Bus Services Bill [HL]

Lord Horam Excerpts

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

[Lord Shipley]

I support this group of amendments. The issue is whether a distinction should be drawn between the powers of a mayoral combined authority and an ordinary combined authority, the difference between which is only whether an elected mayor chairs the authority’s meetings. A second issue is whether a distinction should be drawn between a mayoral combined authority and a county council or an integrated transport authority.

It is very difficult to see why the Government are drawing the distinction they are. It is also very difficult to see why other bodies with transport responsibilities are being excluded from an automatic right to propose a franchising scheme without the Secretary of State’s agreement. Devolution of power implies devolving that power and devolving responsibilities associated with it. I would be content with the right to propose franchises to be extended to authorities other than mayoral combined authorities.

My concern relates in part to a later amendment, Amendment 28, about the independence of the audit function. If we have a robust audit system in place to examine proposed franchising schemes, it is much easier to allow other authorities, beyond mayoral combined authorities, to propose the franchising route. If a local transport body feels that franchising is right for it, and if it is subject to that rigorous independent scrutiny, it should be allowed to proceed.

There is an issue about the future of elected mayors where some combined authorities have turned into mayoral combined authorities and others have not. There could well be a change of heart within the Government anyway about the application of elected mayors—whether they will be compulsory in areas with substantial devolved powers. We are writing now into legislation that the extra powers that go with the right to franchise can go only to mayoral combined authorities, when not all combined authorities may end up being mayoral.

I hope that the Minister will look carefully at this because there is a very strong case to extend the power to franchise to authorities other than just mayoral combined authorities.

[Lord Horam (Con)]

My Lords, I am a very strong supporter of the Bill and, like the previous speaker, I do not see why its benefits should be confined to mayoral combined authorities—why other authorities such as county councils cannot automatically invoke a franchise in the same way as mayoral combined authorities. That argument, which was stated at some length in Committee, has only been added to in the intervening time. First, we have Brexit, which means that there is far more for the Government to do than was ever envisaged when the Bill was first thought of; and, secondly, there has been a change of government, which means that there is perhaps less drive for the mayoral combined authorities, as opposed to other authorities, then under the previous regime. For both those reasons, we should think again about this proposal and widen it as far as possible so that everyone has the opportunity to franchise. After all, we all want bus services to be better, and this is a way to do it.

I hope that the Government will think again, either here or in another place, about taking a more relaxed attitude to the clause.

[Lord Snape]

My Lords, it is a pleasure to follow the noble Lord. I was around in the 1970s, when he was a Transport Minister in a Labour Government. I do not remember him being quite as radical in those days, although he has been around the political spectrum quite a bit since. It is a change to hear him advocating greater participation for local authorities, which, as far as I remember, was not at the top of his list when he was a junior Transport Minister in the 1970s. That is a change, although I have to concede that I have changed myself. I have never been in favour of franchising and I have made it quite plain in the debates in your Lordships’ House. Because of the time factor I will not repeat anything that I have said before, but in some ways I must congratulate my noble friend on the Front Bench. If this amendment becomes law he will have, in effect, repealed the Transport Act 1985. I am not sure what the noble Lord opposite will feel about that. We moved from a regulated system to deregulation, and presumably through this amendment we will be moving back to a more regulated system.

When the Bill was first published, combined authorities with a mayor were the only ones with the right to apply for franchise. Since then, at least under this amendment, that has been widened enormously. To quote my noble friend, or misquoting him perhaps, it seems to me that every local authority that feels that franchising would be suitable is entitled to so apply. All God’s children, presumably, can have a franchise if that is what they want. All I can say to him is that if he talks to the industry at large, it will say that such a widening of the existing proposals would mean a drying-up of investment in the bus industry and certainly a massive recruitment campaign in local government.

A franchise operation cannot be run on the basis of one director. He or she will need a complete department. There will need to be bus and crew rosters. Obviously the existing ones are not satisfactory, otherwise the local authority would not be seeking a franchise in the first place. It is a great job-creation scheme but at the same time it will have the impact of drying up investment in buses. Again, without repeating anything I said earlier, it would be difficult to persuade a finance director of a private company—that is what we are talking about as far as buses are concerned—to invest millions of pounds in a bus fleet if some local authority or town hall throughout the country is going to say how much to charge and where to run those buses. Life is not like that.

I have yet to hear from either side of your Lordships’ House the passenger view on the future of the industry. When Passenger Focus carried out such a survey couple of years ago, more than 80% of bus passengers expressed their satisfaction with the system as it was at present. It is possibly apparent that I have been around a long time—as a Member of this House and the other place, and a bus company director and chairman—and I have yet to hear a passenger say, “This service is so bad I want the town hall to run it”. That has never happened in my experience, although perhaps my noble friend on the Front Bench knows differently.

If this amendment is carried and becomes law, it will be bad for the industry and I do not see any great benefit for passengers. For that reason I am afraid that I cannot support it.