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.