Bus Services Bill [HL]

Lord Whitty Excerpts

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

[Baroness Scott of Needham Market (LD)]

My Lords, I thank the Minister for listening to and taking away the concerns I raised with my noble friend Lord Shipley on independent audit. It is an important point. These schemes, however welcome, are potentially extremely expensive. The risk, as always, will fall on local council tax payers and therefore robust independent audit is key. We look forward to seeing the regulations and guidance as they emerge.

[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.

Brexit: Transport

Lord Whitty Excerpts

Monday 6th February 2017 Lords Chamber

[Lord Whitty (Lab)]

My Lords, the noble Lord, Lord Patten, has a very overoptimistic view of the position. I agree that transport is likely to be one of the sectors least affected by Brexit, but the hope for a positive mood among the politicians of Europe, which was certainly still there after the initial shock two or three months ago, has been sadly disappointed by the way in which the Prime Minister’s definition of the UK’s bargaining position has excluded us from any form of membership of the single market and any form of real participation in the customs union. Both of those seriously affect the transport sector.

I thank the noble Baroness, Lady Randerson, for introducing this interesting debate. She and I are both members of the same sub-committee of the EU Select Committee, which has been looking at trade. When we looked at the options for trade, at that point we still considered partial membership of the single market at least as a potential option, as with at least temporary continued membership of the customs union. We have received evidence from and talked to, formally and informally, representatives of manufacturing and of goods and services, and we are now looking at services in more detail, including transport services. The initial reaction of those industries, after the shock of the referendum vote, was panic, and then they came back with the view, sector by sector, that, “Okay, we are where we are, but we could do a sectoral deal on this front and still retain all the key issues of membership of the single market”. I am afraid the Lancaster House speech, followed by the White Paper and the Statement with the White Paper last week, have cut off that possibility.

As the noble Baroness pointed out, transport has been hugely integrated across Europe for the past 40 years—not totally but to a significant degree. A regulatory structure applies to the whole of European transport, including on issues of safety, ownership, routes and vehicle standards, as has been said. These are all easy to deal with within the single market; they become much less easy outside the single market.

In aviation, there is probably greater scope for doing a bespoke deal than there is for the other sectors. European airspace already extends to some extent beyond the European Union—to Norway, Iceland and some of the Balkan countries—but it is very important that we establish early on in the negotiations that aviation is dealt with as a one-off. Not only does it define the use of European airspace and our access to European airspace, which at the moment also includes issues of establishment and whether UK-owned airlines or UK-domiciled airlines can operate effectively in other countries and within other countries, but it also defines our relationship with the rest of the world, including the open skies agreement with the United States. We need to retain that. That can probably be dealt with in a separate deal. Whether it could be dealt with in a separate deal entirely within a free trade agreement—which appears to be now where we are in terms of narrowing down our options, which we have, unfortunately, done over the past couple of months—is not entirely clear.

If we were to take the jump off the cliff, concluding that no deal is better than a bad deal, and go to WTO standards, we would still probably be able to do a separate deal on aviation, but that would require a lot of negotiation, hard bargaining and recognition of what the key British interests are in terms of retention of routes, slots, airline establishment and so forth. Aviation is somewhat different from the other modes of transport. Its regulatory system is very much an EU responsibility and competence.

I could argue that, if we reverted to control of the rail system with renationalisation of the railways, which I think is still the Labour Party’s policy, that would be more easily achieved outside the EU. It is not completely banned by the fourth railway package that we are currently negotiating, but it would be more difficult were we to remain members of the EU. However, the through routes to which the noble Baroness referred, such as the Eurostar and the large amount of freight that is carried by railways and so forth, all affect the railway sector. That is an essential part of the single market mechanism, and we will be outside the single market mechanism.

In road transport, there are a whole range of regulatory structures involving driver hours, vehicle standards, vignettes and cabotage arrangements and so forth. Drivers are an international workforce, so getting control of migration may limit the degree to which British operators and foreign operators trying to trade import and export from the UK have access to a skilled workforce. Once again, road transport arrangements are a key part of the single market, and we will be outside the single market.

On shipping, a lot of shipping is between ourselves and Europe and there will be arrangements on safety, standards and routes that are part of the single market. But the far more important aspect of the maritime situation is ports. It may be beneficial for the owners of UK private ports, which are by and large privately owned within the UK, to be free of the regulatory structure that exists within Europe, which is largely geared to publicly owned ports. The problem for ports is not ownership or regulation but that, outside of the customs union, we will face all sorts of additional responsibilities on port administration, port space and the cost at the port level. If we are to be outside of the customs union, the movement of people and goods through our ports will be a much more complex issue. It will require space to check, and it will require administration and bureaucracy. Some of it can be subject to electronic arrangements these days, but much of it cannot. In the end, because of the configuration of most UK ports, it will be difficult to extend the time, parking space and so forth which, even under the current arrangements, have been under some considerable strain, as we have seen particularly in Dover, over recent years. The need for additional space, checks and bureaucracy and the delays in shifting goods by road, rail through our ports and through our shipping will significantly increase.

