir Edward. I am grateful for the opportunity to hold this debate on such an important issue for many of my constituents. This is by no means the first time that I have spoken in this House about transport in the north-east, and I start by reiterating what I said on those occasions about the region’s huge economic potential. Nissan’s recent decision to build two new models at its Sunderland plant was a resounding vote of confidence in the workforce and in the north-east economy and a demonstration of what can be achieved when Government and business work together to maximise what the region has to offer.

As the only English region consistently to maintain a balance of trade surplus over the past decade, the north-east is clearly doing something right in developing export opportunities by land, air and sea. One of the most effective ways that Government can help to support those efforts and drive economic growth is through greater investment in transport infrastructure. After all, a 2014 research paper commissioned by the Department for Transport described transport as an

“essential input to income generation”

that has

“positive impacts on a wide range of economic variables including city size and employment.”

Creating better transport connections between the north’s economic centres is also meant to be one of the central planks of the Government’s so-called northern powerhouse scheme. Despite the soaring rhetoric of the northern powerhouse initiative, the level of public spending allocated to the north-east remains very low compared with almost every other region in the country. Government figures show that expenditure has declined by almost 20% over the decade, with the result that the north-east accounted for only 2.8% of overall UK spend on transport last year.

Although other northern regions have also suffered from a decline in central funding in recent years, the amount spent on transport in the north-east last year was by far the lowest of the English regions, and second only to Northern Ireland across the UK. The difference between the north-east and London is especially stark. At £300 a head of population, expenditure in the north-east is far below the London spend of £1,900 a head. Some £573 million was spent across the whole north-east on transport last year, but £27 billion to £32 billion has been earmarked for Crossrail 2 alone.

Given the substantial levels of public investment in transport in the capital, it is hardly a surprise that one in four Londoners do not own a car. Few realise that the north-east has the second lowest rate of car ownership in the country after London, with one in three people entirely reliant on public transport to get around.

[Mr Iain Wright (Hartlepool) (Lab)]

I am grateful to my hon. Friend for securing this debate. I know she is a passionate champion of bus services. Does she realise that bus passenger numbers have fallen by 57.7% in the north-east since deregulation in the 1980s—the highest of any region? Does she think that is a sign of success, or is it actually a recognition of the failure to have a co-ordinated transport policy?

[Bridget Phillipson]

I feel that deregulation has been an unmitigated disaster for regions such as the north-east, where we have had a knock-on effect on fares, falling bus patronage and local communities often entirely cut off from bus services. I know that my hon. Friend faces similar problems in his community in Hartlepool to those I face in mine.

On that point, the people in my constituency are entirely dependent on bus services. There is no other option. It is therefore imperative that the comparatively small amount of money allocated to the north-east for transport is spent on ensuring that local public transport services meet the needs of local people and businesses. Unfortunately, expenditure on local public transport in the north-east has dropped by more than 45% over the last five years, which is by far the biggest decrease in spending on any mode of transport in the region.

I want to take the opportunity to again raise with the Minister my long-standing concerns about the state of north-east local bus services. Over the past six years, thousands of local people have contacted me to express their deep dissatisfaction about the cost of fares and the level of service being provided by private bus companies. That is why I vocally supported efforts by Nexus and the North East combined authority to use existing legislation to re-regulate local bus services, through the introduction of a London-style quality contract scheme in Tyne and Wear. It would have integrated fares and routes and ensured that taxpayer subsidies were used to improve services instead of to increase operating profits. I was therefore sorely disappointed with the quality contract scheme board decision a year ago to reject the proposals, even though it acknowledged that the scheme would offer local people a transport system unrivalled outside London. I still find it incredible that the board believed operators should be compensated for the future loss of potential profits. The people of the north-east should not have to compensate bus operators for what is taken for granted in London.

One year on, north-east passengers are no closer to getting the bus service they deserve. Nexus was clear during the QCS process that if the scheme was not implemented, bus cuts were inevitable, fares would increase and ridership would go down. That scenario is playing out. Annual bus statistics show that bus patronage has decreased by 2.7% again in Tyne and Wear and given the frequency with which operators chop and change services and raise fares, that is hardly a surprise. While north-east bus passengers continue to suffer from the absence of a fully integrated network, bus operators in the region continue to make large profits. In fact, in some cases the profits made by commercial bus operators are even being used to prop up loss-making rail franchises, as David Brown, chief executive officer of the Go-Ahead Group recently admitted. We cannot go on like this.

The QCS board decision last November may have blocked efforts to introduce franchising schemes under existing legislation, but there was much hope that the Bus Services Bill would give us the power to implement the change we so desperately need. Unfortunately, despite sensible amendments to the Bill in the House of Lords on bus franchising schemes, the Government seem determined to ensure those powers will only be available automatically to mayoral combined authorities. It seems as if the region will once again be denied the opportunity to improve services for passengers. The current deregulated system has not only failed to prevent a decline in bus patronage—it has exacerbated it. I ask the Minister to think carefully on the amendments and to give the north-east the powers it needs to implement the urgent, radical change needed to arrest and reverse that decline.

Buses are of course not the only means by which people travel across the north-east, although they are the only mode of public transport for many of my constituents, which is one of the main reasons for the poor connectivity between semi-urban and rural constituencies such as mine and the urban centres they surround. If the Government really want to create better transport links between economic centres in the north, they must provide Nexus with the long-term funding necessary for essential infrastructure works to refresh and expand the metro. With 60 stations, around 40 million passenger trips per year and trains running up to 19 hours a day, the metro has been serving the needs of north-east residents for more than 40 years.

--- Later in debate ---

[Chi Onwurah]

Thank you, Sir Edward.

I congratulate my hon. Friend on securing this debate on a subject that is so important to all our constituencies. Transport in the north-east is a critical part of our infrastructure. My time is short, so I want to make four points about roads, rail, buses and industrial strategy.

The hon. Member for Berwick-upon-Tweed (Mrs Trevelyan) said that everyone has to have a car in rural Northumberland, but I know constituents of hers who do not have one. The bottom line of a transport strategy should be to have a public transport system that enables ordinary working people to go to work, universities and schools without having a car. The fact that a Member of Parliament who represents Northumberland believes that her constituents have to have a car is significant. It is true that the bus services in Northumberland are often very poor—I have experienced them—but I hope the Minister will commit to delivering transport infrastructure in the north-east that enables my constituents to go about their normal work and leisure business without having a car.

I listened closely to today’s autumn statement, and I did not hear the looked-for and somewhat trailed investment in transport infrastructure. My understanding is that the dualling of the A69 has been replaced by dualling of the A66. If that proves to be the case, I would like the Minister to explain why we cannot have the investment across the north that we need to ensure we have proper transport links, and why investment in our road infrastructure is piecemeal and on such a limited scale.

[Mr Iain Wright]

On the subject of transport capital investment and today’s autumn statement, if the Government are keen on rebalancing the economy so that it works for everyone, why is the Cambridge-Milton Keynes-Oxford growth corridor worthy of a designated budget line in the autumn statement when there is nothing in there for the north-east?

