High Speed Rail (London-West Midlands) Bill

Lord Bradshaw Excerpts

Report stage (Hansard): House of Lords
Tuesday 24th January 2017 Lords Chamber

Moved by

[Lord Bradshaw]

1: Clause 1, page 1, line 11, at end insert—
“( ) Construction work otherwise authorised by this Act may not begin until—(a) the Secretary of State has commissioned a review of the merits of establishing Old Oak Common station as an interim eastern terminus for Phase One of High Speed 2, with the provision of convenient access arrangements with London Overground routes to the east and west of the station, and(b) the report of that review has been published.”

[Lord Bradshaw (LD)]

My Lords, I would like to make it absolutely plain at the outset that we wholeheartedly support the intentions of the Bill. We are concerned, for example, that all the routes out of London to the north are now overloaded. They are unreliable and extremely difficult to expand. There would be absolutely years and years of delay if such expansion were attempted. Our concern is that the HS2 scheme as it now stands, and as we now understand the costings to be, does not comply with the funding envelope contained in the Minister’s answer to this House in December of last year. We do not believe that the costings of HS2 are soundly based. We will explore in more detail why that is, but they are not up to date and have not been prepared by people who are absolutely competent to do so. A question of financial propriety is involved as regards whether the Government should get involved in the scheme as it now stands with such flimsy cost estimates. We further believe that if economies are not made now in the part of high-speed rail that goes from London to Birmingham, there will not be enough money in the funding envelope to extend HS2 north of Birmingham. As that is the principal purpose of the line, it seems rather odd that we would not manage to complete the line as planned.

The principal economy that it is possible to make concerns Old Oak Common, where the first London terminal is, and Euston station, which it is proposed will be reached at a further stage. Old Oak Common is a large area. It is connected to Crossrail 1, Heathrow and, obviously, to Canary Wharf. I further suggest that that station should be designed so that it is easy to turn trains around there, provided that there are sufficient staff; and that the connections between Old Oak Common station, the West London line and the line from Richmond —the two lines of London Overground—would in fact give a lot more facility for people to be dispersed from the railway. This would require Old Oak Common to be the interim terminus in London. While most people do not even know where Old Oak Common is, it is not far from London; it is well connected by road; and because of the good connections which I have described and the potential good connections which could be provided, I do not believe that when trains come from Birmingham or the north, if they could go to Euston, people would choose to stay on them as far as Euston. They will get off at Old Oak Common and disperse from there.

A huge amount of money is involved in the extension of High Speed 2 from Old Oak Common to Euston, and that represents a large economy, which would help the project to stay within the funding envelopes which the Government are providing. It is therefore time to re-examine and reappraise the Euston connection to see what benefit it will bring. However, there is no reason in the interim why Network Rail should not get on and modernise Euston station, which sadly needs it, and of course it would provide an interval during which people could decide whether extending the railway from Old Oak Common to Euston was a good proposition. I have set out simply what we are trying to do: we are trying to protect HS2 in its projection to the north of England, and to bring financial discipline to the whole project, which has not been done. I beg to move.

--- Later in debate ---

[Lord Bradshaw]

My Lords, I thank the Minister for his response. First, in answer to the noble Lord, Lord Brabazon, I have checked that the termination of trains for a period at Old Oak Common would not rehybridise the Bill, because it would not deviate from what has already been agreed. Secondly, I fully go along with the urgency of the project. It is a very sensible project and I have always thought it necessary; I do not argue with it. I am concerned that it will be subject to a lot of cost overruns because I do not believe that the preparatory work has been done as thoroughly as it should.

Reference was made to Old Oak Common by the noble Baroness, Lady O’Cathain. I have managed the railway at Old Oak Common. It has never been a station. It has been a locomotive depot with lots of sidings, but it gives an opportunity. It is a vast area. There are no buildings of architectural merit there, so it is possible to clear an area. There is no reason why a station should not be constructed at Old Oak Common so that trains can be turned around. In phase 1, the trains from Birmingham will be no more than commuter trains. If they take 30 or 40 minutes to get to Old Oak Common, that will not be a long journey and it will not be difficult to turn them around and send them back to Birmingham quite quickly.

I want real attention focused on how we get economically from Old Oak Common to Euston, because I very much fear that the costs of that last bit as they now stand will explode the issue and, as I said, unless the Government make more money available, stop the extension beyond Birmingham.

These are serious issues. I have listened carefully to what the Minister said. However, I started with the issue of financial propriety. I think it is our duty to say to the Government that this has not been properly costed from one end to the other. We should get on with the bit that we know—or think—is sound, and push the other one, not to a long delay, but until such time as the figures can be agreed. I beg to test the opinion of the House.

