Terrorism Act 2000 (Proscribed Organisations) (Amendment) (No. 2) Order 2016

Lord Ahmad of Wimbledon Excerpts

Thursday 14th July 2016 Lords Chamber

Moved by

[Lord Ahmad of Wimbledon]

That the draft Order laid before the House on 11 July be approved.

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, the threat level in the United Kingdom, which is set by the independent Joint Terrorism Analysis Centre, remains at severe. This means that a terrorist attack in our country is highly likely and could occur without warning. We can never entirely eliminate the threat from terrorism but we are determined to do all we can to minimise that threat both in the United Kingdom and in our interests abroad. Additionally, it is important that we demonstrate our support for other members of the international community in their efforts to tackle terrorism wherever it occurs. Proscription is an important part of the Government’s strategy to disrupt terrorist activities.

The four groups we propose to add to the list of terrorist organisations, amending Schedule 2 to the Terrorism Act 2000, are as follows: first, the Global Islamic Media Front, or GIMF, including GIMF Bangla Team; secondly, the Turkestan Islamic Party, or TIP; thirdly, the Mujahidin Indonesia Timur, or MIT; fourthly, the Jamaah Anshorut Daulah. These groups are particularly relevant to south and south-east Asia, but also to the ongoing conflict in Syria. Your Lordships’ House will be aware that Syria is the number one destination for jihadists anywhere in the world. The attacks earlier this month in Bangladesh demonstrate the high threat from terrorism in Asia. Proscription sends a strong message that terrorist activity is not tolerated, wherever it happens. We propose to add these groups to the list of international terrorist organisations, amending Schedule 2 to the Terrorism Act 2000. This is the 20th order under the Act.

Noble Lords will appreciate that I am unable to comment on specific intelligence. However, I can provide a brief summary of each group’s activities. The first group this order proscribes is the Global Islamic Media Front, including GIMF Bangla Team, which is also known as Ansarullah Bangla Team, or ABT, and Ansar-al Islam. GIMF is an Islamist extremist propaganda organisation associated with al-Qaeda and other extremist groups around the world. Its activities include propagating a so-called jihadist ideology, producing and disseminating training manuals to guide terror attacks and publishing jihadi newscasts. GIMF releases products in a number of languages including Arabic, Urdu, Bengali, English, German and French.

On 31 December 2015 GIMF announced a merger with Ansarullah Bangla Team, or ABT, subsuming it into its ranks and renaming it GIMF Bangla Team. Noble Lords will be aware of the rise of sectarian violence in Bangladesh. Prior to this merger, using the names ABT and Ansar-al Islam, the group we are proposing be proscribed today claimed responsibility for the prominent murders of and attacks on a number of secular bloggers since 2013. The group has also been linked to the circulation of a number of hit lists of bloggers, writers and activists around the world, including nine individuals based in Britain, seven in Germany, two in America, one in Canada and one in Sweden, in 2015. On 7 January 2016 GIMF Bangla Team published an infographic chronicling attacks carried out against “blasphemers” in Bangladesh from January 2013 to October 2015. The graphic contained names and locations of 13 attacks, eight of which were celebrated as successful assassinations. Bangladesh banned ABT in May 2015.

The second group to be proscribed is the Turkestan Islamic Party, or TIP, also known as the East Turkestan Islamic Party, or ETIP, the East Turkestan Islamic Movement, or ETIM, and the Hizb al-Islami al-Turkistani, or HAAT. TIP is an Islamist terrorist and separatist organisation founded in 1989 by Uighur militants in western China. It aims to establish an independent caliphate in the Uighur state of Xinjiang Uighur Autonomous Region of north-west China and to name it East Turkestan. TIP is based in the Federally Administered Tribal Areas of Pakistan, and operates in China, central and south Asia and Syria. The group has claimed responsibility for a number of attacks in China, the latest of these being in April 2014. TIP has links to a number of terrorist groups including al-Qaeda. In November 2015, TIP released the 18th issue of its magazine Islamic Turkestan through the Global Islamic Media Front, detailing TIP’s so-called jihad against the Chinese authorities. Video footage from September 2015 shows TIP hosting training camps in areas controlled by the Pakistani Taliban in north Waziristan.

More recently, TIP has maintained an active and visible presence in the Syrian war and has published a number of video clips of its activities. Examples of this from March to April 2016 include: TIP claiming a joint attack with Jund al-Aqsa in Sahl al-Ghab and publishing a video of a suicide bomb attack in April 2016; a video published in March 2016 which promotes the victories of TIP in Syria and calls for Muslims to join jihad; and a video slideshow published in April 2016 which shows fighters and children in training. As noble Lords may be aware, TIP has been banned by the UN and is also sanctioned by the United States under the Terrorist Exclusion List.

The third group to be proscribed is Mujahidin Indonesia Timur—MIT—which is Indonesia’s most active terrorist group based in the mountainous jungle of Poso in Central Sulawesi. Its leader, Abu Wardah, also known as Santoso, is Indonesia’s most wanted terrorist. The group’s modus operandi is to attack the police and the army, which includes the use of explosives, including the use of IEDs, and shootings. MIT has been responsible for the deaths of more than a dozen police officers in Poso in the last three years. It has also used kidnappings and beheadings of Christian farmers in Poso to dissuade the local populace from assisting the police. MIT pledged its allegiance to Daesh in July 2014 and is assessed to have links to other Daesh-affiliated terrorist groups in the region.

MIT has also claimed responsibility for a number of recent attacks and has threatened attacks on targets across the country, including the capital—specifically, the Jakarta police headquarters and the presidential palace—in a video uploaded on 22 November 2015. In September 2015, MIT was banned as a terrorist group by the USA and the UN.

The last group to be proscribed is Jamaah Anshorut Daulah. It was established in March 2015, following the merger of several Indonesian extremist and terrorist groups aligned to Daesh. JAD, as it is known, has extensive links to Daesh and actively recruits fighters in Syria. This group is led by the imprisoned extremist cleric Aman Abdurrahman and has close ties to other terrorist groups, including Daesh. Its membership includes several former Jemaah Islamiyah members. JI was, of course, responsible for the 2002 and 2005 Bali attacks. JAD was responsible for the attack near Sarinah mall in Jakarta in January 2016, which was claimed by Daesh and resulted in the deaths of seven people, including the five attackers, and 20 people, including five police officers, being injured.

Section 3 of the Terrorism Act 2000 provides a power for the Home Secretary to proscribe an organisation if she believes it is currently concerned in terrorism. If the statutory test is met, the Home Secretary may exercise her discretion to proscribe the organisation. In considering whether to exercise this discretion, the Home Secretary takes a number of factors into account, including the nature and scale of an organisation’s activities and the need to support other members of the international community in tackling terrorism. Proscription in effect outlaws a listed organisation and makes it unable to operate in the United Kingdom. Proscription can also support other disruptive activity, such as the use of immigration powers, including exclusion, prosecutions for other offences and acts to support strong messaging to deter fundraising and recruitment. Additionally, assets of a proscribed group are liable to seizure as a terrorist asset.

The Home Secretary exercises her power to proscribe only after a thorough review of the available relevant information and evidence on an organisation. This includes open source material, intelligence material and advice that reflects consultation across government, including with the intelligence and law enforcement agencies. The cross-government Proscription Review Group supports the Home Secretary in this decision-making process. As I am sure noble Lords are aware, a decision to proscribe is taken only after great care and consideration of the particular case, and it is therefore appropriate that it must be approved by both Houses. I beg to move.

[Baroness Smith of Basildon (Lab)]

My Lords, as the Minister said, this is the 20th proscription order that your Lordships’ House has debated; I think that it is the 11th that I have responded to. I think it is fair that I say at that outset that we support the order and the proscription of these four organisations. The Minister will know—he acknowledged—that we brought in the legislation in 2000. It is clear in that legislation and from his comments today that any proscription order has to be backed by evidence. I am very grateful to him for providing the information that he has today because, as the Opposition, we do not have access to the kind of intelligence information that the Government have. There is always an element of trust when we look at these issues and we have to be confident that the Government would not have brought this order before us today unless they were confident that there was a case for proscribing the organisations. I think that he has made that case; we accept, on trust, that the intelligence information is available and we support these proscriptions.

Reading the speeches in the House of Commons yesterday and hearing the Minister’s comments today, I think that part of the evidence is in these organisations’ own words. They almost boast; they claim responsibility for their activities and they damn themselves by what they say. I have a couple of questions that would help me understand and clarify some aspects of this. When we proscribe organisations, we cannot act alone; we work with and support the international community. Our borders are not such that terrorism will not cross them. This sort of terrorism knows no boundaries, particularly with the kind of technology that we have these days, where it is very easy to move money and share information. We can really only be effective in the fight—not just against terrorism but against serious organised crime—if we work internationally.

I was pleased when the Minister, when referring to both TIP and MIT, said that both the UN and USA have banned such organisations, but can he say more about that and when that was? On a previous order, I was concerned that other countries had taken action two or three years before we had. If we are to be effective against terrorism, we need to share the information that we have and act together with other countries, so can he say what other countries, other than the USA—and the UN—have taken action against these organisations and when it was taken? In particular regarding the Global Islamic Media Front, most of its propaganda was translated into German; in fact, more is translated into German than into English. It would be useful to know if the German Government are also taking similar action against it.

Given that we are now negotiating for Brexit and we have a new Minister in charge of those negotiations, I am concerned about how such a move will impact on our negotiations, our discussions, our sharing of information and our co-operation with other European countries. Can the Minister take back the message today that the issue of the country’s security has to be at a very high level in any discussions and negotiations on Brexit? Having gone through the various debates that we had in your Lordships’ House about the police and criminal justice measures—which the previous coalition Government opted out of before opting back in to almost everything that was relevant, being used or was not extinct—it struck me how important that co-operation and work with the EU was. It would be helpful if the Minister can give his assurance that he will draw this to the attention of the new Minister and ensure that this is at the heart of our discussions and negotiations in Europe.

The orders are effective, I think, from the moment that we agree them. Is the Minister aware of the Twitter account—I checked today that it was still active—@Jihadology_Net? At least two of these organisations have their actions and their proclamations advertised on that Twitter account. It claims to be an academic website—it is academic only in the sense that it provides information. It actually promotes these two organisations and others that carry out atrocities. Do these organisations have to be proscribed before any action can be taken, or can that account be closed down sooner, because it promotes activities that most of us would regard as totally abhorrent? It may claim that it is merely reporting but, given its title and from looking at the content, I think that it goes beyond that. I would be very grateful if the Minister could look at that even if he cannot respond today.

I raised my next point when we considered previous proscription orders. In 2009 when I was in the other place, the previous Prime Minister, David Cameron, made several references in the House of Commons to Hizb ut-Tahrir. He taunted his predecessor, Gordon Brown, by saying that the organisation must be banned immediately. It was a commitment in the Conservative manifesto that Hizb ut-Tahrir would be banned. That has not happened. What is the reason? I assume that the evidence is not there, but I also assume that a leader of the Opposition would not make such claims or put it in a party manifesto unless there was some evidence that the organisation should be banned. The impression was given that it would be banned immediately but it has not been. If it is merely a question of evidence not being available and it was incorrect to say it should be banned, it would be helpful to know. In the current climate, we need such reassurance.

That brings me to my final point. Can the Minister give an assurance that evidence is always kept under review? There has been one case when an organisation that had been proscribed applied to be deproscribed, if that is the correct word, and it took some time to resolve. We know that there are groups which should be proscribed in the future, but it is a question of gathering evidence. If the Minister can say something about the review process, that would be helpful.

These are merely matters of clarification, and we support the order.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Baroness for her support for this order and for her customary expertise. These issues are extremely sensitive and extremely important to tackle. The unity of purpose and action that is shown across both Houses and all Benches is extremely important when it comes to standing up to this global threat.

The noble Baroness mentioned the @jihadology.net Twitter account. I have made a note of it and will take it back to the Home Office. We are making great strides in working very closely and in partnership with internet service providers and social media companies. There is a great deal of collaboration taking place internationally as well, a point that the noble Baroness made. It is important that these websites, Twitter accounts and social media accounts are closed down as soon as possible. Their impact is immense; they can only be live for a few minutes and their reach is global. We successfully took action when we co-operated with social media on issues such as sexual violence against women. There is a great deal of work going on in this respect.

The noble Baroness spoke of our departure from the European Union. As I am sure she will know, the former Home Secretary, now our new Prime Minister, has been very particular in ensuring that issues of security are paramount in our discussions. We will continue to work very closely with partners on a global level. I am sure that that will be the case as we leave the European Union but continue to co-operate with our European neighbours because this is a global issue. Indeed, my current brief in the Home Office of countering extremism takes this issue further. We welcome the co-operation we have had from our European neighbours but also at a global level in fighting the challenge of extremism. We will continue to put the security and safety of our citizens at the forefront of all discussions.

The noble Baroness referred to the Global Islamic Media Front and when other countries may have proscribed it. I will write to her regarding which countries proscribed that organisation and when. I have already talked about the UN.

The noble Baroness referred to Hizb ut-Tahrir. I am sure that we all agree that, while not currently proscribed in the UK, the organisation has at its heart evil practice. It believes in dividing societies and communities. Under the current rules of proscription, as the noble Baroness will be well aware from her own time in government, a group has to fulfil the defined criteria. Of course, the Government have significant concerns. The noble Baroness asked about issues of review. I assure her that we continue to monitor all activities, not just of HUT but other organisations, on a regular basis. We will seek to ensure that HUT and other groups like it cannot operate without challenge in public spaces in this country. We will also ensure that civic society is made aware of HUT and groups like it.

Finally, there has been some discussion in the Home Office about organisations and individuals who operate within the parameters of the current law and stay legal—but only just. It is right that we work in a collaborative manner to see how we can starve individuals and organisations of oxygen. They may not be proscribed as terrorist groups or may not support terrorist groups but nevertheless they are focused on encouraging hate and division in society. We continue to work on how best we can bring forward measures to address those issues. I will reply specifically to the noble Baroness on the matter she raised about Germany and the GIMF. I commend the order to the House.

Motion agreed.

Hate Crime

Lord Ahmad of Wimbledon Excerpts

Thursday 14th July 2016 Lords Chamber

[Baroness Boothroyd]

To ask Her Majesty’s Government what action they propose to take to deal with the recent increase in hate crimes and community tensions reported by the National Police Chiefs Council.

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, we have one of the strongest legislative frameworks in the world to tackle hate crime. We are also working across government and with the police, the Crown Prosecution Service and, importantly, community partners to provide reassurance and to send out a very clear message to anyone: hate crime will not be tolerated and that we will take action against those who promote hatred.

[Baroness Boothroyd (CB)]

My Lords, this year is the 50th anniversary of the Race Relations Act and the Government are still talking about action plans to tackle what that Act failed to do then, and what we are still failing to do now. Will the Government’s proposed action plan curtail the widespread use of the internet to spread racial abuse and discord? Is the Minister aware that the current training for police officers has been judged to bear little resemblance to working on the front line? May I pass to the Minister evidence I have of a race-hate statement on the internet, coming from a named person in a named town in Lancashire? When my informant passed all the information to the Lancashire Constabulary, it said it could not deal with it until it had been reported to the Metropolitan Police. Presumably, the Met would then pass it back to Lancashire. Will the Government stamp out this bureaucratic and buck-passing behaviour by the police, when the crisis calls for resolute action?

[Lord Ahmad of Wimbledon]

On the final point, if the noble Baroness shares that evidence with me, we will of course follow it up. As I have already indicated, the hate crime action plan is imminent; it has cross-government approval and will be looking to tackle some of the very issues the noble Baroness has highlighted. I would also highlight a few of the steps the Government have already taken. From this Dispatch Box I have previously spoken about both race and religious hate crime, which we have seen increase over recent years. From 1 April this year, for example, every police force across the country is now required to record race and religious hate crime for what it is, by category. The important thing, which I know as someone who has been subjected to this crime both on the internet and elsewhere, is that we communicate. We need to have the confidence of communities, so that they know they can report hate crime. As the noble Baroness has highlighted, the most important area is follow-up action.

[Lord Watts (Lab)]

My Lords, why does the Minister believe there has been a recent increase in these crimes? Is it anything to do with the recent referendum, or is it for some other reason? What will the Government do now to address the problems that have been created over the last few months?

[Lord Ahmad of Wimbledon]

The noble Lord raises an important point. We have seen even in recent history that, regrettably, there were some who used the referendum result to invoke and incite hatred against different communities. I myself visited the Polish centre in west London. Thankfully, these remain sporadic attacks. We have also seen a rise in attacks on particular communities; particular BME communities have been targeted. Recently I met religious faith leaders as well. We talked about reassurance and the importance of reporting religious hate crime, race hate crime or any kind of hate crime, and then following it up practically. This is an evolving area. It is unfortunate that there are many in society who suffer this from the few who seek to make an issue of race, religion or any other issue. We need to stamp it out and send a clear message in that respect.

[Lord Ouseley (CB)]

My Lords, it is easy enough to focus on the statistics that clearly show that race and other hate crimes have been on the increase over the past few years. What we are not focusing on is the increase in prejudice and the way we have been feeding it in recent years and even before that. If you analyse all the national newspaper coverage of political statements that are made almost every day, you will see what we have been feeding young people daily: a diet of xenophobic and anti-immigrant sentiments, which has created not only the responses we see on social media but what is happening on our streets. What are we doing to educate current and future generations so that we can create cohesive and peaceful communities? What encouragement will be given to politicians and leading influential figures in our society to stop using their cleverness to conceal the xenophobic and other nasty messages that are part of what they are saying?

[Lord Ahmad of Wimbledon]

The noble Lord speaks from experience and I appreciate his expertise in this area. We have talked of education before, and it is important that that forms a central, core part of what we teach in our schools and colleges. At the same time, we need to recognise that co-operation between communities needs to be heightened. Finally—this applies not just to this subject—we still have to exert positive optimism about our country. We remain one of the most successful, multicultural, multifaith societies, in which people are proud of their identity, regardless of cultural, community or religious background. We must all stand up—politicians, the press, and anyone involved with this—to ensure that wherever we find xenophobic hate, we stamp it out.

