HC Deb 02 July 2002 vol 388 cc67-9
1. Ms Joan Walley (Stoke-on-Trent, North)

What action he is taking to improve co-ordination of bus services. [63711]

The Minister for Transport (Mr. John Spellar)

I am encouraging all the stakeholders to work together fruitfully to improve co-ordination of bus services. The Transport Act 2000 provides the framework through local transport plans, bus strategies, ticketing schemes and information strategies.

Ms Walley

I thank my right hon. Friend for that answer, and I hope that he will make his mark on transport in the new Department. It is important that we consider buses as part of an integrated transport system, but we cannot improve bus services when as many as 50,000 bus journeys are being lost in Stoke-on-Trent, as well as a large number in north Staffordshire. Will he look closely at the Transport Act 1985, which deregulated bus services, and at whether we need a quality contract in that part of north Staffordshire? Will he also look closely at the issue of revenue funding, bearing in mind the report of the social exclusion committee and the Chancellor's current comprehensive spending review?

Mr. Spellar

My hon. Friend rightly draws attention to the review of funding announced in the Budget. Yesterday, we met the Local Government Association—including the passenger transport executive group—and the bus operators. I am very pleased with the positive work being undertaken between them. There is a very mixed picture across the country, but I take my hon. Friend's points on board. We will have a look at them and try to put them into the discussions, so that they can inform a wider examination. I must also say to her—as I have to a number of colleagues as well as to local authorities and to the bus operators—that there is clearly a diverse picture across the country, and we cannot take the position of one size fits all. We shall look at the points that she has raised, and I thank her for drawing them to our attention.

Mr. Douglas Hogg (Sleaford and North Hykeham)

There is clearly scope for improving public transport but, for most people in rural areas, private transport is not only the preferred but the only viable form of transport to and from work, shopping and so on. Bearing that in mind, will the Minister please be careful not to tilt the balance yet further against the rural motorist?

Mr. Spellar

I was surprised that the right hon. and learned Gentleman uncharacteristically omitted to congratulate us on the rural bus challenge, which has increased substantially the percentage of people in rural areas who have access to bus services. I acknowledge that there are different problems in rural areas, which is one of the reasons why we are considering flexible bus routing in those areas, for example, and greater provision of demand-generated community transport. All those issues are extremely important and are part of the programme. As he rightly says, car journeys form the majority of journeys—in urban as well as rural areas—and are extremely important. We need, and we have, a balanced transport policy, unlike that of the previous Conservative Government, whose extremely unbalanced transport policy was biased against public transport.

Mr. Graham Stringer (Manchester, Blackley)

Does my right hon. Friend agree that the competition authorities in this country are often a barrier to improving the co-ordination and integration of bus services? In the north of the Greater Manchester conurbation, First Group almost has a monopoly, resulting in my constituents having to pay 20 per cent. higher bus fares. The competition authorities do not investigate such issues, yet when local authorities want to introduce quality bus partnerships, the competition authorities perversely say that that would be anti-competitive. Does my right hon. Friend agree with me on this? What can he do about it?

Mr. Spellar

Actually, it is more a question of "What have we done about it?", because we have already held discussions with the Office of Fair Trading. One of the complaints of bus operators and local authorities has been that the provisions of the competition regulations—as interpreted by the OFT—were preventing them from engaging in sensible co-operation in the interests of providing an improved service. The legislation provides for exemptions in those areas. I was pleased that, as a result of the discussions before yesterday's meeting, there has been engagement with the OFT, which is doing away with a number of misconceptions. Many people certainly used to believe that the OFT would take a particular position; in some cases, people did not even bother to ask the OFT what its position was. The dialogue that is now being undertaken shows a more proactive approach by the OFT, which is to be welcomed. That will lead to an improvement in services and in dealing with the kind of problem that my hon. Friend has just outlined.

Mr. John Baron (Billericay)

Despite the initiatives that the Minister has highlighted, the fact remains that bus passenger usage is still declining in rural areas. Many people believe that the money that has been directed into these areas has been both negligible and badly targeted. What will the Government do to put that right?

Mr. Spellar

It is a widely differentiated picture. In some areas bus passenger usage is rising, whereas in others it is declining as ownership of motor cars increases, which is also happening in some urban areas. As I said, funding fixed routes may not be the most appropriate mechanism for dealing with this issue. Flexible routes may be more appropriate, and we are considering that capability within the regulations and from the traffic commissioner's viewpoint.

We are also examining enhanced community transport with a more flexible role. All those schemes have to deal with an inherently difficult situation, but we have redressed that to some extent with the rural bus challenge, which has had an effect in a number of areas. However, I fully accept that there is an outstanding problem.