Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

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

[Lord Shipley (LD)]

My Lords, I support the comments of the noble Lord, Lord Whitty, who I thought made an excellent case for Amendments 1 and 113 in his name and, in so doing, I should say that I am the vice-president of the Local Government Association. I simply add a little for the Minster to take away, because the noble Lord, Lord Whitty, talked a great deal about the importance of bus services for employment opportunities and for training purposes.

In the consultation that is talked about—a huge amount of consultation will take place on this Bill, not just in terms of this amendment—one type of organisation that should be automatically consulted is employers’ organisations. There can be huge problems for people who often are on a low income, live in remote places and have no access to a car and who, therefore, need to be able to get to employment and training opportunities, often at unsocial hours, by public transport. Therefore, it is important to consult those people. Proposed new subsection (4)(d)(iv) in Amendment 1 refers to,

“organisations, or types of organisation, specified by the Secretary of State in regulations made by statutory instrument”.

I hope very much that employers’ organisations and jobcentres will be included in that list.

[Lord Kennedy of Southwark (Lab)]

My Lords, as this is my first contribution to the discussion on Report of the Bus Services Bill, I refer noble Lords to my register of interests: I am an elected councillor in the London Borough of Lewisham and a vice-president of the Local Government Association. I should also say that, generally, we on these Benches welcome the provisions in the Bill.

Bus use in London has grown while outside it the picture has been very different. We are hopeful that when the Bill passes into law, it will help to halt the decline in bus use outside London, particularly in rural areas. The two amendments in this group are in the name of my noble friend Lord Whitty. As we have heard, Amendment 1 seeks to place a duty on county councils in non-metropolitan areas to consult on the needs for local bus services. It would require them to issue a consultation document and, following the consultation, to issue an assessment on the need for local bus services in the county and, further, to seek to secure the provision of bus services that address the needs identified that would otherwise not be met, as my noble friend outlined. The amendment is very focused and requires the Secretary of State to issue guidance to assist county councils in making sure that they have properly responded to the outcomes of the consultation. The amendment goes further in setting out what the consultation must address and who, at a minimum, must be consulted. I agree with my noble friend Lord Whitty and the noble Lord, Lord Shipley, about ensuring that employers’ organisations are properly consulted. However, the amendment gives considerable scope to the Secretary of State to set out and shape the consultation to be undertaken.

Amendment 113, also in the name of my noble friend Lord Whitty, would place a requirement on the Government and the Secretary of State to issue a national strategy document within 12 months of the Act coming into force. Noble Lords will recall that that was discussed in Committee. As we have heard, there is no need for the bus industry to be the poor relation of other transport services. I fully support this amendment’s objective of requiring a proper national strategy. As we have heard, this document will set out the objectives, targets, plans and funding mechanisms for the delivery of bus services over the next 10 years. That is a very welcome idea. We have heard and seen the decline in bus services outside London. The Bill is an attempt to halt that decline. It seems sensible for the Government to pull those things together into one document. I hope that the Minister will give a positive response.

[Baroness Scott of Bybrook (Con)]

My Lords, as my county was mentioned by the noble Lord, Lord Whitty, for which I thank him, I thought that I should respond. I do not think this amendment is necessary. Many counties such as Wiltshire already know exactly what is happening with bus services in their areas and the importance of them to their communities. Wiltshire has just finished a review which took place over the last six months. We have had nearly 12,000 responses, which is excellent for our county. We are looking at our bus services in response to those responses. As the noble Lord, Lord Whitty, said, bus services rightly need to be provided for vulnerable people and people trying to get to work but also for people in rural communities trying to access leisure facilities. We are doing that. It is interesting to note that we will save half a million pounds this year by not retaining the bus services that are not required by the people of Wiltshire.

However, a much more important aspect of this concerns the number of buses used by public services in our local authorities. Health, for example, spends as much money in Wiltshire on supporting transport in our county as we do. Therefore, it is important that we work together with other public services to ensure that we obtain the most efficient service for moving people around our areas as we possibly can.

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If I have one doubt about the amendments, and I hate to have it, it is that experience too often demonstrates that these things can become a pretty hollow formality; they have to be done by officials but they do not really put their heart into them. In supporting the Minister, we should do our best—I am not sure how much effect it will have—to bring home that this is a serious provision: you are providing a service, and it is absolutely essential that the people for whom you are claiming to provide that service have a real say in what they are experiencing and what should be done.

[Lord Kennedy of Southwark]

My Lords, these amendments concern mainly the consultation process and we support them. It is clear that the noble Lord, Lord Ahmad of Wimbledon, and his colleagues have listened to points raised by noble Lords at earlier stages of the Bill and we are grateful to them.

Amendments 9, 30, 40 and 68, proposed by the noble Baroness, Lady Randerson, and the noble Lord, Lord Bradshaw, would improve on the Government’s proposal, in that they would put “bus users” into the Bill. The Minister said that he was not prepared to accept the amendments, but I do not agree with him. The noble Baroness, Lady Randerson, correctly talked about the need for consistency in the proposed consultation and for bus users to be at the heart of it. I am sure that the Minister will explain further why he is not prepared to accept the amendments, but it would be quite simple to consult people—you could have adverts on the tops of buses, inside the buses and on the website, asking them to get back to you. That is how you consult bus users in addition to statutory organisations, and it would not be that difficult. Having bus users explicitly involved in the consultation process would be very welcome. I hope the Minister will set out further why he cannot accept the noble Lords’ amendments.

Having said that, I do not intend to delay the House further. We are genuinely grateful for the other amendments the Government have brought forward today.

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords and in particular the noble Baroness for their amendments and contributions, and for their broad support for the government amendments. I assure noble Lords that the intent behind the government amendments, together with the guidance, is to put the customer, the passenger, at the heart of this Bill. We want that sentiment to be reflected in respect of all modes of transport. To provide perhaps further reassurance to noble Lords, I have made a note of the noble Baroness’s suggestions and will make sure that they are reflected in the further detailed guidance. The noble Lord, Lord Whitty, spoke of good practice on the part of some local authorities whereas others are perhaps not quite up to the mark. I hope that the Bill and the strengthened guidance, taking on board the comments I have heard during today’s short debate, will together ensure that passengers are truly at the heart of local bus services.

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[Lord Kennedy of Southwark]

My Lords, Amendment 3, moved by the noble Lord, Lord Bradshaw, has considerable merit and we on these Benches will support him if he wishes to test the opinion of the House. As we have heard in this short debate, the amendment seeks to enable the Secretary of State by order to confer powers upon a transport authority to enforce traffic offences where it has applied for them. The powers will enable authorities to deal more effectively with moving traffic offences, which in turn will help with reliability and punctuality issues for buses, as we have heard. It is not an automatic right: a case will have to be made for why the powers would be desirable in a particular area.

The Government should not in any way be concerned by this proposal as the power to grant, or not to grant, rests with the Secretary of State. The Local Government Association also has indicated its support for the amendment, although, as it points out, the Government already have the power to enable local authorities to enforce moving traffic offences. Ministers could announce from the Dispatch Box today that they will enable that power, which was referred to earlier. I will not detain the House any further on this but, for the benefit of the House, I state clearly again that if the noble Lord wishes to test the opinion of the House, we on these Benches will be with him in the Content Lobby.

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords who have taken part in this debate on Amendment 3. In moving his amendment, the noble Lord, Lord Bradshaw, reiterated that it would give all areas where an advanced quality partnership scheme is in place the powers to enforce moving traffic offences. I agree with him that congestion can have a major impact on local bus services, as other noble Lords have said, but I would also stress that local authorities have many options to address it, from infrastructure measures and technological solutions to the enforcement of moving traffic offences in bus lanes.

For instance, local authorities can designate bus lanes to provide dedicated road space for buses, enabling them to bypass traffic queues. Buses can also be exempted from restrictions such as no-entry signs. This can allow buses to benefit from a shorter, more convenient route than other traffic, sometimes by bypassing locations where there are known congestion issues. These are exactly the sorts of measures that local authorities can bring to an advanced quality partnership as their side of the bargain. I also confirm that English local authorities outside London that can enforce parking violations already have the powers to enforce bus lane contraventions, including moving traffic violations in bus lanes. This means that over 90% of the 293 English local authorities outside London can already enforce bus lanes.

I recognise that the noble Lord’s amendment would broaden these powers further and allow the enforcement of moving traffic contraventions, such as at yellow box junctions. There are already provisions available, as noble Lords know, in Part 6 of the Traffic Management Act 2004 to permit enforcement of other moving traffic violations by English local authorities outside London. Although the Government have made no current decisions on whether to bring these powers forward, we discuss them regularly with the Local Government Association and other key organisations—as I am sure noble Lords recognise, since we have many a vice-chair of the LGA here. Given the existing powers available to local authorities and the existence of Part 6 of the Traffic Management Act, additional legislation in this context, particularly where it relates solely to the narrowest type of partnership, is not necessary.

