Bus Services Bill [Lords]

Louise Ellman Excerpts

2nd reading: House of Commons
Wednesday 1st March 2017 Commons Chamber

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

The Transport Committee was pleased to have the opportunity to scrutinise the Bill after its consideration in the other place. Indeed, that was the fifth occasion in this Parliament and the previous one that the Committee had considered the state of our bus services, which indicates the level of dissatisfaction with the problems of the current system and the need for change.

Nobody should doubt the importance of buses to our local communities. About five times as many public transport journeys are made by bus than by train, yet little attention is given to buses. Overall, across Great Britain, buses account for 62% of passenger journeys, but the figure reaches over 80% in Manchester, Merseyside and the west midlands. We are therefore talking about a lot of people. I have always found it totally incomprehensible that there is so little national interest in bus services when so many people across the country are affected by them.

Good local bus networks open up new education opportunities for young people, provide routes to work—64% of jobseekers cannot drive or have no access to a vehicle—and ensure that people have proper access to healthcare and social facilities. The converse is also true. If bus services are inadequate or, indeed, do not exist at all, many people lose out on opportunities to develop their abilities or even to get a job, and the economy loses out, too. Interesting new analysis that was recently published by the University of Leeds suggests that a 10% improvement in local bus service connectivity is associated with a 3.6% reduction in social deprivation. Simply put, we cannot afford to neglect our bus networks.

[Rob Marris]

Does my hon. Friend agree that one of the difficulties with buses can be the huge cost? My home is less than a mile and a half from the centre of the city, yet a one-way ticket is £2.40. That is absolutely ridiculous, and the situation is replicated across the country.

[Mrs Ellman]

I agree with my hon. Friend that the cost of bus services often deters people from using them, which indicates that the promise of deregulation has not materialised. We were told that competition would bring down costs and fares, but that simply has not happened.

In England, outside London, we have seen a long-term decline in bus passenger numbers since the deregulation of the bus services market in 1986. Since then, operators have been able to run bus services on the routes of their choosing, with the frequency and fares that they feel appropriate. The result is that we now have a two-tier system outside London. Commercial operators, especially the big five companies that dominate the market, run profitable routes and, as the previous Transport Committee found, a lack of competition means that they are failing to provide an adequate service in many areas. Routes in those other areas have often been funded by local authorities, which have often stepped into the breach if socially important services are not commercially viable.

Local authority budgets have been cut in recent years, which has taken its toll on the provision of local bus services. Indeed, since 2010, funding for supported bus services in England and Wales has been reduced by 25%. Our inquiry heard that, in practice, whole villages and towns have been cut off from their neighbours, but this is not always about villages and towns because estates or whole areas of a city or town can be cut off. That prevents people living in those areas from having reasonable access to jobs and training, or being able to get on with their life.

One problem with the current system, as hon. Members have said, is a lack of integration and proper information. Passengers are offered a confusing variety of tickets covering different operators. Different fares are set and various technologies are used, and timetables are not always properly accessible to people who want to use buses. Accessibility is an important aspect of making bus services attractive. People will use buses if the services are there, if they feel that those services are reliable and if they have proper information about what is available, but too often that simply does not happen. The fact that timetables are not integrated with those for other modes of transport is another problem.

Integrating different modes of public transport is important for reducing congestion and addressing the important issue of air quality. We need more integration of our public transport services—that is what most people want—but the current system does not facilitate that. There are alternative models to the two-tier system of deregulation, and London is the most prominent one. Patronage across the capital has doubled since 1986 and, on average, fares there have been lower than in other city regions. The system that is operated in London might not be suitable for all parts of the country, and certainly not all local authorities would want to take it up, but the situation there shows that when appropriate powers are given to local authorities to work with the private sector, which provides the actual buses, the system can work.

Some attempts to reform the system that began operating in 1986 have brought about improvements, albeit limited ones. Our inquiry was given examples of innovative partnerships operating around the country. For example, the west midlands bus alliance has benefited passengers through integrated timetabling and joint ticketing, and FirstGroup told us about a successful partnership in Bristol. I am sure that there are many other examples of partnerships on offer under the current system that have made things better and been able to address some of the problems.

