Bus Services Bill [HL] Consideration of Commons Amendments 3.47
pm Motion on Amendment 1 Moved by Lord Ahmad of
Wimbledon That this House agrees with the
Commons in their Amendment 1. 1: Clause 1, page 2, line 43, leave
out from beginning to end of line 4 on page 3 The Parliamentary
Under-Secretary of State,...Request free
trial
Bus Services Bill [HL]
Consideration of Commons Amendments
3.47 pm
Motion on Amendment 1
Moved by
1: Clause 1, page 2, line 43, leave out from beginning to end of
line 4 on page 3
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The Parliamentary Under-Secretary of State, Department for
Transport (Lord Ahmad of Wimbledon) (Con)
My Lords, it will also be convenient at this time to speak
to Amendments 2 to 4, Amendment 6, Amendments 12 and 13,
Amendments 15 to 19 and Amendments 21 to 23. These
amendments cover a range of issues demonstrating the
variety of important topics debated during the passage of
this Bill through both Houses. I know that all noble Lords
will agree that bus passengers should be at the heart of
this Bill. Its provisions will enable improvements to bus
services where they are needed, and help grow passenger
numbers. By working together, local authorities and
operators can tackle key transport issues such as pollution
and congestion. They can support local businesses and help
drive the local economy.
I recognise that congestion in particular can have a major
impact on local bus services. This brings me on to
Amendment 1, which relates to powers to enforce moving
traffic offences. The other place debated the changes made
to the Bill by this House, which confer powers to enforce
moving traffic offences such as those in yellow box
junctions on authorities that have established an advance
quality partnership scheme. However, it was recognised that
Part 6 of the Traffic Management Act 2004 already provides
the Secretary of State with the ability to confer powers to
enforce moving traffic offences on authorities. It was also
further acknowledged that local authorities already had the
ability to address issues of congestion, be that through
using new infrastructure measures or technological
solutions or by enforcing moving traffic offences in bus
lanes. Additionally, through franchising and partnership
schemes local authorities and bus operators will be able to
further work together to address local congestion in a more
targeted way.
A key concern remains that such powers could be misused to
generate revenue for local authorities rather than for
traffic management purposes. Instead, we shall be
encouraging local authorities and bus operators to use the
powers in the Bill to develop local solutions to local
congestion pinch points.
Amendments 2, 6 and 15 respond to what I know were
well-intentioned moves by this House to seek the greater
use of low-emission buses. We are all in agreement that we
should encourage these sorts of behaviours. Following early
discussions in this House, the Government set it out
explicitly in the Bill that emissions standards may be
included as part of both franchising and partnership
schemes. However, I believe that the Bill needs to strike
the right balance between giving authorities the right
tools for the job and being overly prescriptive about how
improvements are to be achieved. There is a real danger
that requiring all new buses used to deliver services as
part of a partnership or franchising scheme that come into
service after 1 April 2019 to be low emission would simply
mean that bus schemes could become prohibitively expensive,
with the real risk of authorities being unlikely to pursue
these schemes at all. This could lead to less bus use and,
with that, worse environmental outcomes than would have
been achieved without these provisions. I hope that my
further explanation as to why we have taken the approach
that we have to these subjects will mean that noble Lords
can support the current Motion.
I turn now to Amendments 16 to 18 on the open data
provisions. There has been a positive welcome to Clause 18,
which will facilitate the provision to passengers of
information about timetables, fares, routes and tickets,
and live information. Since the Bill was last in this
place, my officials have held workshops to develop further
the practical delivery of these provisions. Stakeholders
have stressed the importance of two existing datasets that
are currently maintained by local authorities which
accurately and uniquely describe and locate all bus stops
in a common format. These datasets are vital to the
production of meaningful journey-planning information for
passengers. However, they are currently maintained by local
authorities on a voluntary basis. These amendments simply
ensure that if it becomes necessary, regulations could be
made that require local transport authorities to provide
information other than in the context of franchising, and
information about stopping places to be provided by local
transport authorities or operators.
