Richard Drax
Main Page: Richard Drax (Conservative - South Dorset)Department Debates - View all Richard Drax's debates with the Department for Transport
Rural Bus Services
Richard Drax Excerpts(10 years, 7 months ago)
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Richard Drax (South Dorset) (Con)
We have had green bins in Gloucestershire; perhaps we can have green buses in Dorset.
It is a fact that rural bus services in my constituency are under great pressure, as they are across the country. In urban areas, bus services will continue for as long as demand and passenger numbers ensure their viability, which is highly likely to be the case. Operational costs in those areas are met entirely by revenue, and operators receive no financial support from local authorities. However, out in the sticks, where a lot of my constituency is, there is no commercial incentive to maintain rural bus routes, many of which are underused. Instead, local authorities run so-called tendered services, which form about 20% of the market. Those are mandatory services, providing transport for the old, the disabled, the vulnerable and of course our schoolchildren. They also include buses to isolated communities, rarely used routes and early morning and late night services.
Until recently, those services were tendered for and provided by bus companies. Now, as part of the Government’s localism agenda, local authorities run them. The changes came into effect on 6 April, after which Dorset county council cut just under £1 million from its bus budget of £2.8 million. Consequently, 38 routes have changed, 12 Saturday services have been removed and 10 bus routes have been withdrawn completely, while 39 bus services have remained untouched. It was a difficult exercise for the county council, whose budget has been cut by a third—about £100 million. To its credit, it consulted widely on the changes and proposals were drawn up based on surveys of passenger numbers, to which 1,200 responses were received. The result was that services during the week were reduced to ensure that communities continued to have Saturday services. Dorset county council is also investing £25,000 to help community transport schemes tackle the problem of rural isolation, and it continues to invest almost £2 million a year in bus services.
As I have said, however, savings are beginning to take their toll on rural bus services, which are a lifeline for many of my constituents and others around the country. For example, the No. 103 bus service from Bovington and Wool to Dorchester now runs only once a week on market day, allowing barely two hours in the town. We will all agree that that is too short for shopping, and certainly too short for any appointments.
When cuts are made, evening and Sunday buses go first, and of course, it does not make commercial sense for operators to put on a day service if there is no bus to return on. Go South Coast in Dorset is currently providing a number of services at a loss in an attempt to retain the integrity of its network, but as it says, that situation obviously cannot go on for ever.
A critical player in this whole issue is the bus services operator grant, or BSOG, which sounds a bit like a sort of underground warthog. Since 1966, bus companies have been able to claim back that fuel duty, which in turn has held down passenger fares. Nationally, that amounts to £350 million per year, which the 2002 Commission for Integrated Transport described as
“outstanding outcomes for very little cost.”
Over the years BSOG has been reduced by 30%, and not just by this Government, and with local authorities now funding bus services, less money is available for the commercial operator. As I understand it, BSOG is ring-fenced only until 2017. Operators in South Dorset are warning that any further cuts will inevitably lead to service reductions right across the bus network.
Guy Opperman (Hexham) (Con)
I congratulate my hon. Friend on securing this important debate, and I endorse his comments. Like him, I have constituents, whether in Greenhead or Gilsland, who currently have no bus service. Is it incumbent on our county councils to prioritise rural bus services, because without them our constituents are literally left high and dry, and incumbent on us to support innovative schemes such as catch the bus week, which is this week? I have been proud to support that scheme, and I believe it is a good innovation that supports bus services, particularly in rural areas.
Richard Drax
I thank my hon. Friend for his wise intervention and I agree with both the points he makes. However, although his efforts to provide some form of service are to be highly praised, such a service does not necessarily fit in with the right timings to get people to or from work, for example. In Wool, the Share and Care system has been set up mainly by retired people. Some 50 drivers provide a service, at a price of about 40p a mile, for those who are stuck at home and need to get to the doctor or to hospital, or to go shopping and do all the everyday things that people in rural communities need to do. That is, one could say, the community in action, which is to be applauded, but it is slightly regrettable that such a basic service as a rural community bus must be provided almost through charity. As I say, however, I applaud the initiative.
Jim Shannon (Strangford) (DUP)
In Northern Ireland the Rural Community Network scheme provides Government grant aid and assistance through the Northern Ireland Assembly to enable those who live in rural areas or are isolated, such as elderly or disabled people or those who do not have cars, to get transport to where they need to go, such as their GPs, doctors or shops, at a price they can afford. Perhaps the hon. Gentleman and the Minister will consider that scheme, which enables people in the countryside to access transport.