However, those achievements have been few and have come too slowly, and some parts of the current framework are clearly not fit for purpose. Members have mentioned quality contract schemes. They were introduced to give local authorities the opportunity to implement a system similar to franchising if they wanted to do so, but no such scheme has ever been implemented. As has been indicated, it might be that no authority wanted to do so, but I do not think that that is the case. The system that was set up—not by this Government but by a previous one—was so complicated, complex and convoluted that in practice it was difficult to implement, so authorities simply did not attempt it.

I am glad that the Bill has had such widespread general support. It is the latest in a series of attempts to address the problems created by bus deregulation—I believe it is the third such Bill to be presented to Parliament since that time. The Transport Committee looked at the Bill in general and examined its details, including the changes made by the other place. We support the Bill and most of what is in it. We support the general principle of local authorities deciding the structure of bus services that is most appropriate for their communities. That structure might be a deregulated market left as it is, or it might be about partnerships, franchising or setting up a municipal operation. Our report on the Bill states clearly that we would encourage local authorities to look at each of the possibilities sequentially to see which is the most appropriate to address problems in their area. The question we should be asking now is: how will the Bill improve the situation? How will this Bill put in place something different from what has gone before? How will it make things better? Let me say at the outset that this Bill is a much more comprehensive approach to improving bus services than either of the previous Bills because it looks at the system as a whole and the improvements it suggests are much more substantial and comprehensive than before.

The Committee heard powerful testimony about the difficulties faced by people with visual impairments when using the bus, and we commend the Government’s commitment to introduce regulations on improving audio-visual provisions. In particular, we heard evidence from Jacqueline Juden, a guide dog user, who described graphically the problems experienced by visually impaired people when using buses. The latest information shows that only 19% of buses provide reliable next-stop audio-visual information, with most of those being in London. I was appalled to read evidence from Guide Dogs saying that its survey found that 32% of visually impaired people using buses had missed a stop because they were too worried to inquire about where they were. It provided the equally horrendous and surprising statistic that 28% of drivers had refused to tell these people that information. Hon. Members have talked about problems when people do not have enough access to information and data. We wholeheartedly welcome the Bill’s provisions to make those much more available, as that is very important.

Let me turn to the structural changes proposed in the Bill, as amended in the other place and as the Secretary of State intends to take it through this House. Will those changes make a substantial difference? The provisions as amended—even before that—will make a welcome, positive change. The Bill offers stronger powers for local authorities to work with private operators and for new forms of partnership—advanced quality contracts, enhanced partnerships and franchising. We were very concerned about the Department’s failure to publish regulations and guidance when we considered the Bill, as that impeded scrutiny. It was very wrong that that was the situation, but since that time changes have been made, and guidance and some regulations have been published. However, it appears from that guidance that even authorities with a directly elected mayor, which are eligible for franchising—the Secretary of State confirmed that again this afternoon, as the Government do not propose to change that proposition—would have to make what the regulations call a “compelling case” for franchising to the Minister.

May I ask for clarification about the position? The Committee did not have that information when we considered the Bill, and we were concerned that we did not know what the regulations and guidance would be. I must ask the Minister what that provision means. Does it in any way cut across the commitment, which was repeated today, that areas with directly elected mayors would be able to opt for a franchising system if they want to do that?

We are still unclear about whether transport authorities without a directly elected mayor will be able to have franchising if they feel that that is suitable for their area. I sense some ambivalence in the Secretary of State’s comments. It is clear that he does not want franchising powers to be held in areas outside those with directly elected mayors, although I understand that a separate agreement has been made in relation to Cornwall. However, the guidance is still in place, so what exactly does it mean? What kind of application could be made by local transport authorities outside areas with directly elected mayors? Would the process be complicated, meaning in effect that these areas would not get authorisation? What is going on, and will this be very confusing?

Our inquiry also heard about the deep frustration that communities feel when bus services are cancelled without proper notice being given. We therefore very much welcome the provision in the Bill that will allow the designation of bus routes as community assets. That would mean that the cancellation of a route could be delayed while alternatives were considered, which we think is a very good idea. We also looked at the question of whether municipal operators should be set up, and we felt that, in general, local transport authorities should be able to have the system they think appropriate for their areas. We certainly recognised that there could be conflicts of interest, but we felt there were ways in which those could be addressed. We did not think it was right—we felt it was disproportionate—to say that no new municipal operators could be set up.

