Bus Services Bill [HL]

Lord Bradley Excerpts

Monday 4th July 2016 Lords Chamber

[Earl Attlee (Con)]

My Lords, I shall also speak to my Amendment 60. My two amendments would make a rather significant change to new Section 123I of the Transport Act 2000: they would prevent a franchising authority from revisiting a failed franchise proposal for a period of five years.

One of the things that any business dreads is uncertainty. Consider the current situation in the UK: it adversely affects investment plans, recruitment decisions and the conduct of everyday activities. Bus operators are understandably concerned that through the measures in the Bill they could find their businesses under threat and, in the worst-case scenario, eliminated.

I will avoid rehearsing the arguments against franchising. My amendments seek to ensure that if a franchise proposal fails, for whatever reason, or if the franchising authority decides not to progress its plans—again, for whatever reason—the franchising authority must wait for five years before revisiting the issue and seeking to bring forward a new scheme. I am not necessarily wedded to the five-year period but the point I am making is that there must be a sensible gap before the process can start again, and five years seemed as appropriate a period as any other, particularly when the kind of investment decisions and long-term planning that transport providers make is taken into account. Most authorities do not change their political complexion very regularly but, in those areas that do, it is important that bus operators’ commercial decisions are not adversely affected.

The amendments would give some certainty to bus operators, and would allow them to continue to develop and improve their services, invest in new technology, innovate and react to changing and growing passenger needs. While quality contracts have been possible for the best part of 16 years, the process for bringing forward a franchise will be less onerous, and we know that these powers could be used as soon as they are brought into operation. So the threat would be very real and would be a constant dark cloud hovering above operators’ heads, even if a proposal had just been found to be unviable.

It may also be that authorities in scope might secretly welcome the amendments. The burden on local authorities grows and they are under huge pressure to deliver an enormous range of local services, from bin collection to care for the elderly to keeping the street lights on, with ever-dwindling financial resources. Having spent considerable time, energy and money on a franchise scheme that in the end was not progressed, authorities may value a legal reason that they can offer for why they cannot revisit the issue despite pressure to do so. I beg to move.

[Lord Bradley (Lab)]

I rise to speak to Amendment 61A in my name and to Amendment 66 in my name and that of my noble friend Lord Berkeley. On Amendment 61A, although the franchising authority should seek to enforce breaches of registration requirements by reference to the traffic commissioner, there are circumstances where that will not provide a swift, effective remedy. The right to request a court to exercise its discretion to grant an injunction is a more appropriate and proportionate measure for use in urgent cases to prevent serious breaches of the registration requirements.

The amendment is based on a similar provision in the Town and Country Planning Act 1990. A reference to the traffic commissioner would result in an investigation, followed by the possible imposition of sanctions, including a financial penalty and compensation. However, the process might require weeks to complete, during which an operator could continue to run services in breach of the registration requirements. The ability to apply for injunctive relief would allow the franchising authority to safeguard the franchise scheme in critical circumstances. It is anticipated that it would be used only in rare and specific circumstances, but it would give the franchise extra protection.

The purpose of Amendment 66 is to ensure that the franchising authority should not be obliged to issue a service permit where it would have an adverse effect on the financial and economic viability of the wider bus franchising scheme. It should not have to provide one if, for example, it would adversely affect tram, light rail or heavy rail services within the area. The service permit regime in the Bill is the way in which, first, cross-boundary services can be provided—in other words, services that go in and out of a franchised area—and, secondly, services can be provided where no service has been provided for in the franchise contract. The franchising authority has to grant permission for such permits, but the Bill prevents operators using these provisions to cherry pick and, in doing so, to undermine the wider franchise by enabling the franchise authority to refuse a permit where it would have an adverse effect on any service provided in the franchise.

Amendment 66 would extend the safeguard explicitly to include consideration of any impacts on the wider economic and financial viability of the bus franchise scheme. It would also enable consideration of wider public transport services. There would otherwise be a loophole whereby an operator could undermine other forms of public transport by, for example, running a bus service in parallel with and in competition with a bus rapid transit system or a light rail system, both of which currently operate within the Greater Manchester footprint. This could undermine the wider integrated public transport network, of which the bus franchise forms a part, by undermining its economic position and its fully integrated nature. I look forward to hearing the Minister’s views on these points.

