Bus Services Bill [Lords]

Debate between Robert Jenrick and Graham Stringer

3rd reading: House of Commons & Report stage: House of Commons
Monday 27th March 2017 Commons Chamber

[Robert Jenrick (Newark) (Con)]

I have listened with interest to the hon. Gentleman’s comments on small and medium-sized bus companies, and there is a lot of truth in what he says about the smallest bus companies, but does he agree that the greatest concern is for medium-sized operators? There are not many medium-sized companies in the country, but there are some in counties such as mine, Nottinghamshire, and neighbouring Derbyshire: Marshalls of Sutton on Trent and trentbarton —which the hon. Member for Nottingham South (Lilian Greenwood) will be familiar with—are good medium-sized bus companies and they stand to lose a lot from this. They will grow exponentially if they win a franchise or, in the case of either of those companies, they could find 30 years of hard work going down the toilet with no compensation whatsoever.

[Graham Stringer]

The hon. Gentleman makes a fair point, and I will come on to it. He is right to be concerned about that, but I want to develop the logic of the argument that I am making as to why these are not sensible amendments. In large parts of the country, where most bus passengers are, we do not have competition. The basis of the Transport Act 1985 was that there would be on-the-road competition and that would provide good services, and if bus companies lost out because of on-the-road competition, they lost out as in any other capitalist-competitive market situation. That has not happened, however; we have moved to monopoly.

Incidentally, when the 1985 Act was implemented in 1986 no compensation was paid to those bus companies—of which there were a number—running on regulated routes. Mayne in east Manchester, for instance, had run for many years in that area; when it had to compete, it did not get compensation.

We are now moving—through principled objectives, in a different way—to a competitive system, in those areas that choose that, because there will be choices for Norfolk, Greater Manchester and other areas at some stage. As with rail franchising, in a competitive situation, when a company loses out, it loses its business, even if it has invested in it previously. In fact, one of the difficulties with franchising is that we end up with investment up front and a lack of investment at the end; that is just the nature of franchising.

On the point made by the hon. Member for Newark (Robert Jenrick) about medium-sized bus companies, that can of course be taken into account in the way that franchises are set up, by local choice. Areas can set them up in as many different ways as they wish, so medium-sized companies could be given the right to tender for routes that fit the size of the company if that was what the franchising authority wanted to do.

That brings me to a point I made in Committee, and which was rejected. Rather than the amendments we have here, I would have preferred the Bill to say that the regulations should not be overly burdensome and that they should reflect local conditions. If they were reflecting local conditions, they could take into account those small and medium-sized companies. There is a large point here, however, and, as my right hon. Friend the Member for Leigh said, the large companies would be more pleased than the small bus companies if these amendments were passed.

There is not a single quality contract in this country, and that is because when they were brought in under the Transport Act 2000, it contained a clause that is very similar to measures here, saying that they are the only practical way of delivering a better bus service. That is an incredibly high hurdle to jump, which is why there are no such contracts. Quality partnerships were referred to; I asked the Minister in Committee how many of them there were in the country, and, after a little help from the officials, we discovered that there were 10. So even quality partnerships are not abundant on the ground in this country. We do not need overly burdensome regulations. We want to make this work because it will improve the service for passengers, be more competitive and lead to better services.

We are not discussing them now, but there are huge guidance notes associated with this Bill, which I think tend to be overly prescriptive. I prefer to rely on the good sense of local councillors; they will make some good decisions and some bad decisions, but there are many bus companies with vested interests who are opposed to this, and if local authorities behave in an unreasonable way, they have the right to apply the Wednesbury principle and go for judicial review.

Rather than having lots of prescriptions, and putting ever more hurdles in the way of locally elected people making decisions, we should rely on their good sense. Sometimes they will get it wrong, as sometimes national politicians in Governments and Cabinets get things wrong, but we can rely on them and the common law, which will ensure that if bus companies feel that they are being unfairly treated and that transport authorities are behaving in an unreasonable way, they can take that to court.

So I hope the Minister will reject these amendments. We have held in the balance throughout our discussions the question of what is central and what is going to help local authorities, transport authorities and elected mayors to make these decisions, and these amendments do not help move us towards having a better local transport system.

Regional Support for the Arts

Debate between Robert Jenrick and Graham Stringer

Wednesday 15th July 2015 Westminster Hall

[Graham Stringer (Blackley and Broughton) (Lab)]

The hon. Gentleman is making a well-balanced and polite speech, but perhaps we should put some sharpness into the debate. Does he agree that it is completely unacceptable that the Arts Council spends £1 out of every £2 in London? Even with the lottery-funded support for the arts, £1 in every £3 is spent in London. That is not only unfair, but damages access to the arts for people in regional cities, such as Manchester, and their economies. Does he agree that that imbalance is intolerable?

[Robert Jenrick]

The hon. Gentleman makes a good point. I agree that it is intolerable; it has been for a long time. If there is a growing consensus that we want to redistribute and realign ourselves, to increase the strength and economic vibrancy of our regional cities, then the issue has come of age.

My final point is that regardless of how we distribute the available cash, if we are moving into an era of diminishing Government support for the arts—I do not think this is a party political point—we need to step back and assess how our organisations can adapt and thrive in that new climate. Is it not time for a new strategy for the arts in the regions and for our national institutions? One has only to look to the United States to see some institutions that have survived and thrived with diminished state support. Museums forced to rely on wider public support are inevitably better at outreach, education and community engagement. As the Financial Times noted the other day, the Metropolitan Museum of Art’s YouTube channel has had more than 15 million views. The National Gallery’s channel has had just 600,000 views. American institutions are dramatically better at and more proactive in fundraising, and their Government provide better incentives to give.

Some US institutions embrace more controversial means of operating, such as de-accessioning works of art that will never go on public display, that are duplicates of those already on display or that are of little merit to the public. Those decisions are difficult and mistakes can be made. We have seen some unfortunate examples in the UK recently that have given the idea a bad name, but we need to challenge our institutions to consider such opportunities responsibly, as some other great institutions do, including the Metropolitan Museum of Art. The Government could consider through a review how we might use some of the funding opportunities used by others.

I have spoken to UK museums that would give up their dependence on subsidy and set themselves free from the shackles of the state—believing it easier to raise money from private philanthropy if they did—were the state to do something radical, such as guarantee a bond or gilts to provide them with income or endowments. I return to the example of the Metropolitan Museum of Art, which issued a $250 million bond in January to fund future development. It was given a triple A rating by Moody’s.

The point is that we have a 19th-century view of how to run museums and galleries that just about worked when the state supported them reasonably generously. If those days are over, perhaps we should consider radical options so as to be on the front foot, rather than allowing the institutions to diminish slowly.

The scale of the challenge requires a new approach and strategy for the arts, rather as it did when Jennie Lee produced her original White Paper as the first Arts Minister, but with different, often uncomfortable answers in the 21st century. There are three central questions for this Parliament. First, how can we ensure that the value of the arts in general, whether in London or beyond, is recognised by the Government in future spending decisions and seen as an integral part of our strategy for sustained economic growth, particularly in the regions?

Secondly, with the funding that is or will be available, how can we dramatically and swiftly correct the imbalance between London and the regions to create a one nation cultural policy that places at the heart of what we do access to the arts for economic development, education and wellbeing? Lastly, how can we support, assist and incentivise arts organisations to move with confidence into an era when central Government support is likely to be increasingly limited, but the public appetite for and value of their work, and therefore the opportunities, are growing exponentially?