[Lilian Greenwood]

I wonder whether my hon. Friend can offer me some advice. Local authorities that currently have a municipal operator will already tender for a supported service. In my local authority, those supported services are provided not by the municipal operator, but by our community transport organisation. Does that not demonstrate that it is possible to have a municipal operator but still operate a competitive tendering process?

[Mrs Ellman]

My hon. Friend makes an extremely important point. She represents an area in which a successful municipal operator has been functioning very effectively for a long time, and gives us a clear example of how possible conflicts of interest can be addressed. Even at this late stage, I urge Ministers to look again at that issue.

Traffic management has not yet been mentioned. Buses are important not only for mobility, but in addressing environmental issues, and making transport around our cities and towns easier. Running buses cannot be dissociated from effective traffic management. While there are some relevant provisions in the Bill, I call on Ministers to consider activating the provisions in part 6 of the Traffic Management Act 2004 that would give local authorities powers to act on moving traffic offences. The Act is in statute, but the relevant section has not been activated. Local authorities repeatedly ask for it to be activated as it would be important in helping bus services.

[Mrs Villiers]

Does the hon. Lady agree about the importance of bus priority measures to make bus travel more reliable and therefore more attractive to passengers? Many local authorities are not prepared to make the quite courageous decisions required to deliver priority measures.

[Mrs Ellman]

The right hon. Lady makes an important point. Bus priority measures are indeed important; they are part of the range of measures available to local authorities when they are looking at how buses can be facilitated in their area and how to work with other traffic to make the best and most efficient use of road space.

The case for the Bill is clear, and the Select Committee welcomes it. We are pleased that it has come forward and very much welcome its comprehensive nature. Many of our communities suffer inadequate bus services. The existing regulatory framework is not fit for purpose, and previous efforts to restore it have not been comprehensive enough and have not been successful. The Bill makes important strides towards supporting bus networks throughout England, but more must be done to ensure that local communities and transport authorities have the information and powers that they need to provide effective bus services. This time, we must get it right. It is clear that we cannot afford another squandered opportunity for reform. I support the Bill, and it is supported by the Transport Committee.

--- Later in debate ---

[Andrew Jones]

I would be very happy to provide clarification. Throughout the development of the policies, we have been looking to protect workers who transfer in that way. We have put that right at the heart of our discussions in policy development, and I am happy to share that information with the hon. Gentleman and any other interested colleague.

Several hon. Members asked about this, so let me confirm once more that the decision about whether a case to proceed with franchising is compelling is entirely for the Mayor. We should perhaps thank the right hon. Member for Leigh (Andy Burnham) for sharing the news that he is a mayoral candidate—I do not think anybody knew that until today.

Hon. Members have talked about the guidance for consultations. Some guidance for mayoral combined authorities on establishing a case for franchising has been published, but let me be clear that it is still the Mayor who will take the decision. Our guidance merely aims to assist mayoral combined authorities in establishing a well-evidenced case—that is an important point.

Several colleagues asked what such a case might comprise, so let me add a little detail. We have a number of criteria that we would expect authorities that may be able to apply for franchising powers to demonstrate: that the authority has a clear plan to make bus services better for passengers; that the authority covers an area that is sufficiently wide to make franchising work in practice; that the authority has the powers to make franchising a success, which might mean control over parking or planning policy; that the authority has sufficiently strong governance arrangements in place; and that the authority has the resources and funding to deliver franchising successfully. Those are some of the criteria we will consider when looking, case by case, at which authorities will be able to apply for and secure franchising.

[Mrs Ellman]

Will the hon. Gentleman confirm that Ministers will look on such applications in a positive light, rather than looking at the case made with a view to rejecting it?

[Andrew Jones]

I can confirm that. Our approach will be one of glass half full rather than glass half empty. We are not trying to get in the way of authorities or others that wish to improve their bus services. The whole point of the Bill is to provide a suite of enabling powers so that authorities can do what is right for their area to put more passengers on buses and provide better networks. We will certainly view all conversations positively.

