Bus Services Bill [Lords]

Richard Drax Excerpts

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

[Chris Grayling]

Having parties on both sides for several years has led to partnership agreements and now the Bill will ensure that we have the best possible arrangements for passengers. It is indisputable that the investment from the private sector over a long period has led to the improvements that I described in the bus fleet.

[Richard Drax (South Dorset) (Con)]

I have a note from the chief executive of one of the main bus operators in South Dorset. Although, as private bus operator, he welcomes the Bill, believing that working together is a good idea, he thinks that franchising is a slightly perverse route for a Conservative Government to follow. He states:

“If a franchise model was adopted, this could lead to a future layer of bureaucracy being introduced, and the local authority would be designing the bus network and setting prices.”

Will my right hon. Friend comment on that point?

[Chris Grayling]

The essence of the Bill is that franchising will be available to mayoral authorities automatically, but to deliver change, they will still have to demonstrate that it would benefit passengers. They will have a legal duty to do that, otherwise their decision will be subject to judicial review. Other authorities will have a duty to demonstrate to the Secretary of State that they will transform services to get permission to make a change. Ultimately, the Bill is about the passenger, who has to come first.

Bus networks in England’s six metropolitan areas are estimated to generate £2.5 billion of economic benefits every year. They are a lifeline for many rural communities, which I will talk about shortly.

Let me make it very clear: the Bill does not introduce wholesale re-regulation of the bus market. It is not a return to a pre-1986 world of local councils running bus services. Private operators will continue to dominate the bus market. They will still deliver services, whether through the current arrangements, improved partnerships or franchising. The aim of the Bill is to increase bus passenger numbers and to improve bus services by giving local authorities and operators new options. The Bill builds on existing partnership powers, making them more attractive and easier to use, and introduces new, enhanced partnership scheme powers, which will enable local authorities to work with bus operators and introduce a set of standards for bus services in their areas. They both operate in a deregulated environment where commercial operators can make decisions about where and when buses run.

The Bill also refreshes bus franchising powers, honours our devolution deal commitments and recognises the successes of the franchising model that was introduced for London in 1984. One of those successes is the easy access that London bus passengers have to information about their bus services, with over 500 smartphone apps available. The Bill will make it easier for passengers throughout England to get such information on timetables, fares and routes. That is particularly valuable in rural areas where bus services may be less frequent.

--- Later in debate ---

[Chris Grayling]

I suspect that none of us knows the name of any Lib Dem mayoral candidate in any part of the country. That certainly unites us today. On Andy Street and Birmingham, I would say that Birmingham is a great city that would really benefit from the wisdom and expertise of an experienced business leader, rather than a failed Labour MP.

[Richard Drax]

I thank the Secretary of State for giving way to me one more time, and I hope he will forgive me for butting in on his eloquent address, but I have to go to a Committee in 10 minutes. My bus operator is concerned that, if in the franchise modelling the revenue is reduced, there is a risk that the shortfall will be made up from other means that will affect the local taxpayer and business rates payer.

[Chris Grayling]

This is the essential point. We have to ensure both public and private funding for buses. Those who seek to make a change need to understand the impact and be certain that they will bring improvements to passengers. There is sometimes a dogma and ideology that assumes that greater state control means a better service, but often a lack of private sector investment means nothing happens at all—so it is the other way around.