All that is because we have taken a decision in principle that we will move away from the customs union. The ambiguous words in the Lancaster House speech have now been whittled down to mean that any continued co-operation is on administrative arrangements. Desirable as those may be, they will not stop all the pressure on our ports, our roads, our shipping and our rail systems. The narrowing down of the options by the Lancaster House speech has put a greater burden on transport than looked like being the case a few weeks ago.

Bus Services Bill [HL]

Lord Whitty Excerpts

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

Moved by

[Lord Whitty]

22: Clause 4, page 15, line 44, at end insert—
“( ) An award of any new franchise or contract shall not be made on the basis of labour costs estimated by the potential franchisee or contractor assuming labour costs for new employees at less than the labour cost of workers who are covered by TUPE protections in accordance with section 123X transferring to the new franchisee or contractor.”

[Lord Whitty (Lab)]

My Lords, in moving Amendment 22 I shall speak also to the other amendments in this group in my name. I do not intend to speak for long, partly because my voice is giving out and partly because all these amendments reflect one particular dimension of the effect on the workforce of franchising and enhanced partnerships.

Amendment 22 deals with the awarding of franchises. It asks that awards shall not be made to a company solely on the grounds that it intends to pay its future workforce less than the current workforce. Of course, those who are TUPE-ed over when there is a new franchise or enhanced partnership will be covered by TUPE and therefore it will not be possible for them to be paid a lower wage. But it also indicates that there has been the occasional problem in London—where by and large the franchising system has worked well—of a two-tier workforce developing. If the Government are not prepared to accept the wording of these amendments, I would like them to indicate that they recognise that there would be a concern if franchising in particular led to two-tier workforces and the consequent industrial relations and management problems. Amendment 22 deals with the issue upfront by saying that a franchise shall not be judged on the basis of the intention of the potential franchisee to pay a lower rate than to those who are transferred over.

The remaining amendments in the group deal with the situation once the franchise is awarded. Amendment 47 deals with a situation where a franchise is already in place or has just been awarded and those who are TUPE-ed over from the former operator are paid at the previous rate under the TUPE provisions, which are clearly set out in the Bill—I thank the Government for that—but subsequent employees could be paid at a lower rate. That is a recipe for very poor industrial relations and probably other tensions in the way in which the franchisee would operate. Again, it would be helpful if the Government could indicate, at least in guidance, that this is not a desirable outcome of the franchise process.

Amendments 48 and 87 deal with dismissals following the award of an enhanced partnership or a franchise. They provide that there should be no dismissals solely as a result of the award of that franchise, in order to protect individuals over and above the TUPE regulations from unfair dismissal as a direct result of the franchise award. Amendments 41, 42, 81 and 82 simply delete the phrase “at the same time” because some of these consequences may not be immediate. The principle that is already enunciated in the Bill should apply whether or not it happens at exactly the same time as the award of the franchise.

This is a potentially difficult problem which might not normally be dealt with in primary legislation but would be left to the franchising process, but it would be helpful if the Government could indicate that the kind of outcome that we have occasionally seen will not arise when we extend franchising in particular to other parts of the country outside London. I hope that the Minister can say a few warm words about the Government’s intention and reflect it in any guidance that the department gives to those tendering for franchises. With that intention in mind, and underlining that this can be and has been on occasion a difficult situation to deal with post the franchising operation, I beg to move Amendment 22.

[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.

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That said, I note the noble Lord’s suggestion and I will reflect on that to see how we might best restate the importance of TUPE protections and provisions, as he said, within the guidance that accompanies the Bill. I hope, on the basis of the explanation that I have provided and the reassurance that we will see what more we can do with guidance in respect of TUPE provisions, that the noble Lord feels minded to withdraw his amendment.

[Lord Whitty]

My Lords, I thank the Minister for that reply. He started very well and he finished quite well with those assurances that he would look at it further, but in between there were some arguments that did not really address the issue. These amendments are not, in any sense, stopping the Bill being devolutionary, as local authorities will make their own decisions. It is the principles on which they make those decisions that I am concerned with. At the beginning of his remarks, the Minister recognised that there would be a problem with a two-tier workforce, but went on to argue about people being brought in at the same rate as somebody who has additional skills and responsibilities. That is not the intention; if that was implied by my amendment, it was certainly not the intention and a slightly different form of words would make that clear. What I am really saying to the Government is that if they do not wish to put it in the Bill, the Minister’s recognition that there would be problems if a two-tier workforce developed after franchising and that that could be conveyed to the potential franchising authorities, then that, to a large extent, would meet my point.

