Bus Services: Greater Manchester

Debate between Liz McInnes and Jim McMahon

Monday 4th March 2019 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

I would first like to place on the record an interest, as a family member works for Transport for Greater Manchester, although not in the buses division. I bring to the House an important matter for debate and one that is as old as public transport itself: our bus services. I will speak about the impact of bus service reductions in Greater Manchester, the opportunities that arise through bus franchising and the need to bring about a new settlement for bus users in our city region.

For context, Greater Manchester’s bus services go back nearly 200 years to the original horse-drawn buses, but SELNEC—South East Lancashire North East Cheshire—brought together council transport departments from Manchester and its surrounding districts. In 1974, it became the Greater Manchester Passenger Transport Executive. In 1986, the bus operation was transferred to GM Buses, with its iconic orange and brown livery, which serviced communities across the city region and beyond until its employee buy-out in 1993, when it split services between the north and south of Greater Manchester. That was an important moment for the routes, services, pricing and quality of services we see today.

As a child growing up off Queens Road in Cheetham Hill, in the shadow of the imposing Queens Road bus depot, I would look at it as I walked to school each day, or to the Irish centre across the road, and the orange and brown livery was as powerful to me as the Coca-Cola or Heinz brands are to the whole population. It is a little-known fact—I am not sure that I should be saying this—that as a child playing on my pedal bike, I was so preoccupied with the plastic bottle that I had positioned against a rear wheel of the bike to try to make a motor engine noise that, as I went out on to Queens Road, I did not notice the passing vehicle and was struck by a bus driver. I am forever grateful that he was driving his car to work, and not his bus, at the time. I broke my collarbone and learned an important lesson about road safety. The local museum of transport housed in the depot would provide a staple visit. I made sure that each of my sons made their mandatory visit, whether they liked it or not, to take a photograph in the seat of a bus and a tram.

But it is not the past that occupies my time or my postbag today, but the state of public transport in Greater Manchester. By 1996, GM Buses South had been sold to Stagecoach and GM Buses North had been sold to First Bus, both of which are still operating from the depots that they inherited, basically splitting Greater Manchester in half. Rather than creating active competition, that created two, in my view, private sector monopolies with differential pricing and ticketing, and entirely different approaches to routes. Today, 82% of bus mileage in Greater Manchester is commercially operated and accounts for 90% of passenger journeys. Stagecoach operates the majority of routes in the south and First Bus operates the vast majority in the north, with very little mutual competition.

This was explored by the Competition Commission in a two-year investigation that found that nationally there were high levels of market concentration and a number of barriers to entry for new competitors—not least, the cost of establishing a depot, buying buses and creating routes. Its report found that head-to-head competition was uncommon and that the costs to passengers through the lack of competition was between £115 million and £305 million a year nationally.

The experience of many bus users is that bus services are being run for the benefit of the operators rather than bus users. Let us remember that when we say bus users, we are talking about those who need accessible, affordable and reliable transport to get to work, school or college within a system that is, at the moment, complex, expensive and too often not fit for purpose.

[Liz McInnes (Heywood and Middleton) (Lab)]

My hon. Friend is making an excellent speech. In my constituency, we are extremely reliant on the bus services. We have only two railway stations that serve only a part of the constituency. Complaints about bus services are a constant in my constituency emails. I am very grateful to him for raising these really important issues, which mean a lot to my constituents.

[Jim McMahon]

I thank my hon. Friend for her intervention. I congratulate her on the work that she does in supporting constituents for whom this is a real issue. Middleton and Heywood have First Bus as the main operator as we do in Oldham, with the main depot being based in Oldham for north-east Manchester. It runs the lion’s share of the routes, so there is no competition that would mean that the standard was raised. I appreciate that point being made.

[Jim McMahon]

Over the past decade, we have seen 32 million fewer bus journeys a year as a result of poor services. I congratulate my hon. Friend and neighbour on the work that she does in fighting for access to rural services, where many people feel isolated. When the bus does not turn up on time when it is needed, particularly in the winter when it is dark, as at the moment, it can be very difficult for local people. She campaigns on that with real effect, and I congratulate her.

[Liz McInnes]

It is really important that we remember the role of bus services in addressing social isolation. A constituent came to see me about the cutting of a bus service, which meant she was unable to go out in the afternoons to shop and visit friends and family. She was an elderly lady. I wrote to the Minister for loneliness about it, who wrote back to me and said, “This is a matter for the Department for Transport.” Does my hon. Friend agree that there needs to be more joined-up working between Departments?