[Baroness Hussein-Ece (LD)]

My Lords, I concur absolutely with the noble Lord’s final statement; nevertheless, we have seen a 500% increase in reported hate and race crime, and many more incidents are not reported. What is being done, for example, in schools where people from eastern European, Muslim and Jewish backgrounds are being targeted? What support is being given to schools to make sure that this is reported and dealt with, so that schools get the support they need to tackle this terrible iniquity in our society?

[Lord Ahmad of Wimbledon]

The noble Baroness is right to raise the issue of reported hate crime, and we have all seen such incidents reported since the EU referendum. Thankfully, over the last week or two there has been a slight decrease compared to the initial response, but even so, she raises an important point. We are working with schools in partnership, and most recently we are exploring ways in which the police can base themselves in community centres to build reassurance that such crimes should be reported. The police are working hand in hand with schools and local communities to ensure that all hate crime is reported.

[Baroness Symons of Vernham Dean (Lab)]

My Lords, much of what has happened in schools is of course not hate crime, because the children involved are under the age of criminal responsibility. A number of anecdotes have been relayed to me, largely from members of my family who are teachers, about increases in racial abuse among very young schoolchildren. Are the Government keeping a record so that we know statistically whether there has been an increase in racial abuse among children who are still of junior school age?

[Lord Ahmad of Wimbledon]

I will need to follow up that specific point with colleagues in the Department for Education, but I agree with the noble Baroness. I have three children of my own, and I know of the kinds of comments that are sometimes made. Children are far too innocent to know that comments are being made which may not be race hate crime—she is quite right on that—but which have undertones of racism or religious prejudice. On training and education, it is important that we consider not just the children, but that teachers are also well equipped to deal with such issues in schools.

Rail Franchises

Lord Ahmad of Wimbledon Excerpts

Monday 11th July 2016 Lords Chamber

[Baroness Randerson]

To ask Her Majesty’s Government what is their policy for determining when a rail franchise has failed to provide the service required and should therefore be terminated.

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, the Secretary of State for Transport has statutory powers under the Railways Act 1993 and contractual powers under the franchise agreement to penalise train operators for contravention of obligations. These powers are more fully set out in the Department for Transport’s published enforcement policy.

[Baroness Randerson (LD)]

I am sure the Minister will not be surprised to hear that I wish to ask about Southern trains, which has failed to provide anything approaching the service stipulated in its franchise. Now it has cut services by 15%, and quite understandably the passengers are on strike today, yet the best the Government can muster is today’s long overdue but very limp statement by Claire Perry. Enough is enough. When will the Government finally step up to their responsibilities and take over this franchise? Will the Government consider devolving power over commuter services such as this one, in a structure similar to the successful London Overground?

[Lord Ahmad of Wimbledon]

My Lords, it does not surprise me that the noble Baroness has raised this issue, which has come up in this House recently and I have responded from the Dispatch Box. I agree with the sentiments expressed by the noble Baroness and other noble Lords: the current operation is unsatisfactory. As many noble Lords will know, the new timetable started operating this morning, reflecting a target of getting 85% of services running. As I said only last week, part of the issue is that the force majeure clause has been invoked, which does not mean that the franchise can be put on the premise that the noble Baroness suggests.

[Lord Rosser (Lab)]

My Lords, last Wednesday, the Minister said that where Southern Rail,

“can provide evidence that cancellations are due to official or unofficial industrial action, it can claim force majeure”.

This is what it has done in respect of the current level of performance and the reduction in the number of services it operates. Does this definition of force majeure mean than long-suffering commuters can expect no compensation and the company can expect no penalties? The Minister also said last Wednesday that the Government were,

“in regular contact with the company”.—[Official Report, 6/7/16; col. 2011.]

How many times have the Government also met the organisations representing the employees, to find out what they have to say about the cause of the present poor service and cancellations, in order that the Government hear both sides of the story, at first hand, before coming to a conclusion on whether official or unofficial industrial action is the sole cause of the problem and whether responsibility for any such action rests solely at the door of one party?

[Lord Ahmad of Wimbledon]

As I said previously, the Government’s position is very clear. We want both parties to come to the negotiating table and find a resolution for long-suffering commuters. It is very clear what has happened. I do not accept the noble Lord’s point about not meeting. We meet regularly with all people concerned, and we have implored them to take action to ensure that we get a more effective service. As to the way forward, I think it right that we allow the two parties to come together at the negotiating table. The Government will play their part in ensuring an effective service for Southern commuters who, as I have said, have suffered for far too long.

[Lord Lucas (Con)]

My Lords, does my noble friend agree that it ought, at least, to be the object of a rail franchise that the day-to-day experience of the travelling public should get better over the long term? What would he say about a franchisee which, from its first moment in possession of a railway, has set out to do the exact opposite? Is there no way to set it on a right course?

[Lord Ahmad of Wimbledon]

There are various procedures open to the Government if the contract fails in its objectives. As I have already indicated, I take on board what my noble friend has said on the issue in respect of which the franchisee is claiming force majeure, which is part of the franchise. I assure him that the Government are looking at this very closely. There are various enforcement policy options available to the Secretary of State and we continue to monitor the position very carefully to ensure that we see an improvement in service. Prior to the early part of this year, we saw service levels rise to 83%. The noble Lord picked out the issue of industrial action and I talked about high levels of sickness leave. These have seen performance go from 83% to about 63% since May.

[Lord Christopher (Lab)]

My Lords, as a passenger on this railway line, I believe that the Government are dissembling. The contract which has been drawn up is quite unique and provides an incentive to the railway company not to run trains if it can avoid it. Under the contract, you collect the money from the tickets and pay a substantial fee to Southern to provide the trains. I suspect that you are seeking to buy time in order that Transport for London can take this over in a year or two’s time.

[Lord Ahmad of Wimbledon]

My Lords, I do not agree with the noble Lord. He may well be aware that DfT has effective enforcement procedures; indeed, an enforcement advisory panel was set up specifically to review possible contraventions of franchise agreements. Perhaps we have hope, in the sense that the official who leads that panel is a gentleman called Andy Murray.

[Baroness McIntosh of Pickering (Con)]

My Lords, can my noble friend explain to the House what emphasis is placed on price in awarding the franchise, as opposed to the quality of the service and the ability to deliver on that service?

[Lord Ahmad of Wimbledon]

With any contract awarded there is a specific procedure, and the issue of price is looked at along with the other factors that my noble friend has raised. Any franchise that is awarded has that central point—the ability to deliver. I have made it clear that the Government feel very strongly that the current unsatisfactory levels of service on that line have to be improved. There are other investments and some improvements such as new rolling stock, but that is not good enough: we need to see more improvements.

[Lord Stoneham of Droxford (LD)]

My Lords, is not one of the major problems of franchising that it is difficult to get long-term commitment to investment and training, particularly at the end of a franchise agreement? Do not the problems of the current Southern franchise derive from the exit from the previous franchise, when investment and training were lacking?

[Lord Ahmad of Wimbledon]

On the current franchise, the noble Lord is aware that there have been issues of training and staff turnover, and Southern and its parent company has recruited new drivers, for example. On the current dispute over the new, driver-operated trains, I assure all noble Lords that at no time has it been said that there will be any redundancies. At no time has any person been told that their job is under threat. The issue of training is part and parcel of the new offer with regard to the new driver-operated trains that are being introduced.

[Baroness Farrington of Ribbleton (Lab)]

My Lords, the Minister did not answer the question of my noble friend Lord Rosser, which was how many meetings have there been between the Government and the trade unions, and when.

[Lord Ahmad of Wimbledon]

If the noble Baroness reflects on Hansard, I made it clear that the Government’s job is as a facilitator. We made it clear to both parties that they should have arbitration between them and find a resolution. The franchise is awarded to them. It is for them to come together around the table and find a resolution to this long-standing dispute.

[Lord Lexden (Con)]

With commuters losing their jobs as a result of this appalling dispute, has any assessment been made of the number of lost jobs?

[Lord Ahmad of Wimbledon]

I cannot answer my noble friend’s specific question but I am sure that he is aware of the issue of compensation, raised by the noble Lord, Lord Rosser. I believe that my right honourable friend the Prime Minister made it clear last week that there will be additional compensation, which the Government are looking at, made available to those long-suffering commuters.

[Lord Snape (Lab)]

Is the Minister not aware that the problem behind the situation with this franchise and others is the Government’s determination to bring about driver-only operation of trains? That, combined with the de-staffing of stations and of the railway industry in general, is not the proper way forward as far as passengers are concerned. If they were consulted, like the trade unions, that is exactly what they would tell him.

[Lord Ahmad of Wimbledon]

The issue of driver-operated trains has not meant, as I have said, any reduction in staff. The role of what were conductors in training supervisors means greater focus on delivering customer service. There is an issue with sickness that is contributing to the challenge and to the problems we have. The current sickness rates operating on that franchise are not just higher; they are much higher than average.

[Baroness Symons of Vernham Dean (Lab)]

On the question raised by the noble Lord, Lord Lexden, is the Minister saying that there is the possibility of compensation for those who have lost their jobs because of frequently arriving late at work or not arriving at all as a result of this dispute? Can he be specific on that point?

[Lord Ahmad of Wimbledon]

I can be specific. As I said, I do not know the number of people who have fallen victim in the way that the noble Baroness and indeed my noble friend have suggested. I did make the point that additional compensation is being looked at for those commuters who have suffered. Individual cases have been put forward and they will continue to be monitored, but my right honourable friend the Prime Minister has highlighted in his statements that we are looking at additional compensation. But to be clear, on the issue of loss of jobs et cetera vis-à-vis compensation, I do not know what the situation is. Obviously, every case will be looked at on its merits.

[Lord Shutt of Greetland (LD)]

My Lords, if ultimately there is a requirement for the Government to directly operate this franchise, is there a shadow body within government ready and available to take that up?

[Lord Ahmad of Wimbledon]

The policy that I referred to in my original Answer includes details of how the department can take a step-by-step approach to ensure that any enforcement action is, in the first instance, proportionate to the contravention, and explains the enforcement tools and options available to the Secretary of State in any circumstances that may subsequently arise.

Southern Rail: Service Cuts

Lord Ahmad of Wimbledon Excerpts

Wednesday 6th July 2016 Lords Chamber

[Lord Dholakia]

To ask Her Majesty’s Government what assessment they have made of the decision to cut the number of services provided by Southern Rail.

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, GTR is introducing an amended timetable so that passengers have much-needed certainty about getting to work and home reliably. Some 85% of services will run and more staff will be available during peak hours. This will be in place until train crew availability returns to normal. This is now a big test for RMT as to whether it continues this unjustified dispute that has been inflicting chaos on passengers’ lives or works with the operator to urgently resolve this matter.

[Lord Dholakia (LD)]

My Lords, today’s headline, “Meltdown”, adequately sums up the daily chaos suffered by people on Southern Rail. Fewer, shorter, cancelled or no trains; passengers turfed out of trains; and a complete lack of information—such has been the daily reality in the lives of many people for months, and there is no end in sight. Does the Minister agree that the most ridiculous suggestion to emerge has been to cut up to 350 trains a day? Is it not time for him to call Thameslink management to his office and tell them that they are not fit and proper persons to run our railways and that the only thing that should be slashed is their franchise?

[Lord Ahmad of Wimbledon]

First, I agree with the noble Lord that the situation at Southern is totally unacceptable. The point was well made by my right honourable friend the Prime Minister. In addition to that, this new timetable seeks to provide the reliability which is acutely needed right now. I accept that there is a reduction in services, but this is what the provider is saying it can provide reliably. On the issue of withdrawing such a franchise, let us not forget that part of that franchise concerns the modernisation of rolling stock as part of the modernisation of that whole network. Information for passengers on this new timetable is being provided through websites and through other sources of information on platforms and trains.

[Lord Rosser (Lab)]

Is Southern Rail in breach of any of the terms of its Government-approved franchise agreement, either through its current level of performance or through its decision to reduce the number of services that it will operate? Have the Government given any assurances or hints to Southern Rail that the current unsatisfactory level of performance and the forthcoming reduction in the number of train services it runs will not result in any action being taken against the company? If so, why were such assurances or hints given?

[Lord Ahmad of Wimbledon]

Let me assure the noble Lord and your Lordships’ House that the Government are in regular contact with the company to ensure that the current situation can be remedied, but I call upon both the company and the unions to resolve their dispute. The noble Lord asked specifically about the franchise agreement. Under the franchise agreement, where GTR can provide evidence that cancellations are due to official or unofficial industrial action it can claim force majeure, which it has done on this occasion.

[Lord Mawhinney (Con)]

My Lords, reverting to my noble friend’s original Answer, what makes him believe that normal service will soon be renewed?

[Lord Ahmad of Wimbledon]

I say to my noble friend that I did not say that, and nor did I suggest it. I do not believe that the current situation is acceptable; indeed, the reduction of services is also unacceptable. The first issue is to provide at least some sense of reliability to those using this network as to when trains will be running. My noble friend will also be aware that services have also been suffering from a high degree of sickness, which has resulted in a reduction in service performance since May from 83% to 63%.

[Baroness Whitaker (Lab)]

My Lords, I am a passenger on Southern Rail. Is the Minister aware that in the whole of my very long life I have never had such dreadful service? How long is he going to give this company before the franchise is reviewed?

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[Lord Ahmad of Wimbledon]

My Lords, as I have already said on the franchise, yes, the noble Baroness is quite right to say that the service is unacceptable. I agree with her about the current service levels. I know many people who use that service, I assure the noble Baroness, and find it unacceptable; we all know it is. This is about ensuring, first and foremost, that the operator gets together with the union to address the current dispute. The dispute can be resolved, but it requires both parties to get back to the table and negotiate a resolution.

[Baroness Randerson (LD)]

My Lords, the beleaguered passengers are being used as hostages in the power struggle between Govia and the RMT. Whatever the Government say at this point, the situation developed because Govia tried to run the franchise with an inadequate number of trained drivers from the start. Do the Government accept that they need to take a much more rigorous approach to franchise arrangements at an earlier stage in order to prevent crises such as this occurring in future?

[Lord Ahmad of Wimbledon]

With any experience, everyone is there to learn, and Governments are no exception, but on the issue of driver shortages, I assure the noble Baroness that GTR is taking action. She may be aware that it has recruited 500 extra drivers, of whom 211 are already on the network—but clearly, as she says, more needs to be done.

Bus Services Bill [HL]

Lord Ahmad of Wimbledon Excerpts

Monday 4th July 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I thank the noble Lord, Lord Kennedy, for his amendment, which would require franchising authorities to consider, as part of the assessment of their proposed franchising scheme, the extent to which not-for-profit bus operators can be integrated into a franchising scheme to contribute to its sustainability. Let me say at the outset that I sympathise with the aims of his amendment. I recognise the good services that community bus service operators and other not-for-profit bus operators deliver to our communities across the country and know that they often provide flexible and bespoke services which act as a lifeline to many. The intervention from the noble Baroness, Lady Scott, underlined that element.

The Bill recognises the important role that community transport operators play in providing local public transport. Provisions have been included in the Bill to ensure that services operated under community bus permits will not be affected by the introduction of franchising or enhanced partnerships. This will enable them to continue to run their services unaffected by these schemes. I hope noble Lords will agree that these provisions are sensible and that they will help ensure that community bus providers can continue to deliver their valuable services to our local communities.

Even with these protective provisions in the Bill, I recognise the valid point the noble Lord, Lord Kennedy, raises, and agree that authorities looking to improve local bus services should consider how services provided by community transport operators can be best integrated to deliver a better overall network of services for passengers.

Let me assure noble Lords that the Bill does not preclude authorities, as they develop their franchising or enhanced partnership proposals, working with community transport and not-for-profit operators to determine how they can best be integrated into the wider network of services, but I agree with the noble Lord that this approach should be encouraged. I am, therefore, of the view that these issues are best covered through further guidance that will be published to complement the provisions of the Bill. I hope the assurances I have given in this contribution enable the noble Lord to withdraw his amendment.

[Lord Kennedy of Southwark]

Will the Minister say a little more about why he thinks that this should be in guidance? He says that authorities can do this, and that is all well and good. Why then is it not going to be in the Bill? Why should it be in guidance? My worry is that guidance is not legislation. Guidance is forgotten over time, things get moved on and revised, and all of a sudden it is not there and gets forgotten about. Why is guidance better than the Bill?

[Lord Ahmad of Wimbledon]

My Lords, I have already said that there are provisions within the Bill that protect that element of community transport and not-for-profit operators. While the noble Lord feels that the guidance is not sufficient, it forms part and parcel of the guidance in support of the Bill, on which these new proposals go forward.

[Lord Kennedy of Southwark]

I am not sure the Minister answered the point I was making there. I am thinking of organisations such as Hackney Community Transport. If it wants want to provide services elsewhere in the country, like it currently does for TfL, why should that not be in the Bill, rather than in guidance?

[Lord Ahmad of Wimbledon]

I do not think I can add any more. If the noble Lord feels that the strength of what the Government are presenting does not meet what he is suggesting, I suggest we discuss this issue. At the moment, we are minded that existing provisions within the Bill, with the assurance of including such provisions in the guidance, provide the necessary safeguards alluded to by the noble Lord. I hope, with this assurance and the continuing discussions we are having on various aspects of the Bill, that he will be minded to withdraw his amendment.