[Chi Onwurah]

I thank my hon. Friend, the Chair of the Business, Energy and Industrial Strategy Committee, for making such an important point, which I will come on to properly later. I agree wholeheartedly with the implication of his comments. The economic contribution of effective transport infrastructure for the north-east is not recognised in the same way as it is recognised in London and other areas of the south. That absolutely has to change if we are to have any hope of rebalancing our economy and making it more resilient and distributive across the country.

Airports Capacity

Iain Wright Excerpts

Monday 14th December 2015 Commons Chamber

[Mr McLoughlin]

As a distinguished Chair of a Select Committee, my hon. Friend expects his Committee to be listened to with the respect that should be given to a Select Committee. The Environmental Audit Committee recommended that the Government take more time to address air quality, and stated:

“On air quality, the Government will need to re-examine the Commission’s findings in the light of its finalised air quality strategy.”

That report was published on 26 November. Today is 14 December, and even with the best will in the world, it would have been impossible to have read and responded to all the points in that report in those few weeks. I am giving another Select Committee the kind of respect that my hon. Friend would expect for his own Committee.

[Mr Iain Wright (Hartlepool) (Lab)]

The Government have made one hell of a mess of this, which does not bode well for a swift resolution for this or any other future infrastructure decision. In many respects, the Davies commission was a template for the National Infrastructure Commission, and the Government have completely ridden roughshod over it. What reassurances can the Secretary of State provide that in matters of airport capacity and other infrastructure, the NIC will be able to take essential long-term decisions for the competitiveness of our nation, and not be thwarted by short-term, partisan considerations?

[Mr McLoughlin]

Even the National Infrastructure Commission will be subject to decisions taken in this House and by the Government of the day—that was even the case in the way the NIC would have been set up by the Labour Opposition, had they been successful at the general election. The hon. Gentleman is right to say that these are big issues, and setting up the NIC is a fundamental way forward that will help to address some of them. It will still be for the House and the Government to ensure that other legal requirements—such as those on air quality—are abided by, and we must consider other issues when making such decisions.

Transport (Tees Valley)

Iain Wright Excerpts

Tuesday 10th February 2015 Commons Chamber

[Mr Iain Wright (Hartlepool) (Lab)]

I thank my hon. Friend the Member for Middlesbrough (Andy McDonald) for giving up some of his time to allow me to make a number of very brief points. I wholly agree with what he said about the governance of the transport board, which penalises, excludes and isolates our region from the rest of northern transport policy and procedures. I also agree fully about the importance of proper investment in our rolling stock. The Pacer trains to which he referred are unacceptable and no longer used in the rest of the country, so they should be considered unacceptable and unusable in Middlesbrough, Hartlepool and on to Newcastle, as well.

I shall concentrate, as I have on many occasions, on the inadequacy of our bus service. As my hon. Friend said, only re-regulation will provide a co-ordinated proper bus service for our region. In the past week, I have received correspondence from the principal of Hartlepool college, who said that inadequate transport provision meant that potential students from Teesside, North Yorkshire and South Durham were not able or could not afford to get to the college. Apprentices aged 16 or 17 from Hartlepool might not be able to take up the opportunities in Wilton or elsewhere.

Ensuring that the transport system, particularly the bus network, matches the routes to learning and employment, as well as ensuring that we can avoid social exclusion, are crucial. At the moment, that does not happen on Teesside. I therefore ask the Minister what he will do to ensure that we can provide a cheap, reliable and co-ordinated bus and transport network across Teesside so that people in our area have the opportunity to achieve their potential and make sure that the population and industrial potential are matched.

Transport in the North-East

Iain Wright Excerpts

Wednesday 15th October 2014 Westminster Hall

[Mr Iain Wright (Hartlepool) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Caton, and I congratulate my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) on securing this debate. I want to make three distinct points, on buses, rail and road, but they are all linked by a common theme: a lack of attention, priority, co-ordination, and investment when it comes to transport in the north-east.

Let me start with buses. Thirty years of deregulated bus services has not given Hartlepool a good market, full of choice and quality for passengers. According to Department for Transport figures, 91% of the bus market in Hartlepool is run by a single operator, Stagecoach. Arriva has 4.9% and the Go-Ahead Group has 1.7% of the market. A market distorted in that way is not a market that helps potential passengers. Little wonder that passenger journeys in Hartlepool, unlike in the south-east and London, are falling, from 5.4 million journeys in my constituency per year in 2009-10 to 4.6 million journeys in 2013-14.

People may be making fewer journeys because they are using other modes of transport, but it is more likely that bus journeys are falling because choice is being restricted, timetables are being cut and the ability of people to travel by bus in Hartlepool and further afield is being hampered.

Let me give a couple of examples. The No. 1 bus service, from High Tunstall into the centre of town, out to Seaton Carew and then further to Middlesbrough has its last bus from Throston Grange terminus not at 11 o’clock or 10 o’clock in the evening, but at 10 minutes past 6. If someone works in Middlesbrough and lives in Hartlepool, they have to catch the last bus home at 6.14 pm. The No. 4 service travels across the town from South Fens to Bishop Cuthbert, but if a person is going to a friend’s or checking on a relative at night, they cannot do it, because the service stops during the week at 10 minutes to 6. Those who live in outlying villages such as Dalton Piercy and Elwick are virtually imprisoned at night, because there are no services at all.

The lack of a true bus service both within Hartlepool and connecting to surrounding towns and cities is a real barrier to economic growth and social unity. If a person in Hartlepool wants to get a job in, say, the steel plant in Redcar, some 10 or 12 miles away, they cannot, because there is no bus service. The point was made by my hon. Friend the Member for North Durham (Mr Jones) that economic activity and travel-to-work patterns do not respect local authority boundaries. There is a pressing need for some sort of regulated service within the local authority of Hartlepool and the wider Teesside area, and also within the wider north-east region, to address that issue.

Secondly, I want to raise the issue of rail rolling stock. We have debated this in the House before, but no improvements are being made. People using the Northern Rail service from Hartlepool to Newcastle and Sunderland in the north, and to Middlesbrough in the south, are faced with the oldest rolling stock in the country, built in the 1980s, with standing room only, no toilet facilities and health and safety issues.

I wrote to Northern Rail on behalf of a constituent who was concerned about the overcrowding and the condition of the rolling stock. This week, I received a reply:

“Sadly, there is not much we can do to address the overcrowding issue in the short term. The fleet of trains we operate under the current franchise from the Department for Transport, which runs until February 2016 and is currently out for consultation, is aging and all units are used to their maximum.”

In other words, “Get used to it.”

There has been some confusion, and I hope that the Minister will clarify things today. Will he ensure that discussions on the new franchise will definitively include the need to replace, rather than refurbish, the decrepit Pacer trains that passengers in the north-east, unlike those in any other part of the country, have to endure?