I turn now to those who work for local bus companies. In
this House we quite rightly had a great deal of debate
about the importance of consultation in relation to bus
partnership and franchising schemes and who must be
consulted. The Government accepted and were happy to
include Transport Focus and the national park authorities
as statutory consultees. Special thanks must go to the
noble Lord, , who is not in his
place this afternoon, for his passionate advocacy of the
latter’s importance.
We also introduced amendments to require authorities to
consult employee representatives about proposed franchising
schemes. The noble Lord, , provided helpful
input to our thinking on this matter. I completely
understand the need for employee representatives to be
consulted on franchising schemes, as those proposals could
have a direct impact on bus industry employees in such an
area. Following a debate in the other place, it was agreed
that some of the potential duplications in the Bill
relating to the consultation of employee representatives
and trade unions on franchising schemes should be
clarified. This is reflected in Amendments 12 and 13. It
was also felt that authorities should have greater freedom
on who to consult in relation to the advanced quality
partnership schemes than had been provided for in the Lords
text. This is reflected in Amendments 3 and 4. The Bill,
therefore, now provides for an authority to be required to
consult employee representatives on franchising schemes,
and it may choose to do so for partnership schemes should
it consider that appropriate.
Finally, this group contains Amendments 19 and 21 to 23,
which address housekeeping matters and remove the privilege
amendment. The latter is a procedural technicality. I hope
noble Lords feel that I have given the variety of topics
justice here and will agree to support the Motion to
approve these Commons amendments.
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(LD)
My Lords, throughout its passage, the Liberal Democrats
have supported the principles behind the Bill and we
believe that it is a long overdue response to a fairly
chaotic situation with bus services in many parts of the
country outside London. Indeed, while we have been debating
the Bill, the number of bus services and miles covered by
those services throughout England outside London has
reduced significantly as the number of local authorities’
subsidised routes has reduced and some bus companies have
ceased to function. There is a desperate need to do
something and we agree with the general tenor of the Bill.
We would have wished to make the Bill more radical, as I
have made clear on a number of occasions. We would have
wanted more devolution and powers to local authorities,
more action to assist disabled passengers, more measures to
protect the environment and the health of our citizens and
more consultation. Indeed, some of our amendments were
accepted and have remained in the Bill throughout the
Commons process, but not all of them. I am disappointed
that so many were removed.
However, we are grateful that in this group there are
government amendments to clarify the role and independence
of auditors. The first amendment in the group was put
forward by my noble friend in relation to
giving local authorities powers over moving traffic
offences. The Minister said just now that the Government
feared that local authorities would use that power simply
to make money. That is a fairly flimsy excuse for rejecting
the idea because it would be so easy for the Government to
produce an amendment that restricted local authorities’
ability to do that. That could have been dealt with within
the regulations that will flow from the Bill or within the
Bill itself.
In relation to the Minister’s comments on emissions and the
speed with which we can replace bus fleets, London is of
course well under way with the process, as are several
other local authorities and cities. The technology is
there. The alternative fuels are there. It is the
Government’s role to at least push businesses into
operating in the most environmentally friendly way. On bus
emissions, of course there is the pressing issue of the
health of our citizens. The Government are only too aware,
despite their failure yesterday to produce a plan to
address this issue, of the need for urgent action on this.
Not only am I disappointed that the Government failed to
meet the legal timetable for producing a response on air
quality in general, I am disappointed that they have taken
the view on this particular Bill that there does not need
to be a stronger government steer on the issue of emissions
from bus services.
I support the Government’s changes on the provision of
data. That is very important. Evidence shows that many
people are deterred from becoming bus passengers because of
a lack of knowledge and information about where the bus
stops and how they pay for a ticket. How one pays for a
ticket can vary from one local authority area to another.
That kind of information can be so easily supplied and the
Government have rightly emphasised that in the Bill. We
support that.
Having said all that, we are grateful for the hearing the
Minister gave us and for the way many organisations
involved in bus services across Britain engaged in the
process of the Bill so we could use and harness their
knowledge and expertise, which has helped. My final point
is that we shall not seek to oppose the changes made in the
Commons, but we accept them with some sadness.
4.00 pm
-
(LD)
My Lords, I thank the Minister for listening to and taking
away the concerns I raised with my noble friend 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.