Richard Drax
I applaud the scheme in Northern Ireland. The Minister will no doubt have heard the hon. Gentleman’s point and perhaps he will comment on it.
Another pressure on rural bus services is the concessionary bus pass. Government statistics show that 30% of all bus journeys are now made using this pass. Free off-peak bus passes for pensioners are welcome, but they skew the economics of bus networks in rural areas. For example, in Dorset operators are dealing with record numbers of pass holders enjoying our stunning countryside and coastline. Up to 20 million people visit Dorset, many of them on buses. It is a tourist destination. The original idea of the pass was to ensure that bus companies are not better or worse off. However, reimbursement is paid on the basis that without concessionary journeys, fewer would have been made. Dare I say it, that is slightly illogical in a business sense, although any money is gratefully accepted. The rebate is about a third of the cost of a ticket, which clearly disadvantages the bus company and the local taxpayer. Inevitably, it means that operators are left struggling to fund services, not least in rural areas such as my constituency.
The Government recognise the value of the national network, and the “Green Light for Better Buses” agenda is intended to improve local bus services. Some, however, such as the Campaign for Better Transport, worry that 2014 may be the worst year yet for cuts to bus services.
Annette Brooke (Mid Dorset and North Poole) (LD)
I thank my hon. Friend for giving way and I concur with everything he is saying, particularly about the pressure from visitors, who are welcome, on our bus services in one way or another. Does he agree that this has been a particularly bad year? We have villages that are now down to just two bus services a week. Young people want to be able to take up an apprenticeship and travel to our local colleges. There are people who, for whatever reason—perhaps sight impairment—cannot get to work. We are at crisis point in Dorset. We need longer term planning. We cannot go from year to year with people wondering whether they can stay in the village in which they have lived for many years.
Richard Drax
I am grateful for my hon. Friend’s intervention and I agree with her entirely. I wonder whether the Minister will consider the point I was about to make. Obviously, some routes in rural areas are loss-making. When contracts are put out to bus operators, as part of that contract, should they not have to take on board the whole contract and not be allowed, as they currently are, to drop non-profit-making routes? Business plans should be drawn up to take this into account, so that, rather than making x profit the operators make y profit, but essential bus services are retained.
Guy Opperman
I utterly endorse the point about not dumping unpopular routes at the first opportunity. However, does my hon. Friend agree that the way forward is surely to take the London example of an integrated transport system with a single card, the Oyster card, that is interchangeable between different operators—some national, some local—which has the benefit of reducing the cost to the provider and, ultimately, the passenger, and brings down the cost of that transport arrangement? Does he welcome the work that is being done to try to extend that around the country, beyond London?
Richard Drax
I welcome anything along those lines. I agree with my hon. Friend, and I am sure the Minister can expand on that point and say how far such an arrangement has progressed. We welcome any initiative that creates a better and more integrated bus service, not least for those who are stuck out in the sticks.
Tessa Munt (Wells) (LD)
I want to draw the attention of the House and, in particular, the Minister to the fact that in my area someone trying to travel to Taunton from Street in Somerset can get caught out, because different bus companies run different services at different times of the day. That competition means that someone who buys a ticket, unwittingly thinking that they can use it for the return journey to the village from which they came, can find that that is not possible if the service is run by a different company. It is completely ludicrous that people should end up having to buy a new single ticket to return on exactly the same route. Some of the suggestions that my hon. Friend the Member for Hexham (Guy Opperman) made might solve that problem.
Richard Drax
I agree, and I think my hon. Friend has answered her own point: our hon. Friend the Member for Hexham (Guy Opperman) has made some suggestions. I would entirely concur with anything that creates a better, more integrated system that is not as convoluted as she describes.
Local authorities nationwide have already announced savings of almost £20 million. I use the word “savings” rather than “cuts” intentionally, because I accept, as I know the Minister does, that we face difficult times and we are not out of the woods yet—although the economy is showing signs of turning—so we all have to live more reasonably, and certainly within our means. I welcome a lot of what is going on. This country has to learn to live within her means, because clearly we cannot do otherwise. However, I feel that the provision of bus services—better integrated, we hope, as my hon. Friend the Member for Wells (Tessa Munt) has said—will not disappear, and certainly not in my rural Dorset.