The Minister referred also to the consultation that will take place with trade unions and representatives of employees. That will help to some extent but there also needs to be some indication to those carrying out the franchising operation that they must bear this in mind, and the way in which the franchise is operated must avoid that outcome of a two-tier workforce. The Minister probably said enough for me not to press the amendments today but I hope that in his further consideration he will see whether there are ways in which his department could convey my anxieties—which I think he shares, in part—about the potential outcome of franchising decisions. In that spirit, I beg leave to withdraw the amendment.

Amendment 22 withdrawn.

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Moved by

[Lord Whitty]

32: Clause 4, page 17, line 25, at end insert—
“(ca) appropriate representatives of any affected employees,”

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Moved by

[Lord Whitty]

35: Clause 4, page 17, line 31, at end insert—
“( ) In subsection (4)(ca) “appropriate representatives of any affected employees” means—(a) representatives of a recognised trade union, if an independent trade union is recognised by existing operators in the area of the proposed franchising scheme,(b) in any other case, employee representatives appointed or elected by the affected employees who have authority from those employees to receive information and be consulted on their behalf.”

Bus Services Bill [HL]

Lord Whitty Excerpts

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

Moved by

[Lord Whitty]

1: Before Clause 1, insert the following new Clause—
“Additional functions of local councils with respect to local bus services in areas other than passenger transport areas
After section 63 of the Transport Act 1985, insert—“63A Additional functions of local councils with respect to local bus services in areas other than passenger transport areas(1) It shall be the duty of the county council in each non-metropolitan county of England to—(a) consult on the needs for local bus services within the county, including by issuing a consultation document,(b) give notice of the consultation mentioned in paragraph (a) in such manner as the council considers appropriate for bringing it to the attention of persons in the county to which it relates,(c) following that consultation, prepare and publish an assessment of the needs for local bus services within the county,(d) demonstrate that the assessment has fully considered and responded to the outcomes of that consultation, and(e) secure such provision of local bus services as the county council considers reasonable and appropriate, to meet the needs identified in the assessment which would not, in its view, otherwise be met.(2) The Secretary of State must issue guidance concerning the preparation of an assessment under this section, and that guidance may, in particular, include guidance about the extent to which the county council must set out—(a) the ways in which it has considered and responded fully to the outcomes of the consultation under subsection (1)(a), and(b) how it will meet the needs for local bus services identified in the assessment.(3) A consultation document issued under subsection (1)(a) relating to an assessment of the needs for local bus services must include—(a) a description of the existing provision of local bus services in the county,(b) a description of any substantial proposed change to the provision of local bus services in the county, and(c) the date by which responses to the consultation must be received.(4) During the consultation under subsection (1)(a), the county council must consult at least—(a) all persons operating local services in the county,(b) all other persons holding a Public Service Vehicle operator’s licence or a community bus permit who may, in the opinion of the county council, be affected by the assessment,(c) a traffic commissioner, and(d) such organisations appearing to the county council to be representative of users of local services, including where appropriate and applicable—(i) parish and town councils,(ii) representatives of persons who are elderly or disabled,(iii) representatives of young people, and(iv) organisations, or types of organisation, specified by the Secretary of State in regulations made by statutory instrument,in accordance with criteria published by the Secretary of State.””

[Lord Whitty (Lab)]

My Lords, I shall also speak to Amendment 113.

In Committee I tabled a similar amendment to Amendment 113 and indicated that it should perhaps come early on. I therefore had the temerity as we approached Report to try to get at least one amendment on overall strategy before Clause 1. I have supported most of the provisions in the Bill and there is a reasonable consensus on most of it. I am very grateful to see a significant number of government amendments, not all of which I completely agree with, but nevertheless the Government have moved generally in that direction.

Two things are still missing from the Bill. One is a requirement on local authorities to ensure that services meet the social and economic needs of their area, and the other is that this needs to be put in a context of a national strategy for bus transport in the same way in which other modes of transport are subject to a national strategy.

The first of my amendments, which I submitted before Clause 1, places the responsibility on local authorities. It requires them to look at the need for transport in their area, how well their bus services are meeting that or whether such services could be reconfigured, and whether not only the scheduled routes but socially provided buses are meeting the various needs of their area. That should be right across the board, not simply for their mayoral areas or areas that decide to take advantage of some of the provisions of this Bill. In particular, this applies to rural areas. All of us who live in or occasionally visit rural areas know that the frequency of buses and effectiveness of coverage of bus routes within those areas is diminishing—the number of buses, take-up, and the level of fares for people who do not have concessionary travel. There is a real problem within many rural areas in England as to whether there is an adequate bus service meeting local needs for employment, education and other social needs.