-
(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.
-
(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 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.
-
My Lords, first, I thank all noble Lords for participating
in this short debate and for the broad support for the
Bill. Indeed, that was quite clear during its passage
through your Lordships’ House. Particularly on the issue of
data sharing, I thank both the noble Lord, Lord Kennedy,
and the noble Baroness, Lady Randerson, for their evident
welcome for data sharing, which we all believe is a
positive step forward. On the issue of emissions, I suggest
that this is not a low priority given that quite specific
reference is made to it in the provisions in the Bill.
Indeed, local authorities can specify this element in any
proposals they make when procuring bus services.
Finally, the noble Lord, , talked about me
being cut down at the knees. When you stand at only about
five feet six you are quite protective of your knees anyway
so any further cutting down is not welcome. I assure the
noble Lord that the sentiments of your Lordships’ House
were fully expressed and I challenge the assumption that
employee representatives are not being consulted. On the
contrary, they will be. I suggest to the noble Lord that
trade unions are an important employee representative. Of
course, trade unions fall within the scope of what an
employee representative body is, so in that sense I
disagree with him. In saying all that, I again welcome the
contributions that were made during the passage of the Bill
and the broad support for the proposed Commons amendments.
Motion agreed.
Motion on Amendments 2 to 4
Moved by
2: Clause 1, page 4, leave out lines 37 to 42
3: Clause 1, page 6, leave out line 1
4: Clause 1, page 6, leave out lines 8 to 16
Motion agreed.
Motion on Amendment 5
Moved by
5: Clause 4, page 15, line 11, at end insert—
“But each of paragraphs (b) to (f) has effect only if the
Secretary of State by regulations so provides.”
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My Lords, I will also speak to Amendments 7 to 11. Bus
franchising has received a great deal of attention both in
your Lordships’ House and in the other place, as well as
across the country. In particular, there has been
discussion about which local authorities in England should
be able to access the franchising powers within the Bill.
It was felt in your Lordships’ House that in the spirit of
fairness, all local authorities should have automatic
access to these powers regardless of whether a local
authority is serious in its intent to franchise and without
any consideration of its suitability to take franchising
forward. Moving to franchising is a serious step and should
not be undertaken lightly. That is why Amendments 5 and 7
are so important. During the debate in the other place,
there was significant concern that the ability of any local
authority to move to franchising at any time would lead to
operators across England thinking twice about their
investment decisions, thus reducing the quality and
attractiveness of local bus services. Given this risk, it
was agreed that automatic access to franchising powers
should be available only to mayoral combined authorities.
I am sure that noble Lords who wish to see franchising
happen want it to be successful, as indeed we all do. We
want to ensure that franchising powers can be made
available to authorities which have the ability, powers
and, most importantly, the financial capacity to make a
success of franchising where that franchising will benefit
passengers. Combined authorities with mayors, when
established, will provide clear, centralised
decision-making for transport across a relatively wide
local area, such as a city region. However, let me stress
that other areas should also be able to access franchising
powers where they are well placed to make franchising a
success and have a clear plan to benefit passengers. These
amendments enable other authorities to apply to the
Secretary of State to access the powers.
Let me be clear: the Secretary of State will not take the
final decision on whether franchising proceeds in those
areas. That will be a local decision. The Bill sets out
clearly the process that any authority needs to follow
before the mayor or a named individual such as a council
leader can take the decision to move to franchising. This
refresh of bus franchising powers honours our devolution
deal commitments. Included in this process is the
development of an assessment of the proposed franchising
scheme—essentially a business case. Within this assessment,
the authority would need to consider value for money and
the affordability of the proposal.
Amendments 8 to 11 clarify further the independence of the
auditor—a point we covered briefly in the previous
debate—that a franchising authority is required to use to
produce a report on certain aspects of its proposed scheme.
This report must set out whether, in the opinion of the
auditor, the authority has relied on information of
sufficient quality in its assessment as well as whether its
analysis is of sufficient quality.
4.15 pm
There was particular concern in this House about ensuring the
independence of the auditor employed to do this important work.
