Bus Services Bill [HL]

Lord Bradshaw Excerpts

Report: 2nd sitting (Hansard - part two): House of Lords
Monday 24th October 2016 Lords Chamber

Moved by

[Lord Bradshaw]

95: Clause 12, page 61, line 18, at end insert—
“( ) If a traffic commissioner considers that the operator of a registered service has failed to comply with a condition attached to the service permit, the traffic commissioner may cancel the registration of that service.”

[Lord Bradshaw (LD)]

My Lords, this amendment is designed to ensure that when a franchise or an enhanced quality partnership is in place, it will not be undermined by an operator—probably operating across the borders of the franchise but maybe even within it—using vehicles that do not comply with the franchising agreement. Most of us know areas of the country where some of the buses that are in competition with the main operator fall well below the standards—the vehicles are noisy, dirty and probably do not conform to up-to-date emissions regulations. I am moving this amendment to ensure that a traffic commissioner’s powers will enable him to enforce the standards laid down by either the statutory partnership or the enhanced quality partnership. I beg to move.

[Baroness Randerson (LD)]

My Lords, this amendment reflects the importance that we on these Benches believe lies in the role of traffic commissioners and the enforcement that they have the power to undertake. If you look at their annual report, you will see that the traffic commissioners themselves complain of being overstretched. It is important, therefore, that we give them an express requirement to enforce regulations at a time when we are likely to see bus companies with a lower quality of service possibly impinging on the better bus companies that provide the very best service. I simply wanted to briefly underline the importance that we see in this simple amendment.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for tabling his amendment. On the final point raised by the noble Lord, Lord Hunt, I say that training is incumbent on every element of this Bill. Where we can improve training, that should be the focus of how we move forward in this area.

Administration of service permits are intended to be used to allow commercial services that do not operate under a franchise contract to operate in a franchised area. They are most likely to be used for cross-boundary services, but an operator can also apply for them to provide other services that a franchised network of services does not cover. Under the Bill, the franchising authority, rather than the traffic commissioner, will be responsible for dealing with applications for service permits, and new Section 123R of the Transport Act 2000 enables that franchising authority to attach conditions to service permits in certain circumstances.

I totally agree with the noble Lord’s objective that there should be a sanction for operators who do not comply with such conditions. The Bill already achieves this by enabling local authorities to revoke or suspend a service permit if the holder has failed to comply with a permit condition. This can be found in the new Section 123S to the Transport Act 2000, on page 26 of the Bill.

The amendment would also add a power for the traffic commissioner to cancel the registration of a service if the operator has failed to comply with its service permit. Under new Section 123J of the Transport Act 2000, no services that operate within a franchised area are registered with the traffic commissioner, including those operated under service permits, so this addition would have no practical effect. For services of this nature in a franchised area, the permit effectively replaces the registration and the local authority has the powers that it needs to deal with the issue that the noble Lord raises.

I hope that the explanation I have given about the provisions already in the Bill reassures the noble Lord that the intent of his amendment, which I agree with, is already captured in Clause 4, and that he will be content to withdraw his amendment on that basis.

[Lord Bradshaw]

I am very grateful for what the noble Lord has said. It has clarified the situation: if any of these statutory partnerships come into effect, there will be means by which to make sure that people abide by the rules. I beg leave to withdraw the amendment.

Amendment 95 withdrawn.

--- Later in debate ---

Moved by

[Lord Bradshaw]

114: Before Clause 22, insert the following new Clause—
“Rural bus services: concessionary travel
(1) A local transport authority must—(a) in making a scheme under Part 2 of the Transport Act 2000 (local services), or(b) in carrying out any functions related to the provision of local bus services,ensure that, in making provision for the reimbursement of operators of local services in respect of concessionary bus travel, rural areas are given greater weighting over urban areas.(2) In this section, “rural areas” and “urban areas” are distinguished with reference to the Rural Urban Classification.”

[Lord Bradshaw]

I return to the subject which we have spoken about throughout the Bill: how deep rural bus services might be saved from the way they are being reduced in present circumstances—and, with the various threats to local government funding, are likely to be further reduced in future. I do not intend to press my amendment to a Division, but I would like to have the Minister’s views on it.

The concessionary fare money that the Government dispense, which is a large sum of money—we are talking about hundreds of millions of pounds—is divided up among transport authorities in such a way that it generally comes down to a sum of money spent on concessionary fares in each area. This means that many busy rural routes, profitable routes, attract concessionary fare revenue; whereas deep rural routes, which are mostly used by concessionary fare holders, pass holders, receive the same sum as the authority gives to its urban routes. Of course, a lot more people use urban routes, and I suggest a small top-slicing of the concessionary fare revenue granted to urban routes, so that a little bit is instead devoted to the rural routes. Because far more people travel on urban than rural buses, a small top-slicing of the money for urban buses would amount to a huge increase in concessionary fare revenue earned by operators of rural services.

