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

Response of the SEWTA Bus Working Group

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?

Please give the reasons for your answer.

Sewta and its constituent members believe that affordable, high quality and a comprehensive network of local bus and coach services is vital to the social, economic and environmental well-being of the communities in Wales and it supports the Assembly’s aims to create a fully integrated public transport system – in line with the Wales Transport Strategy, ‘Connecting Wales’.

The delivery of this Strategy will require the Assembly to work in partnership with a number of stakeholders and within an appropriate regulatory and financial framework.

Sewta believes that the provisions set out in the Local Transport Bill are sufficient for the Assembly and the regional transport consortia in Wales to introduce the reforms needed to modernise the existing framework for local bus and coach services. For example, the measures being developed by Sewta as part of its Regional Transport Plan, to encourage modal shift along the key radial routes into Cardiff, as well as reduce social exclusion amongst residents in the more isolated parts of the region, can all be implemented under these provisions.

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?

Please give the reasons for your answer.

Not applicable.

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.

The ‘exceptions listed above’ in the consultation document relate to the health and safety aspects of bus and coach operation. If a consistent approach is not taken across the UK then Sewta believes that, due to the extensive cross border transport links that exist between Wales and England, this situation will result in extra bureaucracy and costs for both local authorities and operators. The changes may also be difficult to monitor and enforce if the legislation is applied differently in Wales.

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

Sewta and its constituent members are in the front line of the public transport agenda and they recognise that, in a number of instances across Wales, the current regulatory framework has not delivered the quality and co-ordinated network of local bus and coach services that passengers expect. This framework is mainly derived from the Transport Act 1985 and it is reasonable to say that opinions differ widely on the effectiveness of this Act.

However, Sewta believes that unless the various issues affecting bus and coach services externally are addressed, such as tackling traffic congestion in urban areas, decisions over sustainable development and land use and introducing more bus priority measures to enable the bus to compete more effectively with the car, then the benefits of conferring more powers to the Assembly, over the provision of bus and coach services in Wales and the creation of a fully integrated public transport system, will be limited.

Whilst it may be possible for the London style franchising system to be adopted in Wales, there are a number of factors present in London which may make comparisons with the situation elsewhere in the UK misleading. It is certainly the case that passenger numbers in London have increased substantially since 1985 but the traffic policies that have been implemented during this period, such as Red Routes, Congestion Charging and the Enforcement of On-Street Parking Restrictions, have all made the bus and coach a more realistic alternative to using the car.

It is also the case that the London style franchising system has created a relatively stable and integrated network in the capital with Transport for London specifying the route, timetable, fares and vehicle standards for each bus service. However, this system requires TfL to commit a substantial amount of subsidy to support the network and, if adopted in Wales, it is likely to have significant resource implications for the Assembly. For example, total spending in London on bus subsidies rose from £149m in 1997/98 to £910m in 2006/07- a rise of 511%*. In Wales over a similar time span, spending rose from £35m to £86m – an increase of 146% that includes the increased cost of funding the change from a half fare to free concessionary travel scheme from 2002/03. Furthermore, due to the topography and settlement pattern in Wales, it may also stifle the development of more innovative services to better meet the needs of passengers.

In south east Wales at least, the most impressive growth in patronage has been seen on services where frequencies have increased to every 10 minutes or more and with strong marketing and investment in new buses, passenger growth of 30% has been achieved on many routes. Assuming there is no significant additional funding available, higher frequencies will be ‘thinned’ out to provide the resources necessary to improve services with little potential for growth and there is a real danger that strong performing routes will decline as passengers seek alternative modes of travel. Changes from a commercially based route network to a more socially inclusive one will result in less sustainable and more heavily subsidised operations. We have seen examples recently of the Assembly having difficulty meeting its increasing revenue commitments – how would local authorities be protected from the additional cost exposure?

With no opportunity for commercial development and no incentive to grow revenue, it is very likely that some of the larger bus groups will withdraw from bus operations in Wales. For example, Stagecoach has taken this action in London and New Zealand as the level of intervention in bus service provision has created a market that no longer fits with the Group’s business model. Conversely, many smaller independent bus operators have been absorbed by larger companies as the burden of evolving legislation and increasing pressures on costs make it a more challenging industry in which to survive and prosper. A franchised network would present opportunities for some companies and groups, but it is difficult to see a role for many of the smaller companies currently in the industry – this has also been evidenced in London as the franchise market becomes the domain of fewer companies and the resultant loss in competition increases costs for the tendering authority

Market research studies have consistently shown that the key features highlighted by passengers which comprise a quality bus service include reliable journey times, overall journey times and fares which are competitive with the private car, courteous and helpful staff, comfortable and clean vehicles that are easy to board and alight, frequent and stable services, safe and pleasant stops and stations to wait for the buses and clear and up-to-date information on journeys. These features are all incorporated in the proposals drawn-up a while ago on behalf of the Assembly to create a Welsh Quality Standard for Buses. These proposals, which are endorsed by Sewta, could be implemented under the provisions of the Local Transport Bill and would not require a London style franchising system.

*Source: TAS Analysis of spending returns from local authorities – Bus Industry Monitor 2007 Volume 3

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?

If the proposed LCO is used by the Assembly to gain the necessary powers to improve school transport safety, Sewta believes that these powers should apply to all forms of school transport in Wales (ie. commercial local bus services, subsidised local bus services and dedicated school contracts). Otherwise, a 2-tier approach to school transport safety will be created.

Adrian Morgan, Principal Transport Officer, Rhondda Cynon Taf CBC
25 September 2008