I suspect that most noble Lords who come from rural areas will be able to cite examples of routes being cut, services diminishing or fares becoming too high for students or people with part-time jobs to undertake those journeys without concessionary fares. In many parts of the country, that hits people’s lifestyle and life prospects, because if you cannot afford to go on a bus to the interviews or training centre your ability to get a job and engage in employment is diminished. There are many parts of otherwise prosperous rural areas where young people in particular are unable to get jobs or travel from their village or small town to a larger, market town where there are better possibilities.

The proposed new clause would require all local authorities to undertake a survey and take measures to meet the needs of their area. I know that there will be objections that this is yet another burden on local authorities, but legally speaking it is not. Ever since a legal decision in the Three Rivers case, there are already requirements on local authorities to undertake such assessments and meet such needs. Therefore, it is not an additional requirement on local authorities—it is making more explicit one that already exists. I hope that, in understanding that, the House or Government will be prepared to accept if not the precise wording of this amendment then the principle of what it is driving at, and recognise that there is a very real problem in a lot of areas. In my apparently relatively prosperous part of North Dorset, on the borders of Wiltshire and Somerset, we are faced with very serious cuts in bus services, which up until a few weeks ago were being denied by the local authorities and the operators. That will hit a number of people in those areas rather badly—and the situation is repeated up and down the country, north, south, east and west, so we should recognise it in this Bill and place the requirement on local authorities. It puts some of the other provisions on the basis of consultation on franchising or advanced partnerships and bus service provision generally back on local authorities.

The second amendment in this group relates to government responsibilities. It is important that in all forms of transport there is a national strategy and that it indicates what government support will be available to various modes of transport. There is a national strategy for railways and aviation, and an overall strategy for transport infrastructure. There is no reason why buses should be the poor relation. We need to ensure that buses have a strategy that local authorities and operators and those who depend on and work in the bus industry know about—and they should know what other forms of funding and support will be available. That would come towards the end of the Bill, but it is right that we should register that responsibility on government at this early stage of Report. I beg to move.

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[Lord Whitty]

My Lords, I am a bit disappointed with a less than promising start to this part of the Bill, but I am sure it will get better.

On Amendment 113, I think that the Minister misunderstands me. It is designed not to introduce top-down instructions and targeted interventions by the Department for Transport but to ensure that local authorities, operators and those who are dependent on bus services understand the overall framework of support, or otherwise, for buses. It is odd that the form of public transport most used by the poorer elements in our society both in towns and in the countryside does not seem to merit a national strategy and a national framework. I am not talking about instructions coming down from Whitehall to county level; I am talking about every county, and indeed every local authority, understanding how the Government see the development of buses. I appreciate that some of the things that the Minister referred to are clear—particularly about improving the environmental effect of buses and so forth—but we need a comprehensive view of how the bus industry is to develop. Therefore, I am sorry that the noble Lord is not prepared to accept Amendment 113.

On Amendment 1, the argument is little more subtle. The Minister is clearly right that the Transport Act 2000 laid down some of these provisions, but the reality—which is not due just to the amendment in 2008—is that a number of local authorities have not observed that requirement. Indeed, there have been a number of cases—at least two, to my knowledge—where local authorities have been found in court not to have carried out that duty. This is an attempt to codify the duty more clearly and to put the new possibilities provided for in the Bill in the context of that responsibility, which lies with all local authorities, not just metropolitan ones.

A lot of rural authorities have carried out consultations but, frankly, some of them have been better than others. A number have been found wanting. Cambridgeshire is one case that the noble Lord is perhaps familiar with, and I would also mention the Three Rivers case. Clearly, the present requirements are not working and I would like to strengthen them.

I was interested in what the noble Baroness, Lady Scott, said about the Wiltshire exercise—I live across the border so I am not one of her constituents in this regard—but I do not believe that that consultation exercise, or certainly its final outcome, is seen as adequate by a number of groups in Wiltshire. On the other hand, I totally agree with her that we need to look at the totality of services and not simply at scheduled bus services. It is important that we optimise the use of resources and of the available forms of transport, whether they are scheduled bus routes, quasi-taxi services, on-demand services, health service providers, education providers or social services providers. All that needs to be taken into account, and in a sense that is partly what the amendment is about. We need a comprehensive approach, and we need to put an obligation on local authorities to take all that into account and to consult widely— and, I hope, wisely—and to come up with a solution.

At the moment, I do not believe that the law is fully working. In view of the Minister’s greater confidence in this regard, I therefore assume that he and his department are trying to ensure that local authorities take this more seriously and that perhaps at least the spirit of the amendment might be achieved by administrative means as well as by the example of a number of legal cases. I therefore do not wish to press the exact wording of this amendment today.