The third and final issue that I want to raise is investment in the road network. All hon. Members here will realise that Hartlepool is the centre of the universe, but unusually for the centre of all known life and activity everywhere, it is difficult to connect to major economic centres such as Newcastle in the north and, particularly, Middlesbrough, North Yorkshire and Leeds in the south. There is a pinch point on the A19 at its interchange with the A689, which causes real traffic congestion. If connectivity is an important prerequisite for economic growth, investment to widen the A19 to three lanes between Wolviston and Norton would unlock economic development and employment opportunities in the short term, and would provide growth potential in the long term. Will the Minister give a commitment today that that project will be given the go-ahead soon?

People in my constituency have to contend with inadequate transport provision and infrastructure. In the north, we really need to address that in the round, and at the moment, that is not happening. There seems to be a lack of priority and a lack of attention, and I hope that the Minister will address that in his remarks.

--- Later in debate ---

[The Minister of State, Department for Transport (Mr John Hayes)]

It is a pleasure to serve under your chairmanship, Mr Caton. I congratulate the hon. Member for Houghton and Sunderland South (Bridget Phillipson) on securing this debate. Like the shadow Minister, I will resist taking interventions, not because I do not like to take them, but because I want to cover as much ground as possible. If there are any matters that I cannot address, I will write to hon. Members. Specific issues have been raised on particular schemes in particular constituencies, and people deserve a serious response.

I acknowledge three or four of the core points that have emerged across the speeches in this debate. First, transport serves economic interests, but it has a bigger function, too. Transport serves well-being and is critical to communications because it allows people to get to opportunities. If we restrict transport, we restrict opportunity, which is a point that has emerged on both sides of the Chamber during our short debate today. I will not use the text that has been prepared for me by civil servants, because as hon. Members know, I like to speak my mind and respond to debates properly.

[Mr Iain Wright]

Your officials look frightened.

[Mr Hayes]

This Chamber knows how I behave as a Minister, and my officials too are used to how I work.

The second point that has emerged from this debate is that, when serving well-being in the way that I have described, one needs to take a lateral, holistic approach. As the hon. Member for North Durham (Mr Jones) said, when people travel it is not easy to define boundaries. Different people travel to different places for different purposes at different times and by different means. For that reason, we have to consider transport in the round. We have to consider how bus travel interfaces with rail travel, and how investment in roads will affect other modes of transport. That is a challenge for any Government, because the shadow Minister is right that Governments tend to work in silos, and Departments do, too. I am the antithesis of a silo, as he knows, because I have a broad vision but a laser-like focus.

My laser-like focus is on the north-east, which I know well, although not as well as most people in this Chamber because I do not represent a north-east constituency. I regularly travel to the north-east using the A1. People who know me well will know that I am often in Northumberland, so I know the difficulties of getting to the north-east by road. One thinks of the A1 north of Newcastle, which has been mentioned in this debate and in previous debates. One thinks of the congestion around the west side of Newcastle. I was delighted to turn the first sod on the improvements we are making between Coalhouse and the junction to its north, which will not only allow local traffic to use the road but allow better throughput for those travelling further north. That scheme had been long called for.

I recognise that the connection between the north-east and the rest of the country is vital for economic purposes, as well as for well-being. I also recognise that that requires us to think carefully about the specific challenges in that part of the country. Members of Parliament for the north-east have made it clear that they see the particularity of their needs as being central to the concerns that I need to consider.

I am surprised that the shadow Minister has been untypically ungenerous about this, because that is not his normal style, but the Government can rightly claim to have taken a more strategic approach to road investment. As he knows, we have committed funding for a five-year period, rather than the stop-start funding that characterised the previous Administration. I am not generally one of those people who demonise earlier Governments, but one of the features of the previous Government was that they did not have as consistent a commitment to road investment as the current Government.

As the shadow Minister knows, and frankly the facts speak for themselves, we are making further investments. Some £24 billion will be invested in this Parliament and the next, comprising 54 new national road projects. Eighty per cent. of our roads will be resurfaced. There will be 750 extra lanes of smart motorways. As he knows, more than £17 billion will be invested in the next spending round, including £10.7 billion for major projects and £6 billion for maintenance and resurfacing.

The hon. Member for Houghton and Sunderland South made a spirited case for improving bus journeys. I do not want to get too involved in this familiar dispute, but the hon. Lady powerfully defended rural interests, echoing the sentiments of my hon. Friends the Members for Stockton South (James Wharton) and for Hexham (Guy Opperman), who are great champions of the interests of rural communities and fully understand that good transport enables such communities to access neighbouring places. There is clearly a major dispute in the Labour party, and it is not for me to comment on that, but as the hon. Lady knows, it is a matter for local determination. The Transport Act 2000 makes it clear that local authorities can make a decision in tune with local interests. It is not for me to get involved in such decisions. I assure her that I appreciate and understand the importance of bus travel, and I recognise that buses are vital for some of the people she described, who would otherwise be entirely isolated, and she has a long pedigree of saying so. Before coming to this debate, I checked her many contributions on this subject. Indeed, she spoke in this Chamber earlier this year about bus travel and its importance to her constituents. Although I will not get involved in that dispute, or indeed in that decision, the Government and I recognise the significance of bus travel. We will happily take further some of the suggestions that have been made in this debate about how we can further enhance what we do to support access to travel.

A number of hon. Members have talked about rail. I have mentioned that I regularly travel to the north-east, and I use the east coast main line. I get on the train in a rather more southerly place than many of the hon. Members in this Chamber, but I know the line well. People are concerned about the franchise, and I gather from what the hon. Member for Hartlepool (Mr Wright) and others have said that people are also concerned about the rolling stock. I will look at the rolling stock and whether it is part of the franchise, and I will respond to him on that specific point following today’s debate. He is right that detaching considerations about rolling stock from the broader considerations about the franchise would be an error.

We have also heard about Network Rail’s £530 million northern hub programme, the electrification of routes to the north-west, the north TransPennine line and other enhancements. All of that is evidence that the Government take the north of England, and travel to the north of England, very seriously. I entirely understand that it is a mistake to see such things in isolation, and my hon. Friend the Member for Stockton South, the hon. Member for North Durham and others have talked about taking a bigger view of transport. Of course every journey, by its nature, is local, but to see it in only those terms, without considering the whole of the north and the relationship between the north and the south, would be an error. We are also investing in stations. As the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) knows, funding from Network Rail and the regional growth fund is supporting a scheme that has not only transformed Newcastle station, which is a magnificent station that I know well—

Rolling Stock (North of England)

Iain Wright Excerpts

Wednesday 12th March 2014 Westminster Hall

[Mr Iain Wright (Hartlepool) (Lab)]

I congratulate my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith) on securing the debate. I want to focus on Hartlepool. Hartlepool and Seaton Carew stations had almost 580,000 passengers last year. Hartlepool is the sixth busiest station in the north-east, which is probably a result of the direct service to and from London operated by Grand Central, but also of Northern Rail services, which operate southbound to Middlesbrough and northbound to Newcastle, calling at Seaham, Sunderland and Heworth, with some services continuing to the Metrocentre, Hexham and Carlisle.