Again, I thank the noble Baroness, Lady Scott of Needham Market,
and the noble Lord, . I am pleased that noble
Lords’ concerns have led to these amendments. The Bill now makes
it explicit that the auditor must be independent, and requires
franchising authorities to have regard to guidance issued by the
Secretary of State when selecting their auditors. In addition,
the amendments made in the other place require appointed auditors
to have regard to guidance on the matters to be taken into
account when compiling their reports, to assist them in reaching
a view on the relevant aspects of the authority’s assessment.
Collectively, Amendments 5 and 7 to 11 will help ensure that
franchising is implemented in a way that will deliver better
services and outcomes for passengers and that it will be a
success. I hope noble Lords will agree to the Motion to agree
with the Commons amendments.
-
(Lab)
My Lords, I will say just a few words about this group of
amendments. I do not wish to repeat anything I said during
the passage of the Bill. My scepticism about franchising
without proper funding is on the record. I say in
passing—contradicting myself—that if the rest of the
country received the sort of money that London receives for
its franchising, it might be worth while. Without that sort
of financial backing, I do not think it would be.
I thought that the Minister was, for once, less than
generous with his comments on Amendments 8 to 11. If it is
sensible to ensure that the auditor is independent of the
franchising authority—which it is, in my view, and I said
so during the passage of the Bill—why did he oppose it at
the time? I would like to think that it was my own wise
words that swayed the other place to change the Minister’s
mind for him, but I fear I would be deluding myself. The
fact is that the Minister was against the amendment on
independence, which I supported during the passage of the
Bill. If I may say so, there have been some comments about
his stature. His stature did not diminish—like me, he can
ill afford for such a thing to happen. But I am surprised,
given his customary fairness, that he did not refer to the
fact that he had obviously changed his mind about the
amendment.
Like other noble Lords from both sides, I hope the Bill
does improve bus services. Again, consulting passengers is
something that we do not often do. The latest independent
survey of thousands of bus passengers throughout the
country indicates that around 80% of them are satisfied
with existing bus services. In my view, that does not
reflect the sort of discontent with bus service standards
that was mentioned during the passage of the Bill. But
there was virtual unanimity among those passengers about
the problems of congestion, which are countrywide. If the
Government are not prepared either to tackle congestion
themselves or to give local authorities the proper powers
to tackle it, those fears widely expressed by bus
passengers are not likely to be allayed. I talk about the
war on motorists that this Government’s Ministers have
sometimes waged. In my view, this is not helpful so far as
improving bus services is concerned.
I repeat that I hope the Bill brings about the improvement
in bus services that the Government so obviously desire,
and that the amendments that were passed in the other
place, as well as the debates that have taken place in your
Lordships’ House, have helped improve the Bill from when it
was first introduced.
-
(Con)
My Lords, I too was uncomfortable with the idea that the
appointment of the auditor should have rested with the
franchising authority. This would have allowed the
franchising authority to be judge and jury of its own
proposals—to mark its own homework, if you will. Auditing a
franchise assessment is perhaps one of the most critical
steps on the road to franchising. If the auditor says that
the franchise stacks up and meets all the other—let us face
it—quite onerous requirements, there is little more to be
said. For that reason, the person carrying out the audit
should have no ties with the franchising authority and
certainly no vested interest in seeing the franchise
proceed, or otherwise. On something as important as this
proposal, which could see bus operators lose their
businesses, surely we must have something that is very
transparent and democratic—and, perhaps just as
importantly, is seen to be transparent and democratic. In
my view, these amendments do just that.
However, I wonder whether I might push my noble friend the
Minister a little further to ensure, perhaps through
guidance, not only that the auditor is independent of the
franchising authority but that he or she has no recent
commercial relationship with the authority. That would
really cement the concept of a truly independent auditing
process.
-
My Lords, as this group of amendments refers to mayoral
combined authorities I should probably remind the House of
my declaration of interests. I am a locally elected
councillor and a vice-president of the Local Government
Association.