[Lord Kennedy of Southwark]

I thank the Minister for that contribution. I will take up his kind offer to have a discussion outside the House. He has been very generous with his contribution today and with his time. I appreciate that very much. I thank all noble Lords who have spoken in this short debate. I do not agree with the remarks of the noble Earl, Lord Attlee, as I want to see the not-for-profit sector being able to provide bus services, as elsewhere. I thank the noble Baronesses, Lady Randerson and Lady Scott, for their support. The noble Baroness, Lady Randerson, was spot on in speaking about the needs of rural areas and the widest range of schemes available to deliver those services. As she said, Hackney Community Transport delivers services for TfL, so why cannot it, or other providers in the not-for-profit sector, deliver bus routes elsewhere, in urban or rural areas? This Bill is about improving bus services and my amendment helps in that respect, improving the Bill further and giving further options for the provision of bus services. I will leave it there and look forward to talking it over outside the Chamber, but I may well bring the amendment back on Report. I beg leave to withdraw the amendment.

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[Lord Ahmad of Wimbledon]

My Lords, I thank my noble friend Lord Attlee for his amendment, which would require franchising authorities to consider as part of the assessment of their franchising scheme whether it will be,

“more efficient, effective and economic than any other option, taking into account any compensation payable to bus operators whose businesses would be wholly or partially expropriated by the scheme”.

I recognise my noble friend’s desire to ensure that impacts on bus operators are fully considered as franchising schemes are developed. The Bill already addresses many of his concerns, and it may be useful at this point to provide a fuller explanation of proposed new Section 123B, which requires franchising authorities to conduct an assessment of their proposed franchising scheme. I fully acknowledge that moving to a model of franchising is a big decision that will impact on bus operators in the area. That is why the Bill requires authorities that are considering franchising to conduct a thorough assessment of their proposed scheme, including comparing their proposals with other options, which could include partnership proposals and the status quo.

The Bill also requires franchising authorities to think about the effects of the proposed scheme and whether it represents value for money. This will include, of course, consideration of the impacts of the proposal on passengers and bus operators, together with any wider impacts. I hope my noble friend agrees that the provisions in the Bill will require authorities to think carefully about their franchising proposals, compare them to other options and then take a well-reasoned and well-evidenced decision.

I turn to the issue of compensation payable to bus operators that my noble friend referred to. I fully recognise the years of hard work that many bus operators have put into growing and operating their businesses and their concerns about the future. As I have said, the Bill requires authorities to consider both the benefits that franchising could bring for local people, as well as the potential impacts, including those on bus operators. If franchising authorities follow the processes set out in the Bill, local bus operators will have plenty of notice that a franchising scheme is being considered, will be aware of a decision to introduce franchising, and will have more than six months’ notice that services are to be provided under local service contracts. This will enable operators to take any action they think appropriate and to plan ahead in the light of the decision to make a franchising scheme. Incumbent operators will, of course, be able to bid for contracts in any area that decides to move to franchising, and I should reflect that those operators’ knowledge of the local area and local customers is likely to stand them in good stead. In addition, the Bill does not provide franchising authorities with the power to take over the property of any bus operator if a scheme is made—a point made in an earlier debate.

In summary, I am therefore of the view that the Bill already addresses many of my noble friend’s concerns regarding the assessment of the franchising scheme and the need to compare it with other options. He raised the issue of compensation being available to those who do not win contracts, and referred to other schemes, not just franchising. While he makes a valid point, I note that authorities have been able to introduce quality contracts since 2000. This potential risk and impact on bus operators has been around for a significant period. I hope that he has been assured and reassured by some of my comments on the existing provisions in the Bill. I disagree that consideration of compensation should form part of franchising assessments—a point made by other noble Lords—but I hope that this debate has assured him that the Bill includes a thorough and comprehensive assessment process, and that he can withdraw the amendment.

[Lord Kennedy of Southwark]

Can the Minister say more about something I find hard to understand about the amendment? I am a councillor in a London borough and services are tendered for all the time, whether in relation to road repairs, street lighting, refuse collection and so on. People bid for contracts, win them and lose them. If they lose them, the new company takes them on and we do not have debates about paying companies compensation because they have lost their contract. They bid for a price, the council assesses it and a number of factors and makes what it believes is the best decision. I do not see why we are having this dispute or debate. If a company loses a bus route, I do not see why it should be paid compensation. It must have tendered for that route but has lost out in the process to another company that has been deemed to offer better value for money. This is a strange debate.

[Lord Ahmad of Wimbledon]

My noble friend tabled an amendment and it is right that we have a discussion in Committee. I hope that through the provisions in the Bill that I have highlighted—for example, the requirement to give ample notice—his fears are allayed as regards compensating a business franchise that goes out of operation. The Bill contains proper provisions in relation to, for example, giving notice. The noble Lord, Lord Kennedy, and I are on the same page on this.

[Earl Attlee]

My Lords, if I have brought both Front Benches together, I have achieved something. Some noble Lords talked about disreputable operators. If, as a result of a franchising scheme, a disreputable operator goes out of business, no one would be happier than me.

The noble Baroness, Lady Randerson, and the noble Lord, Lord Kennedy, picked up on the fact that local authorities are currently putting services out for bid and that operators are either successful or unsuccessful. Noble Lords are right but the difference here is that an operator can be sure that, so long as he has a good commercial model and keeps his customers happy, he can stay in business. However, if he gets hit by franchising, he will be out of business through no fault of his own.

The noble Lord, Lord Berkeley, made an interesting comparison with the railway industry, but he will know that that is on a different scale and people in the railway industry know that that is the name of the game. They will bid for the franchise and amortise all the costs of their investment over the length of the franchise, whereas the operators that I am concerned about at the moment have no risk of being put out of business by franchising because that simply cannot be done. It is therefore a new situation that they could not have planned for.

No noble Lord has explained away my TTIP problem. Regarding facilities for operators, franchising may well provide efficiencies because perhaps fewer workshops and garages are needed. The problem is that someone ends up holding redundant facilities that they used to have a commercial use for. I am not convinced by the response of my noble friend but I will read Hansard carefully and, subject to the usual caveats, I will come back on this. Oh, the Minister wants to have another go at me.

[Lord Ahmad of Wimbledon]

I would never dream of having a go at my noble friend; I am merely thankful that he has given way. It was remiss of me not to mention the TTIP issue. I understand that investor-state dispute settlement does not prevent a current or future Government who act in accordance with due process changing their laws or policies. My noble friends Lord Attlee and Lord Young referred to this point and it is my understanding that this element is still being negotiated between the European Union and the US.

[Earl Attlee]

I thank my noble friend for that response and I beg leave to withdraw the amendment, subject to the usual caveats.

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[Baroness Jones of Whitchurch]

Without wishing to get into a dialogue, I think that we felt that as long the role was prescribed to be independent, different authorities will have different arrangements for appointing independent auditors. We do not feel that we need to be that prescriptive in this piece of legislation. I would not go any further than that.

[Lord Ahmad of Wimbledon]

My Lords, there are a number of amendments in this group, all related to the audit function required as part of the franchising provisions. The noble Baroness, Lady Scott, proposes an amendment to state explicitly that the auditor, whose role is to issue a report to the franchising authority on certain aspects of the assessment of the proposed franchising scheme, must be independent. The noble Lord, Lord Snape, proposes an amendment that would require the auditor to be appointed by a traffic commissioner. The noble Lord, Lord Bradley, proposes an amendment that would require the auditor to consider matters relating to an authority’s consideration of affordability and value for money. I thank all noble Lords for their amendments, and will turn to each one.

Before I go into those details, the noble Baroness rightly talked about the Public Accounts Committee’s report on local scrutiny, and I thank her for bringing that to the Committee’s deliberations. We are of course ensuring that we consider its recommendations very carefully as the Bill moves through Parliament, and we will respond during the course of the Bill.

Turning to the amendments, I recognise the importance of ensuring that decisions to move to a model of franchising are taken on the back of quality information and robust analysis. As I have explained previously, in developing this Bill we have been keen to move away from the quality contract scheme processes set out in the Transport Act 2000, which, in particular, included the need for independent scrutiny by a “Quality Contract Scheme Board”. While I agree entirely that there is a need for a level of independent assurance, I do not think that devolved decisions should be second-guessed by an independent panel. We introduced the role of the auditor to ensure that an independent third party provides assurance that certain information used in the assessment is of sufficient quality, that the analysis of that information is robust and that relevant guidance has been followed. It is not the auditor’s role to take a view on the decisions taken by the franchising authority. As I am sure that noble Lords agree, its role is to provide a quality check.

The Bill requires any auditor to have a “recognised professional qualification” and to be eligible to act as the local auditor of the authority’s accounts. As such, we would expect any auditor to be suitably qualified and able to provide independent assurance.

[Baroness Randerson]

Does the noble Lord accept that it is not just a case of qualifications but of perceptions? It is only too easy for a situation to arise within a public body where an auditor’s assurance has been given but is not seen as good enough or independent enough by critics of the scheme. Therefore, the arm’s-length rule is the safe way of going forward.

[Lord Ahmad of Wimbledon]

I agree with the noble Baroness inasmuch as it is important that it is not just the process, but the perception—and the perception in the mind of the public, too—that there is scrutiny, and effective independence in the auditor role. However, I believe that any auditor, on the basis of what we have suggested of having professional capacity, would be able to show that level of competence and, indeed, address the issues of perception. As such, it would be reasonable for the franchising authority to appoint such an auditor. That applies as much to the suggestion by the noble Lord, Lord Snape, that it should be the auditor rather than the traffic commissioner, particularly as it would be the franchising authority that paid for the services of the auditor.

Coming back to the point raised by the noble Baroness and also by the noble Lord, Lord Shipley, I do understand that an auditor could be perceived as more independent if they are appointed by a third party—indeed, the noble Lord, Lord Snape, used the example of a traffic commissioner—or if the Bill specifically stated that they must be independent. However, I would argue, again, that any auditor with an established reputation would be mindful to protect their own role and independence in any report they provided.

--- Later in debate ---

[Baroness Scott of Needham Market]

I am grateful to all noble Lords who have taken part in the debate on this set of amendments, and to the Minister for his customary care and courtesy. However, I am afraid that I am not entirely reassured, as I think that there is a fundamental misunderstanding about what constitutes being independent. I recognise that you would, of course, go to a reputable firm of auditors. However, the person who sets the contract and pays the bill for the audit retains ultimate control. That is always the way. Anyone who has worked in this area knows that there are all sorts of ways in which the process can be subverted. This is a very important issue and involves great risk for the taxpayer, particularly in these mayoral models, where we know that the oversight of the mayoral function is not as strong as it used to be in the old days when people like me had committees which spent a lot of time going through these things. Given particularly the concerns expressed in the Public Accounts Committee report published on Friday, I think there is a need to return to this question, at least informally.

[Lord Ahmad of Wimbledon]

The noble Baroness again raises a very valid point. Once we have established our full response to the concerns of the Public Accounts Committee, we will be in a better position. As I said, I welcome further discussions in this respect, because I do not think that we disagree; to use the words of the noble Baroness, Lady Randerson, this is a matter of perception which can be addressed. Once we have responded more formally, I am happy to have those discussions with the noble Baroness.

[Baroness Scott of Needham Market]

It is certainly an issue of our time that perception is pretty much everything.

With that, I look forward to future discussions and beg leave to withdraw the amendment.

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[Baroness Jones of Whitchurch]

My Lords, I will speak to Amendments 48 and 51 in my name. I very much support the amendment tabled by my noble friend Lord Whitty. Amendment 48 takes a similar position—that as part of the consultation process, passenger organisations and trade union and employee organisations must be involved. We believe that proper time should be allocated to make this a meaningful consultation and an effort made to explain the changes in a clear and accessible form to those who may be affected. As my noble friend said, we have debated these issues in relation to previous amendments and received a positive response from the Minister. I hope a similar response will be forthcoming today.

I hope that Amendment 51 is an area where the noble Earl, Lord Attlee, and I are able to agree for once; I am pleased that some commonality is coming out of this debate. One of the problems with bus provision in this country is that the market is dominated by a small number of large bus operators. This makes the procurement process more difficult for local authorities and does not always result in the best passenger experience. It is difficult for new entrants to enter the sector, even though they often provide more responsive, quality services with high customer satisfaction. Reference has previously been made to the social enterprise company HCT, which runs highly successful services in parts of London, Yorkshire and Bristol. It also has the contract for providing bus services in Jersey. Since it took over that service, passenger usage has increased by 32%, the level of subsidy has reduced by £800,000 a year and customer satisfaction has increased by 5%. Somewhat uniquely, the contract also has a profit-sharing element and it is now giving money back to the local authority.

We need opportunities for innovative providers like HCT to enter the market and win new contracts, but the rules are stacked against them and the regulatory burden is far too onerous for the small providers to navigate. There is a danger that the proposals in the Bill will entrench local monopolies, at best replacing an unresponsive private sector monopoly with a publicly commissioned one. When it comes to enhanced partnerships, we need to be clearer about the process for opening up partnership lists to competition to allow new entrants to join. As it stands, the Bill acknowledges this problem in new Section 123F (1)(i). It requires the consultation document for authorities going down the franchising route to include a statement on how they propose to facilitate the involvement of small and medium-sized operators. We obviously welcome that.

Our amendment takes this one step further and requires the consultation document to consider how the franchise could be divided into smaller units. This would help to break down the local monopolies and encourage new entrants into the market. I hope the Minister understands and shares these objectives: I look forward to hearing his response.

[Lord Ahmad of Wimbledon]

My Lords, this group contains a number of amendments to the consultation process that a franchising authority must complete before it can implement a franchising scheme. Before going any further, my noble friend Lord Attlee asked about “small and medium-sized operators” and whether in the context of the Bill that meant small and medium-sized companies. The short answer is yes. It is judged by the size of the company rather than the nature of its operation. In the interests of clarity, which is always important, I will write to him formally in that respect.

Turning to the amendments which relate to the persons or bodies to be consulted and the form the consultation should take, Amendment 44, in the name of the noble Lord, Lord Whitty, would require franchising authorities to consult Transport Focus when consulting on their proposed franchising schemes. Once again, I am delighted to say that I agree with the noble Lord that it is important that organisations that represent passenger needs have an opportunity to respond to a consultation on a proposed franchising scheme. Transport Focus already works closely with local authorities and bus operators with a view to securing improvements to bus services for passengers, and I will consider how best to ensure that the Bill gives Transport Focus an opportunity to express views on franchising scheme proposals. I hope that this provides assurance to the noble Lord, Lord Whitty, in that respect.

Amendment 45, in the name of the noble Baroness, Lady Scott, would require franchising authorities to consult the Competition and Markets Authority on their proposed franchising schemes. As I said at Second Reading, competition does not disappear when franchising is introduced; it merely moves from “on the road”, where bus operators compete at bus stops for passengers, to “off the road”, where bus operators compete for contracts to operate services. Franchising authorities will be able to design a franchising system which suits their local area and local needs, whether that be through gross-cost or net-cost contracts, or with large or small bundles of routes, bearing in mind the need to involve small and medium-sized bus operators.

However, I agree that any fundamental change to the bus market that is being considered by a local area should take account of the potential effects on competition and the benefits or impacts this could have for bus operators and local people. I further agree that it may be helpful for franchising authorities to work with the Competition and Markets Authority as they develop their proposals, and for the authority to be consulted. I hope I have reassured the noble Baroness that I am with her in ensuring that we look at how to fit that into the Bill.

Amendment 48, in the name of the noble Baroness, Lady Jones, would add some additional requirements to the consultation provisions in relation to franchising, including requiring passenger interest groups to be consulted on franchising proposals. I thank the noble Baroness for her amendment, and agree that it is vital that passenger groups and others that may be affected are consulted fully on proposals to improve local bus services. I recognise that many noble Lords spoke about passenger representation and accessibility of bus services at Second Reading and in earlier Committee debates, and I fully understand that there is a wide spectrum of views and needs to be considered when planning local bus services.

The franchising provisions already include requirements for the authority to consult organisations that represent users of local bus services. Therefore, I encourage any authorities thinking of using the new tools in the Bill to engage fully with interested parties as proposals are developed. I hope this goes some way to addressing the noble Baroness’s concerns about the interests of passenger groups and reassures her that the Bill requires authorities to consult fully with those groups on franchising proposals.

Turning to the form that consultations on franchising and enhanced partnership proposals should take, the noble Baroness, Lady Jones, raised an important issue about accessibility and the need for consultations to be conducted in a manner and over a time period that is accessible to all. I agree that any consultation must give local people due time to consider and respond, particularly as proposals about local bus services are likely to have a large impact on local communities. I will therefore give further consideration to how best to ensure that consultation exercises relating to franchising proposals are accessible to all.

Turning to the amendments on the consultation materials that franchising authorities must prepare, Amendment 51, in the name of the noble Lord, Lord Kennedy, would reinforce the need for authorities considering franchising to give due consideration to small and medium-sized operators, given the important role they play in the delivery of local bus services. I sympathise with the aims of the amendment and I think we can all agree that small and medium-sized bus operators across the country deliver vital services to our local communities. Many of these smaller operators deliver tailored and bespoke services to suit local needs, and we want to see these small businesses continue to thrive, regardless of the model of bus service delivery that is employed.

The Bill requires franchising authorities, both as part of their consultation exercise and in issuing their response to that consultation, to set out how, in conducting the procurement process, they intend to facilitate the involvement of small and medium-sized operators in the provision of local bus services once franchising has been introduced. I agree entirely with the principle in the amendment that in reality, this provision will require the authority to consider in practical terms how it intends to facilitate the involvement of small and medium-sized operators, which may well include the division of local service contracts into smaller lots. However, there may be other ways to achieve that aim—for example, through subcontracting—and I do not want to prejudge the procurement strategy that an authority may employ. I hope I have reassured noble Lords that the Government are committed to ensuring that small and medium-sized operators continue to have a place in the market regardless of the model of delivery, and that the provisions in the Bill already address this issue.

Amendment 52, in the name of the noble Baroness, Lady Scott, would require franchising authorities to include in their consultation document their assessment of their proposed franchising scheme, conducted under new Section 123B, rather than a summary of their assessment. I hope I can reassure the noble Baroness that franchising authorities are already required to publish their assessment of their proposed scheme. The Bill also requires that a summary of the assessment of the proposed franchising scheme should be included in the consultation document itself, with the aim of ensuring that the consultation document contains sufficient information for the lay person to consider, without necessarily having to refer to the full assessment. I hope the noble Baroness agrees that these proposals are sensible and that the Bill as drafted already achieves her aims.