I hope, however, that between now and the final stages of the Bill, the Minister will indicate that some moves have been made by the department, along with the LGA. I apologise that I failed to acknowledge my interest as a vice-president of the LGA, as are two or three other contributors to the debate, but I do not speak for the LGA in this regard because I think that local government needs to take a bigger responsibility here. It would be useful if the Minister could assure us all, before we finish with the Bill and before it goes through the Commons, that he is taking steps to ensure that what is already an obligation is actually delivered by local authorities. In the meantime, I beg leave to withdraw the amendment.

Amendment 1 withdrawn.

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Moved by

[Lord Whitty]

9A: Clause 1, page 5, line 30, at end insert—
“(ca) appropriate representatives of any affected employees,”

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[Lord Whitty]

My Lords, in moving Amendment 9A, I will speak also to Amendments 10, 32 and 35. First, I apologise to the House and the Minister in particular that we have a manuscript amendment here. I thought I had submitted these amendments previously, and it was due to a mix-up between myself and the office. However, the wording is exactly the same as the wording later on which relates to franchising, and it concerns the consultation of employees’ representatives in both the advanced partnership and franchising contexts.

There are some very welcome government amendments relating to consultation with a range of bodies, some of which I spoke about in Committee, particularly representatives of passengers and consumers. Indeed, there is a reference to the Passengers’ Council, which is the proper name for Transport Focus. I welcome the general approach of the Minister in recognising that there were some omissions or a lack of clarity about who was to be consulted on both the advanced partnerships and franchising.

Indeed, in relation to franchising, the Minister has tabled Amendment 29, which, as far as it goes, is very positive. It refers to,

“such persons as appear to the authority or authorities to represent employees of persons falling within paragraph (a)”;

that is, the operators. The Minister has recognised, as he undertook to do in Committee, that there is a need to consult with the representatives of employees in this industry. I would say that that applies to not only franchising but the introduction of advanced partnership schemes, where the employees of existing operators and others affected also need to be taken into account, but, slightly strangely, the Minister has not tabled an amendment in that respect.

I hope to try to reach an accommodation with the Minister in this area but there is an additional issue. My amendments in Committee referred specifically to recognised trade unions. This is a highly unionised sector in many parts of the country. It has had relatively stable industrial relations for many years, and a relatively high proportion of employees in the industry are represented through recognised trade unions. However, there have been one or two instances where other organisations have attempted to represent the workers, legitimately or otherwise, and there have been one or two inter-union disputes over recognition. Therefore, when you refer to a consultation with representatives of employees, where there are recognised trade unions, you should say so. That stops any confusion, whether between unions or other methods of recognition.

Therefore, I have added in both the franchising and advanced partnership contexts an explanatory note which says “appropriate representatives” are either recognised trade unions or representatives who have been properly elected or appointed by the employees so affected. That seems to cover a pretty wide range of recognition, as well as possible alternatives to the trade unions. It is therefore not a direct attempt to enforce trade unionism on people who do not want it but a recognition that trade unions exist and operate very effectively, frequently in very close co-ordination with management and the authorities in these areas. Therefore, the list of consultees needs to include reference to representatives of employees. I am quite happy to accept the Minister’s wording, or something like it, in relation to franchising, but it then needs to go on to say that where there is a recognised trade union, that means a recognised trade union. I therefore have two detailed points of contention but not, I think, two points of dispute.

If the Minister is of a mind to discuss this further between now and the final stages of the Bill, or to accept my amendments, I am sure that we could reach an accommodation. However, it is important to recognise in both contexts within the Bill that it is likely to improve the chances of the new situation—the new schemes in franchising and the new advanced partnerships —operating smoothly and effectively, with the engagement and consent of the employees involved. That seems to me common sense. The Minister has conceded the principle with his own amendments but I would like him to be prepared to go a stage or two further. I beg to move.

[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.

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[Lord Whitty]

My Lords, I am rather disappointed in the Minister. We are not that far apart: he recognises that the employees of bus companies are an important part of making these schemes operate, whether under advanced partnerships or franchising. I do not really understand the distinction between the two. It may well be that there are less drastic changes in the method of working and the coverage of companies within the advanced partnership. Nevertheless, there are potential changes. It is extraordinary that the Minister’s advice concludes that in the list of consultees under advanced partnerships, which is almost the same in all other respects as the list of consultees under franchising, the one element missing is representatives of employees who are affected by those changes. I do not think that that is logical. If the Minister thinks about it, it is not logical. The two lists of consultees should be pretty much the same. It may be that one group of consultees in one context has less leverage or less effect than the other, but they need to be consulted in both contexts.