High Speed Rail (London–West Midlands) Bill

Lord Bradshaw Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Thursday 12th January 2017 Grand Committee

[Lord Berkeley]

My Lords, Amendment 18, standing in my name and that of the noble Lord, Lord Bradshaw, is to do with traffic and transport issues during the construction of phase 1. It came from a conversation I had with people at the West Midlands transport authority—I think that is the right name; it has just been changed—who expressed concern that the Bill could allow HS2 to restrict the flows on motorways or national rail services as it felt necessary without any consideration for the needs of other rail travellers or drivers on the motorway and local roads. They felt that the consultation had been not that comprehensive to start off with and they were really quite worried about this issue, which they say could cause major trouble and problems for traffic on rail and road during the construction. It seems that Camden Council has similar worries and I think that TfL probably does, too. Their solution was to propose this idea of a regional integrated command centre. I do not know whether that is the right term. It is not a sort of Army command centre but a co-ordination body to bring all the bodies which I have listed, including,

“Highways England, local highways authorities, emergency services”—

the transport authorities local and regional—

“transport operators and the nominated undertaker’s contractors”,

and probably a few more, together on a regular basis to plan what is going on and minimise the adverse effect of traffic and transport on the users.

We can debate whether there should be one centre covering the whole route or several. The amendment I have tabled says that there should be one but that is for discussion. This is one of those things which, if it does not happen, probably would happen several years on when there had been a crisis or disaster. My suggestion is that it should be set up from the beginning, whether that takes three months or six months or whatever. I hope that it would be funded by HS2; after all, they are the people causing the problem. I think this would be welcomed by all the different users and could be a major benefit to the communities along the route and the longer-distance travellers, who would see all the obvious problems which come with construction mitigated to some extent. I look forward to some interesting comments and debate on this proposal, which would be extremely cheap to run and very beneficial. I beg to move.

[Lord Bradshaw (LD)]

I shall speak very briefly. The Minister has already said in reply to a previous amendment that local authorities would have substantial powers in organising traffic. I am anxious to have some assurance that HS2 Ltd will not, as it were, have overriding powers which prevent the proper processes taking place.

[Baroness O'Cathain (Con)]

My Lords, perhaps we could probe this amendment. A lot of the work that we did on the Select Committee referred to HS1, Crossrail and the tunnel. With all his expertise and knowledge, can the noble Lord, Lord Berkeley, tell me whether this actually occurred in the case of HS1—the Channel Tunnel route—and Crossrail? Perhaps we should benefit from that, because we frequently went back to the experience of those two projects. There was no point to going through them if you were not going to get some learning from them. Are we trying to reinvent the wheel here or was there a separate way of doing it, which the noble Lord thinks was not good enough and is why he has tabled this amendment?

--- Later in debate ---

[Lord Berkeley]

My Lords, for the convenience of the Committee, I can speak to Amendments 19 and 20 together, which should save us a little time. This is a very short and probing amendment which comes out of experience with HS1. When the HS1 legislation was going through, Ministers seemed to have a lot of intentions to set it up so that it could be sold to the highest bidder in the shortest possible time and at the highest price. They seemed to think that if they did not have independent regulators keeping an eye on what was going on, that would dramatically increase the sale price. Anyway, the Bill received Royal Assent and it all happened, but a few years later we realised that, having no regulator with any teeth at all, the infrastructure manager, which could have been in the private sector, could charge exactly what it liked for the trains to run on it, could close it when it liked, and did not have to justify its costs of operation or anything else. All I have put down in these amendments is simply to probe the Minister to ensure that he is not trying to do that this time. I have no evidence that he is at all but I just wanted to probe to make sure. We spent an awful lot of time in the years after the HS1 Act—the noble Lord, Lord Bradshaw, and I did a lot of it together—bringing in regulations, which the Government accepted, to right the mistakes of the first Act.

[Lord Bradshaw]

Perhaps I may just draw the Minister’s attention to the large number of occasions on which Ministers of both parties have committed themselves to the fares on HS2 not being excessive and taking into account ordinary people and various other things— I have about 20 of them. This is not a railway that is apart from the rest of the railway, I hope.

[Lord Ahmad of Wimbledon]

My Lords, I thank both noble Lords and I shall turn first to that final point. There are other Ministers taking part in the Committee today. I back exactly the sentiments of the noble Lord and would add my name to the list, in the sense that the HS2 project underlines the importance of the railway infrastructure as a whole. We have discussed in previous debates the importance of the building of HS2 not just for itself but also in terms of the impact it will have on the railway infrastructure.