I am mindful that there are a number of EU rules about state aid. We have to be careful that we do not leave anybody with a profit as a result, but many of the rural routes are not the sorts of routes from which anybody makes very much money. My object in moving the amendment is to ask the Minister—he and I will meet fairly soon—whether this might not be a way of supporting the rural routes in this country. The Government would not have to find more money; they would simply have to redistribute the money that they are already spending. I beg to move.

[Baroness Randerson]

My Lords, my noble friend has devised a very neat way of assisting bus services in rural areas. The problem that rural bus operators face is the demography of those areas, as they almost always have a very much older profile of bus passenger, which means that those routes rarely carry large numbers of fare-paying passengers. The concessionary recompense given to bus operators is cumbersome and inadequate, and that makes it very difficult for rural operators to make a profit. There is a long record of rural operators going out of business. We are suggesting a weighting towards rural areas that would hardly be felt by operators in urban areas because the actual number of rural passengers is very low as a percentage of the total. For rural operators this scheme could be the difference between survival and going out of business. I urge the Minister to respond positively to the efforts made by my noble friend Lord Bradshaw to suggest a mechanism to support bus services in rural areas.

[Lord Ahmad of Wimbledon]

I thank noble Lords for their brief contributions to this short debate. The noble Lord, Lord Bradshaw, has tabled an amendment on rural bus services and concessionary travel. As I have said before during the progress of this Bill, rural bus services play a vital role in helping people to get to work and school and in ensuring that they can access a wide range of services and leisure opportunities. Indeed, this issue has been raised in the House before. I believe that the noble Baroness, Lady Scott—who is not in her place at the moment—raised it on Second Reading.

I think we all accept that the loss of a local bus service, particularly in rural areas, can leave people isolated or dependent on friends and family to help them travel. However, commercial services in rural areas can be the most difficult to provide because of the need to achieve the critical mass of passengers required for a regular service. As I have said before, we are confident that the Bill provides significant opportunities for rural areas, and I again draw the noble Lord’s attention to the specific guidance which the Government have now published in which those opportunities are set out.

I turn specifically to the amendment. It would perhaps be useful to remind noble Lords that reimbursement by local authorities to operators is made on a no-better, no-worse-off basis. That means that operators are already fairly compensated for the cost of providing concessionary travel in both urban and rural areas. I believe that the reimbursement mechanism that is now in place is fit for purpose, as evidenced by the large decrease in reimbursement appeals that we have seen over the last few years since the new reimbursement guidance came into force.

If the noble Lord is seeking greater reimbursement for operators for their rural as opposed to urban services, we would be concerned that the amendment would lead to a distortion in the concessionary travel scheme because it is reimbursed on the principle of “no better, no worse off” to which I alluded a few moments ago. It is for that reason that we cannot support this amendment.

I finish by saying that the Government provide, as I indicated previously, significant funding for local bus services. We have talked before about BSOG and the £300 million to local authorities. The Department for Communities and Local Government intends to increase support for more sparsely populated rural areas by more than quadrupling the rural services delivery grant from £15.5 million to £65 million by 2019-20. That again underlines the importance of rural services—a sentiment which I know we all share. On the basis of my explanation, I hope the noble Lord will withdraw his amendment.

[Lord Bradshaw]

I thank the Minister for that. I am not sure that I fully accept his logic. The no-better, no-worse-off rule is a fairly crude one because it is very difficult to tell. It is based on using large numbers of figures from all over the country and ignores the plight of the rural areas, which need more money. It is not coming from local authorities; it is decreasingly coming from them. The people who have these concessionary fare passes wish to be able to use them and the whole structure of the concessionary fare scheme needs to be revisited because it is clumsy and does not take account of the great differences there are in the nature of bus services in different parts of the country.

I have stressed that these rural services will never be run by anybody who expects to get very rich. They will always be marginal services. All I am trying to do is to move them up to a better status than they now have under the concessionary fare scheme so that far more of them might survive. The Minister referred to other things that have been done to support rural services but those are only small amounts compared with what could be done if the concessionary fare scheme were revisited. I heard the Minister but I would like to talk to him about this in some detail later, because it is a very technical subject and I do not want to bore people. On the understanding that we will have a meeting, I shall add that to the agenda if I may, so that I can explore the matter further. With that, I beg leave to withdraw the amendment.

Amendment 114 withdrawn.