I would be prepared to go along with the Minister’s substantive amendment, Amendment 29, in relation to franchising if he also accepted the qualification to that in my Amendment 35, or something very like it, which indicates that where there is a recognised trade union—we are not asking the franchising authority to impose a form of industrial relations on a company that has not already recognised trade unions—it should be consulted and, in other respects, there should be proper representation of workers outside the trade union. That is the best way forward for stable industrial relations. It is the best way forward for having constructive engagement with the workforce in the beneficial changes that we all hope this Bill will deliver. The Minister’s argument is a bit illogical in excluding that from advanced partnership and in not being prepared to go the extra mile in defining what he means in relation to franchising. I shall put in a final plea to the Minister to consider this again, come back to us and have some discussions between now and the final stage, because this is an important matter. I will offer an olive branch in that direction to see whether he is prepared to move a little bit and consult further.

[Lord Ahmad of Wimbledon]

That is an open invitation. I am open between now and any stage to meet any noble Lords, but I have outlined the Government’s position at this time. I assure noble Lords that in reflecting on the contributions in Committee, the Government have carefully considered all elements. I agree with the noble Lord in that I do not think that there is that much difference between us, but I have outlined where we currently stand, and it is for the noble Lord to consider where he stands on the basis of the discussions we have had.

[Lord Whitty]

My Lords, I am afraid “currently” does not quite do it for me. With genuine reluctance, because I do not think there is a principle between us here, I want this on the record either way, and therefore, with reluctance, I wish to put this to the House.

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Moved by

[Lord Whitty]

10A: Clause 1, page 5, line 35, at end insert—
“(3A) In subsection (3)(ca) “appropriate representatives of any affected employees” means—(a) representatives of a recognised trade union, if an independent trade union is recognised by existing operators in the area of the proposed advanced quality partnership scheme;(b) in any other case, employee representatives appointed or elected by the affected employees who have authority from those employees to receive information and be consulted on their behalf.”

Bus Services Bill [HL]

Lord Whitty Excerpts

Wednesday 20th July 2016 Lords Chamber

[Lord Berkeley]

My Lords, Amendment 123A would insert a new clause, “Passenger representation”, which tries to give bus passengers the same information—and credibility of information—that rail passengers get through Transport Focus, whose responsibility has recently been widened to include information about roads. This goes a bit wider than that, however, because local transport authorities need to set up mechanisms whereby passengers who are affected or who might use services can have credible information about proposed or actual services, as they have for rail services, and about reliability, quality and what happens when something goes wrong—as we discussed on today’s first Question.

It does not really matter who provides the services, whether it is a franchise, partnership or something else, but it is important. This could be done nationally, through Transport Focus or Bus Users UK, or locally, with co-ordination by a national body. Either way, there is a need for something like this and to have a requirement for it in the Bill. I beg to move.

[Lord Whitty (Lab)]

My Lords, I rise to support the principle of the amendment that my noble friend Lord Berkeley has just moved. We have had debates about inserting references to passenger representation at various points in the consultations on the Bill. My noble friend’s amendment seeks to state this as a general principle so that, in effect, there would be in every area some form of passenger representation to cover the involvement of passengers in the development and continued operation of the franchise, partnership or contract. Further, passenger representation should be part of the general decision-making process as we go forward, not simply in the original consultation.

In addition, my noble friend’s amendment refers to a complaints system. It is vital that there should be within this industry a system for complaints to be rapidly dealt with by the operator and, if necessary, the transport authority. To do that, there needs to be an effective passenger body. It could be a national body or a combination of a local body and Transport Focus nationally. On earlier parts of the Bill, the Minister very gratifyingly showed some encouragement to those of us who were arguing for engagement of passenger representation. I hope that in his reply the Minister can tell us, or at least give a general indication—tonight if possible but certainly before we get to Report—how the Government will bring forward amendments on Report to reflect that commitment to passenger representation and the ability of such organisations to deal with complaints with bus operators. It would be very useful if we all received a letter before Report setting out all the points at which this would be reflected in the Bill.

[Lord Kennedy of Southwark]

Amendment 123A, moved by my noble friend Lord Berkeley, is one that I am delighted to support. As I have said, the Bill is about improving bus services for passengers. Ensuring that the voice of passengers is heard is central to that aim and that is why this amendment is so important. It requires the transport authority to set out how users will be involved in monitoring and evaluating the scheme, and it sets up a complaints process with a body named to review complaints.

Only by having a mechanism for effective passenger input to deal with complaints and other issues can the transport authority have the information that it needs to plan for better services, deal with unforeseen problems and make things better for the future. I hope the noble Lord, Lord Ahmad, can give a positive response to this short debate, or we may return to the matter on Report.

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[Baroness Randerson]

My Lords, my name is attached to this amendment and I strongly support the purpose behind it. As the noble Lord, Lord Kennedy, has made quite clear, there are more than a dozen council-owned bus services in Britain. Many of them are at the very top of their game; they are some of the very best bus services in Britain.