As has been said, to facilitate greater economic development, it is important to attract more people on to the railways through reliability, value for money, the provision of routes where people want to go, at a time that suits them, and, crucially, rolling stock that is modern, clean, accessible and comfortable for passengers. One of the Department for Transport’s 12 policies is expanding and improving the rail network. Within that policy the Department states:

“Rail is vital to the UK’s economic prosperity. If rail services are inefficient and do not meet people’s needs for routing or frequency, business and jobs suffer.”

I do not think that anybody would disagree with that, but the condition and suitability of the rolling stock is also about meeting people’s needs. I ask the Minister: why is quality of the rolling stock not included in that policy?

If the age of rolling stock is seen as an indicator of comfort for passengers, Northern Rail, as we have heard, is lacking. It currently has the oldest fleet of rolling stock in the franchised railway, with an average age, as my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman) said, of 24 years. The average age has increased steadily since quarter one of 2008-09, indicating that no investment in newer stock has been made.

[Ian Mearns]

The line that my hon. Friend is talking about, which serves Teesside, the east Durham coast and Sunderland and goes through to Newcastle and beyond, passes through my constituency. The sad fact is that, although Teesside and Tyneside are only 35 miles apart as the crow flies, a train from Newcastle to Middlesbrough is timetabled to take an hour and 35 minutes. It is a disgrace.

[Mr Wright]

My hon. Friend is right, and that is partly because of the age and condition of the rolling stock. Things are bad on that line, particularly for Hartlepool commuters, because, as we have heard, Northern Rail is still operating the old Class 142 Pacer trains, which were built as a stopgap in the 1980s. They are little more than cattle trucks and are totally unsuitable for a modern rail network.

A constituent who commutes to and from Newcastle for work every day wrote to me about Northern Rail services, which she described as “dilapidated”:

“I’m sure that you are aware that the condition of the train is also antiquated and they frequently break down due to age and disrepair... in winter they lack an operative heating system and are filthy...The service received by passengers on this line is worse than ever and something must be done in order to bring Northern Rail to account and operate within its rail passenger charter.”

I hope that the Minister will address those concerns directly.

I have several questions, but they boil down to this: when will my constituents receive modern, comfortable and appropriate rolling stock, with such things as customer information systems and suitable accessibility for disabled people, which seem commonplace elsewhere in the country, but are lacking in my area? Why are Hartlepool and the north-east so badly short-changed, given that fares have gone up remarkably?

Is the Minister planning to change the formula for spending on transport? Expenditure per head of population on transport infrastructure in London is £2,595; it is £5 per person in the north-east. I appreciate that the formula is based on population, but the Minister must accept that that gross imbalance is simply wrong. Will he consider levelling the track on transport spend for the north-east to help facilitate proper economic growth in my region? Secondly, will he use smarter procurement to stimulate more manufacturing of rolling stock in the UK, and particularly in the north-east? The Government’s handling of the Bombardier issue on Thameslink was little short of shambolic, although their handling of last month’s decision on Crossrail was better. Will the Minister endeavour to ensure that Hitachi, newly based in the north-east, can be as competitive as possible, enabling manufacturing to be retained and enhanced in the north-east, jobs to be created, and supply chains to have the long-term confidence to plan for the future?

My area is badly short-changed over the quality of train services and rolling stock, and I hope that the Minister will address that.

--- Later in debate ---

[Mr Harris]

My hon. Friend is correct, but I want to issue a caveat, and point out, in defence of the Minister, the Government and the previous Government—

[Mr Iain Wright]

Declare an interest.

[Mr Harris]

I will not declare an interest. I am not being paid the salary any more; I do not need to declare an interest. However, it is a fact that since 1993, railway rolling stock has been among the newest rolling fleet of any in Europe. We have an outstanding safety record and there have been record numbers of passengers. Nevertheless, it is clear from this debate and many others in the past that the current model is not delivering for a significant number of passengers. Rolling stock is one problem, and far too often Ministers and civil servants make those decisions over the heads of the train operating companies at the behest of the rolling stock companies. That is unacceptable and clearly must be addressed if we are not to have debates similar to this in future. Another clear failure in the market—I would say it is the biggest one—is that our constituents are paying far too much for their rail fares.

The market simply does not deliver on crucial aspects. It does deliver in some areas, however, which is why I am cautious about simply saying that everything would be wonderful under nationalisation. I remember when the railways were nationalised and everything was not wonderful. We have to be cautious about taking an ideological point of view, but this is not an ideological debate; it is a practical debate.

How do we ensure that our constituents get the best possible service from the rail industry? Let us cast ideology to one side and look at what can be done practically. We may well have to follow the Network Rail example and look at train operating companies and say that the private experiment has not worked.

Disabled People (Access to Transport)

Iain Wright Excerpts

Thursday 9th January 2014 Westminster Hall

[Mr Iain Wright (Hartlepool) (Lab)]

I wish you, Ms Dorries, and all hon. Members a very happy new year. Best wishes for 2014! It is a real honour and pleasure to follow my hon. Friend the Member for Poplar and Limehouse (Jim Fitzpatrick). He is knowledgeable and passionate about these matters.

I want to participate in today’s debate because I have received a large number of representations from my constituents about access to transport for disabled people, particularly for those suffering from visual impairments. That is not entirely unsurprising. Poverty, deprivation and an ageing population are all factors that contribute to physical disability and some degree of sight loss.

Hartlepool has a higher than average level of deprivation, and some 40% of all households there include a person with a physical disability of some kind. An ever greater proportion of my constituency population is over 65. Some one in six people in Hartlepool are over 65 and by 2030 they will constitute 23% of the town’s population. That means that an extra 7,100 people in Hartlepool will be over the age of 65, and possibly suffering from sight problems, in a little over 15 years’ time.

In those circumstances, a reliable, inclusive and, above all, practical—I have heard that many times already today—public transport system is vital for my constituents and would allow those with physical impairments and disabilities to enjoy a better quality of life. It would also encourage, as the hon. Member for Eastleigh (Mike Thornton) said, greater use of bus services, which would make them more viable and be, as he said, a win-win situation.

I have to be blunt, however. Hartlepool does not have a public transport system—not really. It has a private sector monopolistic service, run by Stagecoach. It disregards choice, quality and provision of service and concentrates on profit at the expense of passengers, especially those with disabilities. That is why the company can boast of a 17.1% profit margin in its UK bus operations.

Those are “sector-leading profit margins”, as the company said in its latest annual report, and that is why it can increase its earnings per share and dividends to shareholders this year. It is also why it can abolish evening and Sunday bus services in my constituency. I wrote to Stagecoach on behalf of my constituents on the campaigning matters of audiovisual announcements and better accessibility through the use of low-floor boarding devices and new stock. I was told about Transport for London and the trial of a system on the service 7 route in Perth, but the company’s letter did not even mention Hartlepool.

