17. Mr. John Mark Taylorasked the Secretary of State for Transport whether any local authorities have completed the tendering process for subsidised bus services; and if he will make a statement.
§ Mr. David MitchellI understand that only Highland region in Scotland has completed the tendering process. It will save about £179,000—some 14 per cent. of this year's budget. I also understand that Lancashire's results, with virtually all its tendering completed, show equivalent savings of about £5.8 million—70 per cent. of this year's budget on the provision of broadly the same level of service as previously. Results in Cumbria also show substantial savings for the five-month period between 26 October, when the tendered services come into operation, to 31 March 1987; expenditure will be only £0.24 million compared with some £0.7 million budgeted for the first seven months of the financial year up to 26 October. In all three cases service levels were broadly maintained. Of course, there are many more results to come and it is too early to draw general conclusions, but I regard these results as very encouraging, bearing in mind the alarmist prophecies of massive service cuts or spending increases which we heard a year ago.
§ 35. Mr. Hardyasked the Secretary of State for Transport what steps he will take to limit the subsidy which a local authority may make to assist privately owned bus operations.
§ Mr. David MitchellI see no need to impose such a limit. The Transport Act 1985 requires local authorities to put contracts for local bus service subsidies out to competitive tender, and to award the contract to whichever tenderer offers best value for money. If private sector operators can give the best value, they should win the contracts.