I am grateful to the noble Lord, Lord Berkeley, for explaining that the amendment is probing in nature, but perhaps I may refer to the specifics. With respect to the Railways Act 1993, only one minor change is being made, which is a partial disapplication of the licensing provision so that the pre-operation testing phase does not require a licence. It is simply not considered to be necessary during that period. As I have said, we learn from experience; such a change was made for the Crossrail Act 2008 and a rather wider disapplication was also included in the Channel Tunnel Rail Link Act 1996, in which I am sure both noble Lords are well versed. The Bill would also disapply closure provisions in the Railways Act 2005 in the case of closures that are necessary because of the construction of the works. In this regard there is only one closure, that of the Wycombe Single to allow Old Oak Common to be constructed. This has already been discussed in the Select Committee of your Lordships’ House on the Bill, and it was decided that the closure procedures in the 2005 Act should not apply as Parliament will have already approved the closure. As I say, such a provision was also included in the Crossrail Act.

I appreciate that in the interests of time the noble Lord, Lord Berkeley, has spoken to Amendments 19 and 20. Specifically on Amendment 20, I can confirm that the existing safety and economic regulatory regime for the railway is unchanged by the Bill and so it would continue to apply to HS2 in the same way that the regulator, who as he pointed out has an important role, sees fit. For these reasons, we believe that this amendment is unnecessary.

--- Later in debate ---

[Lord Bradshaw]

Just to have a bit of up-to-date experience, I always travel on the bus in the morning. Yesterday, there was one wheelchair, three buggies and two ladies with wheeled trolleys. The driver should not have taken them, but he did. As time goes on, we are going to have to get round this issue of flexible space—perhaps it is a little more sophisticated than using tip-up seats. We have to adjust what we have got to take account of the traffic on offer.

[Lord Rosser]

Can the Minister provide an assurance— I am sure that he will be able to—that these facilities will be available on the high-speed trains, including for wheelchair users, and that there is no possibility whatever of anyone seeking to argue that, since other services will be running between Birmingham and London, Manchester and London and Leeds and London, on what is described as the classic network, people with bicycles, wheelchair users and people with pushchairs will have to go on those services rather than on HS2?

Southern Rail

Lord Bradshaw Excerpts

Tuesday 10th January 2017 Lords Chamber

[Baroness Prosser (Lab)]

My Lords, as a commuter on Southern Rail—

[Lord Bradshaw (LD)]

My Lords—

[Earl Attlee (Con)]

My Lords, did I hear the Minister correctly?

High Speed Rail (London-West Midlands) Bill

Lord Bradshaw Excerpts

Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting: House of Lords & Report stage: House of Lords
Tuesday 10th January 2017 Grand Committee

[Lord Bradshaw (LD)]

If I may just follow up a few of the points made by my noble friend, we have discussed before the question of a link between Euston, St Pancras and King’s Cross. When I was deputy general manager at Euston back in the far-off days, it was being discussed—it is one of these projects that seems always to be under discussion but is never carried out. I am looking for something like the link you get between terminals in airports; that is, a wide, well-lit way of getting between the two stations with a travelator or similar device for your luggage. I am not looking for some form of futuristic railway, just a convenient, out-of-the-weather way for moving you and your luggage between the two places.

There will be a lot of time to think about this, because there will be a long period when Old Oak Common will be the London terminal for HS2. There can be dispute about how Old Oak Common could be used, but there will be six platforms there and the trains from Birmingham, which will take only 38 minutes, can almost be described as commuter trains. They will not require huge amounts of servicing at Old Oak Common, it will be possible to turn trains back there very quickly, and Euston may well not be needed until after phase 2A of HS2, so there is plenty of time to think about it and get it in place.

My noble friend commented on connections to HS1. I know that people in the south of England feel that it is very difficult for them to use it: they have to make a big journey. That will be alleviated if the Government could—again, they could work on this contemporaneously with the work on HS2—strengthen the link along the south coast between Brighton and Ashford. There are bits of that railway that need sorting out. I hope we can get some sort of assurance about what the Government intend to do.

Those are questions, not things that we will have disputes on, but we want to know what the Government envisage that they will do, in the long term, about the problems here.

[Lord Berkeley (Lab)]

My Lords, my Amendment 9 is grouped, although I am not sure it is closely connected to what the two previous speakers have been discussing. It would delete one of the amendments that the Select Committee proposed in its report. Let me make it quite clear: I do not criticise the Select Committee on this issue; I am sure its amendments are just what is needed. I ask the Minister, however: is it not a bit unusual for a Select Committee’s amendments to be incorporated in a Bill without debate? I had assumed that they might have been tabled for debate today, and we could have debated and no doubt approved them, but it was surprising that a new issue of the Bill was published in the past week as a result of the amendments being included. This may not be a question for the Minister—it may be a question for the Chairman of Committees or someone else—but it is something that we should debate. Perhaps it will be different next time, if there are to be more committees such as this.