I was struck by the opening remarks of the Chair of the Transport Committee, who mentioned that we need to have modern buses to provide greater space for wheelchairs. Far too many of the buses used in my constituency are 20 or 30 years old. They need to be modernised and that is not happening.

I do not want to discourage enterprise and rising profits for companies, but when it is done at the expense of a deteriorating service to customers, particularly those with physical disabilities, and without the option for those passengers to move to a more appropriate competitor that can provide a better service, it is clear that competition is not working and something needs to change. In these circumstances, it is important that we have a smarter regulatory system that works in the interests of passengers, particularly those who, for reasons of disability, would find it difficult—if not impossible—to travel by other means in a safe, reliable and affordable way.

I wrote to the Minister’s predecessor at the Department, the hon. Member for Lewes (Norman Baker), and I was disappointed to receive quite a blunt response:

“At the Guide Dogs Parliamentary Reception in March 2011, I announced we do not intend to legislate to make audio visual systems on buses mandatory.”

I am disappointed at the Government’s response to the Select Committee’s eminently sensible, reasonable and measured recommendations, particularly on bus travel. The Government’s responses are complacent—even dismissive—and are letting down people in my constituency, particularly those at risk of being vulnerable. Without appropriate public transport as the country ages, a growing proportion of my constituency will be left isolated.

The issue is not just about an ageing population, however. Tonight, sunset is at 4.11 pm, well within the working day. Often, people with visual impairment will not be able to go to work, contribute and have a rewarding career because they are frightened that they will be unable to get home; it is dark and they will not know where they are. We are undermining the potential of many hundreds of thousands of people in this country and reducing our economic potential if we do not address that issue, which is why it should be a priority for the Minister.

I cannot understand why the Government are not being smarter and encouraging innovation in the use of technology in this field. Why is the Minister’s Department not pooling together with the Department for Business, Innovation and Skills to provide seedcorn funding that could utilise big data and technology? That could be through the development of a smartphone app that could plot where a passenger was and inform him or her when the bus was arriving at their bus stop. Can we not have smarter street furniture that would allow that to happen?

[Mike Thornton]

Velvet Bus in my constituency is working on such an app. It would be encouraging if the Government got behind that kind of private development and worked with the company to provide it nationwide.

[Mr Wright]

I agree with the hon. Gentleman. I want to see these ideas developed. It would be a good demonstration of what private enterprise working with Government can achieve. It would help visually impaired people, as well as stimulate British enterprise and innovation into providing a product that could generate revenue here and around the world. I hope that the Minister will look at the issue closely and talk to his colleagues in Government to see what can be done.

I will embarrass the Minister by saying that he is a good man, who cares about transport and knows about it, as my hon. Friend the Select Committee Chair does. I know he has family in Hartlepool, so he knows better than most Ministers how an inclusive public transport system can benefit my constituency. I hope that he takes on board the concerns of my constituents and the sensible and measured recommendations made by the Select Committee. I hope that he ensures that people suffering from sight impairment in my constituency and elsewhere can benefit.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

I congratulate the Select Committee on Transport on its excellent report, which is certainly food for thought. As a former member of the Transport Committee, I participated in an earlier report on the issue, when we looked at plans to make the Olympics fully accessible for disabled people. Indeed, the Olympics were delivered with wonderful opportunities for everyone to access events.

Mention was made of Christmas eve. The report appears to be a little like the sort of list that my children used to bring me to give to Santa, but on such occasions, I could not always give every gift on the list; I hope that the Government’s response at least shows that we are behind the moves to make all our transport accessible to as many people as possible.

I welcome the opportunity to update the House on some of the many developments that the Government and transport industry are taking forward to improve transport for disabled people. My noble Friend Baroness Kramer leads for the Department on the issue. Reference was made to a world-weary approach. I met my noble Friend this week and can say that she is absolutely enthusiastic about this topic and the phrase “world-weary” does certainly not apply. Although the Government were not able to agree with all the Committee’s recommendations, Committee members raised a number of important matters and I hope to tackle the main points on which the Government were challenged. Before I do so, I shall address one or two of the points made during the excellent contributions that we heard this afternoon.

The hon. Member for Liverpool, Riverside (Mrs Ellman) asked about the 2005 regulations and whether they would be updated. The Department remains committed to renewing and updating “Inclusive Mobility: A Guide to Best Practice on Access to Pedestrian and Transport Infrastructure” during 2014, as set out in the accessibility action plan. She also asked if many disabled people were aware that they had a right to a taxi if they could not get access to a train at a station; I did not realise that people had that right. I hope that it can be publicised more widely, so that people are aware of it.

The hon. Member for Aberdeen South (Dame Anne Begg), who is no longer in her place, said that often turning up and hoping to get help can be better than booking in advance. Constituents have written to me about delays on the trains that mean that the assistance they hoped to get—for example, at York station to make a connection to Scarborough—is unavailable.

Particular reference was made to access on Crossrail. Sponsors are keen to make the line accessible, but delivering that will depend on cost, technical feasibility and identifying suitable funding. There has been criticism in the press and Parliament about Crossrail not providing step-free access at all stations. However, Crossrail will dramatically improve accessibility to rail transport in London, with 31 of the 38 stations on the route having step-free access and an estimated 93% of journeys on the route starting and ending at step-free stations.

All central London Crossrail stations will be fully accessible from street to train, and there will be step-free access from street to platform at 20 of the 27 service stations on the route. At a further two stations—Taplow and Langley—there will be step-free access to the eastbound platform, which will be used by Crossrail, but not to the westbound platform. There are currently no plans to deliver step-free access to Iver, Hanwell, Maryland, Manor Park and Seven Kings stations.

Crossrail is meeting its legal obligations. The stations that will not be made step-free will have minimal or no infrastructure work carried out on them, and therefore there is no requirement for them to provide step-free access. Work is now under way to look at finding technical solutions to make the remaining seven stations step-free and to explore potential sources of funding. Based on the time frames for the feasibility work and the decisions around the Access for All programme, the position should be much clearer by the spring of this year.

[Mr Iain Wright]

How does what the Minister is suggesting comply with existing disability legislation?

[Mr Goodwill]

As I thought I had made clear, where Crossrail is carrying out substantial construction work at stations, it has an obligation to make those stations accessible, but where stations are not being modified, Crossrail is not forced to make them accessible to be legally compliant. However, as I have said, work is ongoing, and we will be in a much better position by the spring. May I also point out that the wonderful new north-south railway line that we are endeavouring to build will be fully accessible on High Speed 2?

--- Later in debate ---

[Mr Goodwill]

Yes, by all means. I am happy to ask my officials to do that. However, we are keen to ensure that we do not place undue burdens on operators, many of whom—on certain routes—are facing particular financial difficulties, although I noted the points that were made about Stagecoach and its profitability.

[Mr Iain Wright]

I am grateful to the Minister for giving way again; he is being very generous in doing so. I think that I am right in saying that he quoted a range of costs from £5.8 million to £8.4 million. Can he tell the House how much that is per bus? Has any work been done in respect of the additional revenue that might accrue to bus companies as a result of widening their customer base?

