HC Deb 01 December 1986 vol 106 c503W
21. Mr. Ron Davies

asked the Secretary of State for Transport if he is satisfied with the progress to date of his deregulation programme; and if he will make a statement.

Mr. Moore

I am very satisfied with the first results of deregulation, including the new minibus services which have been introduced, and the subsidy savings which have been made. I look forward to further benefits from the continuing effects of competition.

27. Mr. Evans

asked the Secretary of State for Transport if he will make a statement on the progress to date in bus deregulation in the north-west; and if he will make a statement.

Mr. David Mitchell

I am generally very pleased with the first results of deregulation. In some places in the north-west there have been problems, but I know that all concerned locally are working hard to make improvements. I am particularly encouraged by the way in which competitive tendering for subsidy contracts has helped Lancashire county council make savings equivalent to over £5 million in a full year, whilst maintaining service levels; this should make it possible for the county council to make additional funds available if it sees a need. I am also pleased to read that a new operator plans to start a substantial new minibus operation in Greater Manchester.

33. Mr. McCrindle

asked the Secretary of State for Transport what consideration he has given to future levels of subsidy for local bus services following deregulation.

Mr. David Mitchell

It is for local authorities to decide what levels of subsidy is needed for local bus services, bearing in mind the interests of both travellers and ratepayers. The introduction of competitive tendering for subsidy contracts has helped to secure better value for money, and many local authorities will need to spend less to maintain a similar level of service as a result of this requirement in the 1985 Transport Act.

42. Sir Fergus Montgomery

asked the Secretary of State for Transport if he will make a statement on progress of deregulation in the bus industry.

Mr. David Mitchell

Across the country as a whole, broadly the same level of service is being provided. Teething problems, as staff and passengers have become familiar with new routes and timetables, are being resolved. A few areas continue to experience difficulties, but bus operators and local authorities are working hard to secure improvements. Substantial savings of up to 70 per cent. have been achieved in ratepayers' subsidy to bus operators as a result of competitive tendering. A notable feature is the appearance of improved services in a significant number of places, often involving minibuses.