As my right hon. Friend the Secretary of State made clear, benefits for passengers will need to be at the heart of any authority’s application for franchising powers. Governance, geography and evidence will be critical if authorities are to apply successfully for franchising status. I do not agree with colleagues, including the hon. Members for Middlesbrough (Andy McDonald) and for Nottingham South (Lilian Greenwood), who believe that bus franchising powers should be available to all authorities throughout England automatically.

My right hon. Friend the Member for Chipping Barnet (Mrs Villiers) recognised the very real risks to investment by bus operators that will be created if franchising powers are made automatically available to all local authorities, and the chilling effect that that might have on operators and bus manufacturers such as Wrightbus. I am aware of the quality of that business’s products. My right hon. Friend made her point clearly, drawing on her experience. I agree with the concerns highlighted, which is one reason why we will seek to reverse the changes made in the other place.

I assure my right hon. Friend the Member for Chipping Barnet that, as my hon. Friend the Member for Bolton West recognised, the Bill requires franchising authorities to consider how, in conducting their procurement process for franchising contracts, they will facilitate the involvement of small and medium-sized operators. We—and, I hope, every directly elected Mayor—want to ensure that such operators thrive if franchising is implemented. We have made that clear in the Bill.

I have been interested to hear the range of views about municipal bus companies. I agree with the hon. Member for Nottingham South and others who highlighted that those that have survived deliver great services to their passengers. I believe that there are seven municipal bus companies in England, and I saw one for myself yesterday on a visit to Reading. However, on the whole, private sector bus operators have delivered our local bus services for the past 30 years. We want to ensure that we strike the right balance, with commercial operators continuing to innovate and deliver good services for passengers.

The Bill provides local authorities with substantially more opportunities to influence the provision of local bus services in their area, whether through partnerships or franchising, and we are therefore still of the view that commissioning and the provision of services should be kept separate.

Many colleagues asked about rural services. Through franchising and partnership, the Bill will work for every area of the country—urban and rural. I assure my hon. Friend the Member for North Warwickshire (Craig Tracey), who is a great champion of rural bus services, that the Bill’s partnership powers allow local authorities to work with operators to improve the co-ordination of services, for example to link bus and rail services more closely. A good example of that is under way in Cornwall, which is already working in partnership with operators to ensure that rural areas have bus links to key shopping or employment centres at the right times of day. That is a positive development, which already uses the powers in the Bill. The local operator has invested in its fleet and increased its profitability and patronage in the area.

Several authorities are also planning bus services alongside community transport services and other types of transport, such as home-to-school or patient transport, so that rural connectivity is maximised. That is the sort of innovation that we need across the country and that we are encouraging through our Total Transport pilot scheme, to which the hon. Member for Nottingham South referred. The Government are a strong supporter of community transport.

My hon. Friend the Member for Somerton and Frome (David Warburton) was right to highlight clause 19. When routes are withdrawn, such as the 116 that my hon. Friend the Member for North Warwickshire mentioned, we want local authorities to have the information they need to decide whether and how to provide replacement services. That is exactly what clause 19 aims to achieve.

I do not agree with the hon. Member for Liverpool, Riverside that bus routes should be designated as assets of community value. As the Government explained in our response to the Select Committee report, that would force operators to continue to operate a service for six months, potentially at huge cost, which could act as a disincentive for operators improving or maintaining services, especially in rural areas.

I should like to challenge the myth, which has been perpetrated in the debate by some colleagues, that bus services were flourishing before deregulation in the 1980s and that the decrease in bus passengers started at deregulation. I have gone back and looked at the data. In the 30 years between 1955 and 1985—30 years prior to deregulation—the number of passenger journeys on local bus services in Great Britain fell on average by 2% a year. Since deregulation, the fall has gradually reduced, at an average of just 0.2% a year. The number of passenger journeys fell from 15.5 billion in 1955 to 5.5 billion in 1985. One thing has been clear in the debate: all hon. Members want that trend reversed and for passenger numbers to increase.