--- Later in debate ---

[Jim McMahon]

Madam Deputy Speaker, I cannot tell you how reassuring it is in these crazy parliamentary times to have an intervention from the hon. Member for Strangford (Jim Shannon); it gives a lot comfort. That is a really important point. Disabled people find it difficult to leave the house, and they have to contend with not only buses but, when they get off the bus, the shops, department stores and supermarkets that are not accessible. What we can do as a public service is ensure that public transport is accessible, to connect them as much as possible with our towns, city centres and villages. I appreciate that intervention.

As I have said before, we cannot address the clean air crisis if we do not address the bus crisis. Over the past 10 years, we have lost 32 million bus journeys every year in Greater Manchester. That is a staggering number of journeys being diverted. I should say, out of balance, that that is partly because there has been significant investment in our tram system, so some people will choose to use the tram rather than the bus network, but that still does not account for the 32 million. We have seen a significant shift, and too many people rely on their private cars to get to work because bus services just are not good enough.

As a result of commercial decisions or because bus subsidies have been cut due to local councils having their budgets cut—of course, subsidised routes are funded by council tax through the transport levy, so if the council budget is cut, transport naturally gets cut, too—many communities have seen routes reduced or cancelled completely, cutting off entire communities. Many older and vulnerable people are now isolated. At the same time, we have seen the cost of travel increase. Ticket fares have increased by over 55% above the rate of inflation in the same period. How can it be right that we are losing 32 million bus journeys a year, but the cost has increased by 55% over the rate of inflation? People are paying from both sides—through increased subsidies to operators and through poor services, and they are then charged on top of that. I pay credit to the Better Buses for Greater Manchester campaign, which provided that data.

Given the north-south divide in Greater Manchester, it is more expensive generally to travel across the city. If someone needs to make a bus journey that requires more than one operator, they have to use what is called a system one ticket, which is a multi-operator bus ticket. That costs £5.80 a day or £19 for a weekly ticket, often for people who are on the minimum wage and struggling to get by. We should compare that to what we pay for bus travel in London. Someone who needs to use multi-modal transport—say, the bus and the tram—will pay £9 a day or £38 a week. If we compare that with the same ticket in London, where someone wants to use a bus and the tube, they will pay £21.20. It is £38 in Greater Manchester, but £21.20 in London, so weekly tickets are more expensive—179% more expensive—in Greater Manchester than in London. Quite literally, passengers in Greater Manchester are being taken for a ride.

[Liz McInnes]

Oh dear.

[Jim McMahon]

Well, I had to say it. Give me some credit, please.

In 2014, the devolution agreement was reached with Greater Manchester leaders. At the time, I was the leader of Oldham Council, and we agreed to bring forward plans to franchise bus services in Greater Manchester. This would allow greater power over routes, frequency, operating hours, fares and standards. There has been a great deal of concern that the big operators, such as Stagecoach and First Bus, would seek any legal challenge to prevent bus franchising from happening, and there is little doubt that that has in part accounted for some of the delay we have seen.

Funding has already been spent by the Greater Manchester combined authority and the Mayor: £6 million to date, with a further £3.5 million to come and followed by another £2.25 million for bus reform towards 2020, totalling £11.25 million. Incidentally, that is dwarfed by the profit Stagecoach made last year alone, when it had a £17.7 million profit margin for the year. That may account for some of the nervousness we have seen: when making that much in profit, it provides a decent fighting fund if it has to take legal action to protect that profit. However, it is a bad deal for taxpayers and bus users.

Greater Manchester must now recognise that with every week, month and year that passes, it is the millions of people in our city region who will be paying the price of delay. That brings me to explore the willingness to do it Greater Manchester’s way. There is a reason why Greater Manchester secured the largest devolution settlement outside London and why Greater Manchester has attracted attention. It took things seriously; it made the evidence-based case; and it built partnerships and long-standing relationships to get things done. It is just not good enough that passengers and decision makers in Greater Manchester seem to be held to ransom by bus operators, which have taken hundreds of millions of pounds from routes, while routes have been lost and, year on year, the taxpayer subsidy is passed on. Unless a more balanced settlement is reached, that just is not a good deal, but it requires energy and determination to form a different vision.

While we wait for franchising to seek powers, we must use this time to secure any possible passenger advantage. It will come as no surprise that First Manchester was heading for difficulties because, after it secured an operating margin of 17.3% or £18 million in 2010, it lost ground with losses in 2016 and 2017 amounting to £11 million. When it became common knowledge that First Manchester was seeking buyers for its four depots in Greater Manchester, including in Oldham, together with its fleet of 500 buses and 2,000 employees, it was a once-in-a-generation opportunity to bring some order and sustainability to bus services covering some of the poorest communities in Greater Manchester. I took the opportunity to raise this in my letter to the Mayor of Greater Manchester on 6 February, and I still urge that action be taken.