Routes to remote parts at the most unsocial hours are the most vulnerable to being lost to savings. In a recent reply to me, Transport Minister Baroness Kramer wrote that
“local transport matters must be determined locally and that the Government’s localism agenda is about giving people the freedom to create effective working partnerships.”
In insisting on a localism agenda, we must ensure that we do not inadvertently starve councils of the resources to provide a proper bus network, especially for the most vulnerable in our society. In rural areas, I would categorise not just the elderly and the sick as “vulnerable”. They include, as my hon. Friend the Member for Mid Dorset and North Poole (Annette Brooke) mentioned—she beat me to the punch—those holding down a job, trying to find work or attending college or university. Just because they live in the countryside, they should not be disadvantaged so far as their future careers, what they want to do and where they want to go are concerned.
Annette Brooke
I thank my hon. Friend for giving way a second time—I will claim first place because I want to mention a Dorset problem. I wonder whether he has experienced the same problem that I have, where parents and students have decided to go to an out-of-catchment school, knowing that there was a bus route, but suddenly the bus service has been terminated. Even for catchment routes, I have got parents and students stranded without a bus or a safe route to school along country lanes. Our problem with the main services has spilt over into providing services that get young people to school and thereby comply with our law and our expectations of young people staying on longer at school.
Richard Drax
Again, I agree with my hon. Friend. I have some experiences in my constituency—I am wandering slightly off the point—where, as I understand it, school children cannot get to school because the school bus will not pick them up, as they are not quite in the catchment area, yet if the bus travelled another mile or so, they would be. Again, this goes back to—[Interruption.] My hon. Friend the Member for Hexham has disappeared.
Neil Parish
I thank my hon. Friend for securing this debate on rural bus services. Does he agree that in some areas where there are very few people, a commercial operation, however much subsidy we give it, is not always likely to work? What we need is some support, even if just for fuel or whatever, for those who can create a transport system, whether charitable or not. At the moment, fuel is very expensive and we do not seem to have any means to help those people to help themselves. We need that help, too.
Richard Drax
I am going to be very naughty now. Perhaps my hon. Friend was not present at the beginning of my speech—
Richard Drax
He was, he was—in which case, I apologise profoundly. I mentioned the bus service operators grant, which is, in effect, a fuel rebate, and which is being gradually reduced. One bus company managing director has told me that if the Government continue to cut the grant, bus services will be even more seriously affected.
Tessa Munt
My hon. Friend mentioned jobs. A number of my constituents who live in Cheddar, Axbridge and Chippenham work in Bristol, which is on the other side of the local authority boundary. When Somerset county council makes decisions about transport, it needs to worry only about the areas that it covers, but some of my constituents will have to give up their jobs because, owing to the one-mile gap between the Somerset and North Somerset bus services, they have no means of travelling to work in Bristol. There are only 10 or 12 of them, but the Government should bear in mind the cost of supporting them in some way with taxpayers’ money because otherwise they cannot reach their workplaces.
Madam Deputy Speaker (Dawn Primarolo)
Order. Before the hon. Gentleman responds, let me say to the House that interventions are becoming speeches: they are becoming very long. Of course Members can speak if they wish, as long as what they say is on the subject of the debate, but I implore those who intervene to follow the normal rules of the House, under which an intervention must be short and must be relevant to the point that is currently being made.
Richard Drax
I assure you, Madam Deputy Speaker, that I too will be very brief.
For all the reasons that I have given, I ask the Minister to consider ring-fencing BSOG beyond 2017 to ensure that the remoter parts of our constituencies continue to be served. Ideally the Government would return BSOG to its earlier levels, although I do not suppose for a minute that that will happen: I suspect that it is wishful thinking, given our current financial circumstances.
Finally, may I ask the Government to consider a fairer way of sharing the financial burden of concessionary travel across the United Kingdom? I am thinking especially of counties such as Dorset, where tourism effectively penalises bus operators. As I said, Dorset is a major tourist attraction, but it suffers a great deal more than other counties that may not attract so many visitors. Our bus companies are, in effect, being paid a third of the price of a ticket.