Generally, these are wider issues in respect of local
authorities and combined authorities but we have now
brought them into the Bill. I accept that it is through
another department, but there is an obsession in government
with mayors and it needs to be dealt with. I have never yet
had it explained to me clearly why, to get these powers,
you have to have such a mayor. I still do not understand
why, although we keep asking. I am sure we will get
something today, but I am not sure whether the Government
are clear why they have to have this: you may be a combined
authority, but unless you have a mayor, you cannot have
these franchising powers. We are still not clear on that,
and they will have to deal with their obsession with mayors
at some point.
This makes a wider point about the question of the
devolution of local government in England, which is, to say
the least, now very confused. I remember that in an earlier
debate the noble Lord, , who is not in his place
at the moment—I am sorry, he is in his place—explained that
there would now be four tiers of local government in
Cambridgeshire. That seems to me at least one or two tiers
too many. I accept that that goes wider than the issue of
mayors in these authorities today, but it will have to be
dealt with.
Franchising is the way forward. It has been enormously
successful in London. I am delighted that these authorities
with mayors can get these franchising powers and I hope
that other authorities, if they come together to apply for
them, will be successful. But at some point the Government
will have to look at the much wider issue of what bus
services they want in England. I think they will have to go
further down this route; equally, I accept that they have
made a move in the right direction here.
-
My Lords, I once again thank all noble Lords for their
contributions during this brief debate. Perhaps I may
briefly pick up on a few points.
First, the noble Lord, , raised the specific
issue of congestion and said that the Bill perhaps still
does not address this. I disagree with him. The new types
of partnership and franchising powers give authorities new
ways to work with operators to improve journeys for
passengers.
On the issue of the independent auditor, I accept the fact
that the Government’s position differs from when we
introduced the Bill—that point was made by the noble
Baroness, Lady Scott, among others. As a Minister, I feel
that it is sometimes odd—I am sure I am not alone in this,
whether among Ministers from a previous Administration or
the current one—first, that Ministers are told that they do
not listen. Then, having listened and reflected, if we make
a change which perhaps reflects the feelings of Members, as
it did on this occasion in your Lordships’ House, we are
told that we are taking a contrary position to what we had
originally after we have listened. I suppose there is a
lesson for all in that. It is important that what is said,
discussed and debated in your Lordships’ House is reflected
in the discussions we have in government, and I am pleased
to say that the very discussions and debates we had in your
Lordships’ House are reflected in the amendments that the
Government have made in respect of the independent auditor.
I understand the point my noble friend Lord Attlee makes
about the need for the auditor to be independent. As ever,
we will fully consider his helpful advice as part of the
guidance. I thank noble Lords for their broad agreement on
this issue.
My final point is addressed to the noble Lord, Lord
Kennedy. This is not an obsession with mayors or mayoral
authorities. As I have said before during the passage of
the Bill, the route to franchising is open to all
authorities which can make a justifiable business case. We
have previously detailed the criteria required, and that
remains the case.
Motion agreed.
Motion on Amendments 6 to 13
Moved by
6: Clause 4, page 15, leave out lines 41 to 45
7: Clause 4, page 16, line 41, at end insert—
“( ) A franchising authority or authorities may not prepare an
assessment of a proposed franchising scheme under section 123B
unless the Secretary of State consents to their doing so.
( ) The Secretary of State’s consent is not required if the
proposed scheme relates only to—
(a) the area of a mayoral combined authority, or
(b) the combined area of two or more mayoral combined
authorities.
( ) The Secretary of State must publish a notice of a consent
given under this section.”
8: Clause 4, page 17, line 4, after “an” insert “independent”
9: Clause 4, page 17, line 13, at end insert—
“( ) The Secretary of State must issue guidance as to the matters
to be taken into account by a franchising authority when
selecting a person to act as an auditor.
( ) Franchising authorities must have regard to any such
guidance.
( ) The Secretary of State must issue guidance concerning the
matters to be taken into account by an auditor when forming an
opinion as to whether the information relied on, and the analysis
of that information, by an authority is of sufficient quality for
the purposes of subsection (2).
( ) Auditors must have regard to any such guidance.”