A question was asked about why only franchised areas or mayoral combined authorities can get this power. First, the devolution orders for mayoral combined authorities provide a legal mechanism to grant these powers to enforce moving traffic offences to those authorities. The mechanism does not exist for all types of authority. I assure noble Lords that we will continue to consider the case to grant these powers to all local authorities. However, for the time being, I cannot accept this amendment. I hope my explanation and the reassurance I have provided will allow the noble Lord to withdraw his amendment.

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[Baroness Randerson]

My Lords, I very much welcome the fact that the Minister has taken on board the need for consultation with employees as well as with the passengers we referred to earlier. However, as the noble Lord, Lord Whitty, has just pointed out, the Bill is uneven from one part of it to another, and something taken for granted in one section is neglected in another. As I said in an earlier debate, it is as if the Bill had been written by several different people who had not got together to make sure that the same terminology was used from one part to another. We in our party—not a party run by the trade unions; far from it—believe in the trade unions. They are an important part of a stable industrial relations picture and it is important that they are referred to, where appropriate, in the Bill.

[Lord Kennedy of Southwark]

This group contains some very helpful government amendments following our deliberations in Committee and we are grateful to the Minister for putting them before us today. The Government have clearly listened to noble Lords on many of the points they made. I am particularly pleased with Amendments 11 and 36, where the Government responded to the eloquent points on national parks made by my noble friend Lord Judd in Committee. However, I support my noble friend Lord Whitty when he carefully set out the importance of a proper consultation with representative employees and trade unions and I am pleased that he has tabled his amendment today.

I was also pleased to see that the Passengers’ Council is included in the amendments before us. There are other important amendments here but when the noble Lord, Lord Ahmad, makes his contribution I would like him to explain how the government amendments cover the points made by my noble friend Lord Whitty in respect of his Amendment 35 and my Amendment 38 regarding consultation. I am, though, generally content with the thrust of the amendments that have come from the Government.

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords who have participated in this short debate thus far. As they have acknowledged, in our constructive debates in Committee I talked of the importance of going back to look at consultation as far as franchising and partnership proposals are concerned. Noble Lords have already alluded to the amendments in my name which add the Passengers’ Council, the national parks authorities—on which I know the noble Lord, Lord Judd, was particularly focused—and the Broads Authority as statutory consultees in relation to partnership plan schemes and franchising schemes. It is also appropriate that representatives of employees of operators of local services in the area, or areas, to which the proposals relate should be consulted by the local authority on its franchising proposals.

The Passengers’ Council, which is the legal entity better known as Transport Focus, as noble Lords have said, has a duty to keep local bus services under review and to investigate such services if referred by passengers, passenger representative bodies or the Secretary of State. Adding them as a statutory consultee in relation to franchising and partnership consultation provisions in the Bill provides further demonstration of the Government’s commitment to ensuring the importance of consultation with passenger groups. I hope these amendments also address the concerns of the noble Lord, Lord Whitty, and that he will feel able not to press his Amendment 31.

On Second Reading and in Committee the noble Lord, Lord Judd, spoke passionately about the importance and value of our national parks. I appreciate the time that he took to come to see me with representatives to ensure that this important issue was also reflected in the amendments. I want to ensure that authorities that are considering implementing any of the new plans or schemes in the Bill will consult the relevant national park authority, or the Broads Authority, if they think that its area is to be affected. I also thank him for his Amendment 23, which would make national park authorities relevant authorities in proposed new Section 123B. This section deals with the business case and concerns primarily the authorities that will make a franchising scheme. As I said, although I take the role of the national parks seriously, I feel that it would not be appropriate to include them in this section. I hope that the noble Lord, Lord Judd, feels reassured by my earlier amendments and the amendments tabled by the Government and will not move his amendment.

I turn to Amendment 29. In response to the helpful words of the noble Lord, Lord Whitty, in Committee, I recognised that franchising proposals could have a material impact on employees in changes to service patterns and, potentially, operators of services. This amendment seeks to ensure that employees who may be affected in this way are consulted appropriately. It is similar in many ways to Amendments 32 and 35, tabled by the noble Lord, Lord Whitty, and to part of Amendment 38, tabled by the noble Lord, Lord Kennedy. I recognise that my approach perhaps does not go as far as Amendments 35 or 38 in defining exactly which employee groups an authority should consult—a point made by both noble Lords. I will tell them the reason why. We think that the franchising authority is best placed to determine precisely which organisations to consult, as is the case elsewhere in the Bill. I hope that that wider definition will allow them to reflect on this and that they will not press their amendments.

As we are debating consultation with employee representatives I should say that I see mandating this as a wholly appropriate measure under a franchising scenario that has significant impacts on employees. The Government do not believe that it is necessary when forming a partnership. I am therefore not in a position to support Amendments 9A and 10A, tabled by the noble Lord, Lord Whitty. Only in a very particular set of circumstances will an enhanced partnership lead to changes for employees that are similar to those arising from franchising, so it does not seem appropriate to mandate consultation, as the amendment tabled by the noble Lord, Lord Kennedy, would do.

Let me also briefly touch upon Amendments 57 and 59. They clarify which local authorities should be consulted when advanced ticketing schemes are made. At the same time, they add the national park authorities and the Broads Authority as statutory consultees. As I said earlier, consultation is important. As the Bill supports devolution principles, I believe that local authorities are best placed to set out how consultations should be conducted. They will know how long such a consultation should last to ensure that all those consulted have the ability to respond and what the best formats are for it in their area, addressing any specific needs which arise. Best practice guidance already exists for consultation and I encourage local authorities to take notice of it. I hope that the noble Lord, Lord Kennedy, will agree that Amendments 38 and 72 are therefore not necessary.

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[Baroness Randerson]

My Lords, the noble Earl is raising a legitimate concern but, as much of the Bill is in a skeleton form with guidance to follow, I would have expected the spoiling process that he is warning about to be addressed in those guidance notes.

I remain seriously concerned about the tone and content of the CMA letter about the Bill to the Department for Transport, to which I drew noble Lords’ attention in Committee. It sets what I regard as an impossibly high bar: franchising should be allowed only if it is the only way to improve services. That is effectively impossible to prove. It is reasonable to ask local authorities to demonstrate that franchising is designed to improve services or that services need improvement. However, it is not possible for them to prove that there is nothing else they could possibly do, other than franchising, that would provide that improvement.

The Department for Transport has responded to the CMA, saying that it accepts the recommendations of the CMA letter in full. I am anxious to hear from the Minister in some detail about what impact accepting the recommendations will have on the Bill and its subsequent guidance. The CMA view seems to run counter to the thrust of the core aspects of the Bill, rendering it in practice likely to become yet another overcomplex piece of legislation on buses—sadly, along with the two attempts made by the previous Labour Governments—to reverse the impact of deregulation. We support the Government’s intentions with the Bill and we think they are working very strongly on the right lines, but we are concerned that inadvertently, as a result of the CMA’s response, their approach might be undermined.

Our concern, expressed in these amendments, is that the CMA could be seen to be overpowerful in this context. Given that it is clearly at odds with the thinking of the Department for Transport in some respects, it is important that the CMA is not allowed to become judge and jury in these cases. If it is consulted beforehand, it should not be allowed to come back after decisions are made unless there are genuine causes for concern as to how the franchise is working.

[Lord Kennedy of Southwark]

My Lords, Amendments 12 and 13 bring back to your Lordships’ House an important issue that the noble Baroness, Lady Randerson, raised in Committee. I recall her bringing to the attention of the Committee a statement made by the CMA in July. Concern was expressed that, after being consulted, the CMA could come back again and again, which would deter a local authority from seeking arrangements, partnerships or franchises since it would view the arrangements as impossible hurdles to overcome.

The two amendments seek to set out some parameters for a CMA investigation in less than two years, and they arrive at a series of complaints or an adverse effect on competition. I think that is sensible, and I hope the Minister can address the issues raised by the amendments as it is important that we get the balance right here, rather than again making little progress, despite the Bill’s good intentions, due to other factors such as those highlighted in this short debate.

[Lord Ahmad of Wimbledon]

My Lords, I thank noble Lords for their contributions in this regard. The noble Lord, Lord Bradshaw, has proposed a number of amendments that aim to restrict the ability of the CMA to investigate franchising schemes for a period of two years unless it has received a complaint or it becomes aware of a significant adverse effect on competition. As noble Lords have already stated and will be aware, the CMA issued a letter on the Bill on 29 June that contained nine recommendations. Our response to those recommendations was issued on 10 October and is on the GOV.UK website. One of the recommendations was for the CMA to be listed as a statutory consultee in relation to consulting on franchising proposals. The Government have accepted that recommendation, so I am pleased to support Amendment 34.