[Mr Goodwill]

Well, if 2,500 buses cost £5.75 million, that is just over £2,000 per bus by my calculations. I have taken note of the points that the hon. Gentleman made about the age of some of the buses in Hartlepool, and I will certainly write to Stagecoach managers and invite them to Scarborough to visit the Alexander Dennis bus factory, where I am sure they will be able to place an order for state-of-the-art Enviro200 single-decker or Enviro400 double-decker buses. The factory will be more than happy to supply Stagecoach with such buses.

Bus Services

Iain Wright Excerpts

Thursday 1st December 2011 Westminster Hall

[Mr Iain Wright (Hartlepool) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bayley. It is always a pleasure to follow the hon. Member for Blackpool North and Cleveleys (Paul Maynard), who, like me, represents a coastal town.

Before I begin my comments, may I pay tribute to Mr Thomas Bunce, who was a resident of Burbank in my constituency? He worked hard to secure adequate bus provision—particularly the 516 service—for the community. Sadly, he died suddenly in September after a journalist had been to see him to discuss bus services. Hartlepool and Burbank are poorer for Mr Bunce’s passing. I hope the House will join me in paying tribute to him and extending our gratitude and sympathy to his family. [Hon. Members: “Hear, hear.”]

I am grateful for this opportunity to debate an important issue that is important to my constituency, and I thank the Chair of the Transport Committee, my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), and her Committee for raising this topic, and for encouraging members of the public who are affected by cuts to services to contribute to the inquiry. After seven years in the House, I cannot think of another Select Committee inquiry in which the Chair and members of the Committee actively encouraged members of the public to contribute to its findings. It is a fantastic model that we should use in future in the House.

Hartlepool has one of the worst bus services anywhere in the country—a situation that has worsened as a result of the comprehensive spending review. Due to the worst local government financial settlement for a generation, the local authority has withdrawn all public subsidy to private bus operators. In March, I raised the issue of bus services in Hartlepool on the Floor of the House through a petition of residents, and I encouraged Hartlepool residents to get in touch with the inquiry and express their feelings. Together with the Committee’s active encouragement of public participation, it meant that—as usual—Hartlepudlians did not disappoint. The Committee’s report features heavily the opinions of Hartlepool residents on the loss of their bus services; pages 12 and 13 contain quotes from nine people, five of whom are my constituents. Their views have had a big impact on the Committee and on the shadow spokesman, my hon. Friend the Member for Barrow and Furness (John Woodcock), with whom I have discussed this issue.

Mrs Olly, 80 years old, stated:

“I appreciate that spending reviews were needed and accept a reduced service but to discontinue the service altogether is appalling.”

Mrs Robinson said:

“I am a carer for my 85 year old father who has just undergone an operation for bowel cancer and also has heart problems. I used to get the 516 bus service (this has now been completely withdrawn). It now costs me £11 per day by taxi so am only visiting my father three days a week which is leaving him alone four days in each week.”

Miss Raw declared:

“The bus service from Elwick to Hartlepool has been withdrawn leaving the village completely cut off from Hartlepool. I do not drive and therefore am finding it very difficult to shop for essentials, visit doctors, dentists, opticians, banks, hospital visits etc. Also I no longer visit friends, go to the theatre, or cinema, especially in the evening. In fact we are completely isolated.”

Finally, Mrs Power stated:

“Since the removal of the bus service my daughter now has no way of getting to and from college. Is she surely not entitled to the education she deserves? My daughter works very hard and gets excellent grades and I feel appalled that her future education is being jeopardised in this way!”

On publication of the report, my hon. Friend the Member for Liverpool, Riverside kindly gave an interview to my local paper, the Hartlepool Mail:

“We received a lot of information from people in Hartlepool which demonstrated the problems caused by the withdrawal of local bus services…The information was very dramatic, which showed the impact it had… Hopefully this will make the Government think again about planned cuts… I would like to thank the people of Hartlepool who gave us the information.”

I echo that thanks.

As I said, Hartlepool has a poor bus service. That results from a number of factors, not least, as the hon. Member for Blackpool North and Cleveleys pointed out, that in many areas—and in my area in particular—the market for bus services does not operate effectively. Passengers do not have the choice that a market should provide, and they are forced to endure poor and inadequate provision from a monopolistic provider—Stagecoach. That company’s disdain for passengers was demonstrated a few weeks ago when, with Councillor Allan Barclay, I met about 40 residents from Ryehill Gardens. They are mostly elderly, cannot afford taxis and are effectively isolated as a result of changes to and withdrawals of bus provision. They do not want an extra bus service; they want the number 3 service to be diverted—perhaps just once or twice a day—so that it goes into town and comes back via Ryehill Gardens, allowing them to travel to and from town, get groceries, attend appointments or meet friends. On average, that diversion would add about seven minutes twice a day to the existing bus service. Stagecoach rejected that suggestion and—perhaps even worse—it did not give residents the courtesy of a meeting to explain its decision. Members will agree that that is not good enough, and it demonstrates all too vividly the contempt—that is not too strong a word—shown by Stagecoach, and why people in England need a complete change in the provision and regulation of bus services.

The Committee reported on bus services after the comprehensive spending review, but in the week of the autumn statement perhaps we should bring it forward and talk about future financial arrangements. The report stated:

“The combination of the reduction in local authorities’ revenue expenditure and changes to the Department for Transport’s concessionary fares reimbursement guidance in 2011-12, with the 20% reduction in Bus Service Operators’ Grant (BSOG) due to be implemented in 2012-13, has created the greatest financial challenge for the English bus industry for a generation. The combined impact of these funding changes will, in some parts of the country—”

Hartlepool, for example—

“have a disproportionately adverse impact on the provision of local bus services and the level of bus fares.”

That is one of the report’s central paragraphs.

As my hon. Friend the Member for Liverpool, Riverside said, local government was hit hard in the CSR. Revenue expenditure will be cut by 28% over four years, with central Government assistance going from about £38.5 billion in 2010-11 to £22.9 billion in 2014-15. As a result of this week’s autumn statement, however, it will get a lot worse. This week, the Chancellor confirmed that his deficit reduction targets will not be met in this Parliament, and that he will have to extend them over a further two years. That will mean more pain over a longer period, and it will be concentrated not on capital expenditure but current spending. The autumn statement confirmed that current spending will be cut by an additional £910 million in 2012-13, £1.175 billion in 2013-14, and £1.735 billion in 2014-15. After this Parliament, the figures become unsustainable and economically dangerous—£8 billion and £15 billion in 2015-16 and 2016-17 respectively.

Local government and transport will bear the brunt of many of those changes, and I predict that the cut to BSOG in 2012-13 will be much worse than the 20% predicted. Will the Minister indicate how he intends to combat what the Chancellor laid out in the autumn statement, and say how he expects England to have a functioning bus transport service, given the astonishing budget cuts currently planned that are only going to get worse?

