Proposed Provision of Bus and Coach Services Legislative Competence Order (LCO)

Initial Response from First Cymru

Consultation questions

1. Do you agree with the principle that legislative competence for "the provision of bus and coach services” in Wales should be conferred on the National Assembly for Wales?

Not at the moment.

Please give the reasons for your answer.

First Cymru (FC) considers that legislative competence should only be provided where there is a compelling reason why the Assembly needs such additional powers. As is already acknowledged the Local Transport Bill (which is likely to be on the statute book well before any measure arising from the proposed LCO) will provide local authorities with significantly more powers over local bus services to be used where they deem appropriate. It does not seem right that the Assembly would wish to exert even greater control over bus services in an area where the local authority may not be in agreement.

We believe that the key to maintaining high quality bus services in Wales and to promote greater integration of services is for local authorities and private operators to work together in partnership. Legislation is not a substitute for effective engagement and there are many examples where a partnership approach can achieve innovative, cost effective results that it would be difficult to envisage in a more regulated environment. Good examples are: -

The partnership between FC and the City and County of Swansea to introduce the ftrMetro and
The recent agreement between FC and Neath Port Talbot Council to reintroduce evening services to the Swansea Valley.

FC endorses the position of CPT Cymru that further powers should only be conferred on the Assembly where the evidence suggests that such powers are actually required. At this stage we do not believe that this is the case.

2. If you agree with the principle, do you think that the wording of the proposed legislative competence order is correct, or do you think it is too broad or too narrow?

We do not believe that the Assembly needs legislative competence over such matters in Wales and therefore offer no further comment

Please give the reasons for your answer.

Schedule 7 of the Government of Wales Act 2006 sets out the legislative competence that the National Assembly would have following a referendum supporting the commencement of Assembly Act provisions.

Subject 10 is Highways and Transport. This is defined as:

Highways, including bridges and tunnels. Streetworks. Traffic management and regulation. Transport facilities and services.

Exceptions to Subject 10 include the following:

Regulation of use of motor vehicles and trailers on roads, their construction and equipment and conditions under which they may be so used, apart from regulation of use of vehicles carrying animals for purpose of protecting human, animal or plant health, animal welfare or the environment.

Driver licensing
Drivers’ hours
Public service vehicle operator licensing

3. Do you think that the National Assembly for Wales should be given competence over some or all of the exceptions listed above in relation to the provision of bus and coach services in Wales?:

Please give the reasons for your answer.

It is difficult to understand what it is about the current arrangements that necessitate legislative competence being passed to the Assembly. There are already mechanisms in place, both legal and practical, governing all these issues and changing these would increase the administrative burden for government and operators alike and lead to potentially increased costs. There would also be problems with cross border operations and, potentially, cross border transfers. For instance, changing construction and use regulations for Wales could lead to an inability to operate vehicles built to Welsh specifications in England or Scotland, or vice versa, thus affecting residual capital values and the willingness of manufacturers to supply vehicles without premium pricing to reflect small order volumes. Drivers' licensing and hours, and operator licensing, are already subject to stringent controls. In the case of drivers' hours these are dictated to a large extent by EU legislation, and any incompatibility between rules in Wales and in England/Scotland would add to operators' costs where they have operations on both sides of the border.

4. What are your views on the main objective of the proposed LCO which is to introduce a bus franchising system in Wales?

We oppose the main objective of the LCO, for the following reasons: -

No evidence has yet been presented to demonstrate exactly why such a regulated arrangement will be preferable to the current situation.
As a matter of principle we believe that efficiency and innovation are encouraged by a deregulated, rather than a regulated regime. Bus operators have to plan networks to survive in business therefore they are bound to develop more cost effective solutions than those dictated by a command economy regulator.
The current arrangement of private sector provision working in partnership with our local authority colleagues represents the best way forward to deliver an efficient and effective bus service in Wales.
London bus passenger journeys are heavily subsidized. The subsidy cost per passenger is vastly beyond the levels of support currently provided to the bus industry in Wales. It must be questionable whether such a move would represent good value for money for the taxpayers in Wales. There would also be an increased administrative burden in tendering and maintaining such a system of franchised operations.
The demographics and geography of London are very different to Wales. There must be considerable doubt that a solution that is used in London will necessarily work for Wales.

5. What are your views on the use of the proposed LCO to provide the Assembly with the necessary powers to improve school transport safety?

Safety of passengers, employees and third parties is of paramount importance to First. We would be pleased to see measures to improve the safety of schools transport vehicles and indeed have been at the forefront of the introduction of Yellow School Buses for dedicated schools transport, these being equipped with a wide range of safety features including seat belts at all seats, forward facing seating, structural rigidity, and, as part of our package of measures to accompany the introduction of such vehicles, comprehensive driver training and a dedicated pupil care and supervision regime.