I agreed that it would also be helpful for franchising authorities to work with the CMA as they develop their proposals. I am sure we are agreed that that should help to ensure that the CMA is made aware of the potential effects on competition and the benefits or impacts it could have on bus operators and local people. The CMA is responsible for conducting market studies and investigations in markets where there may be competition and consumer problems, and for investigating instances where there may be anti-competitive agreements or abuses of a dominant position. If an authority has consulted the CMA on its franchising proposals and taken account of any recommendations made by it, I do not believe that the CMA is likely to have further concerns.

I turn to a technical issue. Schedule 10 of the Transport Act 2000 does not give the CMA the power to investigate franchising schemes. If the authority had any concerns about the impact of the introduction of a franchising scheme, it would make its views known as part of the consultation and would have to consider whether it had any powers available to it under general competition law. Any restriction of powers available to the CMA would send the wrong message about the important role that it plays in protecting consumers.

The noble Baroness, Lady Randerson, raised the issue of the Government’s acceptance of the CMA’s recommendations, particularly regarding whether the LTA should assess or test partnerships before moving to franchising. I shall provide further detail at this juncture, if I may. Under the new Clause 123B of the Transport Act 2000 inserted by the Bill, authorities are already required to compare a franchising scheme to other options. These other options are highly likely to include partnerships and a do-nothing scenario, whatever the CMA has recommended. We have been clear in our response to the CMA’s recommendation that there will be circumstances where partnerships or the deregulated market simply cannot achieve the outcomes that elected politicians are working towards. A single fare structure across a wide geographical area and transport modes, as in London, is a good example of such an outcome. So we are not creating an overly high or impossible hurdle for franchising authorities or setting a particularly high bar.

I hope the assurances I have given have persuaded the noble Lord, Lord Bradshaw, that the CMA has an important role to play, as we all accept, and that local authorities should work with it as proposals are developed to ensure that local bus passengers get the best possible service. With those assurances, I hope the noble Lord is minded to withdraw his amendment.

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Moved by

[Lord Kennedy of Southwark]

14: Clause 4, page 14, leave out lines 36 and 37

[Lord Kennedy of Southwark]

My Lords, Amendment 14, in my name and that of my noble friend Lady Jones of Whitchurch, returns to a key part of the Bill raised both at Second Reading and in Committee. Under the Bill, only mayoral combined authorities can automatically opt for a franchise scheme if they believe that that is right for their area. All other categories of authority have to seek the permission of the Secretary of State to go down that route; that in turn would need to be approved by the affirmative procedure.

Our amendment, and Amendment 25 in the names of the noble Baroness, Lady Randerson, and the noble Lord, Lord Bradshaw, would put the whole question of franchising on a level playing field. We support the Bill in general, as I have said, and there are many good measures in it which we believe would improve bus services outside London. We have evidence that franchising works here in London and, where an authority thinks that that is the right model for it, we want it to be able to take it up, improving the number of passenger journeys and driving up standards.

With the change of government, I hope that there has been and continues to be a period of reflection on the whole question of mayors and the exclusivity of powers under the Bill that can come only when having a mayor. If an area wants a mayor, that is fine; if it does not, that is fine too. I hope that we can move away from effectively forcing authorities down a certain path if they want to have certain powers to a much more consensual approach, where it can be determined locally what is the best model for a locality and the full suite of powers be available, no matter what model is chosen.

Amendments 24, 26 and 27, also in my name in this group, are complementary, although in my opinion Amendment 25, in the name of the noble Baroness, Lady Randerson, works better. I beg to move.

[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.

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[Lord Ahmad of Wimbledon]

That is an important question. Parliamentary approval would be for the category, then it would subsequently be for the individual authority to apply to the Secretary of State and to ensure that it meets the criteria that I have illustrated. The noble Lord sought an important clarification and I trust that it is now clear.

I hope that in my detailed contribution, I have demonstrated to noble Lords that the Government’s approach to accessing franchising powers is sensible and practical, and that it ensures long-term investment decisions, putting passengers at the heart of those decisions and ensuring that they reflect the needs of passengers locally. It is, I believe, in the best interests of bus passengers, business, and employees in the sector.

I hope that noble Lords, including the noble Lord and noble Baroness who tabled these amendments, have been reassured by what I have outlined. I hope that what I promised in Committee about the criteria upon which the Secretary of State would make that decision and the sharing of that criteria has provided further reassurance.

I raise a final technicality: the noble Baroness, Lady Randerson, talked about grouping and treating these amendments as a package, but that is not how the Government view them. I hope, through the reassurances, clarity and extra information that I have provided between Committee stage and now—I am really pleased that the Bus Services Bill is attracting your Lordships’ interest and attention—that the noble Lord will be minded to withdraw his amendments.

[Lord Kennedy of Southwark]

My Lords, I thank the noble Lord for his response and all noble Lords who have spoken in this debate, which has gone on for a bit longer than I envisaged as well. I have to say that I am disappointed with the noble Lord’s response. He has been very accommodating through the whole passage of this Bill up to now; he and I have worked very well together, but I am disappointed.

I agree with many of the comments made around the House, particularly those of the noble Lord, Lord Horam. With all the doom and gloom about franchising, you would think that if it were that bad, the Government would be seeking to end it. This is more about an obsession with mayors. I hope that the Government will reflect on that and that some other point will deal with it. It is certainly wise to give powers to a wider group of authorities and I wish to test the opinion of the House.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

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

Moved by

[Lord Kennedy of Southwark]

19: Clause 4, page 15, line 12, at end insert—
“(9) A local service contract must require that new vehicles delivering local services meet the specifications of the low emission bus scheme as set out by the Office for Low Emission Vehicles in its 2015 document “Low Emission Bus Scheme: Guidance for participants” if the vehicle comes into service after 1st April 2019.”

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[Baroness Randerson (LD)]

My Lords, in my various discussions with bus operators, it has become clear to me that recruiting bus drivers is a complex and localised process. A standard tariff of wages across a large area can attract people in one part of it and be inadequate in another. Certainly, the experience of Transport for London has been along those lines: it is difficult to attract drivers in central London and easier in parts of outer London. That applies also to areas such as Bristol. Therefore, how one deals with the TUPE regulations and the transfer of staff from one company to another is essential to good relations between the workforce and the employer. We on these Benches support the intention of the amendments in the name of the noble Lord, Lord Whitty.

[Lord Kennedy of Southwark (Lab)]

My Lords, as this is my first contribution to Report today, I draw the attention of the House to my declaration of interests: I am a councillor in the London Borough of Lewisham and vice-president of the Local Government Association.

The amendments in this group, all in the name of my noble friend Lord Whitty, with the exception of Amendment 70, which is in my name and that of my noble friend Lady Jones of Whitchurch, concern TUPE protections for employees, and have our full support. They are important amendments, as they seek to provide protections for employees and to ensure that, where new employees are taken on, their terms and conditions will not be any worse than those afforded to employees covered by the TUPE protections.

Amendment 70 would add trade unions and employee groups to the list of organisations that must be consulted. We do not accept that new Section 138F(6)(g), which refers to,

“such other persons as the authority or authorities think fit”,

fits the bill. The amendments have our full support.

[Lord Ahmad of Wimbledon]

My Lords, the noble Lord, Lord Whitty, made some important points about protections for workers in the bus services industry. As he acknowledged, we have included the TUPE provisions in the Bill to protect those staff affected by the initial introduction of a franchising scheme or an enhanced partnership scheme in an area, recognising that the transition from the current market to a contract or a number of contracts could be difficult and uncertain for existing staff.

However, as I have said a number of times, the Bill is devolutionary. It gives considerable flexibility regarding the nature of the contracts to be awarded by those authorities taking forward franchising and, potentially, enhanced partnership schemes. As I have said in discussions with the noble Lord outside the Chamber, I agree entirely that people should be paid at a rate that reflects the hard work they are doing. I also note the noble Lord’s comments about the danger of a race to the bottom on terms and conditions and the perception of a two-tier workforce. Any authority contracting for services will need to consider a number of factors when assessing bids for contracts, and the Bill will require it to consult and engage with employee representatives at an early stage.

However, it would not be consistent with the rest of the Bill to mandate the basis on which contracts are procured by local transport authorities or the contents of those contracts, as Amendments 22 and 47 propose. Employees and their representative groups will have plenty of opportunity to raise such points during the consultation process for the respective schemes.

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[Lord Snape (Lab)]

My Lords, I support the views put forward by the two previous speakers. Under previous legislation, there were five main tests for franchising. I do not propose to go over them, but they were fairly stringent. Attempts by local authorities to introduce franchising previously failed those tests.