While I am on my feet, the Minister kindly briefed us on progress just before we broke up for Christmas. One question that many asked him was: were the Government going to respond to the excellent report from the Select Committee? It would have been nice to have their response before Committee today. We have not had it, but can he assure me that we will receive it in good time for Report?

--- Later in debate ---

I will not go on. I think that I have set out the reasons for tabling these amendments, but I urge the Minister to undertake this independent cost analysis and everything else that goes with it before the construction starts. Otherwise, in a couple of years, whoever is the Minister will say, “Sorry. It’s going ahead and we’ll need more money”. I can see Ministers in this Government and probably in any other Government saying, “Well, if you want more money, you’d better find it from the other railway budget”. That would be a complete disaster. I beg to move.

[Lord Bradshaw]

I support what the noble Lord, Lord Berkeley, has said. The scheme as envisaged is extravagant, and this is not a time when we can afford extravagance. There is a good case for having an independent assessment of the costs, particularly to consider such things as how long this railway can terminate at Old Oak Common, which would set aside a considerable sum of money. If a connection has to be made to Euston, how can that be done in the most economical way? I do not believe that that issue has been addressed. We are not talking about small sums of money; we are talking about billions of pounds.

One thing that I was told about the Bill was that people had made assumptions about the time it took to turn round a train from the north that was heading in the direction of London. I have run a lot of London stations. I can assure noble Lords that, with the number of trains that it is proposed to run from Manchester to Old Oak Common, it would be quite easy, given the six platforms there, to turn the trains round. What one has to factor in is the capacity at Old Oak Common. That means that there has to be a sufficient number of people to service the trains. Special attention also needs to be given to the access to and from the platforms.

I rather agree with the noble Lord, Lord Berkeley, about the Handsacre link, which seems to cost a lot of money. I certainly agree on the issue about speed. There is a complete misapprehension of the value of journey time savings when we talk about savings of two minutes or less, yet that structure holds up the whole of our transport evaluation, whether in road, rail or anything else—the biggest factor to be taken into consideration is the value of the small time savings, which are all added together and form a colossal sum. However, people making a journey do not take into consideration whether they are going to be two minutes quicker, because in lots of modes of transport unpredictability is a much bigger factor than the journey time saving.

I also want to probe—to push very hard—on the time savings. We should be very careful about speeds which go much above 125 miles per hour, possibly up to 150. It costs a lot once you push speeds towards the upper end of the limit. I am happy to join the noble Lord, Lord Berkeley, in his call for independent costings, but there is also a need for re-evaluation of the economic basis on which the line is to be built.

[Lord Framlingham (Con)]

My Lords, we have dealt with only two amendments so far, and any member of the public sitting listening to the Committee will be asking themselves: “Why on earth are you going ahead with this project?”. All we have are problems, which seem to me almost insurmountable; we have no answers to them. When we ask about the trek from St Pancras to Euston, the answer is, apparently, offer £3 million to the local authority as a prize if it can come up with the answer. That does not sound to me like much of a solution.

I know that this is not Second Reading, but we must ask ourselves whether there is any sense in going ahead with this whole project. We have not yet dealt with the environmental problems, which will be huge and last for years. We have heard from the noble Lord, Lord Berkeley, whose amendment I support, that the whole scheme is not properly costed and nobody knows what will happen in the long run.

The Minister described it as a vital scheme. It is not. The money could be much better spent on all sorts of things: hospitals, schools, or Liverpool-to-Hull transport. If we pursue it, I think we will regret it for a long time. As this matter proceeds, I hope that your Lordships’ House will think it through very carefully and perhaps have second thoughts about proceeding with the whole scheme.

Southern Rail

Lord Bradshaw Excerpts

Monday 12th December 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

The noble Lord raises the specific issue of the contract. I assure him that when we have directly raised issues about the failures of this line, as noble Lords will be aware, GTR has raised the issue of force majeure. We have now gone further and are looking at each case of force majeure, which impacts on 10,000 separate train lines, and which it raised between April and June of this year, to see whether they stack up. The DfT is currently looking at that report to ensure that, every time that is claimed on that contract, it is looked at extensively and we can respond accordingly. Until we have completed that exercise, we cannot hold GTR in breach, because we have to establish whether the basis for it claiming force majeure is valid.

[Lord Bradshaw (LD)]

My Lords, will the Minister consider that there is a case for people being summoned to ACAS, not asked whether they would care to come along? The unions are inflicting awful, personal damage on people. A decent industrial relations strategy would let ACAS issue a summons, not an invitation, and it would then have the power to act as an arbitrator in those cases and give a pendulum arbitration decision that would be binding on both sides.