A difference seems to arise from the Bus Services Act 2017 in relation to whether the restriction in the Act on setting up a new company means there is also a restriction on buying an existing operation. I am conscious of the time, so I will jump ahead in my speech. I sought the advice of the Library, and I was referred to a companies law specialist. They said that

“it is clear that acquiring an existing company does not constitute the formation of a new company and so, as I would understand it sits outside the restriction in the Bus Services Act”.

They also said:

“It is my considered opinion that buying an existing company does not constitute forming a company.”

Even if conflicting legal advice was received focusing on the letter of the law as outlined in the Companies Act 2016, rather than the implied spirit of the Bus Services Act, there would be other options. We must make sure that we do not miss opportunities. For instance, there is the opportunity to have other municipal bus operators expand into Greater Manchester, such as those in Warrington, Reading, and Nottingham, which are performing well. If that is not considered to be an option, we could look at the formation of mutuals or co-operatives to make sure that passengers are part of the shareholding, or we could look at Manchester airport buying the service as a going concern and holding it ahead of bus franchising. There are plenty of options around. Fortune favours the brave, and it is important that we see determination.

Unfortunately, we have learned that the Queens Road depot, together with its 163 buses, has been sold to Go-Ahead for £11.2 million, separating it from the three remaining depots, including Oldham. While I accept that the new operator will work with other operators through the OneBus partnership it is my belief that carving up the north of Greater Manchester with a range of new operators buying the depots individually will make franchising harder, not easier. It is hugely disappointing, to put it mildly, that we have not capitalised on an opportunity that rarely presents itself.

Greater Manchester has done a great deal to ensure that there is investment in public transport. For instance, it has spent £90 million on bus priority measures and £130 million on bus stations, with an additional £29 million to support clean buses. It is important that operators play the game. I had an unfortunate exchange with Stagecoach Manchester on Twitter, as it was criticising the Mayor and the Greater Manchester combined authority for introducing new powers to reduce air pollution, as though that was not a reasonable thing to do, and it was not taking into account the £29 million clean bus fund invested by Greater Manchester. There was more than just a stick—there was also a significant carrot.

Public transport is key to giving people across Greater Manchester access to jobs, including constituents such as mine in Chadderton, Oldham and Royton who seek employment at key employment sites such as Trafford Park and Manchester airport, but who are denied that option because buses simply do not run to meet shift patterns, or are unaffordable and complicated, which disadvantages people trying to hold down more than one job, or who have with caring responsibilities and for whom time is precious.

This matters—all public transport users across Greater Manchester care about it, as 76% of all journeys using public transport are by bus. We must grasp this opportunity. Two and a half million people in Greater Manchester deserve better, but it requires courage. Remember, faint heart never won fair maiden, and it certainly does not get the buses to run on time either.

Greater Manchester Spatial Framework

Debate between Liz McInnes and Jim McMahon

Thursday 21st February 2019 Westminster Hall

[Liz McInnes (Heywood and Middleton) (Lab)]

You were being heckled before.

[Jim McMahon]

I have been heckled by the Minister and the Parliamentary Private Secretary, the hon. Member for Thirsk and Malton (Kevin Hollinrake)—I hope the officials do not join in, or it will get a bit out of hand. We were promised after the original consultation that there would be no loss of green-belt land, and we were promised a radical rewrite. I accept completely that Greater Manchester has to comply with the requirements placed on it. I do not hold any Greater Manchester politician responsible for the housing target passed to them, but it cannot be a radical rewrite when for my constituency there are 450 more units than were in the original plan.

I briefly wanted to talk about some of the land issues that we have. In August, we will be reflecting on 200 years since the Peterloo massacre, where working people demanded the right to vote. Many in my constituency as it stands today did not return home. They were killed at Peterloo. One of the contributing factors to Peterloo—this is, I accept, a local history point—was that the Rochdale magistrate had been given word that the rebels or radicals had practised military manoeuvres in their hundreds at Tandle Hill in Royton. Word got to the Rochdale magistrate, and they sent word to Manchester. That definitely contributed to the feeling that there would be a riot and civil disobedience that could not be controlled.