Amendment 53 would require franchising authorities to publish all the responses to their consultation on their proposed franchising scheme. I agree that it is important for those reading the response to the consultation to be informed of the views that have been expressed in responses to that consultation. I fully expect any authority to set out in its response to the consultation the views expressed by those consulted, subject to any disclosure issues, and the authority’s response to those views.

However, I do not want to be too prescriptive about how the authority should respond to the consultation and the exact form the response should take. For example, the authority may receive many responses on the same issue and may choose to summarise those responses and list the number of responses received. Again, that is common practice in local government. But I will consider how best to ensure that franchising authorities set out a summary of the responses they receive to their consultation, and hope that I have reassured the noble Baroness in this respect.

Government Amendment 50 removes the requirement for the franchising consultation document to include a description of how it is proposed persons are to be invited to tender for the provision of services. The Government believe that it is proper to remove this reference as the Bill does not make provisions anywhere else as to how the procurement process will work. This will be a decision of the authorities involved, in the context of procurement law, and guidance will be provided on procurement approaches.

Finally, Amendment 49, also in the name of the noble Baroness, Lady Scott, would require franchising authorities to have an auditor reassess their proposed franchising scheme if it is modified following consultation. I sympathise with the aims of this amendment, and agree it is vital that franchising authorities have the assurance of an auditor in relation to certain aspects of their assessment. We have already spoken about the audit function at length today so I do not want to go into further detail. I have agreed to sit down with noble Lords to discuss this further.

The section of the Bill to which the noble Baroness refers ensures that authorities are able to take account of the views expressed in the consultation and modify their franchising scheme appropriately. I also expect authorities to use their good sense and judgment. If the consultation unearths new data or causes the authority to radically rethink its approach, then of course I would expect the authority to take a view on whether it should choose to seek the auditor’s opinion on the new data or the revised analysis, and whether it should consult again on the revised scheme. I do not, however, want to force authorities to go through these processes again when a franchising scheme is modified. It may be that an authority makes a small tweak to its proposed scheme which does not materially affect it, when it would seem unreasonable for the authority to have another assessment by the auditor.

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Moved by

[Lord Ahmad of Wimbledon]

50: Clause 4, page 18, leave out lines 5 and 6

--- Later in debate ---

[Lord Bradley]

My Lords, very briefly, I also strongly support these amendments—late or not. We hear under the devolution deal a lot about the integration of health and social care and the integration of physical and mental health. Part of that is the integration of the transport system to enable people, particularly in the conurbations and city of Manchester—a poor and often elderly population who rely exclusively on public transport. We are developing a very effective integrated public transport system—buses, light rail, heavy rail—but we need to ensure that it benefits all the communities across Greater Manchester. This amendment enables that consideration effectively to be brought to the table to ensure that we have the best services possible to meet the real needs of local people.

[Lord Ahmad of Wimbledon]

My Lords, just to pick up on a couple of points, whenever you see something that can be improved, at whatever time, improve it. It is as simple as that, and better early than late, as long as time lines are met. We have heard about the inspiration of the noble Baroness, Lady Scott, and the ingenuity of the noble Baroness, Lady Jones. Indeed, this issue came up during the previous discussion. I am not sure whether the noble Baronesses received my letter in that respect—

[Baroness Scott of Needham Market]

Yes, I received a letter on the questions about rural public transport, which I raised at Second Reading, and a positive response on this issue. I did not mention it because I thought I would leave the noble Lord to take the glory.

[Lord Berkeley]

I received a lovely letter from the Minister, but only this morning.

[Lord Ahmad of Wimbledon]

As long as it was lovely, that is the important point to bear in mind. I thank all noble Lords, particularly the noble Baroness, Lady Jones, and the noble Lord, Lord Berkeley, for tabling their amendments, and acknowledge the noble Baroness, Lady Scott, for bringing this issue to the fore. The amendments aim to ensure that authorities think about the wider social, economic and environmental benefits of establishing a franchising or enhanced partnership scheme and remind authorities of their obligations relating to educational and socially necessary bus services.

Amendments 58A and 99ZA, tabled by the noble Baroness, refer to the Public Services (Social Value) Act 2012, which the noble Baroness, Lady Scott of Needham Market, mentioned in a previous Committee debate. As I have already indicated, and as the noble Baroness has acknowledged, I have written to her on this matter. My understanding is that the Public Services (Social Value) Act 2012 requires authorities which commission certain public services to think about matters relating to securing wider social, economic and environmental benefits in the context of procurement.

I believe that it would be useful to use the guidance that will accompany the Bus Services Bill to remind local authorities of the duty that the Public Services (Social Value) Act 2012 places on them in certain circumstances and to give some guidance on the approach to be taken in relation to procurement activities not covered by the Act. I assure noble Lords that, on the contribution of the noble Baroness, I immediately set the ball in motion. Work is in hand in the Department for Transport to consider how best we achieve this and it is getting some accolades. The noble Lord, Lord Whitty, is not in his place, but it is becoming a fast favourite of the noble Lord.

I also agree that any authority looking to establish a franchising scheme or an enhanced partnership scheme should think carefully about the wider social, economic and environmental benefits that such a scheme could bring. The Bill includes requirements for authorities looking to establish a franchising scheme or an enhanced partnership to think about whether the proposed scheme would contribute to the achievement of relevant policies and to consider the impacts of such a scheme. I hope this has reassured noble Lords that the social, environmental and economic issues will be considered as schemes are developed and that references will be made quite specifically in the guidance that accompanies the Bill to ensure authorities are aware of their obligations under the Public Services (Social Values) Act 2012.

Amendments 58B and 99B, tabled by the noble Lord, Lord Berkeley, relate to educational and socially necessary services. Authorities have certain duties to consider whether to provide socially necessary services, and they also have certain duties with respect to providing home-to-school transport. I agree entirely that authorities should consider these obligations as they develop franchising or enhanced partnership schemes as co-ordinated commissioning of public transport for the whole area can lead to real efficiencies. This is one of the core principles of total transport, and I support it wholeheartedly.

The obligations on local authorities with respect to socially necessary and home-to-school services remain in place regardless of whether franchising, enhanced partnerships, or any other model is employed and I do not think it is necessary to restate these requirements in the Bill. I do however recognise that we can continue to do more to ensure that authorities are reminded of their obligations through the guidance that I have mentioned already.

The other issue raised by the noble Lord’s amendment is that of an authority subsidising certain services which would not otherwise be provided. Authorities already have the ability to do this, and the Bill does not change that. I fully expect that authorities will subsidise certain services in a franchised model for example and confirm that this will be possible under any of the new models proposed through the Bill. The noble Lord, Lord Berkeley, talked about ferries. There is nothing to stop local authorities working with local operators to integrate ferries locally. Merseytravel’s multi-operator ticket already does this. It is unlikely that including a reference to ferries and the 2012 Act in this Bill would fall within the permitted scope, but I will consider the point and will write to the noble Lord if I am not correct in this respect. I hope that the assurances I have given have gone some way to addressing the issues that noble Lords have raised and that the noble Baroness will withdraw the amendment.

[Lord Kennedy of Southwark]

I know the Minister is trying to be very helpful today and we are very grateful to him for that. He has asked my noble friend Lady Jones of Whitchurch to withdraw the amendment. Is he saying that he is going to go away and think about this? I am not clear whether he said that. The amendment that my noble friend moved is important. I am not quite clear what he is saying in asking her to withdraw the amendment.

[Lord Ahmad of Wimbledon]

In the interests of time, if the noble Baroness, Lady Scott, does not mind I shall share the letter I wrote to her with all noble Lords. That should have been done as a matter of course. It will perhaps highlight the Government’s position, but to be clear, the Government are considering the provisions raised in the amendment, but within the guidance which will be in support of the Bill.

[Lord Kennedy of Southwark]

I think I got the letter, but I am afraid I not have actually read it yet. It arrived this morning in my email inbox. I just wanted to be clear what the Minister meant.

[Lord Kennedy of Southwark]

Apparently I did not get the letter after all. I certainly got a letter from the Minister this morning, but it may not be the one that we are talking about.

[Lord Ahmad of Wimbledon]

As I have reflected on before, while we are in the holy month of Ramadan, noble Lords should be thankful that they are not getting emails from me because they would be arriving at about 3 am. If I am writing them, I hope noble Lords are reading them. I will of course confirm when the guidance is due to be published, but I hope I have provided clarity and that the noble Baroness will withdraw her amendment.

[Baroness Jones of Whitchurch]

I think the Minister for his response and I thank all noble Lords who contributed. For a little while there, we had a sense of what is possible in the Bill. If we were not careful, we were going to get bogged down in the technical detail of franchising but, as my noble friend Lord Judd said, it is about building community and using the real advantages that you get with a Bill like this that comes along only once every 20 or 30 years. This is a chance to build in that ambition and to have some excitement about the possibility that bus services can provide in terms of community assets. We have had a glimmer today of some of those opportunities.

My noble friend Lord Berkeley showed not only that you can have some innovation and excitement but that you can actually save money by pooling all those services. It seems foolish that social services pay for one set of transport while education pays for another, and no one ever thinks that they could pull that together into one complicated yet coherent grid.

I am pleased that the Minister spoke positively in response. I am slightly sad that he thinks this should go in guidance. I know we debate this over and over again, but guidance does not have the same weight as legislation. From our perspective, the social value Act is worth specifying in the Bill because it brings very specific requirements. I look forward to receiving the letter, when it eventually comes to us, but we need to explore how much more we can enforce this within the Bill rather than leaving it within the guidance. Perhaps that can be part of the wider discussion for us to have outside. In the meantime, I beg leave to withdraw the amendment.

Bus Services Bill [HL]

Lord Ahmad of Wimbledon Excerpts

Monday 4th July 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I thank all noble Lords who have taken part in the discussions. Several times in his contribution the noble Lord, Lord Woolmer, referred to me—I am flattered by the suggestion—as the Secretary of State. I know that there are certain unpredictabilities in government as we move forward into what I said earlier today in answer to a PQ are unpredictable times, but perhaps he is party to something I am not.

I shall respond to a number of issues which noble Lords have raised. I thank the noble Baroness for laying down a series of amendments. As she illustrated, her amendment would enable all authorities listed at proposed new Section 123A(4), rather than just mayoral combined authorities, to access franchising powers without the need for regulations or for the Secretary of State’s consent to be given. Several noble Lords spoke in favour of this, but I also recognise that some voices were not in favour of the amendment. I know from previous meetings with noble Lords that queries have been raised regarding the Government’s stance on mayoral combined authorities and the policy that such authorities should be given automatic access to franchising powers while others would require regulations and the consent of the Secretary of State. It may be helpful if I say a bit more about the Government’s rationale for favouring the mayoral combined authority model, then I will answer some of the specific questions and issues that have been raised.

As I have said before, moving to a model of franchising is a big decision which is likely to have implications for passengers, bus operators and the local authority itself. Our view is that strong governance and accountability are key to making franchising a success, together with a commitment to improving transport and a coherent economic geography. Mayoral combined authorities, when established, will provide centralised decision-making for transport across a relatively wide local geography, be that city areas such as Greater Manchester and Sheffield or regions such as East Anglia. The mayor will be the individual responsible for deciding whether to implement franchising and can be held accountable for that decision. Those factors, together with the fact that transport will be considered at a strategic level, mean that the mayoral combined authority model is well suited to making franchising a success.

However, as the noble Baroness, Lady Jones, noted at Second Reading, the Government do not want to preclude other types of authority becoming franchising authorities in future if there is a compelling case for doing so—I will come on to Cornwall in a moment. The Bill enables other authorities to access franchising powers if regulations so provide and the Secretary of State provides his consent.

The noble Lord, Lord Snape, rightly raised the impact on the bus industry. We are concerned about the impact of uncertainty on the bus industry and want to ensure that bus operators continue to invest and develop services to the benefit of passengers. There were some suggestions during the debate that by establishing the mayoral combined authority model as the preferred model and limiting access in the first instance—I stress that—somehow we are excluding all other authorities. We are not. By limiting access in the first instance to the category of authorities, the bus industry will have greater certainty as to the areas that will have access to franchising powers and will be able to take commercial decisions accordingly.

In addition, as noble Lords have noted, the Secretary of State will also need to provide his consent before any individual authority can access franchising powers. Franchising is a big step which will have implications for local passengers, bus operators and the authority itself, so we want to ensure that franchising is pursued only where it makes sense to do so.

I shall answer some of the specific questions and then come back to any other issues I wish to raise at this juncture.

[Baroness Scott of Needham Market (LD)]

Before the Minister moves on, will he clarify something for me? I am struggling to understand why the question of certainty for the bus industry has been raised in this context. It seems to me that if we have the situation as pertains in this Bill there will be a raft of local authorities around the country which may at some point have access to these powers, but only if the Secretary of State says so. I am not sure how that adds to certainty. Would it not be more certain if all local authorities had the potential powers to bring this in?

[Lord Ahmad of Wimbledon]

It is not just about local authorities. I have already alluded to other factors. I state again that the geographical nature of the authority applying for franchising powers is important. The noble Baroness’s important point about the Secretary of State approving access to the powers was perhaps not covered in the debate. There would, of course, be instruments introduced in both Houses to allow for discussions on the particular models. I stress that this is an enabling Bill that allows all authorities to have access. It is the Government’s view—noble Lords have expressed views to the contrary—that mayoral authorities are best suited in terms of their governance models and their geography for franchising, which, as I have said, is a big step. At the same time, we have to balance that with the nature of the bus operators. That is the Government’s view. I am not saying that all noble Lords will immediately subscribe to it. That is why we are pursuing the mayoral combined authorities model, but not to the exclusion of others.

The noble Baroness, Lady Jones, raised the response to the Delegated Powers Committee. It is fresh off the press. I know my honourable friend in the other place has today written to the committee outlining the Government’s proposals and I will ensure that full details are made available to all noble Lords. To avoid prolonging this debate if there are specific questions on the letter, I will be pleased to answer either later in Committee or through correspondence, but I think that what I will say will deal with some of the issues and concerns that the DPRRC’s letter raised. The Government’s response from my honourable friend sets out the issues around access to franchising. It also goes further and mentions that the Government are looking to accept the proposals raised by the committee on open data. I am sure the detail is in the letter.

The noble Baroness, Lady Randerson, also mentioned the memo about mayoral combined authorities and said that they have expressed interest. She raised a very valid point about whether they actually exist. The noble Baroness and the Committee were right to pick this up, but I am sure that she will accept that we have been referring to areas which have agreed deals—I referred to Manchester and Liverpool as two examples. We have made it clear in response to previous questions raised by the noble Lord that the deals would be issued in time for those new governance procedures to come on board. Cornwall, where devolution deals are being discussed, illustrates the Government’s willingness to allow the devolution debate to take account of what we are looking to do in terms of bus services. In our discussions to date with Cornwall, franchising is something that it has indicated it would seek to pursue. That is why the Cornwall example has come to the fore, although it would still need to go through the same process that we have illustrated for non-mayoral authorities.

The noble Baroness, Lady Jones, referred to London. As several noble Lords acknowledged, London is very different, and the local government role has been defined for the past 30 years in terms of devolution of powers and financial and investment risks. These have been the major differences between London and other parts of the country.

The noble Baroness talked about the concerns raised by the LGA about the franchising model and whether it makes sense locally. As I have already said, we need to address the concerns. This is about providing access to all authorities, but we need to balance that against the need to provide certainty to the bus industry and to ensure continued investment. I stress again that the Bill provides the ability for other local authorities to access the powers if there is a strong case for doing so.

I have already said that we are in discussions with Cornwall on its devolution deal. The noble Lords, Lord Woolmer and Lord Berkeley, both raised issues pertaining to Cornwall. Cornwall is committed to improve local transport in the wider area, and it has made a strong case for having access to franchising powers. If Cornwall decides that it wishes to pursue franchising, the regulations will be brought forward for discussion via the affirmative procedure. As I have already said in response to the noble Baroness, Lady Scott, it is important to note that in laying out the intent behind the proposals in the Bill the Government have been very clear that they believe that mayoral combined authorities provide a model which is able to take forward the proposals around franchising. However, that does not preclude others doing so. By making the provisions subject to the affirmative procedure, with applications subsequently made to the Secretary of State, we are providing the locks, the vehicles and the necessary checks and balances to ensure that the best deal is done for all local authorities. I shall respond shortly to questions relating to specific procedures relating to the Secretary of State.

My noble friend Lord True asked why competent authorities cannot come together when they have franchising powers. I assure him that nothing in the Bill prevents this. They can make their case, and the Government will listen. Whether it is me or Ministers at a more senior level, we want to ensure that the competence powers needed are in place to make franchising accessible to whatever type of authority. I stress again that the economic geography of the authorities coming together is an important and attractive part of this. I assure noble Lords that we have no intention of excluding any particular local authority in this respect.

The noble Lord, Lord Snape, asked what would happen to investment under franchising. I have already talked about the concerns of bus companies. When franchising is implemented, authorities will be able to specify things such as vehicle age, but they will need to ensure that a scheme remains affordable. The noble Lord also asked about the Competition and Markets Authority. We have received several recommendations from the CMA. We are considering them and will respond shortly.

The noble Lord, Lord Woolmer, asked about the regulations to allow certain categories of authority. I have answered this in part already. We want to make franchising powers available only where there is a real desire to use them. Regulations will be made only if at least one authority from that category makes its case to government. The Secretary of State will then need to give consent to individual authorities which want to use the powers.