[Lord Ahmad of Wimbledon]

My Lords, industrial relations in this country to a large extent have been dictated by the fact that many people—and rightly so—come willingly to ensure that disputes can be resolved. I hope that all parties concerned in this dispute reflect carefully on their position to ensure that they are acting in people’s true interests. What marks our country’s industrial relations is that, whether you are a union representative, a company representative or an arbiter like ACAS, we come together to resolve disputes amicably and in the best interests of commuters. I hope that that happens in this case.

Railways: Industrial Action

Lord Bradshaw Excerpts

Wednesday 7th December 2016 Lords Chamber

[Lord Bradshaw (LD)]

As an experienced railway manager who has dealt with many such intractable disputes, may I suggest to the Government that they need to move this logjam on both sides? First, any train on which passengers are travelling—these are long trains with 12 coaches—should have a second person who is qualified in the rules and regulations. Secondly, in return for that, the unions should undertake that that person will attend to the needs of passengers, check tickets, help disabled people and generally make himself available instead of sitting in the back cab of the train doing nothing. If that were done, I believe there would be the core of a solution.

[Lord Ahmad of Wimbledon]

The noble Lord is right, but let me assure your Lordships’ House—indeed, I am sure that many noble Lords are aware of this very point—that the changes being implemented ensure that there is no loss of jobs on driver-only operated trains. Those who were conductors are now train supervisors. The duties outlined by the noble Lord are exactly the duties they will undertake.

Train Operating Companies

Lord Bradshaw Excerpts

Tuesday 6th December 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

As the noble Lord points out, we published a rail freight strategy in September. As I am sure he would acknowledge, it reaffirms our commitment to the industry and sets out how we want this business to work. When it comes to any new working arrangements, such as the new alliances on one route that have been announced today, we want to ensure that priority is given to the interests not just of passengers but of freight, which is a crucial part of our country’s economy.

[Lord Bradshaw (LD)]

My Lords, will the Minister tell the House whether this route, when it is changed in nature, will be subject to the Rail Regulator? Will the Rail Regulator determine the charges that people who are not running through trains may have to pay? This route links up three of the main lines of our country and was part of the so-called “electric spine”—which may or may not materialise.

[Lord Ahmad of Wimbledon]

The noble Lord raises an important point about the regulator. The regulator will remain the same as on other networks. On the issue of the pricing structure, again, that will feed into the development of this new working arrangement. Let me assure the noble Lord that on issues of health and safety, which the regulator also oversees, there shall be no compromise and the regulator will continue to have the same role.

Bus Services Bill [HL]

Lord Bradshaw Excerpts

3rd reading (Hansard): House of Lords
Wednesday 23rd November 2016 Lords Chamber

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

My Lords, in moving Amendment 1, I shall speak also to Amendments 4 and 5 in the name of the noble Lord, Lord Bradshaw, who has tabled a number of amendments that aim to restrict the ability of the Competition and Markets Authority to investigate franchising schemes for a period of two years unless it has received a complaint, or has become aware of a significant adverse effect on competition.

Let me start with government Amendment 1. As noble Lords will recall, the Competition and Markets Authority issued a letter on the Bill on 29 June which contained nine recommendations. Our response to these recommendations was issued on 10 October and is now on the GOV.UK website. One of these recommendations was for the CMA to be listed as a statutory consultee in relation to consulting on franchising proposals. The Government accepted this recommendation and tabled Amendment 1.

The CMA is already a statutory consultee in relation to advanced quality partnership, advanced ticketing and enhanced partnership schemes. I take the view that it would be helpful for franchising authorities to engage with the CMA as they develop their proposals. This should help ensure that the authority developing its franchising proposals is made aware of any potential effects on competition, and the benefits or impacts this could have for bus operators and local people.

I now turn to Amendments 4 and 5 in the name of the noble Lord, Lord Bradshaw. As I mentioned on Report, the CMA will not have any specific powers to block bus franchising schemes. However, it is important to remember that their role is to conduct market studies and investigations in markets where there may be competition and consumer problems, with the aim of improving the situation for passengers. We believe that any restriction of the powers available to the CMA would send the wrong message about its important role in protecting consumers. As such, I urge the noble Lord not to move his amendment.

In addition, as the noble Lord may be aware, Schedule 10 to the Transport Act 2000, which the noble Lord seeks to amend, does not give the CMA the power to investigate franchising schemes. The schedule provides a competition framework in which partnership schemes should operate. As such, the noble Lord’s amendment does not appear in the relevant section of the Bill.

I hope that this explanation and the assurances I have given—we have met in this regard as well—have persuaded the noble Lord, Lord Bradshaw. I know he recognises the important role that the CMA has to play, and that local authorities should look to work with it as proposals are developed to ensure local bus passengers get the best possible services. However, I do not feel that the amendments are necessary as the CMA is not being given any specific powers to block bus franchising schemes. I trust that has reassured the noble Lord to the extent that he is minded not to press his amendments. I beg to move.