As the Committee pointed out, bus passengers are facing their biggest challenge since the second world war. On behalf of my constituents, I thank the Committee for its work in highlighting the issue and putting pressure on the Government. As the hon. Member for Blackpool North and Cleveleys said, the current model in which monopolistic bus providers are able to cherry-pick services and make excessive profits cannot be sustained, especially at the expense of important social routes, and cuts to Government budgets tip that model over the edge. Communities such as mine would welcome and encourage a co-ordinated and sufficiently funded public transport service, but that can happen only if a strong Transport Minister backs this important issue in Whitehall against the Chancellor, and takes steps to remove power from monopolistic providers, thereby re-regulating bus provision in England.

--- Later in debate ---

[Norman Baker]

What I am saying—I hope that I have said it fairly—is that it is a challenging position for local authorities. They have received reductions in funding, which has meant difficult decisions for them, and I can understand why some of them have looked to their bus services. However, within the framework in which they operate, some have managed to protect their services, and, as in the case of Bedford, even enhance them. Others have made limited cuts. Others have taken an axe to services. Those who live in Hartlepool and elsewhere need to ask their councils why they have taken an axe to services when other councils have not.

[Mr Wright]

If the Minister will let me continue with my rant, that Pontius Pilate approach to decision making will not wash if he wants to be a champion of local bus services. Will he comment on the second part of my remarks, which concerned future financial arrangements and possible cuts to bus services as a result of the announcements in the autumn statement?

[Norman Baker]

I will. I always try to respond to all points made by hon. Members, as those who have heard me respond to debates will know. I will deal with those points, but first I will deal with the points that the hon. Gentleman made during his speech. He said—I think that I am quoting him accurately—that we need a complete change in how buses are regulated. I point out that at the moment, the regulation of buses is a consequence not just of deregulation in 1996 but of 13 years of his Government between 1997 and 2010. The record will show that when the Local Transport Bill was before the Commons and I was on the Committee considering it, I wanted to go much further in the direction that he is now advocating than did the party of which he is a member in 2008.

[Mr Wright]

Will the Minister give way on that point?

[Norman Baker]

I will, but I need to make progress.

[Mr Wright]

The Minister has had 18 months in office. He has just set out his approach. When will he enact it?

[Norman Baker]

I will not give way again, as I am trying to answer the hon. Gentleman’s points, and he is anticipating me all the time. The fact is that we now have a regulatory framework that his Government put in place in the Local Transport Act, and the record will show that it would have gone more in the direction that the hon. Member for Barrow and Furness wanted if his Government had accepted the amendments that I tabled at the time.

Our position has been set out clearly. The Government await the results of the Competition Commission’s inquiry. It would be premature to make judgments about the landscape of the bus market until it has reported. We will read the Competition Commission report carefully, consider the arrangements for the bus service operators grant at the same time and in parallel and make it clear where we are going as soon as we have had a chance to digest the final report. That is the responsible course of action, given where the Competition Commission is at present.

Bus Industry

Iain Wright Excerpts

Tuesday 6th September 2011 Westminster Hall

[Mr Iain Wright (Hartlepool) (Lab)]

Let me begin by saying what a pleasure it is to serve under your chairmanship, Mr Streeter. May I congratulate my hon. Friend the Member for Blackley and Broughton (Graham Stringer) on securing what I think is an important debate? He was kind enough to mention my constituency in his opening remarks, and I think that the example of Hartlepool and its bus users provides an almost perfect case study to illustrate why competition in the bus market is not working.

I would not disagree with the notion of competition in the bus market if it resulted in wider choice and a better-quality service for passengers. We would all agree that in an ideal situation, competition should keep operators on their toes, as they would be mindful of rivals securing a greater share of the market and would offer a more comprehensive service, a better fare and ticketing structure, more punctual journey times and more modern vehicles.

The situation in my constituency, however, is particularly frustrating because Hartlepool has all the ingredients for a good and comprehensive bus service. It is a relatively compact town; there are outlying villages, which I will mention in a moment, but at its heart is an urban centre just 2 miles wide and 5 or 6 miles long. Travel is self-contained and most journeys in Hartlepool take place within that urban centre, which therefore lends itself to a rapid, reliable, co-ordinated and integrated public bus transport system. About 40% per cent of households in my constituency do not have regular access to a car, which feeds into the need for a comprehensive public transport service to avoid isolation for many of my constituents.

Further afield, Teesside university in nearby Middlesbrough, the petrochemical and process industry cluster in Wilton, and the new logistical and distributional commercial opportunities at Teesport could mean that many of my constituents would have access to better employment rates and opportunities to participate in higher education if those places were connected by better public transport links. My constituency would benefit in every possible sense. From my experience in Hartlepool, however, it is clear that no effective market is in operation. My hon. Friend the Member for Blackley and Broughton touched on that with an example from Greater Manchester, and I will discuss that point in more detail later.

Bus services are dominated by one provider, Stagecoach, which has a significant share of the wider UK bus market. Such dominance has led to inefficiencies and distortions in the market—that is true not only in my constituency but, as we have heard, across the country. My hon. Friend quite rightly mentioned the profits made by Stagecoach, and it is worth reiterating that point. For the year ending 30 April 2011, Stagecoach made operating profits of about £200 million. Over three quarters of that operating profit—some £153.1 million—was generated solely through its UK bus operations. The profit margin of its UK bus division was 17.1%, as opposed to a 6.5% profit margin for its north American operations and 4.5% for its UK rail division. In its annual report Stagecoach states—boasts—of “sector leading profit margins” within its UK bus operations.

How was that allowed to happen? The answer is contained in the company’s annual report. Its operating and financial review states that its business model for its UK bus operations in the regions is based on an

“emphasis on lightly regulated bus operations enabling management to vary prices, operating schedules and timetables in response to developments in each local market—”

and this is the key phrase—

“without significant hindrance from regulation.”

It is therefore clear that Stagecoach seeks to cherry-pick profitable routes and discards socially or economically vital services the moment the taxpayer fails to take the risk on its behalf and subsidies are ended. The company is able to do so without the hindrance of an effective regulatory regime that could insist that such services are maintained for the good of the community.

The business model boasted about in the annual report is shown to be true when one looks at my constituency. As I said earlier, Stagecoach is by far the most dominant bus operator in Hartlepool. Arriva and Go North East provide a small number of services that travel in and out of the constituency, but in the main Stagecoach has a monopoly on the market, with about 80 % to 85% of market share.

The bus market in my constituency is striking for the absence of medium-sized bus companies. It has been difficult, as we have heard in relation to other places, for small and new entrants to the market to gain ground. Promising new entrants such as Tees Valley Coaches have provided some new routes, but have found it difficult to gain a foothold in the market and are now pulling back from providing routes.

