Bus Services Bill [HL]

Lord Berkeley Excerpts

Report: 1st sitting: House of Lords
Wednesday 12th October 2016 Lords Chamber

[Earl Attlee]

My Lords, I have to say that I remain unconvinced by the arguments advanced by noble Lords in support of the amendments and, once again, I urge my noble friend the Minister to resist them.

As I said in Committee, combined authorities with elected mayors or any other local authority with an elected mayor are very different beasts from local authorities which have not gone down the route of an elected mayor. These authorities have thrashed out a devolution deal with the Government and are fully accountable to their citizens, so will be granted the powers to introduce local bus franchising. Even the mere suggestion that a local authority is thinking about franchising will cause uncertainty for industry. Of course that uncertainty could go on for years, indefinitely perhaps—a point well made by the noble Lord, Lord Snape.

There are few things that serve to stifle innovation and investment more than uncertainty. All the while, bus operators would have no incentive to adapt their services to meet the needs of their passengers. Who would blame them, given that they could be out of business should the local authority actually make a decision and use the powers? Services would inevitably deteriorate and passengers would be the losers.

Local bus franchising, and indeed the whole concept of devolution, are not steps that can be taken lightly. There needs to be due process and proper scrutiny. Those areas with agreed devolution deals have taken that brave political step. It is absolutely right that there be a separate process for areas that have not secured a devolution agreement, and a process that will require the affirmative procedure giving Parliament the final say is, in my view, exactly what we need. I really cannot support these amendments and my noble friend will have my full support in resisting them should they be pressed to a Division.

[Lord Berkeley (Lab)]

My Lords, listening to my noble friend Lord Snape and the noble Earl, Lord Attlee, makes me think that some of the reasons they are putting forward are really to do with the fact that they do not like the idea of franchises at all. I can accept that view. I think that franchises could be a very useful contribution to better bus services in many areas. However, I do not understand why a mayoral authority, but nobody else, is allowed to do this without the permission of the Secretary of State. Maybe the Minister can explain it. I mentioned Cornwall, which is one of the few authorities that, as far as I can gather, will be allowed to do it. If one thinks that all mayoral authorities are the epitome of perfection and all the other schemes in proposed new Sections 123B to 123F in the clause need a great deal of supervision from the Department for Transport, one could look at the “Rotten Boroughs” column in Private Eye every fortnight and count up which ones are mentioned most often for having allegations of sleaze, fiddle or something else. I fully support this amendment and I look forward to the Minister’s answers.

[Earl Attlee]

In response to the question posed by the noble Lord to me and the noble Lord, Lord Snape, I say that we oppose extending the right to franchising without the authority of the Secretary of State to provide certainty for the operators unless the local authority can get permission from the Secretary of State.