We are in uncharted territory with the Bill. It does not seem inherently fair that the authority that wants to set up a franchising scheme can be judge and jury for that scheme, which appears to be the current situation. We need a degree of independence in judging the merits or otherwise of such a franchising proposal. Common fairness demands some sort of independent scrutiny of the proposals.

I do not know the Minister’s intention, but I hope that he will see the common sense and fairness behind the noble Baroness’s amendment. If an independent element is not introduced, one can just imagine the number of judicial reviews that will be held—from one end of the country to the other—if bus companies feel that they have been unfairly treated by the franchising authority acting as judge and jury. So the amendment is eminently sensible and I hope that the Minister will act on it.

[Lord Kennedy of Southwark]

My Lords, Amendment 28 in the name of the noble Baroness, Lady Scott of Needham Market, and the noble Lord, Lord Shipley, simply inserts the word “independent”. It is, however, extremely important, as it makes clear that the auditor conducting an assessment must be independent of the authority. I very much agree with the point made by the noble Baroness when she spoke about the concentration of power, the protection of the public and the importance of independent scrutiny. One would hope that any authority seeking to make use of franchising powers would do this anyway, but adding the word is a wise move, in particular if we consider the role of the Competition and Markets Authority in complaints. The authority would surely want the most robust information available that had been independently verified to evidence that decisions taken were sound. This should not cause the Government any problems, and I hope that they will accept the amendment.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

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

Moved by

[Lord Kennedy of Southwark]

66: Clause 9, page 40, line 33, at end insert—
“(9A) An enhanced partnership scheme must specify under section 138A(5)(b) that new vehicles delivering local services will meet the specifications of the low emission bus scheme as set out by the Office for Low Emission Vehicles in the 2015 document “Low Emission Bus Scheme: Guidance for participants” if the vehicle comes into service after 1st April 2019.”

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Moved by

[Lord Kennedy of Southwark]

111: Clause 21, leave out Clause 21

[Lord Kennedy of Southwark (Lab)]

My Lords, we are back at Clause 21, which without doubt is the most contentious clause in the Bill. It is totally unnecessary; it is pure political dogma from the Government and despite the opposition expressed to it by noble Lords both at Second Reading and in Committee, it is still here. It is a clause that does not belong in this Bill. It does nothing whatever to improve bus services for people. That is a great disappointment. As I have said many times from this Dispatch Box, this is generally a very good Bill which we have been happy to support. The Minister has listened carefully to all sides of the House, to good points well made, and he has responded positively, which is much to his credit.

Then we get to Clause 21 which runs against all that. As I said earlier, it is merely a piece of political dogma. Local authorities have powers under the Localism Act 2011 and associated powers under the general power of competence provisions. What is wrong with allowing a company to be formed and for it to compete on the open market and win contracts if it can demonstrate better value for money and a better service? Perhaps the noble Lord will tell us when he responds to the debate. We have heard that the present municipal bus companies often run some of the most competitive and best bus services in the UK. Nottingham City Transport has one of the highest number of passenger journeys per head outside London. It has been praised for its innovation, praised for its service delivery, and was awarded Bus Operator of the Year in 2012 and 2014. For many years I lived in Nottingham and the company runs a really good bus service. My reaction to that is “Well done. How can we learn from you because we want to be as good as you?”. Reading Buses, which won Bus Operator of the Year in 2015, has been praised for its,

“combination of innovation, strong operational performance and award-winning marketing initiatives”.

It goes on. UK Bus Awards gave Nottingham and Lothian gold awards in 2015 and 2013 respectively, silver awards to Nottingham in 2014 and Reading in 2012 and 2013, along with Reading again getting a bronze award in 2015. So what do the Government do; what is their response? It is this: “We had better put a stop to any more springing up then; we can’t have the public sector doing a good job, being recognised as delivering some of the best services in the country, winning awards and leading the way”. I hope that when the noble Lord responds to this debate he will pay tribute to the municipal bus companies for their innovation and service delivery.

This clause goes too far and it does not belong here. I would like to meet the person who thought it up and understand their reasoning. For me it is certainly not about a sensible, improved service delivery or business case reason. If we want to improve passenger services and increase passenger numbers, all the options should be on the table at the very least. I hope that the noble Lord will agree to accept the amendment and remove this clause tonight. If he does not, I will divide the House and hope that noble Lords do it for him. I beg to move.

[Baroness Randerson]

My Lords, many of the amendments to the Bill have dealt with issues of detail and degree, but not so with this amendment, which is appropriately numbered 111. It involves a fundamental principle. I am bewildered why the Government are clinging to this nasty and mean-spirited clause which is totally at odds with the purpose of the Bill as a whole. Indeed, earlier today the Minister reaffirmed to us that this is a devolutionary Bill.

We on these Benches strongly support the principles behind the Bill. They will give local authorities more control over local bus services after three decades of decline since the deregulation of bus services in the 1980s. We have been fully supportive of the Government’s attempts to strengthen the role of local authorities in setting up both partnerships and franchise agreements. We believe that the structure being created through the Bill should raise the game of bus operators and at the same time should encourage local authorities to be much more proactive in recognising and supporting the role of bus services in their communities—local authorities will thus be able to raise their game as well to ensure that they are all as proactive as the best now are. We will have more Readings and fewer Oxfordshires, for example. So it is truly amazing and counterintuitive for the Minister to cling to this clause which takes away powers from local authorities in a Bill that is designed overall to give them more powers.

I am not convinced by the Minister’s arguments so far on why the clause needs to be in the Bill. I have listened carefully to him and read Hansard to analyse the thinking behind the clause. As the noble Lord has just pointed out, municipal bus services actually do rather well. I say to the Minister: go with the evidence. Municipal bus services, of which there are approximately a dozen, consistently feature in among the 10 best-performing bus companies in Britain—I give him just two examples: Nottingham and Reading. There are also very good examples of municipal bus services which work in partnership with commercial operators, bestriding the divide between local authorities and commercial operators. Such municipal operators are the remnants of the system that existed prior to deregulation. I remind noble Lords that, despite still having the power to set up bus companies, local authorities have not rushed out in the past 30 years to set them up. Rarely has there been anything other than a gradual dwindling in the number of such companies. Why are the Government determined to intervene now?

We have to bear in mind that bus services might need the intervention of local authorities in the future. Local authorities might want to set up new bus companies. For example, a rural authority, faced with the collapse of its local bus company, might want to run its own limited service, integrating specialist transport for schools and social services with regular bus services.

What part of Conservative dogma does this clause serve? There is no doubt that we are legislating here for decades ahead—the previous Act was 30 years ago. The Government need to be flexible and far-sighted. On these Benches, we are certainly not in favour of large-scale renationalisation of bus services, but we are a devolutionary party which believes that local authorities should have ultimate responsibility for ensuring that local bus services are provided where they are needed. For that, they need all the powers in their armoury, so I ask the Minister to let them retain them by deleting Clause 21.

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[Lord Ahmad of Wimbledon]

My Lords, we have had several groups of amendments this afternoon, and I am sure that the respective Whips feel like the Grand Old Duke: you march them up to the top of the hill and you march them down again. I fear from the debate thus far that this might not be the case as far as this amendment is concerned, and I acknowledge that many noble Lords have demonstrated a strength of feeling about the effects of Clause 21.

Let me at the outset answer a question that was asked of me. I have said this before and I will say it again: there are existing municipal bus companies, such as Reading Buses and Nottingham City Transport—which the noble Baroness, Lady Randerson, mentioned—that deliver a high standard of service. They can expect to continue to do so. Their ability to do that will not be affected by this clause; nor will it prevent local authorities working in partnership with a bus company. That is an underlying thread of the Bill.

The introduction of smartcards, the installation of wi-fi, the co-ordination of timetables, and the great strides that have been made in improving accessibility have all been delivered through local authorities working with private sector investment. These innovations benefit passengers and drive up patronage. I have been asked about this several times, and I thank my noble friend Lord Attlee for his intervention in once again emphasising the reasoning behind the Government’s position. As a principle, the commissioning and provision of bus services are generally kept separate, helping to ensure that we retain the strengths of the private sector in this important market. It is about striking a balance between local authority influence and the role that private sector bus companies can play. The Government’s proposal will help ensure that both are incentivised to deliver the best services for passengers.

We want to see local authorities and bus operators working together to improve local bus services for the benefit of bus passengers. I know that this is a sentiment that all noble Lords share. I am sure that many noble Lords also agree—particularly those who have participated in discussions and debates on this Bill—that the Bill as a whole will improve things for passengers. However, as I have said, we have reached that part of the afternoon—or early evening—where there are clearly points of disagreement on Clause 21, but I implore noble Lords to accept that, from the Government’s perspective, it needs to remain part of the Bill.

