HC Deb 03 June 1981 vol 5 cc915-6
8. Mr. Lennox-Boyd

asked the Secretary of State for Transport what assessment he has made of the effect of delicensing of coach services on inter-city fares; and if he will make a statement.

Mr. Fowler

The Transport Act 1980 came into effect in October last year. All road service licensing restrictions came off inter-city coaches, and the result has been an unprecedented growth in coach services. In many cases, fares have been halved. For example, a single fare now costs £2.50 between London and Birmingham, when it used to be £5.40, and £4.50 between London and Liverpool, when it used to be £9.20. Such reductions have been the direct result of free competition.

Mr. Lennox-Boyd

I thank my hon. Friend for those interesting figures, but how many people are now able to travel who previously could not do so because they could not afford train fares?

Mr. Fowler

I can give a general answer. On some major inter-city routes the number of passengers has increased by over 150 per cent. National Express tells me that in 1980 it carried 8¼ million people and expects to carry 12 million in 1981, so that is the scale involved. In addition, there are the British Coachways private consortium and other operators. In other words, the improvement is the most dramatic that we have seen in coach travel since the war.

Mr. Anderson

Is the Minister aware of the absurd consequence on the other side of the coin—the reduction in passenger receipts on HST British Rail, which on the South Wales to London route is 10 per cent. and which is largely due to the Government's delicensing? Did he expect such consequences, and, if so, will he compensate British Rail?

Mr. Fowler

That is a classic operator argument. The policy is best described by saying: Provided the terms of competition are fair, if people choose to travel by coach rather than rail or air because lower fares are more important to them than speed, they should not be prevented from doing so. That is a direct quote from the previous Government's transport White Paper. We are simply putting the principle into effect.

Mr. Robert Atkins

What can my right hon. Friend do about local authorities that are not prepared to allow facilities in their bus stations for private coach operators?

Mr. Fowler

I know that problems have been caused and obviously we should like to help as much as possible. If my hon. Friend gives me details of any individual cases, I shall take them up.

Mr. Skinner

Is not one of the main reasons for the increase in the number of passengers using the so-called inter-city services operated by National Express and the other companies and for the greater than expected growth—about 4 million extra passengers next year—the massive number of demonstrations that have been taking place against the Government? On Sunday, I came down to London and passed more than 100 coaches which were full of demonstrators. That will continue for the next three years unless the Government are removed.

Mr. Fowler

That is one of the hon. Gentleman's sillier interventions.