[Lord Bradshaw (LD)]

I thank the noble Lord for what I regard as a minimal response to the inquiries I have made. The Competition and Markets Authority seeks to interfere in the proper conduct of business. Can the Minister reflect on the extent to which the authority is working in the public interest or whether it is in the interest of the people employed by the Competition and Markets Authority, to give themselves work? The Minister will be aware of the enormous ongoing inquiry into the Northern Rail franchise, and the effect on Arriva buses. A long time and a lot of expenditure—both public expenditure and that of Arriva—has resulted in a settlement that could probably have been achieved without anything being done by the Competition and Markets Authority. There is very little overlap between the services of Arriva as a bus operator and the services of Arriva as a train operator—and, of course, it won the franchise for a train operation and went ahead without realising that this would be raised. It has been raised and it has cost a lot of money, and a Government who are so anxious to save unnecessary public expenditure should seriously consider what these people are doing.

The future of bus franchises has been covered by what the Minister has said, but when future rail franchises are let—a number are coming along—it would be just as well if the Competition and Markets Authority was, in this case, put into a position where it was a statutory consultee. It should also be told, however, once the franchise had been let and the franchisee is trying to establish services—which takes a long time, because you need rolling stock or buses to run a new franchise—that it should keep out of the way for a time, unless there is a significant public complaint. I am not aware, although I may not be very well informed about it, of a groundswell of opinion in the north of England about the issues that the CMA has raised.

[Lord Snape (Lab)]

Could the noble Lord assist me? He was forthright in his condemnation of the CMA, although he appears to believe that it has a part to play in rail franchising. I do not want to take noble Lords down that road because I would be out of order in doing so. However, it is a slight contradiction in terms, though no more so than in my own party, which is in favour of franchising for buses but against it for trains. I think that is the right way around, but I am not quite sure; perhaps my noble friends could advise me on that.

To stick strictly to the CMA and the Bill, the CMA made nine eminently sensible recommendations, including the one that, somewhat belatedly, the Minister has now decided to accept. Given the noble Lord’s condemnation of the CMA, which of those recommendations does he feel are unnecessary with regard to the Bill?

[Lord Bradshaw]

I am perfectly satisfied with what the Minister has said in so far as it concerns bus franchising, but the bus and rail industries are very much linked together. I am trying to bring to his attention the fact that the work of the CMA in the latest case has probably been fruitless. It has been very expensive and, in future, rail franchising should be subject to the same discipline now proposed for bus services. With that, I should like to withdraw the amendment.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

It may be for the convenience of noble Lords if I remind the House that we are debating government Amendment 1, and the noble Lord, Lord Bradshaw, has been speaking to Amendments 4 and 5, which are grouped with that amendment.

HS2 Update

Lord Bradshaw Excerpts

Tuesday 15th November 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

What we probably have now is ensuring that there is proper consultation. I suggest to the noble Lord that planning laws have moved on since the Victorian age. The issue of airports was raised previously. I remember travelling to other parts of the world where they were building six runways, and it was suggested to me that we had had a challenge over the last 40 years in building a single runway. I am acutely aware, as are the Government, of the importance of pressing ahead with these infrastructure projects while ensuring that we effectively consult and adhere to the planning requirements presented by such large infrastructure projects.

[Lord Bradshaw (LD)]

My Lords, I support my noble friend on the question of Sheffield. On most parts of the continent, high-speed railways go on the conventional railway for the last bit of their journey, often a small bit. By so doing, they reinforce all the connections that that railway has with other railways, and with buses, where people actually want to go. We should take very seriously the point that Sheffield will be infinitely better off with a station in the city centre, even if it means that the journey will be a minute or two slower—after all, that is what we are talking about.

Secondly, having listened to the discussion, I bring to the Minister’s attention that the east coast main line is unreliable and it will become more so because of the increased pressure on it. At present the Government are in the process of purchasing a new fleet of trains. These are all electric trains, other than the bits that go to Scotland and places such as Hull. The main artery between Newcastle, Leeds and London is going to have trains that cannot be diverted on to diversionary routes when the inevitable infrastructure failures occur or when repairs have to be done. For the sake of the north of England, I ask him to go back and talk to his officials about the good sense of the decision they have made, and whether the decision can be revised to produce on the east coast main line more bi-mode trains.

[Lord Ahmad of Wimbledon]

I will certainly come back to the noble Lord on his point about the east coast main line, but on his earlier point about Sheffield, I reiterate that the Government are minded to accept David Higgins’s recommendation that HS2 should serve Sheffield city centre. We have also had several meetings about this with the noble Lord, Lord Kerslake, who I do not think is in his place, and we share the noble Lord’s opinion about the importance of providing that city link; the Government are certainly minded to do so.