We have talked, to some degree, about criteria, and I am conscious that in response, to the noble Baroness’s question, and I think, to the noble Lord, Lord Woolmer, who also asked about this, I gave a commitment at Second Reading to publish the criteria which the Government and the Secretary of State will use. We will make the detailed criteria available before Report. At this juncture, I can share some of the headlines. There will be, in essence, four key factors that the Secretary of State will consider: first, the powers the authority has; secondly, the governance arrangements which are in place; thirdly, the economic geography of the area; and fourthly, the track record and ability of the area to deliver upon this. There is further detail to follow and, as I have said, I will seek to ensure that that is published before Report.

During this debate, I have talked about a number of factors, including the importance of powers of governance, the arrangements the authority has in place, the economic geography of the area and the track record which I have just alluded to. I hope that, in part, this has helped reassure noble Lords that the Government’s policy has been determined with the interests of passengers and the continued health of the bus industry in mind. It is about balancing and ensuring that local authorities that we believe have the governance arrangements in place and are able to take forward franchising are able to do so, but not to the exclusion of others. I believe that with the measures we have in place, the affirmative procedures of debate in this House about other authorities that seek to apply and the criteria that the Secretary of State will apply in decisions, I have been able to reassure some noble Lords that the Government’s policy has been determined with the interests of passengers in mind. With those reassurances, I hope the noble Baroness will withdraw her amendment.

[Lord True]

My Lords, I am, of course, grateful for what my noble friend has said about competent authorities. I know that he has a great knowledge of, and esteem for, local government. My problem remains, although I have studied carefully what he said. I should say to the noble Lord, Lord Snape, that I have no vested interest in this, because my council is a London area council and we come within the London arrangements, although I will have some points to make on Clause 21. In his opening remarks, my noble friend talked about the advantage of mayoral arrangements; there is a centralised decision-making element—I think that probably came in guidance or advice he had received. This is the problem, because, as I said in my previous intervention, this is a small part of a wider policy; there are certain people inside government who wish to create centralising models. It is an idea of managing the country by larger functions, which are responsible to, and look upwards to the Treasury and the Government for guidance—we see it in education, with the emergence of regional schools commissioners. That is not the philosophy I believe in, as a Conservative; I believe, as I said earlier, that we need more dispersed authority.

My noble friend is right that it is clearly open to any sort of authority to go ahead; however, there are more obstacles put it in the way of other authorities, whereas the mayoral authority can leap forward. My noble friend Lord Horam must be right: the Government cannot keep taking on these functions to take all these decisions. I do not want to stray into education, I know we are in Committee, but can the Government and their institutions make every decision for every school or group of academies around the country? We do not have enough civil servants to do that. We do not have enough civil servants with the competence to take decisions about transport in different counties all over the country. Devolution is a marvellous idea, which I strongly support, but what creeps into legislation time and again is not devolution but control masquerading as devolution. So when I hear talk of centralised decision-making, I believe that I am looking at the tip of the iceberg of a philosophy of government which is not one I share.

Although I am extremely grateful for what are in many ways the reassuring and typically courteous remarks of my noble friend, I would still find it very difficult to support any legislation that gives an advantage to a putative mayoral authority, not just an existing one, above any other form of authority. It would mean that someone in a department somewhere can say, “Look, you guys. You can have what you want if you do what we say”. Power should come from the people through local government and through local authorities coming together. I give notice to my noble friend that I am still uneasy about these proposals.

[Lord Ahmad of Wimbledon]

Of course I will reflect on the thoughtful remarks made by my noble friend, but let me reassure him that from my perspective and indeed of those within the Department for Transport, the view is very much based on all authorities having access if they have not only the governance models but, as I said, the other criteria on geographical coverage as well to ensure that they can make franchising a success. Ultimately the Government’s intent behind this enabling Bill is to ensure that bus services work for local people.

[Lord Woolmer of Leeds]

Let me give a specific example. If West Yorkshire Combined Authority agreed tomorrow to have a mayoral structure, presumably that would immediately parachute it from one part of this Bill into another. I agree with the noble Lord in his remarks that that is bizarre. It would be very welcome, but as I say it is bizarre. That is not transport policy, it is a political policy on mayoral authorities.

[Lord Ahmad of Wimbledon]

Perhaps I may respond to that. As I am sure the noble Lord appreciates, every devolution deal involves detailed discussions between the Government and those proposing the deal. No doubt if a particular area, wherever it may be, wishes to go down that route, it would be subject to discussions around the devolution deal.

[Baroness Jones of Whitchurch]

I thank the Minister for his response and I thank noble Lords around the Chamber for their support, particularly that of the noble Lords, Lord True and Lord Horam, which I welcome. The noble Lord, Lord True, has done half of my summing up of the debate for me which I would otherwise have done. I want to look carefully at the Hansard report of this debate because I am still not clear about what is so special about mayors. I was really hoping that the Minister would explain what is so unique about that particular model. My noble friend Lord Woolmer made the point that you could have two adjoining authorities with the same geography, the same population and income, but one of them would have a fast track to automatic franchising purely because of the fact that it has a mayoral system rather than another one while the other would have to go through a very convoluted process.

I do not understand what it is about the mayoral model that is so important. It is not just about the geography and economics or even the strategic role, as the Minister has suggested; there is something much more singular about a particular local government structure. The fact is that we trust local authorities with making very serious decisions already. We entrust social services issues to them where they make life-or-death decisions about child protection. We trust them to take serious decisions in the commissioning of all sorts of services. It is not as if they do not already commission services and of course they have the expertise to do so. Running a bus service does not require particularly special skills which authorities do not already have. Some might not choose a franchising model, which is perfectly understandable, while others may want to have it. I do not quite understand what is so special about having a mayor in charge that would qualify them in this way.

--- Later in debate ---

[Baroness Jones of Whitchurch]

My Lords, I will be brief. I have listened carefully to the contribution of my noble friend. As he indicated, he is making these proposals in the context of being against franchising. On that basis, we are not convinced that these amendments are necessary.

As it stands, the Bill requires those considering a franchise scheme to prepare an assessment that considers the merits of franchising weighed against other options. My noble friend is suggesting that they would just steam ahead regardless, but the checks and balances in the Bill make that unlikely and, indeed, impossible. We would expect there to be a detailed, thoughtful piece of work by the local authority that genuinely balances the different options in the context of what is in the best interest of the local community.

As it stands, the Bill requires the assessment to consider affordability, value for money and how it would apply to wider authority policies. We believe that that is the right tone to adopt when making an assessment. My noble friend’s proposals would go further than that and require greater certainty that all the conditions are met at that stage. We believe that that would go too far and discourage authorities from going through that appraisal and assessment process before making any decisions, which is the important point.

Therefore, we believe that the checks and balances in the Bill are the right way to go forward. There are many stages in the assessment process that would allow the proposal to be fully scrutinised, including a full audit, which we are going to talk about later. We want authorities to consider all that in an open and thoughtful way and go through what is in the best interests of the locality, taking into account all the factors and complexities of moving to a franchise situation, which my noble friend has identified—but it must be done in a balanced way. We believe that the provisions in the Bill should be supported.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for tabling his amendment. He proposes a series of amendments that would change the nature of the assessment that franchising authorities must prepare for their proposed franchising scheme before determining whether to introduce franchising.

In thanking the noble Lord, let me assure him that we recognise the importance of ensuring that decisions to move to a model of franchising are taken on the back of a robust assessment. In developing the Bill we have been keen to move away from the processes set out in the Transport Act 2000 that must be followed before a quality contract scheme can be established. That legislation required authorities to be satisfied that a number of tests had been met before introducing such a scheme. As was touched on at Second Reading, only one authority ever attempted to use the quality contract scheme legislation to introduce a quality contract scheme. In part I think this was because the “must pass” tests proved to be too restrictive.

I agree entirely with the noble Lord that authorities looking to franchise must consider whether the scheme is affordable, represents value for money and contributes to the implementation of relevant policies. But I think that devolved decision-making must be respected, with the mayor or authority considering the issues listed in Section 123B and any other relevant issues when assessing their scheme, and then taking reasonable decisions with their eyes wide open. I do not want to repeat the failings of the quality contract scheme legislation, and I want to ensure that franchising is a realistic option where it makes sense locally. I am concerned that the amendments as proposed would unnecessarily restrict mayors and authorities by requiring them to be satisfied about a number of issues, rather than requiring them to set out their thinking and rationale. I agree entirely, though, that I would expect authorities to proceed with franchising only where there is a strong case to do so. However, I do not want to rule out, for example, an authority proceeding with franchising where a scheme contributes hugely to its transport policies but not necessarily to its other published policies affecting local services.

The noble Lord raised a specific issue about operators having assets such as bus garages being taken away or awarded to winning bidders. It is important to note that the Bill does not give authorities powers to acquire bus operators’ assets. Authorities could potentially come to agreements with operators or lease new depots or garages to those winning businesses.

I trust that this short debate has helped to assure the noble Lord that the Bill as drafted will ensure that authorities consider a number of specific factors in their assessment of whether to move to a franchising model and allow decisions to be taken in the light of local circumstances. I hope that the noble Lord is reassured to the extent that he feels able to withdraw his amendment.

[Lord Snape]

Of course, I listened with care to what both Front Benches said but was not entirely surprised at the contribution from either side. I can envisage a situation where a company based in a city loses a franchise. The Minister said that there is no power for the local authority to commandeer a particular garage or vehicles. However, they are not much use based in the middle of Birmingham if, for example, there is no franchise to operate in the middle of Birmingham. Presumably, we could build another tower block in the centre of Birmingham and move the buses elsewhere. Again, that rather places a darker cloud on the somewhat optimistic view from my own Front Bench that all these matters can be agreed by civilised discourse between two people, and that everything in the garden can be rosy, if I may mix my metaphors.

However, having listened to what the Minister had to say, I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for moving Amendment 33. My noble friend Lord Attlee behind me referred to summary sheets that may or may not exist on the Front Bench. I am becoming increasingly conscious that telepathy is at work.

Moving on to the amendments, as I have said before—and I agree with all noble Lords who have spoken in this short debate—improving bus services for passengers is one of the key aims of the Bill. The amendment in the name of the noble Lord, Lord Kennedy, relates to increasing passenger representation through the life of franchising and enhanced partnership schemes. I sympathise with his aims and agree that one of the issues that authorities and bus operators should be considering is how passenger representation can be increased. Hearing from passengers helps authorities and operators understand the needs of their local communities and encourages meaningful engagement in the future.

Many noble Lords—the noble Baroness, Lady Randerson, in particular—spoke about passenger representation at Second Reading and in earlier Committee debates, particularly the need for passenger groups and representatives to be fully consulted on any proposed changes to bus services in their area. I too would like greater passenger representation across the board—I share the intent behind the amendment—particularly in areas where partnerships are established or where the status quo remains, as well as where franchising is implemented. I encourage bus operators and authorities to work with local people and community groups to design services that are attractive to users.

However, the amendment as drafted—and I am sure this was not the intent of the noble Lord when he tabled it—may not fully address those aims in particular circumstances. It addresses the issue of considering passenger representation in the context of franchising and enhanced partnerships, rather than where other partnership proposals are put in place or where the status quo is felt to be the most sensible way to deliver local bus services. It also refers to operators increasing passenger representation during the life of the franchise or the enhanced partnership plan, rather than the authority involved engaging with passenger groups directly as the schemes and plans are developed.

I assure noble Lords, especially the noble Baroness, Lady Randerson, that the Government are committed to ensuring that passengers have a say as plans for bus services are developed, and we welcome further debate and thought on this matter as we consider how we can best deliver this through the Bill.

[Baroness Randerson]

Is the Minister willing to give a commitment that the Government will consider bringing forward amendments that actually place the phrases “bus users” or “passenger groups” within the Bill, to counteract the balance of power whereby it mentions operators and local authorities but not passengers?

[Lord Ahmad of Wimbledon]

I have already said that I am open to discussing how we move this matter forward. I hope that I am indicating that I believe we should proceed in a collaborative way on the passage of the Bill through Committee and Report. I am happy to discuss with the noble Baroness and the noble Lord, Lord Kennedy, how we can develop this amendment to reflect the intent behind it, which I share and which I am sure she shares, and also incorporate the issues raised by the noble Baroness. On that basis, I hope that the noble Lord is minded to withdraw his amendment.

[Lord Kennedy of Southwark]

I thank the noble Lord for that very helpful response. When we tabled the amendments we should have included the advanced partnerships and the current arrangement, as the noble Lord mentioned, but is he saying that, through the discussions that will take place over the coming days and weeks, we will seek to agree an amendment that will deal with the issues raised here?

[Lord Ahmad of Wimbledon]

It is certainly my intention to discuss with the noble Lord and the noble Baroness how best to take this forward. Yes, if it needs to be in the Bill, that is something we can discuss. I am sure we can overcome the drafting issues and it is important to reflect the points raised by the noble Baroness, Lady Randerson, in any amendment that comes forward.

[Lord Kennedy of Southwark]

That is very helpful. I am very happy to get involved in discussions on an amendment that we are all happy with and can work with, and which delivers the aim expressed across the Committee today of making sure that passengers are properly involved. However, what I do not want to see at the end of those discussions is a note in guidance, because, importantly, that does not have the same strength as something in the Bill.

[Earl Attlee]

Will the Minister take great care to make sure that everyone who has an interest in the Bill is included in these discussions? Sometimes it is possible for people to fall out of the loop and not be fully involved.

[Lord Ahmad of Wimbledon]

I give my noble friend that assurance. I will go further and say that I never forget my noble friend when it comes to such discussions. He has made a very valid contribution throughout this debate and I am sure he will continue to do so in debates going forward. Any noble Lord has an open invitation to meetings, as I have said, as we look to strengthen the provisions of the Bill and the services it provides.

[Lord Kennedy of Southwark]

I thank the noble Lord for those very helpful responses. I am very pleased to have received support from the noble Earl, Lord Attlee, and the noble Baroness, Lady Randerson. It is beneficial that local transport authorities and operators seek the views of their passengers, who are, in fact, their customers. Being sensitive to the needs of your customers is usually good practice for any business or public service and benefits everybody concerned, particularly the providers of the service. A role for bus passengers, as the noble Baroness, Lady Randerson, said, is important and needs to be in the Bill. I am very pleased with the comments of the noble Lord, Lord Ahmad of Wimbledon, and look forward to our discussions. I hope that we can agree an amendment we can all be happy with during Report.

[Lord Ahmad of Wimbledon]

Before the noble Lord sits down, let me assure him that that is the Government’s intention with all the provisions we have discussed. Putting passengers at the heart of what we seek to do is a key part of delivering either the franchising model or the partnership model. Importantly, as I said, the current amendment does not incorporate, for example, the issues around the status quo.

I know the noble Lord is working with me to ensure that that is what we do. That is certainly the intention—one that is resonating around the Chamber. Given that assurance and the positive nature of the debate, I think the noble Lord is moving towards formally withdrawing his amendment.

[Lord Kennedy of Southwark]

I thank the noble Lord again for his very helpful comments. I beg leave to withdraw the amendment.

EU Nationals: Legal Status

Lord Ahmad of Wimbledon Excerpts

Monday 4th July 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I beg leave to repeat an Answer to an Urgent Question given in the other place by my right honourable friend.

“EU nationals make an invaluable contribution to our economy, our society and our daily lives. They should be assured that, as the Prime Minister and the Home Secretary have repeatedly said, there will be no immediate change in their status in the UK. The Prime Minister has been clear that decisions on issues relating to the UK’s exit will be for a new Prime Minister. I am therefore not in a position to make new policy announcements in this area.

The discussions that we have with the EU to agree the arrangements of the UK’s exit will undoubtedly reflect the immense contribution made by EU citizens to our economy, to our NHS, to our schools and in so many other ways. But they must also secure the interests of the 1.2 million British citizens living and working elsewhere in the EU. The Home Secretary was clear yesterday when she said we seek to guarantee that the rights of both groups are protected, and that this is best done through reciprocal discussions with the European Union as part of the negotiations to leave the EU.

It has been suggested that the Government could now fully guarantee EU nationals living in the UK the right to stay. This would be unwise without a parallel assurance from European Governments regarding British nationals living in their countries. Such a step might also have the unintended consequence of prompting EU immigration to the UK. It is in the best interests of all that the Government conduct detailed work on this issue, and that the new Prime Minister decides the best way forward as quickly as possible.

In the meantime, I would like to stress that EU nationals continue to be welcome here. We have seen some truly abhorrent hate crimes perpetrated against EU nationals in the past week or so. We will not stand for these kinds of attacks. They must be, and will be, tackled in the strongest possible terms.

EU nationals can have our full and unreserved reassurance that that their right to enter, work in, study in and live in the UK remains unchanged. But to pre-empt future discussions at this point risks undermining our ability to protect the interests of EU and British citizens alike and to get the best possible outcome for both”.

[Lord Collins of Highbury (Lab)]

My Lords, I thank the noble Lord for repeating the Statement. I declare an interest in that my husband is Spanish and I have just returned from a brief weekend to visit our family in Spain.

In the debate on your Lordships’ EU Committee report, I asked the Minister what plan B was if the UK voted to leave. The committee highlighted the acquired rights of the 2 million or so UK citizens living in other members states and, equally, those of EU citizens living in the UK. Bearing in mind the importance to our economy, as the noble Lord said, and to our health service, I am shocked that no contingency plans appear to have been made.

The Minister, and of course the Minister in the other place, say that the Government’s position must be seen in the round and that their interest is to protect all citizens. Well, I fear that by putting in doubt the rights of EU citizens here, it will have the complete opposite effect from protecting UK citizens in the EU. As I say, I have just come back from Spain; Rajoy’s recent statement and those of the Spanish Foreign Minister are not giving people much comfort either; they repeat the same sort of statement the Government are making. Rajoy says, “Don’t worry, nothing will happen, at least for the next two years”. Two years is an incredibly short period when people have made their lives, bought homes, got jobs, and contributed to the economy. Earlier the Minister explained—as did the Minister in the other place—that there are existing rights, such as the right to remain after five years. But how are people made aware of this? They have never needed to exercise it. So how will the Minister explain that that right exists and people need not worry as they have that protection? How are people going to follow through? Would it not be better, both in terms of protecting our own citizens abroad and our economy, if we removed the uncertainty now?