This is a nasty, mean-minded little clause. It is totally at odds, as the noble Lord has just said, with the rest of the Bill, which is supposed to be devolving power to local authorities. It is supposed to be seeking the best possible arrangements for running bus services. For the last 30 years, since competition came to bus services, local authorities have been allowed to keep the power to set up bus companies. Why is it thought necessary to take that power away now, when they have had it in parallel with deregulation for all these years? In practice, in the last 30 years, local authorities have not rushed to set up bus companies—rather the reverse. Judging by past experience, we in this House are probably setting bus policy for the next 30 years, so the Bill needs to be robust and to have the imagination to cater for circumstances that might arise in decades to come.

It is true that in the current financial circumstances, local authorities could not afford to set up bus companies. But it is not beyond credibility that, in order to save rural services at some point in the future, when local authority finances are less tight, a local authority may decide that it needs to lease a small fleet of minibuses to provide a rural service. That is a perfectly credible scenario. This clause would prevent it doing so, even in partnership with a local operator.

What about the operator who is about to go out of business and could be saved by the local authority buying a stake in the business or buying it, and therefore saving the bus service that is so valuable to the community? Clause 21 is not devolution; it is reverse devolution. It is perverse and plainly a ridiculous limitation on local authority powers. It seems to me to be totally unprovoked as I can think of no example of a local authority in recent years attempting irresponsibly to set up a bus company. So I urge the Minister: please listen to the strength of feeling here today. It is not worth the trouble to keep this in the Bill. The Government should just allow local authorities the discretion they deserve to be able to provide a decent bus service.

[Lord Whitty]

My Lords, most has already been said by my colleagues on the Front Bench. This clause sticks out like a sore thumb and goes against the rest of the Bill and any commitment to localism. It undermines the rest of the Bill, which essentially gives local authorities a range of options in how to optimise the bus services in their area—urban and rural. There are many circumstances in which the provision, in partnership or directly, of a municipally owned bus fleet could play a part. If that is closed off by keeping this clause in the Bill, we will be undermining the consensus behind most of its provisions. The Minister ought to take this back to his colleagues because it will be an issue of contention in the Bill’s later stages, and is already an area of extreme contention with many local authorities and bus operators around the country. It would be wise to listen to the Committee—to speakers on this side, at any rate—and withdraw the clause, preferably before Report.

[Earl Attlee]

My Lords, I very much support the inclusion of Clause 21 in the Bill, so I cannot support the noble Lord, Lord Kennedy, and the noble Baroness in seeking its removal.

Municipal bus companies—to be honest, there are only a few—served a very useful purpose prior to the deregulation of the market. Among those remaining in existence, there are indeed some great operators. Reading Buses and Nottingham City Transport, for example, consistently provide excellent services and win award after award. I hope that I am not doing others a disservice by not specifically mentioning their hard work and achievements. I agree with some of the compliments paid to these operators by the noble Baroness, Lady Randerson.

I know that the mood music surrounding this clause has caused some concerns about the future existence of the remaining local authority-owned companies. This is simply extremely unhelpful and unfortunate. I hope that my noble friend the Minister will state very firmly that those existing companies have nothing to fear and that he will be able to reassure them and the Committee that there is nothing in this Bill that threatens their existence.

The noble Lord, Lord Kennedy, asked, “What is wrong?”. In the case of a local authority looking to go down the franchise route, the authority invites a bid for the contract. Its own company submits a bid—it would be rather odd if it did not. Preparing bids is an expensive and time-consuming business. So who has paid for the local authority-owned company to bid? Yes, the local authority that owns it. Would the local authority award the contract to the company it owns? You bet it would. Otherwise it would put its own company out of business. To me this all smells of state aid.

So again we are back to fairness and level playing fields. Allowing a franchise authority to create its own company, which would then bid and win that franchise, almost by the back door, is simply wrong. My counsel is that Clause 21 should stand part of the Bill.

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Moved by

[Lord Whitty]

128: 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.”

[Lord Whitty]

My Lords, Amendment 128 calls for a strategy for the bus sector to be part of the Bill. It is fairly short and to the point. My noble friend Lord Berkeley has tabled a couple of rather more comprehensive amendments which express the same objective.

When I first thought of this amendment, I thought of tabling it before Clause 1. I may have to reflect on that after this short debate. The Bill is quite technical and procedural, changing contractual arrangements and introducing new technology such as ticketing systems and so forth. What it fails to do is give a clear indication of the strategy for the bus sector in terms of raising usage, extending buses in much-neglected rural areas, the nature and quality of buses, and their environmental impact. We need a strategy. We need the Government to come forward with a bus strategy that makes sense of the Bill in a broader dimension.