Bus Services Bill [HL]

Lord Bradshaw Excerpts

Report: 2nd sitting (Hansard - part two): House of Lords
Monday 24th October 2016 Lords Chamber

Moved by

[Lord Bradshaw]

95: Clause 12, page 61, line 18, at end insert—
“( ) If a traffic commissioner considers that the operator of a registered service has failed to comply with a condition attached to the service permit, the traffic commissioner may cancel the registration of that service.”

[Lord Bradshaw (LD)]

My Lords, this amendment is designed to ensure that when a franchise or an enhanced quality partnership is in place, it will not be undermined by an operator—probably operating across the borders of the franchise but maybe even within it—using vehicles that do not comply with the franchising agreement. Most of us know areas of the country where some of the buses that are in competition with the main operator fall well below the standards—the vehicles are noisy, dirty and probably do not conform to up-to-date emissions regulations. I am moving this amendment to ensure that a traffic commissioner’s powers will enable him to enforce the standards laid down by either the statutory partnership or the enhanced quality partnership. I beg to move.

[Baroness Randerson (LD)]

My Lords, this amendment reflects the importance that we on these Benches believe lies in the role of traffic commissioners and the enforcement that they have the power to undertake. If you look at their annual report, you will see that the traffic commissioners themselves complain of being overstretched. It is important, therefore, that we give them an express requirement to enforce regulations at a time when we are likely to see bus companies with a lower quality of service possibly impinging on the better bus companies that provide the very best service. I simply wanted to briefly underline the importance that we see in this simple amendment.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Lord for tabling his amendment. On the final point raised by the noble Lord, Lord Hunt, I say that training is incumbent on every element of this Bill. Where we can improve training, that should be the focus of how we move forward in this area.

Administration of service permits are intended to be used to allow commercial services that do not operate under a franchise contract to operate in a franchised area. They are most likely to be used for cross-boundary services, but an operator can also apply for them to provide other services that a franchised network of services does not cover. Under the Bill, the franchising authority, rather than the traffic commissioner, will be responsible for dealing with applications for service permits, and new Section 123R of the Transport Act 2000 enables that franchising authority to attach conditions to service permits in certain circumstances.

I totally agree with the noble Lord’s objective that there should be a sanction for operators who do not comply with such conditions. The Bill already achieves this by enabling local authorities to revoke or suspend a service permit if the holder has failed to comply with a permit condition. This can be found in the new Section 123S to the Transport Act 2000, on page 26 of the Bill.

The amendment would also add a power for the traffic commissioner to cancel the registration of a service if the operator has failed to comply with its service permit. Under new Section 123J of the Transport Act 2000, no services that operate within a franchised area are registered with the traffic commissioner, including those operated under service permits, so this addition would have no practical effect. For services of this nature in a franchised area, the permit effectively replaces the registration and the local authority has the powers that it needs to deal with the issue that the noble Lord raises.

I hope that the explanation I have given about the provisions already in the Bill reassures the noble Lord that the intent of his amendment, which I agree with, is already captured in Clause 4, and that he will be content to withdraw his amendment on that basis.

[Lord Bradshaw]

I am very grateful for what the noble Lord has said. It has clarified the situation: if any of these statutory partnerships come into effect, there will be means by which to make sure that people abide by the rules. I beg leave to withdraw the amendment.

Amendment 95 withdrawn.

--- Later in debate ---

Moved by

[Lord Bradshaw]

114: Before Clause 22, insert the following new Clause—
“Rural bus services: concessionary travel
(1) A local transport authority must—(a) in making a scheme under Part 2 of the Transport Act 2000 (local services), or(b) in carrying out any functions related to the provision of local bus services,ensure that, in making provision for the reimbursement of operators of local services in respect of concessionary bus travel, rural areas are given greater weighting over urban areas.(2) In this section, “rural areas” and “urban areas” are distinguished with reference to the Rural Urban Classification.”

[Lord Bradshaw]

I return to the subject which we have spoken about throughout the Bill: how deep rural bus services might be saved from the way they are being reduced in present circumstances—and, with the various threats to local government funding, are likely to be further reduced in future. I do not intend to press my amendment to a Division, but I would like to have the Minister’s views on it.

