Enhanced Partnership Plans and Schemes (Objections) Regulations 2018

Lord Tunnicliffe Excerpts

Tuesday 6th March 2018 Lords Chamber

[Baroness Randerson (LD)]

My Lords, I thank the Minister for her introductory comments. One of the big questions when we debated the Bus Services Bill last year was exactly how the Government were going to devise a scheme that allowed existing operators to object to a proposed partnership without allowing them to act as a complete block on progress towards improved bus services. We all hope that the enhanced partnerships will provide those improvements, so I strongly welcome the Minister’s realistic analysis of what the regulations seek to do. It seems that the scheme as outlined here is quite a cunning plan, which is well balanced between the operators and the local authorities.

However, we will see how well it works in practice. I am delighted to hear that 30 local authorities are already working on this. One hopes that they are successful because the others, the less adventurous ones, might perhaps follow suit. Given that the Government declare in the Explanatory Memorandum that a review is not appropriate, will the Minister assure us that there will be an element of informal review to assess how well this is working after a couple of years? There might be some unintended consequences or the need for some adjustment, so it is only sensible to allow for review—although I understand the Government not wanting to commit to a formal review process.

The plans set out five stages in the life cycle of an enhanced partnership. The first is when the local authority proposes a plan, the second is when it makes a plan and the third is when it proposes to vary a plan. How will that work in practice? Suppose at stage 1, when the local authority proposes an enhanced bus partnership, the bus operators object. Is there sufficient flexibility in the process for the local authority and the bus operators to meet and discuss the plan, for the local authority to amend it and for the bus operators to withdraw their objections without having to go back to square one? I fear that in practice some local authorities might look at a plan and, if the bus operators object, they might just retire from the field and say that they will not bother with enhanced partnerships again. I am concerned that we have a system that is sufficiently simple and flexible to allow both sides to address issues and concerns and to move on through the process without having to go back to the start.

I hope the system is flexible and that this is a successful way ahead, because the decline in the number of bus services, particularly in rural areas, indicates that for many areas this is the last opportunity for decent bus services to survive—and we know that when a bus service goes, it strikes at the heart of a rural area.

[Lord Tunnicliffe (Lab)]

My Lords, I am afraid that the Minister has not really made my day since she has answered all the questions in my original speech. I shall not waste the time of the House by repeating them. Suffice it to say that I commend the realistic attitude that the Government have taken to how bus companies might behave. I shall press the point made by the noble Baroness, Lady Randerson, about a review. I am not pressing the Government to commit to a review, but should the carefully researched numbers in these regulations prove not to achieve the Government’s objectives, what complexity would there be in changing the numbers? Would it be possible within the parent legislation to bring forward new orders if the reaction of bus companies was excessively to veto apparently viable schemes?

[Baroness Sugg]

My Lords, I again thank the noble Baroness, Lady Randerson, and the noble Lord, Lord Tunnicliffe, for their broad support for these proposals. On the flexibility point, the legislation allows operators and local authorities to negotiate a deal through the objection system. They can reach this agreement in advance of a formal objection—so we think there is enough flexibility there. As to the review, yes, we absolutely will keep the thresholds under review and will bring forward amendments if necessary.

Enhanced partnerships are a new type of partnership agreement that did not exist prior to the 2017 Act, and we are encouraged by the interest and progress that has already been shown by local authorities and bus operators. The objection mechanism is a key part of the regime, and it is important that we strike the right balance between allowing operators a fair say on what should go into the schemes while at the same time preventing a minority from blocking improvements.

As the noble Baroness, Lady Randerson, said, we will need to see how these work in practice. The fact that this mechanism is in secondary rather than primary legislation gives us flexibility to amend and further debate the rules in future. My department will not hesitate to do so if that is required to ensure the ongoing success of the schemes. I beg to move.