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for his remarks. The Government, of course, are listening carefully. As I have done on a couple of occasions from this Dispatch Box, let me reassure noble Lords that it is the Government’s intent to provide reassurance to all our citizens. It is right that we protect the rights of EU citizens in the United Kingdom and provide them with the security of knowing that they can continue to practise, work, live and study in the UK. The issue now arising is one of great uncertainty. As I said earlier this afternoon, we are going through unprecedented circumstances. As we reflect on the situation in which the country has now voted—in the referendum the country voted by a majority to proceed to leave the European Union—it is important that in the discussions we are taking forward with our European partners we protect the interests of British citizens who are working and living, and have done so for many years, in the European Union, and at the same time, put at the forefront the very valid discussion and concern that the noble Lord has just raised again about EU citizens who have made their lives in the UK and who contribute to the UK and its progress.

I can give the reassurance that exactly those sentiments, thoughts and principles are very much in our minds. It is not for me to speak about the future Prime Minister specifically, but I am sure that all those candidates putting themselves forward for Prime Minister, and indeed the new Government, will reflect very strongly about this, because it is central to our future relationship. We may choose to leave the European Union—the people have elected to leave it—but we have not left Europe. Our relationship with Europe will continue.

[Baroness Smith of Newnham (LD)]

My Lords, it would appear that the people of the United Kingdom have rejected the Kantian ideal of perpetual peace and the European Union. Are Her Majesty’s Government determined also to walk away from the categorical imperative that people be treated as ends in themselves, not as means? The idea that EU nationals resident in this country should be used as pawns in the negotiation seems to be wholly wrong. Can the Government not commit to assuring those EU nationals who were here at least at the time of the referendum that they can have their rights assured? Surely it is right to respect the dignity of EU nationals resident here and the benefits that they have brought to this country.

[Lord Ahmad of Wimbledon]

I share the sentiments expressed by the noble Baroness. Let me assure her that the Government are looking at this situation. It would not be appropriate to put down a particular marker as to which point, but there are legal considerations to take on board. Of course, the noble Baroness makes a very valid point. We will continue to put the concerns about the security of EU citizens here and UK citizens in the European Union at the centre of discussions as we move forward.

[Lord Cormack (Con)]

My Lords, for the second time in a week I say to my noble friend that while his credentials are beyond question, it is possible for us to come to some basic agreements before we invoke Article 50, and this should be one. I urge him to talk to the Home Secretary after this Statement and say, “Can we not agree a reciprocal arrangement with our European friends and neighbours that will not threaten the security of those who are living here and those of our citizens who are living there?”.

[Lord Ahmad of Wimbledon]

I will certainly take that back. My noble friend has spoken about this before. I assure him and indeed all noble Lords on this point, which has been raised before: before invoking that particular article, it is important that the terms of negotiation are determined and we know exactly what position we are negotiating from. One important thing to retain in all this is that it is clear that the citizens of the United Kingdom as one nation voted to leave the European Union. That is a fact. We need to ensure that we secure the best possible arrangements across the board. I am sure that the protection of the rights of those who live in the UK as EU nationals and those British nationals who live in the EU will be at the heart of those discussions, both from our perspective and from those of our European partners.

[Lord Richard (Lab)]

My Lords, when the Minister was speaking a moment ago, he said we must get the agreement of member Governments. I am slightly worried as to whether the negotiation—because that is what it is going to be—about EU citizens living here and our citizens living in the EU can take place at a European level, or whether we are not going to have to negotiate with each member state of the EU separately about their arrangements for continuing to receive our citizens and for our citizens to continue to live there. In other words, will we not have to have separate negotiations with Spain, France and each other country individually, and are we not likely to get different receptions depending on which country we are negotiating with? If so, how on earth are the Government going to do it?

[Lord Ahmad of Wimbledon]

My understanding, and I think I am clear on this, is that the negotiations we will have across the range of different areas regarding the single market, trading arrangements and so on will be with the EU. We continue to be part of the EU and will continue to have those discussions once we have established our negotiating criteria with the EU.

[Viscount Waverley (CB)]

My Lords, I suspect we are going around in circles, but is not a perfectly reasonable solution to this whole problem, for those who are properly registered in individual countries of the EU and may well be taxpayers, to have the uncertainty removed and, possibly prior to a certain date, have permission just to remain where they are and get on with it?

[Lord Ahmad of Wimbledon]

I respect the noble Viscount’s sentiments—

[Viscount Waverley]

I apologise; I should have said that I live in Portugal.

[Lord Ahmad of Wimbledon]

The noble Viscount talked about those who are properly registered and who pay tax. Those phrases underline some of the important discussions that we need to have, without putting down some markers just for the sake of clarifying one point or the other. The central point that must be at the heart of all the negotiations, which I clarify again will be between the UK and the EU, will be ensuring and protecting the rights of all EU nationals here and UK nationals in the EU.

[Baroness Wall of New Barnet (Lab)]

My Lords, my noble friend on the Front Bench talked about someone who was very close to him. Is the Minister aware that there are staff in this House who are now questioning all the time what is going to happen to them? There are Italians and Portuguese, for example, who look after us so well. There is uncertainty surrounding their children who have been born here, while they themselves came here from European countries. This is totally unacceptable. These people are really worried while trying very hard to make our lives as easy as they can.

[Lord Ahmad of Wimbledon]

My Lords, I reiterate that I respect the sentiments and facts that have been presented today in your Lordships’ House, and I shall of course share them with colleagues across government.

I shall end on this point because I am conscious that we have reached our time: this country has always been compassionate in dealing with people irrespective of whether they are from the EU or outside it. Those are guiding principles that define us as a nation and I believe they will be what define us as a country. I am reminded of what Archbishop Desmond Tutu said:

“My humanity is bound up in yours, for we can only be human together”.

Bus Services Bill [HL]

Lord Ahmad of Wimbledon Excerpts

Monday 4th July 2016 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, I will first speak to Amendments 59 and 60 in the name of the noble Earl, Lord Attlee, which specify that any decision to postpone or cancel a franchising scheme cannot be revisited for five years.

There are many legitimate reasons why these decisions are postponed, and we believe that there is a danger that this amendment would have the converse effect of forcing imperfect schemes to proceed, to avoid the five-year moratorium. On the other hand, we believe that there are enough checks and balances in the Bill to allow decision-makers to reflect and rethink their proposals, so a ban for five years on revisiting the option is unnecessary and we would not support it.

Amendment 66 in the name of my noble friend Lord Bradley seems to provide a safety net for franchise providers to ensure that service permits which are issued do not undermine the viability of franchise schemes as a whole. This seems sensible, so we support the amendment.

Finally, we support the concept in Amendment 67 that any franchise service permit issued should first be subject to consultation, not only with the service providers but with the service users. This theme has run through a number of our amendments and we support it in this context. I therefore hope the noble Lord will agree with the sense of that amendment.

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I thank all noble Lords who have taken part in this debate. I will take each amendment in turn, beginning with Amendments 59 and 60.

Amendment 59 would enable franchising authorities to cancel the date on which local service contracts may first be entered into for a franchising area or sub-area. I admit to being unclear as to the purpose of this amendment and would welcome further clarification from my noble friend. The amendment that my noble friend proposes is to the section in the Bill which enables franchising authorities to postpone the date on which local service contracts can first be entered into, for example to deal with a situation in which the procurement exercise takes longer than anticipated.

--- Later in debate ---

Moved by

[Lord Ahmad of Wimbledon]

61: Clause 4, page 20, line 46, at end insert—
“(7) The effective time, in relation to a local service contract, is the beginning of the day on which a local service may first be provided under the contract (see sections 123K(4) and 123L).”

--- Later in debate ---

Moved by

[Lord Ahmad of Wimbledon]

62: Clause 4, page 21, line 16, leave out from “until” to end and insert “—
(a) the expiry of the period that, under the scheme, must expire between the making of the contract and the provision of the local service under the contract (see section 123H(2)(d) and (3)(c)), or(b) such later time as may be specified in the contract.( ) Subsection (4) is subject to section 123L.”

--- Later in debate ---

[Lord Kennedy of Southwark (Lab)]

My Lords, I will be very brief in saying that we fully support the amendment from my noble friend Lord Bradley. As he said, it aims to ensure that responses are received in a specified time and to reduce the scope to drag things out to play for time. He has the full support of these Benches.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for tabling his amendment, and I appreciate his intentions in bringing it forward. It is important that information on employees is provided in a timely way, so that informed decisions can be taken by the franchising authority.

However, I am not sure whether there is a need for this amendment because subsection (7) sets out the provisions that may be made by regulations made by the Secretary of State. Clause 123X(7)(c), into which this text would be inserted, already makes it clear that the regulations may prescribe the time at which information is to be provided. This would, in effect, set out the timescale within which information must be provided.

Noble Lords will be aware of the policy scoping notes that I circulated on 16 June. These notes summarise our intentions for the use of the regulation-making powers in the Bill. Let me assure noble Lords that on page 22 of that document we confirm our intention that the regulations to which this amendment would apply,

“will also set out the time periods within which operators must comply”,

with the requests made for employee information. Therefore, while appreciating the intent behind this amendment, I trust that with the clarification and reassurance that I have provided to the noble Lord that this matter is already addressed in the Bill and in our plans for secondary legislation, he will be minded to withdraw his amendment.

[Lord Bradley]

I am grateful to the Minister for his comments. I will look carefully at the sections he has identified to reaffirm the assurances he has given. In the meantime, I beg leave to withdraw my amendment.

--- Later in debate ---

[Baroness Jones of Whitchurch]

My Lords, I shall speak to Amendment 70, which requires bus operators to publish data. A number of noble Lords have commented on this already. Data on the environmental impact of operators’ fleets, including the impact on air quality, the level of CO₂ emissions and their safety record, should be available to local authorities and passenger organisations alike. It would be our intention that this information could be independently verified. These amendments build on our earlier debates on the need for buses to play their part in making our towns and cities healthier places to live and work. We believe that the bus operators have an obligation to deliver higher environmental standards and meet the requirements of low-emission buses. To be held to account for these commitments, the data have to be available to those who can best judge operators’ performance. The same arguments apply to safety standards, so that all passengers can be assured that their provider is working towards zero tolerance on safety failures.

I, too, disagree with Amendments 71 and 72 in the name of the noble Earl, Lord Attlee. Amendment 71 aims to restrict the information provided to a franchising authority. We accept that some information needs to be identified as commercially sensitive but we do not accept that most of the information listed falls into that category. We need to be clear what is commercially sensitive and what is not. However, in most other comparable public services, the sorts of information we are talking about would be made public and shared. It would go beyond just giving it on a private basis to the local authority, and would be made more public. That is what we would expect in this instance.

Meanwhile, Amendment 72 requires bus companies to be paid for providing that core service information which, of course, would be crucial to a franchising bid, such as journeys taken, passenger numbers and fares. The point has already been made that operators will already have this information, so there is no additional cost involved. We contend that local authorities should have the right to this information and it would be standard practice to provide this service information in other contract bids.

We also believe that there should be more open sharing of data so that passengers and communities can have a greater input into the types of services they would like, and can have that input on an informed basis. I therefore hope that noble Lords will support the principles of openness set out in our amendment and oppose those attempts to have a more closed and secretive regime.

[Lord Ahmad of Wimbledon]

My Lords, there are a number of amendments in this group—I will take them in turn—which relate to enabling franchising authorities to request information from local bus operators in connection with their franchising functions.

My noble friend Lord Attlee made some important points on Amendment 71 in relation to the purpose for which authorities may use information. The powers given to franchising authorities in this clause are designed to ensure that they can obtain the information they need to take informed decisions about franchising schemes. We want the elected mayors and local transport authorities who take these decisions to have an appropriate understanding of the local bus market and robust information to inform their views of potential benefits, costs and risks.

Franchising authorities are able to request relevant information in connection with their functions only in relation to franchising schemes. They are not able to request the information for any other purpose under this section and would not be able to use this section to require information in the context of developing an enhanced or advanced partnership or an advanced ticketing scheme.

I can see that the industry might have concerns if this power were used regularly by authorities which were repeatedly contemplating high-level options—perhaps even without the agreement of elected members, or if the information, once obtained, was used for a different purpose. I also recognise that there are some potentially significant commercial risks for operators in providing this information.

It may be helpful if I clarify that the Bill ensures that franchising authorities are not obliged to publish information if they could refuse to disclose such information under freedom of information or environmental information legislation. There is nothing to prevent a bus operator informing a franchising authority of any concerns it may have about the impact of releasing certain information on its commercial interests. Let me assure the House that I expect all franchising authorities to consider such concerns before deciding how to use the information provided. I hope that reassures my noble friend that I have sympathy with the spirit of his amendment. I do, however, have some concerns about how the change he proposes would work in practice.

First, the amendment would prevent the use of information in a franchising context after a scheme has been developed or made, such as at the procurement stage, which could have a material impact on the ability to implement a franchising scheme in practice. Secondly, the amendment could prevent appropriate information being included in the published consultation document or provided to third parties, such as the auditor of the scheme, who has an integral role in the process. I would therefore like to reflect on the helpful contribution from my noble friend on this issue and take time to consider how his points could best be addressed.

Amendment 72 in my noble friend’s name would require franchising authorities to pay a fee to local bus service operators from which they have required information in connection with their franchising functions. I know that my noble friend spoke very eloquently on this subject at Second Reading, and I understand that he is concerned about the commercially sensitive nature of the data, and value of those data. I also know that bus operators across the country have put years of hard work into developing their businesses, and have built up strong reputations and good will with customers and local people. I sympathise with the concerns that my noble friend expresses on behalf of the bus industry, but I need to balance those concerns against a desire to see well-informed decisions being made.

--- Later in debate ---

Moved by

[Lord Ahmad of Wimbledon]

75: Schedule 2, page 79, line 3, leave out “123K(5)” and insert “123J(7)”

--- Later in debate ---

[Lord Berkeley]

My Lords, I shall be even briefer. I fully support Amendment 77. The noble Baroness, Lady Randerson, is absolutely right. We have talked about ticketing before and the word “shall” should go in there. It is an excellent amendment.

Amendment 78 would require the ticketing system to be extended to demand-responsive transport and flexible bus services, assuming that the operators agree. I am sure they will but, as the noble Baroness said, if we do not put something like this in, they could argue that it should never be and we will be left for the next 30 years without a flexible bus ticket that you can interchange. That is why I tabled this amendment.

[Lord Ahmad of Wimbledon]

My Lords, I thank both noble Lords for their contributions. As noble Lords have heard me say many times, this is an enabling Bill. It will make powers available that local authorities may adopt to improve bus services in their area. Noble Lords will know that this Bill also forms part of our approach to devolution, giving local authorities the tools for local decision-making on these important issues. I believe and, indeed, expect that local authorities will give full consideration to these new powers and adopt them where they can show that they will make a clear improvement to bus services.

Based on these contributions, I do not think it is necessary to amend the Bill as proposed. As it stands, the Bill provides the carrot in the form of practical powers while local interests provide the stick. I would argue that this is the right balance for local decision-making. I am also confident that local authorities will implement advanced ticketing schemes where they conclude that such schemes would both be in the interests of the public and contribute to the implementation of their local transport policies. I assure all noble Lords that we have taken ticketing seriously across the whole of the Bill, not just by making changes to the existing ticketing provisions but also through the powers available under two new types of partnership and franchising schemes. I fully expect to see some significant developments across the country in the next few years, in part enabled by this Bill.

Ultimately, however, I believe that decisions about new local ticketing arrangements should be taken locally. On that basis, and given the undertaking I have given, I hope the noble Baroness is minded to withdraw her amendment.

I thank the noble Lord, Lord Berkeley, for tabling Amendment 78. I know he has a close personal connection to Cornwall, where community transport delivered under Section 22 of the Transport Act has done much to improve connectivity for rural communities. I understand that the aim of this amendment is to extend the proposed powers to make advanced ticketing schemes, so that such schemes may also cover tickets for journeys on services operated by educational and other bodies, and on vehicles used under a community bus permit, where operators of such services agree to be part of such a scheme. This is an issue I would like to consider further. I can see some merit in bringing community bus services operated under Section 22 of the Transport Act 1985 into advanced ticketing schemes. It could generate additional income for operators of such services and help integrate community transport into the wider network. Noble Lords will note, however, that services operated under Sections 19 and 22 of the Transport Act are not classified as local services and, as such, are exempt from the franchising and partnership provisions of the Bill. It is right that these services remain outside the scope of franchises and partnerships, as they are particularly focused on the needs of the local community.

Services operated under Section 19 of the Transport Act 1985 are those operated by bodies concerned with education, religion, social welfare and other activities of benefit to the community. Therefore, apart from the issue of extending the scope of ticketing schemes, the noble Lord’s amendment would require a change to existing legislation, given that vehicles used under a Section 19 permit cannot carry members of the general public. Any change to the way services are provided under Section 19 would require consultation and careful consideration.

The amendment of the noble Lord, Lord Berkeley, has some merit in enabling community transport to be part of a ticketing scheme; it raises important issues regarding services operated by educational and other bodies; and edges towards the area of total transport, in which the Government have a growing interest. As such I would like to consider it further.

I turn briefly to government Amendments 79 to 82 and Clause 7. These amendments concern the procedures for varying or revoking an advanced ticketing scheme, so that the consultation requirements for variation and revocation mirror those for making a scheme. This corrects the drafting of the Bill—I hope that the noble Lord, Lord Kennedy will not suddenly rush to his feet and ask me to give way at this late hour—but I assure the noble Lord that it does not change the policy intention. It was always the Government’s intention that variation and revocation of an advanced ticketing scheme should be subject to these procedures, and as such I beg to move the amendments in my name.

[Baroness Randerson]

My Lords, as ever, I appreciate the understanding of the Minister, but I hope that he will give serious consideration to a more even approach towards advanced ticketing throughout the Bill. On that basis I beg leave to withdraw the amendment.