[Lord Kennedy of Southwark]

My Lords, I thank all noble Lords for their contributions to this short debate. I do not accept the arguments from the noble Earl, Lord Attlee, that there is going to be a stampede of councils trying to set up municipal bus companies. I note that no one from local government—

[Earl Attlee]

I do not remember saying that there would be a stampede. I just suggested that there might be a problem.

[Lord Kennedy of Southwark]

I think the noble Earl said that a lot of councils will set up bus companies to tender for all these routes, and I do not believe that for one minute. I also note that no one from local government on the Government’s own Benches came to their defence or supported their arguments. The only way a bus company would be set up is in the situation outlined by the noble Baroness, Lady Randerson, and the noble Lord, Lord Shipley. To prevent that is very regrettable. It is disappointing that the Minister is not prepared to move on this. In that case, I wish to test the opinion of the House.

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[Earl Attlee]

My Lords, this is a new issue raised at a late stage in the process, but nevertheless it is extremely important. This is a critical point for confidential reporting. It is no good just very thoroughly investigating serious, fatal accidents but not looking at the near misses, because there are many more data to be extracted from near misses. Today’s near miss is tomorrow’s very serious accident. Sometimes when things go horribly wrong, there are little things leading up to it; it is not just an out-of-the-blue serious incident.

On the previous amendment, the best argument of the noble Lord, Lord Shipley, was the need for localism. While the Minister should take on the principle and the need for confidential reporting and strongly encourage it, under the principle of localism he would be better to leave local authorities to decide whether they need to put this into their franchise agreement or not.

[Lord Kennedy of Southwark]

My Lords, I fully support Amendment 112. Ensuring the safety of passengers and the general public must be a paramount concern and this amendment places three obligations on operators and one on the relevant authorities.

The Confidential Incident Reporting and Analysis System is an independent reporting system that helps to bring high standards to industry and allows staff to report matters of concern confidentially, with the assurance that they will not have their identity revealed. Operators will be required to sign up to the scheme and confirm that they have advised their staff of the right to use the confidential reporting facility. Secondly, the operators agree to collect and monitor the bus casualty data in a manner set out by the authority. Thirdly, they agree to make this data available to the authority. The obligation placed on the authority is to publish the data collected on a quarterly basis on their website. This will ensure that safety data from operators are in the public domain and, where there are safety issues, actions can be seen to be taken to deal with it. I hope the Government will support the amendment.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Baroness for tabling this amendment and the very informative meeting we had with regards to the background to this proposal. The amendment would require bus operators to subscribe to the Confidential Incident Reporting and Analysis System, known as CIRAS. The system would enable them to collect and monitor bus casualty data and make data available to the relevant authorities for publication.

Let me make it clear at the beginning that road safety is a matter of national importance. The DVSA in particular plays an important role, with traffic commissioners, in seeking to ensure that drivers and vehicles are licensed and safe. In that regard, I would say to the noble Baroness, Lady Jones, that we have had quite a detailed discussion on the role of traffic commissioners and their importance in this particular piece of legislation. The department collects and publishes data on reported road accidents which provide detail on the type of vehicle involved and the consequent casualties. I am pleased, but far from complacent, that we have seen a fall in the number of accidents involving buses and coaches in 2015 compared to the previous year.

I turn to the amendment. An efficient reporting system captures health, safety and security concerns raised by employees and can also, I accept, help resolve any issues that have been raised. I also agree with the sentiment behind this amendment. However, the amendment as currently drafted raises a number of challenges. Bus operators may already have a well-established and efficient reporting system in place. Mandating a subscription to CIRAS, or any other independent reporting system, may therefore result in duplication and additional processes, which could be confusing for employees. Secondly, there is a further issue of naming a specific organisation such as CIRAS in primary legislation. That could raise issues of competition and procurement challenges, and might require frequent changes in future as technology changes.

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[Lord Ahmad of Wimbledon]

That is very much for the noble Baroness to consider. As I said to her during the meeting we had on the discussions around the amendment, we must ensure that we have covered all the elements and implications of what this amendment would mean. My concern would be to allow sufficient time to ensure that we had looked at every element of it. The decision whether to bring it back at Third Reading is for the noble Baroness herself.

[Lord Kennedy of Southwark]

To clarify that point, is the Minister saying he is happy for the noble Baroness to come back with this at Third Reading?

[Lord Ahmad of Wimbledon]

I am generally a very content person. I am saying that the decision is very much for the noble Baroness. I have made it quite clear where the Government stand. As I said, I accept that this is a principle we need to include. I have also said the way the amendment is currently drafted, by naming a particular organisation, has implications, and we wish to consider what the full implications of introducing such a measure would be. All the legal issues pertaining to such an amendment need to be considered carefully. The issue of whether something can be brought back at Third Reading is very much a matter for the House; it is not for me to dictate or suggest otherwise.

[Lord Kennedy of Southwark]

I know the Minister is trying to be very helpful here, and I am also trying to be helpful. This is indeed a matter for the House but the Minister has accepted that the noble Baroness has made a very valid point, albeit late in the day. If he was reasonably content for her to come back at Third Reading, it would help the House in deciding whether to get it back on the agenda.

[Lord Ahmad of Wimbledon]

I have indicated to the noble Baroness the timelines behind this. Let us not forget that the Bill is going through its first iteration, as it was introduced in the Lords. Looking at this from where I am standing, I think that it would be better to allow full consideration of this issue by allowing it to be considered in the other place. If that is so, then as we move this legislation through it may be something to consider in the other place as well. What I am trying to say is that, as this is an amendment from the noble Baroness, it is not for me to instruct or direct her as to what she wishes to do at the next stage of the Bill.

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Moved by

[Lord Kennedy of Southwark]

113: Before Clause 22, insert the following new Clause—
“National strategy
The Secretary of State must, within 12 months of the day on which this Act is passed, issue a national strategy for local bus services setting out the objectives, targets and funding provisions for rural, urban and inter-urban local bus services over the next 10 years.”

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Moved by

[Lord Kennedy of Southwark]

114A: Clause 22, page 73, line 20, leave out subsections (4) and (5) and insert—
“( ) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”

[Lord Kennedy of Southwark]

My Lords, Amendments 114A and 114B in my name and that of my noble friend Lady Jones of Whitchurch seek to improve the level of parliamentary oversight in connection with the powers of the Secretary of State to make regulations under this Bill. In Clause 22 and Clause 23, they are subject to the annulment procedure alone, with the exception of those regulations that amend or appeal a provision of the Act.

The clauses give wide-ranging powers to the Secretary of State that must be subject to a higher level of parliamentary scrutiny than the Bill presently provides. I am firmly of the opinion that all the regulations referred to in the two clauses should be subject to the affirmative procedure. The amendments will require that the matters proposed by regulation in connection to the Bill will have to be debated at least in Grand Committee and the Government will have to explain clearly what the intention is and answer questions on the proposals. The annulment procedure does not provide the level of scrutiny required and I hope that the Government will be able to accept the amendments. I beg to move.

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[Lord Ahmad of Wimbledon]

My Lords, Clauses 22 and 23 give the Secretary of State the power to make, by way of regulations, consequential, transitional, transitory and saving provisions. Clause 22 provides that the power conferred by that section includes the power to amend, repeal, revoke or otherwise modify both primary and secondary legislation. The clause also specifies that regulations must be made by way of statutory instrument and any regulations that amend or repeal primary legislation must follow the affirmative procedure. Any other regulations under this clause which, for example, amend secondary legislation are subject to the negative procedure.

The Delegated Powers and Regulatory Reform Committee referred to Clause 22 in its report about this Bill, but only in the context of the power to “otherwise modify” primary legislation by way of making regulations that are subject to the negative procedure. As the Parliamentary Under-Secretary of State, Andrew Jones, explained in his letter of 1 July to the chair of the DPRRC, the Government’s starting point is that regulations which make textual changes to Acts should be subject to affirmative procedure. However, when non-textual modifications would be made by the regulations, the Government continue to believe that the negative procedure is appropriate. The DPRRC did not raise any issues with negative procedure being used for regulations that make consequential changes to secondary legislation, or indeed for regulations made under Clause 23.

Amendments 114A and 114B, which would require all regulations under Clauses 22 and 23 to follow the affirmative process, would introduce a disproportionately burdensome mechanism for changes of the sort which would be made by the regulations to be scrutinised. The Government take the view that it would not be an appropriate use of parliamentary time to require all regulations that make consequential, transitional, transitory or saving provisions to follow the affirmative procedure.

