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.