The concessionary fare money that the Government dispense, which is a large sum of money—we are talking about hundreds of millions of pounds—is divided up among transport authorities in such a way that it generally comes down to a sum of money spent on concessionary fares in each area. This means that many busy rural routes, profitable routes, attract concessionary fare revenue; whereas deep rural routes, which are mostly used by concessionary fare holders, pass holders, receive the same sum as the authority gives to its urban routes. Of course, a lot more people use urban routes, and I suggest a small top-slicing of the concessionary fare revenue granted to urban routes, so that a little bit is instead devoted to the rural routes. Because far more people travel on urban than rural buses, a small top-slicing of the money for urban buses would amount to a huge increase in concessionary fare revenue earned by operators of rural services.

I am mindful that there are a number of EU rules about state aid. We have to be careful that we do not leave anybody with a profit as a result, but many of the rural routes are not the sorts of routes from which anybody makes very much money. My object in moving the amendment is to ask the Minister—he and I will meet fairly soon—whether this might not be a way of supporting the rural routes in this country. The Government would not have to find more money; they would simply have to redistribute the money that they are already spending. I beg to move.

[Baroness Randerson]

My Lords, my noble friend has devised a very neat way of assisting bus services in rural areas. The problem that rural bus operators face is the demography of those areas, as they almost always have a very much older profile of bus passenger, which means that those routes rarely carry large numbers of fare-paying passengers. The concessionary recompense given to bus operators is cumbersome and inadequate, and that makes it very difficult for rural operators to make a profit. There is a long record of rural operators going out of business. We are suggesting a weighting towards rural areas that would hardly be felt by operators in urban areas because the actual number of rural passengers is very low as a percentage of the total. For rural operators this scheme could be the difference between survival and going out of business. I urge the Minister to respond positively to the efforts made by my noble friend Lord Bradshaw to suggest a mechanism to support bus services in rural areas.

[Lord Ahmad of Wimbledon]

I thank noble Lords for their brief contributions to this short debate. The noble Lord, Lord Bradshaw, has tabled an amendment on rural bus services and concessionary travel. As I have said before during the progress of this Bill, rural bus services play a vital role in helping people to get to work and school and in ensuring that they can access a wide range of services and leisure opportunities. Indeed, this issue has been raised in the House before. I believe that the noble Baroness, Lady Scott—who is not in her place at the moment—raised it on Second Reading.

I think we all accept that the loss of a local bus service, particularly in rural areas, can leave people isolated or dependent on friends and family to help them travel. However, commercial services in rural areas can be the most difficult to provide because of the need to achieve the critical mass of passengers required for a regular service. As I have said before, we are confident that the Bill provides significant opportunities for rural areas, and I again draw the noble Lord’s attention to the specific guidance which the Government have now published in which those opportunities are set out.

I turn specifically to the amendment. It would perhaps be useful to remind noble Lords that reimbursement by local authorities to operators is made on a no-better, no-worse-off basis. That means that operators are already fairly compensated for the cost of providing concessionary travel in both urban and rural areas. I believe that the reimbursement mechanism that is now in place is fit for purpose, as evidenced by the large decrease in reimbursement appeals that we have seen over the last few years since the new reimbursement guidance came into force.

If the noble Lord is seeking greater reimbursement for operators for their rural as opposed to urban services, we would be concerned that the amendment would lead to a distortion in the concessionary travel scheme because it is reimbursed on the principle of “no better, no worse off” to which I alluded a few moments ago. It is for that reason that we cannot support this amendment.

I finish by saying that the Government provide, as I indicated previously, significant funding for local bus services. We have talked before about BSOG and the £300 million to local authorities. The Department for Communities and Local Government intends to increase support for more sparsely populated rural areas by more than quadrupling the rural services delivery grant from £15.5 million to £65 million by 2019-20. That again underlines the importance of rural services—a sentiment which I know we all share. On the basis of my explanation, I hope the noble Lord will withdraw his amendment.

[Lord Bradshaw]

I thank the Minister for that. I am not sure that I fully accept his logic. The no-better, no-worse-off rule is a fairly crude one because it is very difficult to tell. It is based on using large numbers of figures from all over the country and ignores the plight of the rural areas, which need more money. It is not coming from local authorities; it is decreasingly coming from them. The people who have these concessionary fare passes wish to be able to use them and the whole structure of the concessionary fare scheme needs to be revisited because it is clumsy and does not take account of the great differences there are in the nature of bus services in different parts of the country.

I have stressed that these rural services will never be run by anybody who expects to get very rich. They will always be marginal services. All I am trying to do is to move them up to a better status than they now have under the concessionary fare scheme so that far more of them might survive. The Minister referred to other things that have been done to support rural services but those are only small amounts compared with what could be done if the concessionary fare scheme were revisited. I heard the Minister but I would like to talk to him about this in some detail later, because it is a very technical subject and I do not want to bore people. On the understanding that we will have a meeting, I shall add that to the agenda if I may, so that I can explore the matter further. With that, I beg leave to withdraw the amendment.

Amendment 114 withdrawn.