We can come back to this on Report. Obviously, we are nearing the end of today’s proceedings so I will not speak at length but it seems a missed opportunity not to require the Secretary of State to come up with an overarching strategy that would convince people that we are really serious about modernising, extending and making more environmentally attractive our bus services throughout England. I beg to move Amendment 128 here, at the obscure back end of the Bill, but the Minister may encourage me to put it right at the front of the Bill because that is really where it should go.

[Lord Berkeley]

My Lords, I support my noble friend’s Amendment 128 and will speak very briefly to my two amendments. Several of us spoke about this at Second Reading. I agree with my noble friend that the bus sector needs a strategy. After all, rail passengers have a strategy. Rail freight is having one soon, I am told. There is a roads strategy. There are strategies to do with most things in transport, except buses. I really think it is time for it and I will certainly support my noble friend if he puts a nice amendment down as Clause 0.

[Lord Ahmad of Wimbledon]

My Lords, I am not sure you can have a Clause 0, can you? I bow to the wide expertise around the Committee. You can certainly get “zero” fizzy drinks or whatever but let us not open up that debate. I am grateful for the courteous manner in which the amendments were introduced. This group relates to proposals to introduce requirements to produce new national strategies for bus services, and looks to place requirements on local authorities to increase the number of passengers using bus services.

I have said before—indeed, it is a sentiment shared across the Committee—that we want to see more people using buses. Perhaps the recent influx into the Chamber is reflective of that sentiment among noble Lords. Of course, I agree with the intention behind Amendment 129 in the name of the noble Lord, Lord Berkeley. Buses help people get around and should be an integral part of any public transport system. Public transport works best where it is considered holistically, with bus services integrated with cycling infrastructure, trains and trams, or in the form of park and ride facilities. I agree that authorities considering any of the new tools in the Bill should be looking to improve their local bus services and to encourage more people to use public transport.

However, I am concerned that this amendment may bring unintended consequences; for example, a local authority may introduce a new tram system and may look to increase the overall number of journeys made using public transport but the proportion of journeys made by bus may decrease. It may be more sensible, therefore, to encourage authorities to address the issue of increasing the number of public transport journeys rather than just journeys made using bus services. I trust that this gives the noble Lord sufficient reassurance of the seriousness with which I intend to consider the aims of Amendment 129, and hope he will agree not to move it.

Amendments 128 and 130 would require the Secretary of State to develop and issue a national bus strategy and a bus services investment strategy for England. As I have said in previous Committee debates, devolution is an important theme, which has informed the development of the Bill. The Bill is all about providing authorities with new tools to enable them to improve their local services in the way that best suits their area. It is not about imposing particular models.

Central government has a valuable role to play in setting the wider agenda through policy initiatives such as the low-emission bus scheme and our total transport pilots, which I mentioned in the previous group of amendments, but I do not think that centrally determined strategies for local bus services would help authorities address particular issues relevant to them and their area. As such, it does not seem sensible for central government to set national strategies when it is local authorities and bus operators working together that will be designing services and setting standards locally.

Additionally, I have previously explained that my department helps support local bus services outside London by paying some £250 million per year of the BSOG. As I said in the previous group of amendments, we are already reviewing the BSOG system, with the aim of ensuring that funding is targeted where it is most needed. It is through that work that we should establish and set out central government’s priorities and objectives for the funding provided. I trust this gives the noble Lords, Lord Whitty and Lord Berkeley, sufficient reassurance to withdraw and not move their amendments.

[Lord Whitty]

My Lords, I am a bit disappointed by the Minister’s response. Yes, the Bill is about providing new options for local authorities—apart from the one that Clause 21 closes off—and allowing devolution of decisions to meet local circumstances. But local authorities and operators need to operate within a framework. The Bill gives bits of that framework but we need a clear understanding of where buses fit within the overall transport system, as the Minister is implying. Therefore, the interface between buses and other forms of public transport is very important and buses need to be seen as part of that.

It is difficult for a local authority looking at changing the way in which it deals with operators and provides services to do so without some understanding of what the overall intention of the Government is going to be. The point about funding is crucial to this. Although I broadly agreed with the noble Baroness, Lady Randerson, earlier about the complete nonsense of funding bus services through BSOG, I think we should go wider than that and look at the totality of support we give to buses and place that within an overall strategy. The Minister seems to be putting it the other way round, saying that he will be looking at the funding situation, but the funding situation needs to reflect the strategy rather than the other way round. Local authorities need to operate within that strategy and with the support that the funding would give for their decisions.

I am a bit disappointed. I suspect that my noble friend and I will have a bit of a conflab between now and Report to see how we pursue this further. I think we will pursue it further but for the moment, I withdraw the amendment.

Amendment 128 withdrawn.