[Baroness Randerson (LD)]

My Lords, my Amendment 67 raises in relation to bus users the same issue of principle that was raised earlier. Before I briefly explain in detail, may I take this opportunity to thank the Minister for the assurances he gave earlier today? We are very grateful to him for the progress we have made on this issue.

In the case of franchising, before an authority publishes or withdraws a franchising notice, the Bill specifies that, quite reasonably, it has to consult

“persons operating local services in the area to which the scheme relates”.

According to the Bill, it also has to consult,

“other persons whom, in their opinion, it would be appropriate to consult”.

What is wrong with saying that it is right to consult bus users? It is obviously right to consult bus operators and it is clearly right to consult bus users. Greater prominence and guarantees simply must be given to the views of bus users, whether they choose to make their views known either locally, through small and informal groups, or nationally—for example, through Transport Focus. I urge the Minister to encompass this amendment with the other amendments which relate to bus users.

--- Later in debate ---

Moved by

[Lord Bradley]

69: Clause 4, page 30, line 18, after “time” insert “and within such timescales”

[Lord Bradley]

My Lords, I shall be brief on this amendment, which pertains to new Section 123X, which is headed:

“Local service contracts: application of TUPE”.

The explanation for the amendment is that it should be possible to ensure that responses to requests for information under this section are provided within a specified timeframe. To ensure that the overall process is achievable in a timely way, the amendment would ensure that an authority could set a timeframe for the provision of such information. It would also reduce the scope for gaming or playing for time to frustrate the development of a franchising scheme. Information under this section of the Bill is essential for the effective introduction of franchising. I would be grateful for the Minister’s views on the timescale appropriate for the provision of this essential information on TUPE arrangements. I beg to move.

[Lord Kennedy of Southwark (Lab)]

My Lords, I will be very brief in saying that we fully support the amendment from my noble friend Lord Bradley. As he said, it aims to ensure that responses are received in a specified time and to reduce the scope to drag things out to play for time. He has the full support of these Benches.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for tabling his amendment, and I appreciate his intentions in bringing it forward. It is important that information on employees is provided in a timely way, so that informed decisions can be taken by the franchising authority.

However, I am not sure whether there is a need for this amendment because subsection (7) sets out the provisions that may be made by regulations made by the Secretary of State. Clause 123X(7)(c), into which this text would be inserted, already makes it clear that the regulations may prescribe the time at which information is to be provided. This would, in effect, set out the timescale within which information must be provided.

Noble Lords will be aware of the policy scoping notes that I circulated on 16 June. These notes summarise our intentions for the use of the regulation-making powers in the Bill. Let me assure noble Lords that on page 22 of that document we confirm our intention that the regulations to which this amendment would apply,

“will also set out the time periods within which operators must comply”,

with the requests made for employee information. Therefore, while appreciating the intent behind this amendment, I trust that with the clarification and reassurance that I have provided to the noble Lord that this matter is already addressed in the Bill and in our plans for secondary legislation, he will be minded to withdraw his amendment.

[Lord Bradley]

I am grateful to the Minister for his comments. I will look carefully at the sections he has identified to reaffirm the assurances he has given. In the meantime, I beg leave to withdraw my amendment.

Amendment 69 withdrawn.

--- Later in debate ---

[Lord Berkeley]

My Lords, I shall speak also to Amendments 72A, 72B, 73 and 73A. I do not think I need to detain the Committee very long on this because it is the same issue of timescale that my noble friend Lord Bradley spoke to on Amendment 69. It would be good to hear some comfort from the Minister that all these issues could be addressed and responded to in a suitable timescale, and it would be good to see some of these amendments, if not all of them, in the Bill.

My only other comment is on Amendment 70, in the name of my noble friend Lady Jones of Whitchurch. Information about environmental impact and air quality data is essential, not only linking them to vehicle emissions but also to the surrounding air quality, which we have spoken about in Committee before, as well as to the safety records of bus operators. That is an essential part of providing the evidence that they are of quality and intend to maintain that quality, if and when they run the franchise. I beg to move.

[Lord Bradley]

I rise to speak briefly to Amendment 73. I will not repeat the arguments I made for the previous amendment, but this amendment suggests an upper limit of 30 days, which is reasonable and justifiable in the context of the Bill. I look forward to the Minister’s further comments on that proposal.