The overall benefits of buses need hardly be rehearsed. Last year 5 billion journeys were made in the United Kingdom, a fifth of them by commuters. Those benefits, social and economic, are incontrovertible. Residents of rural areas spend between 20% and 30% more on transport than their city counterparts. The need is there, and in some cases it is desperate. Does the Minister not agree that all Governments of all colours have a duty to preserve some form of service—preferably, as many of my colleagues have suggested, a better-integrated service, but at least a service —to support those who live in rural areas? Rural bus services provide a genuine lifeline for many, and, in my humble opinion, we must do all that we can to protect them.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
It is a pleasure to be in the Chamber this evening and I congratulate my hon. Friend the Member for South Dorset (Richard Drax) on securing this debate on rural bus services. I also thank my hon. Friends the Members for Wells (Tessa Munt) and for Mid Dorset and North Poole (Annette Brooke) for their contributions this evening.
I listened carefully to the speech made by my hon. Friend the Member for South Dorset, who is a passionate advocate for his constituents on a number of matters that we have debated. I was particularly interested to listen to his in-depth knowledge of the local bus service and to his view of where issues remain. That was helpful.
My hon. Friend was right to point out, as many people have, that buses play a vital role in our economy. Some 2.2 billion journeys were made on local bus services outside London in the past year and more than half of those who rely on bus services outside London do not have access to a car. Not only in rural areas but in other areas the bus is essential, not only enabling many people to get to work, to education, to the doctor or to hospital but for their quality of life. I accept the case made tonight that for many, particularly in rural areas, the bus is a lifeline, and without it people cannot access essential services, or do a number of the things that people in cities and towns take for granted.
We should note that, overall, satisfaction with bus journeys is high: 88% of passengers are satisfied with their services. As was pointed out, it is not just older people who use buses: under-21s make up a third of bus passengers. However, as a result of the concessionary pass, use among older people is increasing. I will touch on some of the compensation arrangements for that in a moment.
I want to set out how important the Government think buses are. The point about their importance was recently reinforced by a study from Leeds university, which pointed out that bus commuters generate £64 billion of economic output every year, and that one in five bus journeys is for work purposes. I therefore absolutely agree with my hon. Friend the Member for South Dorset that there is an onus on the Government to recognise that bus services are essential. The Government’s continued commitment to expenditure on buses, and to improving bus services, reflects that. This year, we will spend some £1 billion on the concessionary travel entitlement, and some £340 million on direct subsidy. More than £300 million has been allocated to funding major bus projects in the last year, so the Government absolutely recognise the importance of bus services.
Moreover, we have worked with a number of local authorities, through the “Better Bus Areas” fund, to deliver improvements. We have provided £22 million to support community transport, much of it in rural areas. Many bus improvement schemes are funded via the local sustainable transport fund. A total of £95 million has been provided for four rounds of the green bus fund, which has also helped to make environmental improvements. My hon. Friends rightly make the case for their area, and for us to look at further solutions, but I hope that they will recognise that in this spending round, we have protected bus spending until the end of 2015-16, despite the economic chaos that the Government inherited.
I am pleased to say that we have looked at Dorset. Its county council has received some £14.5 million via the local sustainable transport fund. My hon. Friend the Member for South Dorset will know that some of that has funded bus improvements along the Weymouth-Dorchester corridor, which I think goes through Dorset. That money has also resulted in a package of new public transport infrastructure improvements in south-east Dorset.
Improvements have been made, but the Government recognise that more can and must be done. In 2012, our “Green Light for Better Buses” document set out the Government’s plans for the bus industry. The proposals included reforming the bus subsidy, improving competition, incentivising partnership working, looking at multi-operator ticketing, and making access to bus information and ticketing easier for all. We should not underestimate the importance of the ability to access information about services and their regularity as a driver for the continued use of bus services.
There is no doubt that we are in challenging economic times. Government and local authorities have had to make difficult decisions, but the Government want to ensure that the bus market is still attractive to all operators, large and small, urban and rural. The funding that I have mentioned helps to ensure that the market is still attractive. We want to ensure that funding is allocated in a way that is perceptibly fair, while giving the best value for the taxpayer.
My hon. Friend the Member for South Dorset mentioned the bus service operators grant, or BSOG. I would describe it not as a warthog, but as something rather more positive. It is not quite the fatted cow, but it certainly has been paid directly to bus operators in a fairly blunt and untargeted way that relates to fuel consumption. None the less, BSOG was a help in ensuring that services continued to be provided. Some local authorities have told us that they can make the bus subsidy deliver better value for money by working in partnership with operators to grow the bus market. The characteristics of local bus markets vary, so different solutions will be appropriate in different areas, which is why the Government believe that it is for local authorities to decide which route to pursue. This year, £43 million of BSOG funding will be paid directly to local authorities, rather than to bus operators, in relation to the services that councils fund. That will give communities much more control over how that money is spent. As my hon. Friend the Member for South Dorset noted, funding has been ring-fenced until the end of 2016-17, which provides three years of stability and certainty for operators.