I shall give a quick example. Clause 23 provides that regulations may, in particular, make transitional provision about ticketing schemes under Section 135 of the Transport Act 2000 which exist before the Bill comes into force. Clause 7 contains provisions that introduce advanced ticketing schemes in England. Through our discussions in Committee and Report, these provisions received rigorous parliamentary scrutiny. Any provisions made under Clause 23 would only make provision about how existing ticketing schemes in England are dealt with when the new advanced ticketing schemes provisions come into force. To resolve this issue, regulations may provide that existing schemes can be treated as advanced ticketing schemes. The intention of Amendment 114B is that such regulations would be subject to affirmative procedure. As I said already, I believe that this would be disproportionate. The Government take the view that regulations dealing with such provisions are eminently suitable to the negative procedure. The Government will continue to argue that the current level of parliamentary scrutiny set out in Clauses 22 and 23 is appropriate. I hope that with that explanation the noble Lord feels minded to withdraw his amendment.

[Lord Kennedy of Southwark]

I thank all noble Lords who have spoken in this debate. In answer to the noble Earl, if the tables are turned and I am standing there one day at some point in the distant future and the noble Earl is standing here, I promise him that I shall accept his amendment if he moves something similar. He can quote me on that one.

I have heard the comments from the Minister, and I beg leave to withdraw the amendment.

Amendment 114A withdrawn.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

3rd reading (Hansard): House of Lords
Wednesday 23rd November 2016 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, Amendment 1, as moved by the Minister, adds the Competition and Markets Authority as a statutory consultee when a combined authority has decided, after receiving the relevant reports, to proceed with a franchising scheme. The issue regarding the Competition and Markets Authority was first raised by the noble Lord, Lord Bradshaw, in Committee and we should all be grateful to him for his persistence in this matter. He has identified an important issue and concern. It would be most regrettable if, after passing the Bill into law, the bar had been set so high that no authority could ever meet the requirements and be able to establish a franchising scheme to improve services for their residents.

To be clear, in nominating the Competition and Markets Authority as a statutory consultee, the Minister is saying to us that he does not see a situation where a plan for a franchising scheme could run into difficulties with the CMA if it has been worked with and been made aware of the potential effects on competition, and if its concerns have been taken account of. If that is the case, I am very pleased. However, can the Minister confirm in his response one of two things? Is that the view of the Department for Transport alone, or has it spoken to the CMA so that when informing the House of the Government’s position in this respect, he does so with the knowledge and agreement of the CMA? I thank the noble Lord, Lord Bradshaw, for bringing his amendments forward. As I said earlier, he has identified a real problem and his intervention may well avoid all sorts of problems as authorities seek to make use of these powers. I am sure we are all very grateful to him.

[Lord Ahmad of Wimbledon]

My Lords, I acknowledge the noble Lords who have contributed to where we are on this issue. Let me briefly address the issue by assuring noble Lords that when it comes to the passage of the Bill, we will continue to discuss options with bus operators, local authorities and the CMA. We particularly intend in this respect to consult specifically on our proposals for secondary legislation later this year. I am sure that any issues which are still pending or need to be clarified will come up in those discussions. However, the Government have been clear that we have taken it on board that engaging with the CMA at an early stage should assist those local authorities which take forward franchising, to ensure that issues can be addressed at an early stage.

[Lord Kennedy of Southwark]

Is the Minister saying that he and his department have talked to the CMA and that it is clear on that as well?

[Lord Ahmad of Wimbledon]

As I mentioned in my opening remarks, the CMA wrote to us and we responded accordingly to the recommendations that it made.

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[Baroness Scott of Needham Market]

My Lords, I support the approach taken by my noble friend Lady Randerson and I echo the points that have just been made by the noble Lord, Lord Deben. Right across society we are gaining a better understanding that the first indication that something is wrong in an organisation usually comes from the people who work in it. The importance of a whistleblowing policy is well understood. Surely the purpose of this proposal is not necessarily to look back following an accident but to prevent accidents happening in the first place.

[Lord Kennedy of Southwark]

My Lords, the amendment in the name of the noble Baroness, Lady Jones of Moulsecoomb, would insert a new clause into the Bill. We discussed this on Report and I am very pleased that it is back here today to be considered further at Third Reading.

As we have heard, the amendment is about safety. A scheme similar to what is proposed here operates in London and in the rail and aviation industries. Schemes for the confidential reporting of incidents are already up and running, contributing to the safety of everyone in those industries and the passengers who make use of those transport services. Therefore, in principle the noble Lord, Lord Ahmad of Wimbledon, and his department should have no reason not to accept the amendment.

We have heard about the number of fatalities and serious injuries that have taken place in the past year in the bus industry, and anything that contributes to a reduction in those figures should be welcomed by everyone. Publishing the information and identifying bad or sloppy practices, or something that is an unintended consequence, means issues can be highlighted and action taken to deal with them, if we have the data necessary to identify the problem.

It is also a well-known fact that just having a system of confidential reporting can do much to improve the safety culture. Amendment 2 is a very positive amendment and I congratulate the noble Baroness for bringing it back again today. I very much hope that she will get a positive response from the noble Lord, Lord Ahmad of Wimbledon, as she is seeking to bring forward a sensible and proportionate measure that is already operating in other transport industries and in the bus industry in London—and all the large bus operators that operate outside the capital also operate in the capital.

Doing everything we can to avoid death and serious injury in an industry that transports millions of people around every day, often on short local journeys, is something we should all want to support. The costs are not great for operators and, as we have seen in London, the system clearly can operate without any great burden to the industry.

In conclusion, the amendment as worded may not be what is needed, but, as the noble Baroness, Lady Randerson, said, the Government can accept the principle and work with noble Lords in this House and with campaigners to get it right. As the noble Lord, Lord Deben, said, we need to enable people to have the ability and opportunity to warn of potential problems. I think that that is very important and I hope the noble Lord, Lord Ahmad, will move forward on that basis.

[Lord Ahmad of Wimbledon]

I first thank all noble Lords who have participated in this important debate, and in particular the noble Baroness, Lady Jones, for proposing an amendment that would prevent bus operators participating in any scheme unless they give a written undertaking to the relevant authority that they will subscribe to a confidential safety reporting system. Operators will also need to provide an undertaking that they will collect and monitor bus casualty data and then provide the relevant authorities with a monthly report.

Several noble Lords have made points about safety. Let me make it clear again that road safety is a matter of national importance—we are all agreed on that. The DVSA in particular plays an important role, with traffic commissioners, in seeking to ensure that drivers and vehicles are both licensed and safe. The department collects and publishes data on reported road accidents, which provide details of the type of vehicle involved and the consequent casualties. I am pleased, but far from complacent, that we saw a fall in the number of accidents involving buses and coaches in 2015 from the previous year. However, we must ensure that we continue to monitor this important area.

Let me turn to the amendment more specifically. As I said on Report, I agree with the sentiment behind this amendment; several noble Lords have also said that this afternoon. An efficient reporting system captures health, safety and security concerns raised by employees, which are then recorded, and this is the first step towards resolving any issues raised—indeed, it addresses the concerns so eloquently put by my noble friend Lord Deben.

I am grateful to the noble Baroness for acknowledging some of the issues raised on Report and for omitting the specific reference to CIRAS. The Government believe that it would not be appropriate to include such a reference in primary legislation. I also thank the noble Baroness for the very productive meeting we had on this issue, together with Mr Kearney. That in itself served as a very informative meeting for the Government. That said, I am conscious that the proposed amendment has come quite late in the passage of the Bill through this House. As several noble Lords acknowledged, the issue was first raised only on Report. The Government, therefore, do not have sufficient time to consider the issue before the Bill leaves your Lordships’ House. I therefore cannot accept this amendment today.

That said, and for the reasons that I have explained to the noble Baroness already, we are keen to explore further the issues raised by the amendment. In the spirit of the sentiments expressed by the noble Baronesses, Lady Randerson and Lady Scott, the noble Lord, Lord Kennedy, and my noble friend Lord Deben, we wish to look at this amendment carefully, and it would be appropriate to do so in the other place. This approach would allow us to consider the objectives of the proposed amendment carefully and to explore what the best solution may be to resolve any specific issues.

Let me assure the House that I have listened very carefully to the debate this afternoon and understand the importance of making sure that bus travel is safe for all—we all share that view. I will not be able to accept the amendment today but I anticipate working with the noble Baroness on this matter as the Bill progresses in the other place. I can also assure her that I have already asked my honourable friend Andrew Jones, who is the Bill Minister, to continue the constructive discussions we have had thus far.

With the assurances and the explanation I have provided, I hope that the noble Baroness will be minded to withdraw her amendment.

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[Baroness Oppenheim-Barnes (Con)]

My Lords, I could not let the opportunity of a bus Bill prevent me stating that, in my opinion and that of many people I know who drive in central London, we are constantly impressed by the way that bus drivers are driving in a thoughtful manner. They are difficult, large buses, but they do not act in a way that offends other traffic. I would like this short tribute to be made to them and put on the record.