Council Funding and Social Care

Debate between Liz McInnes and Jim McMahon

Wednesday 22nd February 2017 Westminster Hall

[Jim McMahon (Oldham West and Royton) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bailey. I congratulate my right hon. Friend the Member for Kingston upon Hull West and Hessle (Alan Johnson) on securing this critical debate. There is a crisis, but we should be honest and say that it is a crisis of indifference. There are pleas from those who need care but cannot get it, pleas from families who see their relatives denied care that they ought to be receiving and pleas from local authorities that are in the hellish situation of trying their best to teem and lade a diminishing resource when pressure on their budget is going up all the time. We have also seen pressure and pleas in this place, but the Government seem determined to ignore the scale of a crisis of their own making.

It is a crisis of the Government’s making. I resent the idea that just because people are living longer and happen to have health conditions that need additional support, they are tagged as being the problem. People who have worked all their lives and contributed to our society have been let down by the Government when they needed them most. The Government labelled them as the problem instead of reflecting the fact that we want people to live a decent life in old age. If that is the measure of the type of society that we want, we ought to step up and treat people in the right way.

[Liz McInnes (Heywood and Middleton) (Lab)]

As well as there being a crisis of indifference, does my hon. Friend agree that the situation was entirely predictable? It was well known that the elderly population was going to increase, and no action has been taken to address the problem.

[Jim McMahon]

My hon. Friend is right. The reports, reviews and commissions that have looked into this issue have laid out clearly the scale of the problem. It has been made clear that the problem is bad today but will get worse year on year unless action is taken. Cross-party attempts have been made to resolve the issue, only to be undermined by the Conservative party, which wants to use it to wave the flag and scream at the Labour party with accusations of a death tax and a granny tax. We have heard about all that during the debate. The situation today is that the Conservatives are in Government, and it is the Government’s responsibility to come forward with a solution.

Suggestions can come forward from the Opposition—we have heard some today—and from local government, social care providers and charities. We have heard about that, but ultimately it is the Government’s responsibility. In many ways I pity the Minister. I would not like to be in a situation where my own party’s Prime Minister was completely clueless on the scale of the problem and the Chancellor of the Exchequer seemed completely careless about the scale of the problem. The Minister’s own Secretary of State seems to show little interest in the brief he has been given, investing little time in it and leaving it, with all due respect, to junior Ministers to come and take the brunt of the problem.

The truth is that the Treasury will not release the amount of money that is needed. What happens as a result? Further pressure is pushed on to departmental budgets, but because the DCLG has no more money it pushes it back on to local authorities. The result—besides the fact that we do not even touch the sides in dealing with the scale of the problem—will be that council tax will have increased by 25% by the end of this Parliament. In human terms that will mean that people living in towns such as Oldham, Hull or Rochdale will notice their council tax bills increasing by 25%; but the fact that those towns historically have a low council tax and business rates base will constrain their ability to generate the total amount of money needed to provide care.

Schools White Paper

Debate between Liz McInnes and Jim McMahon

Wednesday 13th April 2016 Commons Chamber

[Liz McInnes (Heywood and Middleton) (Lab)]

My local council, Rochdale Council, has just passed a motion to say that it totally deplores the attempt to force academisation on our schools. It will not be the only council to do that. Would my hon. Friend like to comment on that?

[Jim McMahon]

Absolutely, but I shall just conclude the quote from the LGA, which went on to say that the Government’s proposals

“will further weaken vital local voices in our schools.”

There has been a debate about whether the point in the motion about the removal of parent governors is accurate, but I can tell the House that there are serious concerns about the intent of this Government when it comes to democracy and local accountability. When I wrote to the Secretary of State to ask whether the Department would intervene to prevent E-ACT academies from sacking their community governors and parent governors, she refused to intervene; she supported their right to do that. There will be schools up and down this country in which parents no longer have a right to sit at that table and make their voice heard. If that is not the Government’s intent, why did the Secretary of State or the Minister not intervene and say that when they had the opportunity to do so?

Local areas are stepping up, and I commend the education and skills commission in Oldham for the work that it did, supported by Baroness Estelle Morris. The three MPs representing Oldham wrote to the Secretary of State to ask for a meeting to discuss the outcome of that work, which was genuinely about creating a family of education in Oldham involving parents, schools, governors, teachers and the community right across the spectrum of free schools, academies and community schools, but we have not even had a response. How can MPs in their constituencies have any faith in a further centralised education system in which a Secretary of State has all the power when she clearly does not even have the time to respond to a letter?

Ultimately, this is a trust issue. I do not believe that the Government are really interested in community voices or in teachers’ voices. I actually do not believe that they are particularly interested in what happens to young people in Oldham. I am really questioning who they do listen to. I have very serious concerns about the academy sponsors and I want to know, as do the public, in whose interests this Government are working.