10: Clause 4, page 17, leave out line 14 and insert “For the
purposes of this section an auditor is independent, in relation
to an assessment of a proposed franchising scheme, if the person
would not”
11: Clause 4, page 17, line 19, leave out from “person” to end of
line 20 and insert “eligible for appointment as a local auditor
by virtue of Chapter 2 of”
12: Clause 4, page 18, leave out line 3
13: Clause 4, page 18, leave out lines 12 to 20
Motion agreed.
Motion on Amendment 14
Moved by
14: Clause 4, page 24, line 41, leave out “21” and insert “(Bus
companies: limitation of powers of authorities in England)”
-
My Lords, Amendments 14 and 20 reinstate the original
provisions of the Bill which prohibit local authorities
establishing companies for the purpose of operating local
bus services. The role of municipal bus companies has
received a good deal of debate in your Lordships’ House and
the other place. There are a few fundamental points worth
making. First, we all agree that there are some very good
municipal bus companies, such as Reading Buses and
Nottingham City Transport. They deliver a high standard of
service, and I expect they will continue to do so. Let me
assure noble Lords that their ability to operate will not
be affected by this provision.
However, very few municipal bus companies remain, with many
having been sold to some of our more successful private bus
companies—for example, in February, Thamesdown Transport in
Swindon was bought by the Go-Ahead Group after many years
of making a loss—so I do not think this amendment is likely
to impact on the plans of many, if any, local authorities.
The Bill is all about improving services for passengers,
and authorities should now start thinking about utilising
the knowledge and skills of existing bus companies to get
the best results. This amendment ensures that we get the
balance right between local authority influence and private
sector delivery in order to ensure both are incentivised to
deliver the best services for the benefit of passengers.
I hope that noble Lords will understand that, because of
the importance of this balance to the overall Bill, our
view remains that passengers will see most benefit where
the commissioning and provision of bus services are kept
separate, and we do not think that authorities should be
able to set up new bus companies. I hope that noble Lords
will agree these amendments will enable the important
business of the implementation of the measures contained in
this Bill, which we all acknowledge to be important, to
begin so benefits to bus services and, more importantly,
bus passengers can start to be delivered on the ground. I
beg to move.
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My Lords, although it is not the subject of the Bill, as it
operates in Wales, I shall say a word about Cardiff Bus. It
is a municipal bus company with a good record. I still do
not understand how it is so important to the Government to
remove this power, which has been in the local authority
armoury for decades. As the Minister has just pointed out,
it has not been used as a general issue at all.
I am also confused as to why these examples of really good
bus companies run by local authorities at arm’s length are
not a template for possible future development. It is
blindingly clear at the moment that local authority
finances in Britain are so poor that authorities are not
going to be using this power in the near future in some
kind of aggrandisement. There is not going to be a mass use
of this power by local authorities wanting to build up vast
transport empires. It is simply not on the cards.
4.30 pm
So why on earth are the Government removing this power? Purely
for dogmatic, political reasons, and I am really disappointed
about that. As I and my noble friend Lady Scott pointed out in
earlier debates, it is rural areas that we have to be most
concerned about, due to the isolation of rural communities and
the rapidly declining bus services in many of those areas. This
power could have been very useful, particularly in rural areas
where there is still no bus service because the local bus company
has ceased to operate one and where a local authority might
therefore wish to rent some buses and set up a bus company,
possibly only for the short term, in order to fill that gap for
local people.
This is an own goal by the Government. This is about areas where
there are elderly and very often isolated people, who will really
feel the problems that will flow from the local authority not
having the flexibility to provide this service. I am extremely
disappointed that this was removed in the Commons again. However,
I was not surprised, because I guessed from the vehemence of the
Minister’s response when we debated this earlier that this was an
issue of party, not practical, politics.
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My Lords, I very much agree that, as we have heard, the
amendments in this group are just about party-political
dogma, and it is a shame that the Government have reversed
the decision we made in this House some time ago. I was
disappointed but, again, maybe not surprised. There never
was going to be a stampede of local authorities charging
off to create municipal bus companies. It was never going
to happen and I never really understood why the Government
were so obsessed with this particular clause in what
generally was, and is, a very good Bill—we welcome the Bill
but I just never really understood that.