[Lord Kennedy of Southwark]

My Lords, as we are on the last amendment at Third Reading, I want to say that I genuinely believe that this is a good Bill. It leaves this House in a better shape than when it arrived. We wish it well as it goes through the Commons. I thank in particular the noble Lord, Lord Ahmad of Wimbledon. He has been courteous, engaging, responsive and willing to listen. I know that I and all other noble Lords are grateful to him for that. I also thank the Bill team, who have been very kind to us, and helpful and supportive. We appreciate very much the work they have done all round the House.

We have made many positive changes to the Bill. I am glad that we said goodbye to Clause 21. I am pleased we have extended further franchising powers to non-mayoral authorities. I am pleased with the additions on audio-visual and environmental protections. I am well aware that the Bill will go to the other place and that one or two issues may come back to us at some point in the new year. We will certainly then want to state our case again and try to persuade the other place, if they are not persuaded already, of the soundness of our proposals.

I thank all noble Lords who have taken part in the debate, those I have agreed with and those I have not agreed with. There have been very positive debates here during the whole course of the Bill. We have generally done a very good job.

I thank in particular my noble friend Lady Jones of Whitchurch. I knew her for many years before either of us was in this House and we have always worked very well together. I also pay tribute to Hannah Lazell, who works in the opposition office. As my noble friend Lord Watson said in the debate on the previous Bill, we have only a small number of staff and Hannah has worked particularly hard for us throughout the Bill.

This is a good Bill; we have improved it; we wish it well. If it comes back to us in an amended form, I am sure that we will defend our position at that point.

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords for their contributions. Although the amendment is somewhat technical, it has nevertheless served as a pretext for noble Lords to acknowledge the work that has been done in your Lordships’ House on this important Bill. I acknowledge the tribute paid by my noble friend Lady Oppenheim-Barnes to bus drivers; I am sure that we all echo that. We should perhaps pause for a moment to reflect on the fact that while, unfortunately, a minority receive attention, the majority of bus drivers, as my noble friend so eloquently put it, serve their cause, fulfil their duties and demonstrate the courtesy required of them in ensuring that people reach their destination efficiently, safely and on time. I align myself totally with the remarks of my noble friend.

The noble Lord, Lord Bradley, has raised the issue relating to Manchester on repeated occasions. I assure him, as I have done before, that we are working closely with local authorities, including Transport for Greater Manchester, to achieve the objectives that he has outlined.

We have reached that time in the Bill when, in acknowledging the comments of other noble Lords, I too wish to thank those Members of your Lordships’ House who have contributed to debates. We have sometimes agreed and sometimes disagreed, and sometimes agreed to disagree, but those debates have been lively and always conducted courteously. I am grateful for the time that all noble Lords have given, particularly in meeting me directly on a bilateral basis—it was greatly appreciated. In particular, I put on record my thanks to the noble Lord, Lord Kennedy, with whom I have worked on various issues in the Bill. He and his colleague, the noble Baroness, Lady Jones, have together led a very able charge from the Labour Benches in what have been robust but positive and proactive discussions. I am equally thankful to the noble Baroness, Lady Randerson, for her contributions and for the exchanges that we have had. I also thank my noble friend Lord Younger for his support during the passage of the Bill. It would be remiss of me not to mention my very able Bill team, who have had to endure many long hours of review and many requests from me as the Minister. I thank through the Bill manager all the officials at the DfT and in my private office for their support.

On accessibility, I am grateful for the meetings that we have held with noble Lords, many conducted over the summer—sometimes, people perhaps forget that work continues and that was true in the case of this Bill. I am sure that we can all agree that the Bill is in a much stronger place for the inclusion of the accessible information requirement. I thank again the noble Baroness, Lady Campbell. I shall continue to reflect on her contributions and acknowledge the constructive way in which she has engaged with the department. I thank her, too, for the comments that she made today. I assure her that my honourable friend Andrew Jones has committed to continuing the productive discussions that we have had thus far. I am equally grateful for the contributions on accessibility of the noble Baroness, Lady Brinton, and the noble Lord, Lord Low, who regrettably are not in their places today. Their contributions have also been valuable. I am sure that there will be further discussions on this important issue as the Bill progresses through the House of Commons.

It is fair to say that, for all of our shared belief that buses play a vital if at times underrated role in people’s lives, the passage of the Bill in this place has not been entirely easy. There has been much agreement on it, but there remain areas where this has not been the case. In particular, it remains important that the Bill reflects the Government’s original intent on who has access to franchising powers, for all of the reasons that I have explained—we have had robust debates in that regard. Nevertheless, throughout all stages of the Bill, there has been genuine co-operation and a willingness to work together across all Benches. I assure noble Lords that the Government will continue to work from a perspective of positive engagement, particularly on the issues that I have again highlighted today. We all seek to ensure that the Bill can fulfil its ultimate purpose of delivering improved services for bus passengers.

Bus Services Bill [HL]

Lord Kennedy of Southwark Excerpts

Ping Pong (Hansard): House of Lords
Tuesday 25th April 2017 Lords Chamber

[Lord Whitty (Lab)]

My Lords, I remain generally supportive of the thrust of the Bill, but I have been dismayed by some of the measures taken by the Government in the Commons with some of the amendments in this group and others. It is regrettable because during the process of the Bill in this House there has been a high degree of consensus and the Minister has been very helpful in a number of respects. However, in some areas he has been chopped off at the knees by his colleagues steamrolling it through the House of Commons.

I echo what the noble Baroness, Lady Randerson, said on the low emissions provisions. If the Government were concerned about the timescale and the economics, they could have amended the timescale and put in a few qualifications. Instead, they have deleted the requirements in Amendments 2 and 6 that new vehicles should meet new low emissions standards. This is a very poor signal. As the noble Baroness said, it comes a day or two after the Government’s attempt to use the election to defy the previous court injunction that a new air quality strategy should be produced because of the inadequacy of their earlier air quality strategy produced by Defra.

The Government’s record on this is shaky and they are extremely vulnerable. Buses are one of the main diesel-based pollutant vehicles in many of our towns and villages. There was an opportunity to put in the Bill that we would do what a number of local authorities in London and elsewhere are already doing and replace those buses immediately when a new vehicle is brought on with one with high-quality emissions standards. As I said, we could have put in slightly different dates and slightly greater qualifications, but nevertheless that needed to be in the Bill. It undermines the Government’s commitment to do something about air quality on which they have been and will continue to be widely criticised. I regret that and I think the Government will come to regret it too. As was said in this House yesterday by my noble friend Lady Nye, it is a major public health issue. There are provisions for avoiding the purdah prohibitions concerning air quality that were already in the Bill when it reached the Commons. The Government chose, wrongly, to delete those provisions, and I regret that profoundly.

I also regret the deletion or dilution by Amendments 3, 4 and 13 of the provisions we inserted in this House that worker representatives in the bus industry should be clearly consulted on any changes, whether an advanced quality partnership or the new franchising operations. The Minister has continued to make positive noises in that respect, and I appreciated his acceptance of the principle in our earlier proceedings. However, his colleagues seemed to have deleted most of that, which is a mistake. We are talking here, whether the Government like it or not, of a pretty highly unionised sector where by and large there are good relations between the bus companies and their employees. Anything which deletes a continued commitment to those outcomes makes some of these provisions more problematic when they never needed to be. Again, the Government may live to regret that; I hope not. I know that the unions intend to be constructive and by and large welcome the objectives of the Bill, but from a long list of those who are required to be consulted about these changes, the people who are omitted are the ones who actually drive and operate the buses. That seems to me a triumph of ideology over common sense and the Government should not have done it.

The Minister will no doubt be relieved to hear that I intend to intervene only once on this Bill. I have some concerns about the third group of amendments in relation to the reinstatement of the clause which prohibits local authorities from setting up their own companies. That is a restriction on local authority strategic decision-making. I do not intend to belabour that point because we will come on to it in a moment.

I hope that the outcome of the Bill is positive. It is regrettable that these changes have been made by the Government at this relatively late stage because they make it more difficult to achieve what the Minister himself set out as the objectives when he introduced the amendments. Taking the changes together, I hope that in the coming weeks the population will recognise that even in this relatively minor area of legislation the Government have decided, contrary to what was a pretty consensual view in this House, to delete commitments on environmental standards, commitments on the rights to representation of workers, and commitments on flexibility and devolution of powers to local authorities. All of that amounts to an unnecessary and significant reduction in my enthusiasm for what in general is a positive Bill.

[Lord Kennedy of Southwark (Lab)]

My Lords, I intend to speak relatively briefly on this group of amendments. The Opposition have generally supported the overall aims of the Bill. We have welcomed it and see it as an important step towards increasing the number of bus journeys, particularly outside London where there has been a collapse in the number of journeys in recent years. Like the noble Baroness, Lady Randerson, we would have liked the Bill to have gone further, but equally we accept that we have made welcome progress on it; as I say, we support its overall aims. Like other noble Lords, we generally accept the changes on data. The deletion of provisions in respect of emissions is regrettable. Air quality is now a very big issue in terms of people’s health. The number of deaths which can be attributed to poor air quality is something we should all be concerned about and I think that the Government have taken a retrograde step.

