Stage Carriage Bus Services (Hansard, 28 February 1983)

§ Mr. David Howell

I have arranged for copies of the preliminary responses made on behalf of the National Bus Company, the West Midlands passenger transport executive and Cardiff city transport to be placed in the Library.

The commission concluded its report by saying that it appreciated the level of efficiency and service which the undertakings had managed to achieve. It nevertheless believed that efficiency could be increased and the service improved. To that end it made 43 detailed recommendations, some directed to particular operators and some to all four. In view of the thorough investigation on which these recommendations were based, I have looked for evidence in the operators' responses that they have been given careful consideration.

National Bus Company

I welcome the commitment in the response of the National Bus Company to work towards further improvements in efficiency. I hope that as a result of the further consideration it will be giving to the commission's recommendations, additional progress will be possible in the key areas of value for money audit (recommendation 10), monitoring efficiency (recommendation 24), production planning in workshops (recommendation 26), operating ratios and load factors of individual services (recommendation 33); peak/off-peak costing (recommendation 34), and the quantitative evaluation of bus replacement policies (recommendation 36). In chapter 10 of its report, the commission considered inter alia the role of local authority revenue support in relation to NBC's statutory financial duty and its medium term financial target. I am currently discussing with the company a revised set of business objectives intended to clarify this and other issues.

Although the commission made only a passing reference to the question of interest charges, NBC has chosen to comment on this matter at some length in its response. The Government agree with the consultants Touche Ross and Co., whose appointment and terms of reference were agreed with the company, that the overall size of NBC's debt is not excessive in as much as it is fully backed by operating assets. My Department is discussing with NBC the consultants recommendations on the allocation of interest charges to alleviate the problems of particular NBC subsidiaries. I stand ready to consider, in the light of its response, any appropriate action by the Government.

Cardiff city council has responded in general or specific terms to all the recommendations directed towards its transport department. The main reservation which it expresses is that implementation by Cardiff city transport of recommendations of wider applicability should be contingent upon the outcome of a round of consultation 43W with other local authority and bus industry representative bodies. Apart, however, from recommendations 15 (medical examination of PSV drivers) and 43 (publication of tabulation of operators unit costs), the commission's recommendations were based on the particular circumstances of the undertakings investigated and I see no reason why the council should not now take action on them.

Cardiff city council also had serious reservations about the commission's criticisms of its budget process. I am bound to say that I do not regard constraints on local authority expenditure as an adequate reason for not attempting to relate as rigorously as possible planned service levels to the level of resources likely to be available; and I hope that the Council will make further progress in line with the commission's recommendation 1. As regards recommendation 32, I welcome the city council's assurance that it will consider application of the market analysis techniques developed by NBC and WMPTE in its 1983 review of the Cardiff bus network.