--- Later in debate ---

Moved by

[Lord Ahmad of Wimbledon]

79: Clause 7, page 34, line 38, after “make” insert “or vary”

Immigration Officers

Lord Ahmad of Wimbledon Excerpts

Monday 4th July 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, while there are no formal qualification requirements, the recruitment and selection of staff to these roles follows a standard process based on the Civil Service core competency framework. A comprehensive training and mentoring programme is in place for all staff recruited to these roles.

[Baroness Afshar (CB)]

I thank the Minister. Given the serious shortage of expertise in academe and in the health and care sectors, will the Minister consider revising the provisions that prevent graduates in this country who are from abroad working in these sectors to help out? Even if such graduates offer their work free of charge, they are limited to a number of hours of service, which deprives communities of freely available and badly needed help. Will the Government reconsider this provision?

[Lord Ahmad of Wimbledon]

My Lords, I believe that the noble Baroness is referring to the issue of students working here. The main purpose of the tier 4 visa, the arrangements under which she refers to, is that students should be able to maintain themselves for the duration of their course without resorting to employment in the UK. However, as noble Lords will know, students are permitted to supplement their income and can work for up to 20 hours a week.

[Lord Howell of Guildford (Con)]

My Lords, whatever the outcome of the EU negotiations on immigration referred to earlier, does my noble friend agree that it is the skills of migrants, from Commonwealth countries particularly, on which we heavily depend and that these should be encouraged rather than penalised in the new situation which we are moving into? Does he further agree that, if the 183,000 students who are classified as migrants were looked at slightly differently from the overall migrant figures, it might clarify and ease what is otherwise a very misunderstood situation?

[Lord Ahmad of Wimbledon]

My noble friend raises two important points. On the first, the UK is committed as a member of the European Union until the decision is taken formally to invoke the appropriate articles, but in our future negotiations with our European partners and with the world in general it will be important that we look at the skills requirements of the nation to ensure that we fulfil them. On my noble friend’s second question, it would be remiss of me at this point to start changing immigration policy, but, as I always do, I have listened to him with interest and will take back his comments.

[Baroness Sharples (Con)]

Can my noble friend say what help can be given to British citizens living in Europe? I have a daughter and two grandchildren living in Spain; they have been there 22 years.

[Lord Ahmad of Wimbledon]

The advice is very clear. We remain members of the European Union and nothing changes. I know that this issue has come up in your Lordships’ House previously and I shall repeat an Answer to an Urgent Question on it later today. It is important to remember in the new world that we find ourselves in that Britain always has been, and will remain, a nation which is compassionate in welcoming people from around the world. Certainly, that will be the basis of any discussions with European partners and nations beyond Europe.

[Lord Rosser (Lab)]

Is either the number of applications seeking leave to remain in the UK from non-EU citizens or the percentage of such applications that are accepted projected to increase or decrease between 2015 and 2020? If so, to what extent are they projected to increase or decrease?

[Lord Ahmad of Wimbledon]

I am not going to speculate on what will happen over the next five years. The important thing to remember, when it comes to immigration and applications for leave to remain, is that we look at the best interests of our country, but also at the best interests in regard to what we are on the global stage. We are a welcoming nation to people from all around the globe, and long may that remain so, to ensure that Britain continues to prosper and grow on the global stage.

[Baroness Hamwee (LD)]

My Lords, while I would like to encourage the noble Lord to change immigration policy from the Dispatch Box, I will restrain myself. With regard to the officials who are the subject of this Question, I understand that there is a difficulty with retention. Is that correct, and if it is, are the Government aware why there is a problem with retaining the officers?

[Lord Ahmad of Wimbledon]

We currently have 1,280 full-time equivalent staff who are undertaking this casework. The noble Baroness talks about retention; there is normal turnover of staff. We are also enhancing some of the requirements, particularly on English language, for such staff, which will come into play in this area, and across the public sector, from October 2016. It is important in any role undertaken within government and the public sector that career paths are pointed out to people—the mentoring scheme we deploy for such staff is a valuable asset in this regard.

[Baroness Butler-Sloss (CB)]

My Lords, I have several friends from different parts of the EU who have indefinite leave to remain and have lived in this country for many years. They are now asking me whether they are safe to stay here in the future. Will the Minister make it clear, through the Government, that those people will be able to remain, regardless of what the details regarding the EU are?

[Lord Ahmad of Wimbledon]

As we have previously heard from this Dispatch Box, the Leader of the House, the Prime Minister as well as others, the position of EU nationals within the United Kingdom who have indefinite leave to remain does not change. In any future discussions we have with our European partners, the important thing is the need to reflect that fact and also—as my noble friend raised in an earlier question—the needs and requirements of those UK citizens who have made their home in the member states of the European Union.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, is the Minister aware that what he has just said is significantly at odds with what his right honourable friend the Foreign Secretary said today on the “Today” programme? Could he clarify, between the two of them, who is right?

[Lord Ahmad of Wimbledon]

I do not think there is an inconsistency. The important thing in this issue, which the Government have made clear, is that first and foremost we remain members of the European Union. The position of those citizens of the European Union who are residing in the UK does not change until such time as negotiations begin. I say that because it is important to have a factual reality check as to what the situation is. However, I would add that the position of European Union nationals here who have indefinite leave to remain, much akin to those from other parts of the world who have indefinite leave to remain, remains a vital part of the discussions we will have with our European Union partners. Prevailing within that is the importance of recognising that this is about providing stability and security to all citizens who chose to make the UK their home.

[Lord Dobbs (Con)]

My Lords, I know my noble friend will be ashamed at the racist and ethnic bullying that has resulted from the referendum vote. Should we not also be ashamed that nobody in government seems to be able to reassure those victims in the way that they require? People who are already settled here, legally and responsibly, are our friends and neighbours and should not be used as bargaining chips in the Brexit negotiations. Will the Minister please make sure to remember that any Government who come back from Brexit negotiations with a result saying these people will have to be forcibly removed from this country would very soon be out of time and out of a majority?

[Lord Ahmad of Wimbledon]

My noble friend has made a valid point very well. Let me assure him that no Government moving forward in the unprecedented circumstances we find ourselves in would in any sense be looking at any citizen in the way that has been suggested by some. The important thing is to provide reassurances at this juncture because there is uncertainty and to ensure that to deal with the attacks we have seen up and down the country being perpetrated by those who are using this opportunity to divide us, we send a simple and straightforward message: those who incite hatred against any community or person for whatever reason will be dealt with using the force of the law.

Let me provide once again some comfort to my noble friend because this is an important point. As we move forward in what as I have said is an unprecedented situation, we must ensure that the rights, security and safety of all citizens who have made Britain their home are fully protected. They make Britain what it is and I am sure that they will be at the forefront of the mind of whoever emerges as the Prime Minister and the new Government of our great country as they lead on the negotiations.

Bus Services Bill [HL]

Lord Ahmad of Wimbledon Excerpts

Wednesday 29th June 2016 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, as this is my first time to speak in Committee, I declare an interest as an elected councillor.

The amendments in this group are almost all proposed by the noble Baroness, Lady Randerson, with support from the noble Lord, Lord Bradshaw, with the exception of Amendment 5, in the names of my noble friends Lord Bradley and Lord Berkeley. They are all seeking to make improvements to the Bill, with important clarifications and additions on the face of the Bill, and we are generally supportive of them. I think it is important to give certainty in legislation and clear direction.

As I said at Second Reading, there is a lot in this Bill that we can support and we will play a constructive role in seeking to make improvements to what is before us to halt the decline in bus use outside London that is all too prevalent and has already been referred to today. Putting passengers at the heart of our discussions on buses must be a priority, as well as ensuring improvements for disabled travellers, advanced ticketing and other measures, which we will discuss in our deliberations over the next few weeks and months.

I very much concur with the comments of the noble Baroness, Lady Randerson, in respect of the impact assessment and on the putting together of the Bill. It is interesting to note that, on the first day in Committee, we already have government amendments. This is a Lords-starter Bill—it has been nowhere near the House of Commons—and, as we have heard, we have been waiting for a very long time for this Bill to arrive, but straightaway we have got a series of government amendments. This is not as bad as the Housing and Planning Act—we have an impact assessment and other information from the Government—but generally the Government need to sharpen up their act when it comes to presenting legislation to Parliament. They often make things much worse for themselves because Members on all sides get very frustrated when they do not have the right bits of paper in the right order in good time, in proper sequence, which then gives them more difficulties. So the Government themselves should reflect carefully how they present legislation to Parliament, because they may find that they make things much easier for themselves if they get it right in the first place, so we do not have to catch up as we go through the discussions.

The first amendment in the name of the noble Baroness, Lady Randerson, changes the emphasis from saying that in making an advanced quality partnership scheme “one or more of” the outcomes will likely be achieved. The outcomes mentioned are,

“an improvement in the quality of local services that benefits persons using those services … a reduction or limitation of traffic congestion, noise or air pollution”,

and an increase in bus use or, at the very least, an end to the,

“decline in the use of local services”.

The amendment proposed by the noble Baroness is more ambitious in saying that we “will achieve” these outcomes, whereas the Government use the words, “are likely to”, which does not seem very ambitious for a new piece of legislation.

The next four amendments in the name of the noble Baroness give specific requirements for issues such as services in rural areas. I very much concur with the comments of the noble Baroness, Lady Scott of Needham Market, in that respect. The amendments refer to “advanced ticketing” and a reduction in pollution, taking into account people with disabilities and other factors, along with geographical location, which should be part of whether a scheme should be made. We are very much supportive of them.

Amendment 5 in this group, proposed by my noble friends Lord Bradley and Lord Berkeley, adds an additional requirement to reduce,

“the deterioration of local services”,

and refers to,

“the maintenance of quality levels of those services”.

It is important to make provision to make sure that there will not be deterioration in services under any new scheme. I very much agree with the comments of my noble friend Lord Bradley today, and in particular agree with him that the Bill needs to be an Act so that the devolution deal for Greater Manchester can be brought into effect—although, of course, given where we are now, I do not think that there will be any problem there whatever. I am sure that the Minister will confirm that when he makes his response.

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I thank all noble Lords who have taken part in this debate on this first group of amendments. On the general point raised by several noble Lords on the impact assessment and its publication and availability yesterday, I assure noble Lords that the intention was not to have a delay in publishing as such. It was reviewed to ensure that additional policies and full detail could be provided. I take the point that noble Lords have made: if a document is produced 24 hours before Committee, that is not the best timing to allow for detailed analysis. A point was made about rural impact, and whether that was considered. Rural-proofing is mentioned in the impact assessment, and some noble Lords have expressed their regret at the very limited assessment. However, open data offer particular opportunities to increase rural services.

On a few other administrative points before I come on to the amendments, I apologise to the noble Baroness, Lady Scott, for not responding in full to her questions. I shall follow them up with immediate effect and ensure that she has a timely response. In fact, I am looking over to the Box with a rather hard stare, if not a glare, to ensure that that is done in advance of the next Committee sitting, which is next week. That is something that I shall follow up with officials.

[Lord Kennedy of Southwark]

This Bill has a lot of support from around the House, and the Government are making life more difficult for themselves by not getting these things out in advance. We have been waiting for this Bill for well over a year. Why has this stuff arrived literally this morning when the department has had a very long time to get it all ready? The situation is of the Government’s own making. A bit more planning would make things much easier. Although this is not the worst example, it is incumbent on the Government to get things out to Members and to the wider public who are interested.

[Lord Bradshaw]

To add to what the noble Lord has just said, the Bill is full of econometric analysis, which is extraordinarily time consuming and also almost incomprehensible to anybody who has not had training in it.

[Lord Ahmad of Wimbledon]

I will take the noble Lord’s intervention—it sounds like a bit of a school report: “Has improved, but needs improvement”. I take that on board. As I have said, I am very cognisant of the need to ensure effective analysis of the Bill. We may not agree on every element of it but it is important that information is provided. I have certainly sought in the early discussions that we have had with noble Lords to stress—it is something that I will stress again—that it is a priority for me to ensure that we not only share relevant information but do so in a timely fashion. If I were sitting on the other Benches—long may that not happen—I would be making an equally valid case, as noble Lords have.

New Section 113C in Clause 1 stipulates that the local transport authority cannot make an advanced quality partnership scheme unless it is satisfied that the scheme is likely to achieve one or more of the following: improve the quality of local services; reduce or limit traffic congestion, noise or air pollution; increase the use of local services or indeed end or reduce the decline in the use of local services. Amendment 1 in the name of the noble Baroness, Lady Randerson, would require the local authority to be absolutely sure that any proposed quality partnership would have the anticipated effect. I believe that, in terms of its practicality, this amendment would make it almost impossible for local authorities to say in totality or with absolute certainty what impact a particular scheme would have before it is introduced. I believe that this more stringent requirement would make the local transport authorities more risk-averse when introducing advanced quality partnership schemes. As a result, authorities may well choose to introduce schemes that fall short of fulfilling their full potential or not bring them forward at all.

Amendments 2, 3, 4, 5 and 5A deal with the content of the tests that I have mentioned. Under the Bill, local authorities may not make an advanced quality partnership unless they are likely to achieve an improvement in the quality of local services, a reduction or limitation of traffic congestion, noise or air pollution, or an increase in the use of local services. It is then for local authorities to decide what package of standards to introduce under an advanced quality partnership scheme to achieve one or more of these outcomes. These standards will depend on local need and may or may not include requirements relating to ticketing, rural bus services and pollution. The circumstances of individual areas vary and I think that it is right that the advanced quality partnership schemes should be able to reflect this.

I agree, however, with several noble Lords who have spoken this afternoon that these are important issues. Local authorities need to think very carefully about whether they should include standards in each of these areas in the advanced quality partnership scheme. We intend to recognise this in statutory guidance on these new partnership schemes, which will be issued under new Section 113O of the Transport Act 2000.

[Lord Snape (Lab)]

Can the Minister respond to the noble Baroness’s very relevant point that these things depend to a great extent on money available from the Government? If the Government are going to keep cutting back on the resources available to local authorities, these well-merited objectives are surely not going to be met.

[Lord Ahmad of Wimbledon]

The point was raised by the noble Lord, Lord Bradshaw, at Second Reading—I was going to come on to it but I will say it now—and I made it clear then that, specifically in terms of the Bill, no additional funding will be provided. It will be very much for local authorities to prioritise as they see fit. While I know that noble Lords will be disappointed, I am sure that they will recognise that that is the reality of the situation.

--- Later in debate ---

[Lord Bradshaw]

I want it to be absolutely clear that when the bus service operators grant is devolved to the metropolitan authorities, no more money will be available anywhere, other than that which is devolved, and that the bus service operators grant will remain to be paid to operators outside the franchised area. The balance of that money needs to be looked at, because a smaller subsidy within an urban area as a result of a cut in the bus operators grant may make the service vary in quality and run less frequently, but the same amount of money in a rural area is the difference between having a bus service and none at all. The Minister should reflect on this. I would also like to know when the working party set up in April is expected to report and whether it will take any independent advice or whether there will be some internal arrangement to which no one will have access.

[Lord Ahmad of Wimbledon]

The noble Lord is correct in his understanding of BSOG, and I note the issue that he raised about rural services. He made a valid point about the impact that the proposal will have. I am conscious of that and will reflect further on it. I am always willing to take the advice and suggestions of the noble Lord, Lord Kennedy, and I will come back to him on any question that I have been unable to answer to noble Lords’ satisfaction.

[Baroness Randerson]

Will the Minister agree to look again at the document that we received this morning, which has five and a half lines on rural proofing? That is nothing short of an insult to rural people, and it might be a good idea if the department looked again at that particular impact of the Bill. I am sure that we would all be grateful if he was able to bring forward more information and deeper thought on the rural impacts of the Bill, which go far beyond saying simply that it is up to rural local authorities how much they choose to spend on it.

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[Lord Ahmad of Wimbledon]

As an urbanite, I will be pleased to take up the noble Baroness’s suggestion. We will take back how we can provide further detail on the elements and the points that she has raised.

[Baroness Randerson]

I thank the Minister for his reply. He is right in his assessment that I am not satisfied with all his answers. I appreciate that some of the criticisms that noble Lords have raised this afternoon reflect the fact that the Minister has been put in a difficult position in respect of the impact assessment and the number of amendments. Having stood in his place in my time, I appreciate that one does not choose to be put in that situation. I hope he will look again at the aspects that have been raised this afternoon, particularly in relation to rural issues and to the general tone of the amendments, which as my noble friend pointed out emphasise access, to see whether the Bill can be sharpened up in a number of places to be more specific and more ambitious for bus operators and local authorities working together in whichever of the various forms of agreement. We are not seeking to tie the hands of local authorities; we are seeking to raise their ambition and to draw their attention to these things when they are considering arrangements. With that in mind, I beg leave to withdraw the amendment.

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[Lord Woolmer of Leeds (Lab)]

Before the Minister responds, may I take up the point raised by my noble friend Lord Snape? It is true that some small bus operators may have run services that were not desirable or sustainable but, as the impact assessment makes clear, it is also true that there is often little real competition between the large bus operators. They operate, and have operated—certainly in West Yorkshire—in a predatory manner, to reduce competition and squeeze out smaller and new operators. That side of the reality needs to be included in the balance. That is one of the reasons why I support the Bill, why I commend the Government for their frankness in assessing all this, and why, later, I shall speak strongly in favour of franchising.

[Lord Ahmad of Wimbledon]

My Lords, I again thank all noble Lords for their contributions. The noble Lord, Lord Berkeley, clarified the point. I think the noble Lord, Lord Bradshaw, spoke primarily to the next amendment that we shall discuss. We shall come to that, so I will cover the issues of congestion and so on in the next debate. Now, I shall deal with the amendments before us.