My noble friend Lord Whitty mentioned consultation of employees. That is very important and again it is a shame that the Government have largely deleted or watered down the provisions in that regard. Whether the Government like it or not, the bus industry is heavily unionised, which has generally been of benefit to it. The unions work well with the various bus companies and seek to provide a public service. I do not see any benefit in what the Government have done. As my noble friend suggested, I suspect that other forces in the Commons are at work here who do not quite see it that way. What the Government have done is a mistake. I will come on to other things I regret when we consider further amendments.

[Lord Ahmad of Wimbledon]

My Lords, first, I thank all noble Lords for participating in this short debate and for the broad support for the Bill. Indeed, that was quite clear during its passage through your Lordships’ House. Particularly on the issue of data sharing, I thank both the noble Lord, Lord Kennedy, and the noble Baroness, Lady Randerson, for their evident welcome for data sharing, which we all believe is a positive step forward. On the issue of emissions, I suggest that this is not a low priority given that quite specific reference is made to it in the provisions in the Bill. Indeed, local authorities can specify this element in any proposals they make when procuring bus services.

Finally, the noble Lord, Lord Whitty, talked about me being cut down at the knees. When you stand at only about five feet six you are quite protective of your knees anyway so any further cutting down is not welcome. I assure the noble Lord that the sentiments of your Lordships’ House were fully expressed and I challenge the assumption that employee representatives are not being consulted. On the contrary, they will be. I suggest to the noble Lord that trade unions are an important employee representative. Of course, trade unions fall within the scope of what an employee representative body is, so in that sense I disagree with him. In saying all that, I again welcome the contributions that were made during the passage of the Bill and the broad support for the proposed Commons amendments.

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[Earl Attlee (Con)]

My Lords, I too was uncomfortable with the idea that the appointment of the auditor should have rested with the franchising authority. This would have allowed the franchising authority to be judge and jury of its own proposals—to mark its own homework, if you will. Auditing a franchise assessment is perhaps one of the most critical steps on the road to franchising. If the auditor says that the franchise stacks up and meets all the other—let us face it—quite onerous requirements, there is little more to be said. For that reason, the person carrying out the audit should have no ties with the franchising authority and certainly no vested interest in seeing the franchise proceed, or otherwise. On something as important as this proposal, which could see bus operators lose their businesses, surely we must have something that is very transparent and democratic—and, perhaps just as importantly, is seen to be transparent and democratic. In my view, these amendments do just that.

However, I wonder whether I might push my noble friend the Minister a little further to ensure, perhaps through guidance, not only that the auditor is independent of the franchising authority but that he or she has no recent commercial relationship with the authority. That would really cement the concept of a truly independent auditing process.

[Lord Kennedy of Southwark]

My Lords, as this group of amendments refers to mayoral combined authorities I should probably remind the House of my declaration of interests. I am a locally elected councillor and a vice-president of the Local Government Association.

Generally, these are wider issues in respect of local authorities and combined authorities but we have now brought them into the Bill. I accept that it is through another department, but there is an obsession in government with mayors and it needs to be dealt with. I have never yet had it explained to me clearly why, to get these powers, you have to have such a mayor. I still do not understand why, although we keep asking. I am sure we will get something today, but I am not sure whether the Government are clear why they have to have this: you may be a combined authority, but unless you have a mayor, you cannot have these franchising powers. We are still not clear on that, and they will have to deal with their obsession with mayors at some point.

This makes a wider point about the question of the devolution of local government in England, which is, to say the least, now very confused. I remember that in an earlier debate the noble Lord, Lord Lansley, who is not in his place at the moment—I am sorry, he is in his place—explained that there would now be four tiers of local government in Cambridgeshire. That seems to me at least one or two tiers too many. I accept that that goes wider than the issue of mayors in these authorities today, but it will have to be dealt with.

Franchising is the way forward. It has been enormously successful in London. I am delighted that these authorities with mayors can get these franchising powers and I hope that other authorities, if they come together to apply for them, will be successful. But at some point the Government will have to look at the much wider issue of what bus services they want in England. I think they will have to go further down this route; equally, I accept that they have made a move in the right direction here.

[Lord Ahmad of Wimbledon]

My Lords, I once again thank all noble Lords for their contributions during this brief debate. Perhaps I may briefly pick up on a few points.

First, the noble Lord, Lord Snape, raised the specific issue of congestion and said that the Bill perhaps still does not address this. I disagree with him. The new types of partnership and franchising powers give authorities new ways to work with operators to improve journeys for passengers.

On the issue of the independent auditor, I accept the fact that the Government’s position differs from when we introduced the Bill—that point was made by the noble Baroness, Lady Scott, among others. As a Minister, I feel that it is sometimes odd—I am sure I am not alone in this, whether among Ministers from a previous Administration or the current one—first, that Ministers are told that they do not listen. Then, having listened and reflected, if we make a change which perhaps reflects the feelings of Members, as it did on this occasion in your Lordships’ House, we are told that we are taking a contrary position to what we had originally after we have listened. I suppose there is a lesson for all in that. It is important that what is said, discussed and debated in your Lordships’ House is reflected in the discussions we have in government, and I am pleased to say that the very discussions and debates we had in your Lordships’ House are reflected in the amendments that the Government have made in respect of the independent auditor.

I understand the point my noble friend Lord Attlee makes about the need for the auditor to be independent. As ever, we will fully consider his helpful advice as part of the guidance. I thank noble Lords for their broad agreement on this issue.

My final point is addressed to the noble Lord, Lord Kennedy. This is not an obsession with mayors or mayoral authorities. As I have said before during the passage of the Bill, the route to franchising is open to all authorities which can make a justifiable business case. We have previously detailed the criteria required, and that remains the case.

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This is an own goal by the Government. This is about areas where there are elderly and very often isolated people, who will really feel the problems that will flow from the local authority not having the flexibility to provide this service. I am extremely disappointed that this was removed in the Commons again. However, I was not surprised, because I guessed from the vehemence of the Minister’s response when we debated this earlier that this was an issue of party, not practical, politics.

[Lord Kennedy of Southwark]

My Lords, I very much agree that, as we have heard, the amendments in this group are just about party-political dogma, and it is a shame that the Government have reversed the decision we made in this House some time ago. I was disappointed but, again, maybe not surprised. There never was going to be a stampede of local authorities charging off to create municipal bus companies. It was never going to happen and I never really understood why the Government were so obsessed with this particular clause in what generally was, and is, a very good Bill—we welcome the Bill but I just never really understood that.

Like the noble Lord, Lord Ahmad, I agree that there are some very good municipal bus companies, such as Nottingham City Transport, Ipswich Buses and many others, and I accept that this amendment will not affect them in any way whatever. The noble Baroness, Lady Randerson, made the point about what a local authority maybe could do to deal with a problem, even if for a very short period of time, and it is disappointing that that will now not be possible. That is a great shame, particularly in rural areas. For that reason, I think the Government have made a terrible mistake here and I wish they were not going to do this, but clearly they will not listen on this occasion. It is most regrettable.

[Lord Ahmad of Wimbledon]

My Lords, first, I again thank both the noble Baroness and the noble Lord for their contributions. I accept of course that there was great strength of feeling on this issue as it passed through your Lordships’ House, but clearly, when you have a Bill with wide application, there will be areas of disagreement between government and opposition parties. On this issue, as I have already stated, the Government have acknowledged and indeed accepted the important role that existing municipal bus companies play, and that will continue to be the case. However, this Bill is designed to enable bus operators and authorities to work constructively together to deliver better services for passengers, and it is the Government’s belief that the creation of further municipal bus companies would actually significantly stifle competition, particularly in terms of private sector investment in buses. Although we accept noble Lords’ sentiments on this, the Government maintain their position.

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[Lord Ahmad of Wimbledon]

My Lords, I take this opportunity once again to thank all noble Lords, including the noble Lord, Lord Kennedy, and the noble Baroness, Lady Randerson, alongside my noble friend Lord Younger for their support during the passage of the Bill. I thank other noble Lords too; while we may not have agreed on everything, I think we agree on the principle of the importance of getting the Bill through because it is important for improving bus services for passengers across the piece. I beg to move that this House do agree with the Commons in their Amendments 15 to 23.

[Lord Kennedy of Southwark]

My Lords, before we do, I would equally like to say that I have very much enjoyed working with the Minister on this Bill. Generally it is very good. I also thank the noble Lord, Lord Younger, the noble Baroness, Lady Randerson, and the Bill team. Generally we are happy. As I say, I have enjoyed working with the Minister; he has been very courteous at all times during the passage of the Bill.

Motion agreed.