Like the noble Lord, Lord Ahmad, I agree that there are
some very good municipal bus companies, such as Nottingham
City Transport, Ipswich Buses and many others, and I accept
that this amendment will not affect them in any way
whatever. The noble Baroness, Lady Randerson, made the
point about what a local authority maybe could do to deal
with a problem, even if for a very short period of time,
and it is disappointing that that will now not be possible.
That is a great shame, particularly in rural areas. For
that reason, I think the Government have made a terrible
mistake here and I wish they were not going to do this, but
clearly they will not listen on this occasion. It is most
regrettable.
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My Lords, first, I again thank both the noble Baroness and
the noble Lord for their contributions. I accept of course
that there was great strength of feeling on this issue as
it passed through your Lordships’ House, but clearly, when
you have a Bill with wide application, there will be areas
of disagreement between government and opposition parties.
On this issue, as I have already stated, the Government
have acknowledged and indeed accepted the important role
that existing municipal bus companies play, and that will
continue to be the case. However, this Bill is designed to
enable bus operators and authorities to work constructively
together to deliver better services for passengers, and it
is the Government’s belief that the creation of further
municipal bus companies would actually significantly stifle
competition, particularly in terms of private sector
investment in buses. Although we accept noble Lords’
sentiments on this, the Government maintain their position.
Motion agreed.
Motion on Amendments 15 to 23
Moved by
15: Clause 9, page 42, leave out lines 15 to 20
16: Clause 18, page 74, leave out lines 7 to 12 and insert “which
have one or more stopping places in their areas”
17: Clause 18, page 74, line 22, after “routes,” insert “stopping
places,”
18: Clause 18, page 74, line 23, at end insert “stopping places,”
19: Clause 19, page 76, line 36, at end insert—
“( ) In this section “local transport authority” has the meaning
given in section 108(4) of the Transport Act 2000.””
20: Clause 21, insert the following new Clause—
“Bus companies: limitation of powers of authorities in England
(1) A relevant authority may not, in exercise of any of its
powers, form a company for the purpose of providing a local
service.
(2) Subsection (1) applies whether the relevant authority is
acting alone or with any other person.
(3) In this section—
“company” has the same meaning as in the Companies Acts (see
sections 1(1) and 2(1) of the Companies Act 2006);
“form a company” is to be construed in accordance with section 7
of the Companies Act 2006;
“local service” has the same meaning as in the Transport Act 1985
(see section 2 of that Act);
“Passenger Transport Executive”, in relation to an integrated
transport area in England or a combined authority area, means the
body which is the Executive in relation to that area for the
purposes of Part 2 of the Transport Act 1968;
“relevant authority” means—
(a) a county council in England;
(b) a district council in England;
(c) a combined authority established under section 103 of the
Local Democracy, Economic Development and Construction Act 2009;
(d) an Integrated Transport Authority for an integrated transport
area in England;
(e) a Passenger Transport Executive for—
(i) an integrated transport area in England, or
(ii) a combined authority area.”
21: Clause 26, page 79, line 37, leave out subsection (2)
22: Schedule 2, page 84, line 35, leave out “123A(4)(b) to (f)”
and insert “123A(4)”
23: Schedule 4, page 84, line 35, leave out “123A(4)(b) to (f)”
and insert “123A(4)”
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My Lords, I take this opportunity once again to thank all
noble Lords, including the noble Lord, Lord Kennedy, and
the noble Baroness, Lady Randerson, alongside my noble
friend Lord Younger for their support during the passage of
the Bill. I thank other noble Lords too; while we may not
have agreed on everything, I think we agree on the
principle of the importance of getting the Bill through
because it is important for improving bus services for
passengers across the piece. I beg to move that this House
do agree with the Commons in their Amendments 15 to 23.
-
My Lords, before we do, I would equally like to say that I
have very much enjoyed working with the Minister on this
Bill. Generally it is very good. I also thank the noble
Lord, Lord Younger, the noble Baroness, Lady Randerson, and
the Bill team. Generally we are happy. As I say, I have
enjoyed working with the Minister; he has been very
courteous at all times during the passage of the Bill.
Motion agreed.
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