In relation to Amendment 6, the aim of the quality partnership under the Transport Act 2000 and the new proposals for the advanced quality partnerships in the Bill is to define a range of measures that are jointly provided by bus operators and the local authority in a defined area. For bus operators, these requirements are binding. To use any facilities, such as new bus stops or shelters, or to take advantage of any other measures introduced by the local authority to make buses more attractive to passengers, those operators must meet the standards of service specified in the scheme. That provides clarity for both sides.

The amendment suggested by the noble Lord seeks to impose outcomes on bus operators outside an advanced quality partnership regime. This would have the effect of mandating that every local bus service in England be governed by some sort of scheme that imposed the requirements of subsection (6). I must remind noble Lords that most bus services in England, outside London, are currently deregulated, in the sense that it is for commercial bus operators to decide how and where those services are provided. The quality partnerships regime is intended for use where a local authority believes, or authorities acting together believe, that particular requirements need to be imposed on operators to improve bus services in particular ways in a defined area. Failure to meet those requirements can result in a traffic commissioner taking enforcement action.

While it may be generally desirable for the outcomes of subsection (6) to apply to all bus services, it is for individual bus operators running services on a commercial basis in a deregulated market to decide to what extent those objectives are achieved or achievable.

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[Lord Kennedy of Southwark]

May I push the Minister a bit further on incidental matters—what does he mean by that? In my contribution I said that you might have one incidental matter but if you have two, three or four it can become quite a big issue. Maybe he cannot do it now, but it would be useful if he could clarify the word “incidental” and what he means by that.

[Lord Ahmad of Wimbledon]

I will of course do so and will write to other noble Lords in that respect.

[Lord Bradshaw]

The Minister made reference to the quality partnership schemes. Any operator not in the partnership would not be able to use the facilities of the quality partnership—the bus lanes and any other traffic management measures that were put in. What about the vehicles? Does what he said apply also to the fact that vehicles must comply with the standards set down in the quality partnership, so if your vehicles do not comply, you cannot come into a quality partnership area?

[Lord Ahmad of Wimbledon]

Again, that is my understanding, but I will clarify that for the noble Lord.

The noble Lord, Lord Kennedy, among other noble Lords, raised the issue of standards in the deregulated market. I can give further clarification on partnerships operated in the deregulated market: that operators will plan routes, set prices and determine, as they do, the standard of services. They also take the commercial risk, so it is our view it would not be appropriate for authorities to set standards in the deregulated market without operators having a buy-in. For example, if a council wanted to set standards, it would have to take the commercial risk and go down the franchising route. On the other issues, about “incidental” and what lies within it, I shall of course write to the noble Lord. I hope he will withdraw his amendment.

[Lord Bradshaw]

I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Kennedy of Southwark]

My Lords, Amendment 7 —again in the names of the noble Lord, Lord Bradshaw, and the noble Baroness, Lady Randerson—seeks to put on the face of the Bill another measure that may be specified in the scheme. This one is a requirement to contribute to reducing congestion on bus routes. With increasing bus use and bus service improvements, there will be a reduction in congestion on our roads, particularly in our towns and cities. As the noble Baroness, Lady Randerson, said, that is a win-win measure for us all. It is a welcome prospect for everyone. It means we can breathe cleaner air, there are fewer emissions released which harm our atmosphere, and journey times can be reduced. More people will use buses and car journeys can be reduced, with all the benefits to health; generally this is better for everyone.

The amendment, as I said, puts this aim on the face of the Bill. It is a very good idea; it is one of the proposals that should be specified in the scheme. As my noble friend Lord Berkeley said, I hope the Government can accept this, or at least agree to reflect on it, before we move to Report. It would be remiss if we could not get something like this on the face of the Bill.

As I have said in previous debates, we need to improve our bus services outside London and reverse the decline we have seen in recent years. One of the challenges of the Bill is to reverse that decline and, by improving bus services, we will have cleaner air. Reducing congestion is one of the ways we can have more people on buses and out of their cars.

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords who have contributed. The noble Lord, Lord Snape, talked in his opening remarks about how Ministers before and Ministers today might respond, in terms of what decisions to leave to local authorities, and that this was a matter for them. I did at one point think he had advance notice of part, if not all, of my speaking notes. But undoubtedly, one of the new powers under an advanced quality partnership regime is to allow local authorities to introduce a range of measures to improve bus services. The Bill does not define—

[Lord Snape]

Perhaps I can help the Minister. It was the Government who asked KPMG to provide insight into the local bus market in England, outside of London, last year. It reported, presumably to his boss, in January this year and I quote one line from what it said:

“Operators have invested in vehicles and service quality but overall performance is heavily dependent on levels of road congestion”.

I presume the department paid a lot of money to KPMG; these reports do not come cheap. Surely he is not going to cast it aside; surely the Government are prepared to implement the recommendations laid down in a report that they themselves commissioned.

[Lord Ahmad of Wimbledon]

Those reports certainly advise decisions. No Government could claim that, with every report they have ever commissioned, chapter and verse is subsequently implemented. Perhaps the noble Lord could correct me, but I think I am on reasonably stable ground in saying what I have said.

I come back to the amendment. The Bill does not define what these measures are. For example, they could be measures that do not directly affect local bus services themselves, but instead make using buses more attractive. One way of using this power might be a measure to reduce the number of car parking spaces in the scheme area or to increase the cost of using them. While not directly improving bus services, this would make using cars less attractive and therefore encourage car drivers to use the bus instead. It could also have the knock-on effect of reducing congestion.

The current wording in the Bill leaves it to local authorities to decide the intention of the measures they include in the scheme. New Section 113E(2) requires only that they should, in some way, make buses better, either by improving their quality or by encouraging more passengers to use them. The amendment suggests that the “measures” introduced by a local authority must also reduce congestion on the bus routes included in the scheme. I say to all noble Lords that I sympathise with the objectives of the amendment but, on balance, it puts a restriction on the use of measures by a local authority. The general aim of the amendment is also already covered by new Section 113C(6)(b). This introduces a general requirement that advanced quality partnership schemes should, among other things, look to reduce congestion. It allows local authorities to decide how their schemes should meet this requirement, without it being imposed on particular elements of the scheme.

I have been listening very carefully to what noble Lords have said and there is one area that I will certainly take back. I am conscious that we will be revising existing guidance, which will also support the provisions on advanced quality partnerships in the Transport Act 2000, to take into account the AQP scheme. I will certainly consider including within the guidance specific content to deal with traffic congestion and address air pollution. I hope that I have provided a degree of reassurance in that respect and that, with the explanation I have given, the noble Lord will feel minded to withdraw his amendment.

[Lord Bradshaw]

I think that local authorities would be greatly encouraged if they could have access to the power to deal with moving traffic offences. The benefit that was in the Transport Act but has not been implemented was that local authorities could self-finance the scheme. They could provide traffic wardens, or whoever might be used to enforce the scheme, and of course they could pay for them out of the fines—the money would not go to the Treasury. I see the noble Lord, Lord Whitty, shaking his head because I think that he introduced the legislation when he was responsible, but I do not hold him responsible for it never having been implemented. I urge the Minister to look at this very closely because it is probably one of the most important things that we have talked about today. I beg leave to withdraw the amendment.

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[Baroness Jones of Whitchurch (Lab)]

My Lords, I am grateful to the noble Baroness for the amendments and for explaining their intent so clearly. As she said, Amendments 8, 17B and 54A would all help add clarity and certainty to the standards of provision to be expected from advanced quality partnership and franchise schemes and are therefore to be welcomed. The noble Baroness spoke about there being too many “may”s in one clause. They do rather render the clause ineffective, so we support the proposed changes.

Amendment 15 raises important issues about the elements of a quality bus service that we should expect following the introduction of the Bill, including controlling emissions levels and making travel easier through advanced ticketing schemes. Until I sat here today, I did not know about my noble friend Lord Whitty’s great victory. I congratulate him; it is nice to have a legacy like that. In all the doom and gloom around us, at least he can lay claim to something that we have all appreciated. As we have heard from a number of noble Lords, such travel passes transform the way people use bus services and it is the way that we want to go.

We will explore these issues in more detail in later amendments, but we nevertheless support the amendments in this group. I look forward to hearing what the Minister has to say in response. We have got into a pattern of response from the Minister that is slightly disappointing. The first line of defence is, “Don’t be too ambitious, because, if you are, you’ll put the bus operators off and they will aim low if you expect too much of them”. The second is, “Don’t worry, we’re going to put in statutory guidance”. If those are the two responses we hear as we progress through the Bill, we will not get very far, because many of our amendments are about improving quality and people’s expectations. I hope the Minister will meet us half way a little more often on some of these issues than has been the case so far.

We have great sympathy also for the case made by the noble Baroness for Amendment 13A. We all want to encourage more young people to be regular bus users and to make it affordable for them. We would like to take time to consider the cost implications—she acknowledged that there were issues in that regard, particularly for local authorities. If the measure is not fully costed for local authorities, what would be the knock-on effect? However, it is an important debate that we need to follow through. I was interested to hear from the Minister that a review of the concessionary fare scheme is taking place. Perhaps he could clarify whether young people’s fares are included in it. I am not sure what the scope of the review is, but it is one place where we could have that wider and highly relevant debate.

[Lord Ahmad of Wimbledon]

My Lords, once again, I thank all noble Lords who have contributed to this debate. The noble Baroness, Lady Randerson, introduced the amendments by saying that she was finding living with “may”s a little challenging. I for one can say that it may be a good thing if we are living with “may”, but time will tell.

There is an important distinction to be drawn between “may” and “must”. The Bill sets out a range of standards of service that may be included in an advanced quality partnership scheme. However, it is for individual local authorities to decide what standards of service to introduce as part of such a scheme. The intent behind introducing an AQPS is to provide flexibility, because the standards introduced will depend entirely on the local bus market and the needs of existing and potential bus passengers in an area. Amendment 8 would remove this flexibility. Local authorities would be compelled always to impose all the standards of service specified under new Section 113E(5). This is not a desirable approach, as some of the standards may not be appropriate in all circumstances. For example, the provision of information about bus services to passengers may already be perfectly adequate in an area that is proposing to introduce such a scheme. The amendment would also require the imposition of maximum fares even if a local authority considered such a move unnecessary. It is also worth bearing in mind that some requirements, including maximum fares, can be included in the scheme only if there are no admissible objections from any relevant operators. This is provided for in new Section 113E(7). If there were a requirement for a scheme to include maximum fares, each operator in the area would hold an effective veto over the introduction of the whole scheme.

There is another reason to be cautious about the amendment. In a deregulated market, there is no obligation on bus operators to run services that they do not wish to run. Local bus operators may not be prepared or feel able to run on a commercial basis services that comply with those requirements and may simply choose to withdraw them. If accepted, the amendment therefore runs a serious risk of undermining or even removing the viability of many existing and future schemes.

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[Baroness Jones of Whitchurch]

My Lords, Amendments 12, 23 and 88 are in my name. I very much endorse the comments of the noble Baroness, Lady Randerson, and my noble friend Lord Whitty. I think we all accept that buses are part of the solution rather than the problem when it comes to tackling environmental pollution and climate change. More passenger journeys on public transport and less car usage will inevitably have a positive impact on CO₂ emissions. This is one reason we should be concerned by the overall drop in bus usage in metropolitan areas outside London.

Sadly, the truth is that outside the great success story of London, bus patronage is around 36% lower than it was on the eve of deregulation in 1986. At the same time, as my noble friend Lord Whitty has stressed, we are facing a growing crisis in air pollution in urban areas. The Government have already been shown to be in breach of the Clean Air Act and thousands of people are dying each year. This is a public health emergency, which the Government are failing to tackle with significant vigour. At the heart of the problem is the amount of diesel fumes being pumped out by cars, lorries and buses in urban streets.

Increasing bus usage is only part of the environmental solution. Equally importantly, we need to ensure that new buses on the roads meet the highest environmental standards. I take the point made by the noble Baroness that there is also a role for retrofitting. Our Amendments 12, 23 and 88 would require all new vehicles under franchising, advanced quality partnerships or enhanced partnerships to,

“meet the specifications of the low emission bus scheme as set out by the Office for Low Emission Vehicles”,

in its 2015 document. These specifications are part of the government-backed scheme, with a £30 million grant available. They aim to increase the number of low and ultra-low-emission buses, improving air quality, reducing the impact of road transport on climate change, and supporting UK manufacturing. As such, these amendments gel perfectly with the policies being pursued elsewhere by the Government. I therefore very much hope that the Minister will recognise the sense of being consistent and will feel able to support these important amendments.

[Lord Ahmad of Wimbledon]

My Lords, I align myself with much of the sentiment that has been expressed. The noble Lord, Lord Whitty, said that we should be clear in the Bill about reducing emissions and I think that that is a general sentiment we can all share. He referred in a previous discussion to innovation and how we look at technologies and, indeed, the Oyster card. I am sure if it was called the Whitty card we would feel a lot happier travelling on public transport. Perhaps that is a thought for the London mayor to contemplate. He was talked about just now as the next Prime Minister. We are certainly going to have one Prime Minister before that, if not more, from the Conservative side. Let us bear that in mind as the factual reality we have to face.

Coming back to the Bus Services Bill, I understand the aims behind these amendments and I agree totally that buses have a huge part to play in solving some of the country’s air quality problems and, indeed, combating global warming. I further agree that it would be beneficial to local people and our local environments if low-emission technologies were adopted more widely.

Starting with Amendments 9 and 11, the advanced quality partnership scheme allows the local authority to take a judgment on the vehicle specification that is most appropriate on individual corridors. These could be vehicles of no more than a certain age, a type of vehicle that best suits local road conditions or passenger needs, or vehicles that meet certain emissions standards. Provision for local authorities to continue fully to specify the type and standard of vehicle used under the advanced quality partnership scheme is already provided for in new Section 113E(4). This provision would also allow the local authority to specify the emissions standards of the vehicles concerned.

It would not be legally possible for the scheme to set standards for vehicles that are not used on routes covered by the scheme. The environmental performance of vehicles, beyond mandatory requirements, in the deregulated bus market outside partnership or franchising scheme areas or low-emission zones is very much a matter for individual bus operators. In view of this, the amendments submitted by the noble Baroness, Lady Randerson, supported by the noble Lord, Lord Bradshaw, would simply duplicate this existing provision. I hope that with the explanation I have given she will feel able to withdraw and not move her amendments.

Amendments 12, 23 and 88, in the name of the noble Baroness, Lady Jones, would require advanced quality partnership schemes, franchising schemes and enhanced partnership schemes to prescribe the specifications of the low-emission bus scheme. I stress again that the Bill is about devolution—giving local areas a broader suite of tools to enable them to improve local services in a way that suits them. I am concerned that the amendment as drafted may unnecessarily tie the hands of authorities looking to implement franchising, advanced quality partnerships or enhanced partnerships, requiring them to specify higher standards for vehicles than in other parts of the country.

Of course, it is important to note that these higher standards will bring extra costs. In franchising in particular, the authority must, among other things, describe the effects that the proposed scheme is likely to produce and consider whether the scheme is affordable. Requiring a higher standard for vehicles may well bring extra cost to the authority, which may lead it to decide that the scheme is not viable. There would also be a cost implication for operators. Where those standards are necessary, the legislation already allows local authorities to bring them forward. Where they are not necessary, they could end up being provided instead of other benefits for passengers that may be more important to local passengers and politicians.

Amendment 36 would require franchising authorities, as part of their assessment of their proposed franchising scheme, to consider the effects of the proposed scheme on air quality and carbon emissions. I am very sympathetic to the aims of this amendment and hope I can reassure the noble Lord that the Bill as drafted will already require authorities to consider how their proposed franchising scheme will impact on air quality and carbon emissions.

Franchising authorities have to conduct a thorough assessment of their proposed scheme, and then consult. I agree entirely with the sentiment expressed by several noble Lords that air quality and carbon emissions should be two of the areas that are considered by authorities when they are conducting their assessments. I assure noble Lords that we are in the process of developing statutory guidance to complement the provisions in the Bill and to which franchising authorities must have regard, and we will be looking to use that guidance to provide further explanation of how franchising authorities should conduct their assessments of their proposed franchising scheme. That guidance will of course mention the need to assess the impact of the proposed scheme on the air quality of the local area and on the levels of carbon emissions.

There are many ways in which we can encourage authorities and bus operators to utilise lower-emission vehicles. Under the green bus fund, government funding has helped put more than 1,200 low-emission buses on our roads since 2009. Building on that success, the current £30 million low-emission bus scheme should deliver hundreds more such buses over the next three years.

I hope this discussion has persuaded noble Lords that I agree about the importance of encouraging the take-up of low-emission vehicles, but I think there are more effective ways to achieve these aims across the country. On the point that the noble Baroness, Lady Jones, made, I am happy to discuss with her how we could look at drafting amendments—perhaps not to look at things retrospectively but, as we have discussed in meetings outside the Chamber, for future vehicles—to ensure the kinds of standards she asks for. Perhaps we could take some time to discuss how we can move forward on that front. But with those explanations of where we are currently, I hope noble Lords will be minded to withdraw and not move their amendments. I hope my final comment may have at least brought a smile—which it has—to the noble Baroness’s face that we are in listening mode. I agree with the sentiment expressed by many noble Lords that this is an opportunity. We have waited a long time to bring this forward. The legislation is now in front of us and it is up to us to improve it to provide the kinds of services we need around the country.

[Baroness Randerson]

I am pleased that the Minister is willing to review at least one of the amendments in this group. This is part of future-proofing this Bill. The technology on low-emission vehicles is moving on so fast that if such a requirement is not in the Bill, the Act as it will become will look anachronistic in four or five years’ time. I remind noble Lords that we are seeking to put right problems caused by a transport Act from 1985. Such Acts last a long time and we have to make them fit for the future. I was disappointed that when I read the Bill through I could find only one reference to emissions levels. I might have missed one but I would not have missed many. They were hard to find. That is simply not good enough in 2016. We have to do all that we can to re-emphasise to the industry and to local authorities that we are talking about particularly the health of young children but also the health of the population as a whole. On this occasion I am prepared to withdraw the amendment.