A far too dominant player in the market has ensured that there is no incentive to improve services. Punctuality is poor. The traffic commissioner’s target is that 95% of buses should be on time. In Hartlepool, that figure is 81%. As my hon. Friend the Member for Blackley and Broughton said, ticketing arrangements, too, undermine choice and competition. In my constituency, Stagecoach operates a ticket discount scheme, but it is available only for Stagecoach services, rather than bus services across the town. Passengers are dissuaded from using other operators—of which they have only a limited choice—because of the additional cost of buying yet another ticket.

Most damning of all—my hon. Friend kindly mentioned this—is the abrupt cancellation of services, which leaves my constituents without access to transport. Hartlepool borough council faces cuts in its budget from central Government of about 25%, and it has decided to stop all subsidised services. That means that there are in effect no bus services in my constituency after 6 pm or on Sundays. Some outlying areas of my constituency—villages such as Elwick or Dalton Piercy, as well as the central area of the Burbank estate—now have no bus service whatever, which has left residents in those areas completely isolated.

The recent report by the Select Committee on Transport, “Bus Services after the Spending Review”, cites many comments from residents of my constituency. Miss Raw, for example, says that the bus service from Elwick to Hartlepool has been withdrawn, leaving the village completely cut off from Hartlepool. She states:

“I do not drive and therefore am finding it very difficult to shop for essentials, visit doctors, dentists, opticians, banks, hospital visits etc. Also I no longer visit friends, go to the theatre, or cinema, especially in the evening. In fact we are completely isolated.”

[Susan Elan Jones (Clwyd South) (Lab)]

Does my hon. Friend agree that whatever one’s general view on the bus deregulation of the 1980s, the one thing that we know is that it was an unmitigated disaster in villages and very rural areas, as buses were reduced either to a highly limited service or, in many cases, withdrawn altogether? That compounded the problem of rural poverty, which is often not addressed in an urban environment.

[Mr Wright]

My hon. Friend makes an important point, and my hon. Friend the Member for Blackley and Broughton referred to the same issue. Economic activity is very much contingent on the availability of good transport and connectivity. Concerns have been raised with me both by constituents living in the urban part of Hartlepool and by constituents living in outlying areas, who say that they cannot take up a job because they cannot get to the place of work as a result of the absence or removal of the bus service.

Another of my constituents cited in the Select Committee report is Mrs Powers, who states:

“Since the removal of the bus service my daughter…has NO way of getting to and from college…Is she surely not entitled to the education she deserves? My daughter works very hard and gets excellent grades and I feel appalled that her future education is being jeopardised in this way!”

It is important to mention the importance of access to education in rural areas. My hon. Friend the Member for Clwyd South (Susan Elan Jones) will be concerned about that as well.

It is clear that competition in the bus market in Hartlepool has failed. Deregulation since the mid-1980s has not proved to be a success. The market is characterised by too dominant a player, making excessive profits by cherry-picking the busy and popular routes and ensuring that passenger choice is left behind. For those services that remain, punctuality rates are behind what should be expected, because operators do not fear that another company might come along and provide a better service that takes away their market share.

[Mr Andrew Turner]

It is not the case that things have been tested and found to fail—they have not been tested. We have to try the competition route, which should be given the chance to work under the new system. We have to make it work, rather than pretending that it has already happened and been found to fail.

--- Later in debate ---

[Mr Wright]

The hon. Gentleman makes an interesting point, but I would suggest that we have had more or less the possibility of open competition and certainly deregulation since the mid-1980s. I accept the point that perhaps that has not meant free and open competition and there may be barriers to entry because of the structure—the way in which the legislative framework has been put in place. However, looking at the examples from my constituency, I would suggest that there has been market failure and, as a Labour politician, I would suggest that where there is market failure, the state should intervene. The hon. Gentleman and I will possibly disagree in our analysis of the reasons for that, but certainly we would agree that there has been market failure. I will ask the Minister, in trying to respond to the issue of market failure, to consider a number of things.

[Graham Stringer]

I acknowledge the weight of my hon. Friend’s remarks. Does he agree that where serious competition has taken place in Glasgow, Edinburgh, Preston and Manchester, where bus companies have set about competing with one another and where, in the short term, bus fares have dropped and there has been a conveyor belt of buses, the consequences have been worse congestion and pollution and then one bus company withdraws?

[Mr Wright]

That is one of the fears because of the way in which the bus market currently operates, with the dominance of four or five big players in the market. They have the bargaining power and, frankly, the cash to be able to hound smaller operators out of business. For example, in the north-east a number of years ago, a new and ambitious operator wanted to come into the market, but the big dominant operator of the time, which was Stagecoach, hounded it out by providing zero fares—free fares—at certain times. Stagecoach had the cash flow to be able to do that, so there is market failure, with domination by big players.

I hope that the Minister will respond to a number of points. I urge him to be bold when considering the Competition Commission’s report on bus services. He needs to examine why there has been so little take-up of the quality contract partnerships introduced by the previous Government. I urge him to undertake further work to see whether such partnerships need to be made easier to operate and enforce. To help with that, the Minister should consider whether franchising of local bus services within an area such as Hartlepool could provide a better quality of service and ensure that local authorities can determine the priorities on behalf of their residents. The Government need to be bold and radical for the good of passengers in Hartlepool and elsewhere. I strongly believe that they should re-regulate the market to ensure that local bus services are run for the benefit of passengers and communities, rather than purely for shareholders.

Oral Answers to Questions

Iain Wright Excerpts

Thursday 27th January 2011 Commons Chamber

[Mr Hammond]

It is a bit rich for the hon. Gentleman to talk about the selling off of search and rescue, when the search and rescue private finance initiative project was initiated by the Government in which he served and had been running for at least three years before the general election. On the specific point about the Liverpool coastguard co-ordination centre, Ministers looked at the proposals made by officials in the Department and judged that the decisions to be made between Belfast and Liverpool and between Stornoway and Shetland were so close that the consultation should go forward while making it clear that there was a judgment call to be made within each of those two pairs of stations. There was not a clear and definitive business case, which I think is what has given rise to the story in the Liverpool Echo to which the hon. Gentleman has referred.

[Mr Iain Wright (Hartlepool) (Lab)]

12. What plans he has for the future of bus services.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

My aim is to improve the entire bus journey for passengers. That means better integration between bus and rail services, better passenger information, smarter and more integrated ticketing, greener buses and better accessibility for people with reduced mobility. That will be achieved through incentives for commercial bus operators, funding local transport schemes through the local sustainable transport fund, but, above all, through operators and local transport authorities working together.

[Mr Wright]

In my area, Stagecoach is blackmailing Hartlepool borough council once again by claiming that it cannot run an evening bus service without getting yet more public money. Stagecoach made £126 million profit from its bus operations last year, but seemingly cannot operate an evening service after 7 o’clock in Hartlepool. It is very clear that the current system is not working, so will the Minister bring forward proposals to re-regulate local bus services?

[Norman Baker]

There is, in fact, a large range of powers available to local authorities, not least through the Local Transport Act 2008, which enables quality partnerships, and even quality contracts, to be established, so if his local authority feels that it has an unsatisfactory relationship with the bus company in question, it is open to it to look at the options available in legislation.