My hon. Friend tempted me down the line of committing the Government to reinstate the full value of BSOG in years gone by, and he tempted me down the line of ring-fencing funding post-2017. Although I have heard his entreaty, he will not be surprised to learn that I will not be tempted or, rather, I shall resist that temptation this evening, as it would prejudice the work that we are doing on partnership working, where we are moving forward to deliver better services. It would be wrong, too, to ring-fence any expenditure, and I am sure that the Chancellor would not allow me to do so post-2017. None the less, the funding that has been ring-fenced until the end of 2016-17 provides a period of stability and certainty for operators.
The Government are committed to protecting the national bus travel concession, which is of huge benefit to about 11 million people, allowing free off-peak local travel anywhere in England. The concession provides older and disabled people with greater freedom and independence, as well as a lifeline to their community. It enables access to facilities in the local area, and it helps them to keep in touch with their families. It also provides access to employment for many people who might not otherwise have that opportunity. A number of my hon. Friends have discussed the way in which the Government allocate funding. The Department has set out in clear guidance how local authorities should remunerate local operators, taking account of local circumstances, but my hon. Friends will note that operators can appeal.
The hon. Member for Wells spoke about young people’s travel, which is a complex issue. There is no statutory obligation to provide discounted-price travel to young people, but many commercial and publicly funded reductions are available. It is for local authorities to judge whether that is good value when considering the services they provide for young people in their area. Doubtless, she has made entreaties to her local authority along those lines.
Bus services in rural areas are not just concerned with levels of public funding. Commercial operators provide services in those areas where there are enough passengers, and overall commercial mileage in some rural areas of England has increased. The Government accept that where that is not feasible local authorities have a vital role in supporting rural bus services. About 28% of bus mileage in predominantly rural authorities is operated under contract to local authorities. It is local authorities that are best placed to decide what support to provide in response to local views and need, and in the light of their overall funding priorities, particularly with regard to transport.
Richard Drax
While I have heard every word that the Minister has said—it is all wonderful stuff, and I welcome what the Government are doing—the key issue, certainly for us, is that although councils are trying to provide a bus service, they are so pushed for money that they cannot provide sufficient services at the appropriate times. That means getting people to work at 7 am and back home at 6 pm. The buses leave at 9 am and return at 3 pm: that is one of our major problems.
Stephen Hammond
I understand that problem and have set out the extensive amount of finance and will shortly set out some other solutions for rural areas. I hear what my hon. Friend says, but it is obviously for local authorities to establish demand and to decide how to use Government support. It is vital that authorities maximise the return on every penny of funding, which is why my Department met its commitment to publish revised guidance on best practice when procuring local bus services and other types of road transport for rural passengers, taking into account some of the challenges he mentions. As a result of the guidance, there has been a lot of innovation from councils up and down the country, but there is scope for more. Authorities should highlight and draw upon the good practice to help rural users. Much of what tonight’s speeches have demanded, such as providing a whole range of solutions, is for local authorities. The Government offer support and leadership, but I urge local authorities to consider the best practice.
We have been discussing fixed-route bus services tonight, but there are also community buses, dial-a-ride and other types of demand-responsive transport, such as taxis or the postal taxi mentioned earlier. My Department is undertaking further work to consider how to remove the barriers that prevent such services from operating more effectively. The Minister of State, Department for Transport, my hon. Friend Baroness Kramer, was right to emphasise that while there may be multiple solutions, it will be for local authorities to determine which is the best for them.
In conclusion, the Government believe in buses. Our vision is for a better bus with more of what passengers want, which, whether they are urban or rural, is a punctual, interconnected, greener and more accessible service with greater availability of smart ticketing. We will be considering next year the results of a pilot project in Norfolk that will potentially overcome some of the other ticketing issues that rural people experience. I absolutely accept that there is more to do, but the Government have shown that they accept that there is an onus on them, through the extensive support that they provide, to try to ensure a more competitive and greener bus network that will encourage more passengers, be they urban or rural.
Question put and agreed to.