Many colleagues mentioned buses and air quality. I have absolutely no doubt that buses can be a critical ingredient to improving an area’s air quality. As parts of a partnership or franchising area, authorities will be able to specify the emission standards of vehicles. In fact, the Government introduced amendments in the other place to make that clearer. We have supported and will continue to support bus companies with grants to encourage the take-up of low-emission vehicles. Low- emission buses are critical to putting in place good integrated transport systems with low emissions.

The hon. Member for Liverpool, Riverside mentioned the Traffic Management Act 2004. I agree that congestion is a problem that has an adverse impact on local bus services. However, the Government and I remain to be convinced about the case for giving all authorities the powers to install a raft of new cameras on yellow box junctions or elsewhere. In the past few days, I received a letter from a councillor who said that doing that would be a great idea because it would help with council revenue collection, which was exactly what we did not want to hear.

My hon. Friend the Member for Bath asked about tourist buses. As far as I am aware, any arrangements that are already in place can continue unchanged, but I will check that and write to him to confirm it.

We have covered many issues, but I am sure that my speech from the Dispatch Box and hon. Members’ comments have touched on only some of the issues that we will cover in Committee, which I look forward to. The Bill enables improvements where they are needed. It has also been clear from the speeches made by colleagues on both sides of the House that they have been thinking about how the new powers in the Bill will be used to improve services in their areas, which is great and exactly what we want.

The bus industry has made huge strides in making the experience of bus travel more attractive. Many buses have free wi-fi, as well as CCTV and USB charging points. The vast majority of buses are now accessible.

Last year, more than 4.65 billion bus passenger journeys were taken in this country, which was three times as many journeys as on the entire rail network. Buses are as relevant now as they have ever been. I see them playing a very important part in all our transport futures. All good public transport systems will have buses at their heart. There is no shortage of energy, effort and investment in the sector to support a growing bus industry. The purpose of the Bill is to continue that great work to the benefit of bus passengers, and I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

BUS SERVICES BILL [LORDS] (PROGRAMME)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Bus Services Bill [Lords]:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 21 March 2017.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill (including any proceedings on consideration of any message from the Lords) may be programmed.—(Andrew Griffiths.)

Question agreed to.

BUS SERVICES BILL [LORDS] (MONEY)

Queen’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Bus Services Bill [Lords], it is expedient to authorise:

(1) the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under any other Act out of money so provided; and

(2) the payment of sums into the Consolidated Fund.—(Andrew Griffiths.)

Question agreed to.

Business of the House (7 March)

Ordered,

That, at the sitting on Tuesday 7 March, the following shall apply to proceedings on the motion in the name of the Prime Minister relating to the Chair of the UK Statistics Authority and on the motion in the name of Mr David Lidington relating to Standing Orders (Public Business)—

(1) proceedings on each motion may be entered upon at any hour and may continue, though opposed, for one hour;

(2) the Speaker shall put the Questions necessary to dispose of each motion not later than one hour after the commencement of proceedings on that motion;

(3) such Questions shall include the Questions on any Amendments selected by the Speaker which may then be moved; and

(4) Standing Order No. 41A (Deferred divisions) shall not apply.—(Michael Ellis.)

Use of Welsh Language in Parliamentary Proceedings

Resolved,

That this House—

(1) notes the Fourth Report of the Procedure Committee, HC 816, on Use of the Welsh language in the Welsh Grand Committee at Westminster, which builds on more than twenty years of use of the Welsh language in parliamentary proceedings in Wales and at Westminster;

(2) resolves that:—

(a) whilst English is and should remain the language of this House, the use of Welsh be permitted in parliamentary proceedings of Select Committees and of the Welsh Grand Committee held in Wales and at Westminster;

(b) reasonable notice, as determined by the Chair of the relevant committee, shall be given in advance of any proposed use of the Welsh language so as to allow the necessary arrangements to be made;

(c) the Chair shall have power to insist that points of order are made in English; and

(d) the Official Report shall record contributions made in the Welsh language together with their English translation; and

(3) accordingly rescinds the Resolution of 5 June 1996 (Language of Parliamentary Proceedings).—(Michael Ellis.)