Concessionary Bus Travel Bill [HL]

moved Amendment No. 9: 9: Clause 4 , page 3, line 34, at end insert— ““( ) In subsection (1) for ““subsection (3) below”” substitute ““subsections (1A) and (3) below.”” ( ) After subsection (1) insert— ““(1A) The London Authorities shall enter into arrangements with Transport for London under subsection (1) above in respect of journeys falling within section 242(2) below.”””” The noble Lord said: My Lords, I return to the effect of the Bill on London. The Minister will recall that I raised the issue of the London reserve scheme in Committee on 8 January. I sought to raise it on behalf of London Councils, the representative body of the 33 local authorities. With Amendment No. 9 and those grouped with it, I am returning to the subject today. Briefly, the statutory requirement for concessionary fares in London differs from the rest of England. Uniquely in London, the powers for local authorities to negotiate concessionary fares are underpinned by a reserve scheme, should the local authorities fail to reach agreement with Transport for London by 31 December each year for the following financial year. If a reserve scheme were invoked, Transport for London would determine the cost of the scheme. We have to bear in mind that Transport for London is the bus operator. London boroughs are therefore at a disadvantage when negotiating with Transport for London. In no other part of the country does the bus provider have so much power. In effect, Transport for London is able to call the shots, when elsewhere in the country concessionary fare schemes are determined by local authorities, subject to appeal to the Secretary of State. With the national concession on buses provided for in the Bill, there does not seem to be a need for elaborate special legislation for a reserve scheme in London, which takes up a whole schedule of the Greater London Authority Act. With these amendments we seek to take away that reserve scheme; we are simply saying that rollover would apply at 31 December each year if an agreement had not been reached between Transport for London and the London local authorities. I want to point out that London local authorities negotiate collectively for the concessionary travel scheme, and they now have a system that if two-thirds of the authorities agree, the agreement is binding on the remainder of the authorities. A rollover would apply after 31 December each year, with an appeal to the Secretary of State if there was not agreement. That is not at all different from the rest of the country. The Minister will know that if a bus operator is not satisfied with the settlement, he may appeal to the Secretary of State. The Local Government Act 1985 is the origin of the reserve scheme. It has never been used, but it is still in statute. The objection is that it allows the operator to set the price for travel if he invokes the reserve scheme, without recourse to appeal to anyone. It is therefore objectionable on those grounds alone. The reserve scheme does not protect against a policy change, so if the London boroughs decided that people were only going to get half their travel in future, it would not protect them against that. However, the reserve scheme generally is thoroughly objectionable. It ought to be got rid of, and that is what these amendments seek to do. I understand that there is some publicity from the Mayor today, saying that this would put the whole of free travel in London in jeopardy. That is a view with which I most profoundly disagree. There is every likelihood that the authorities will continue to negotiate in favour of the scheme. I am trying to draw the Minister’s attention to the existence of the reserve scheme which I believe puts too much power in the hands of the providers of the transport service. I beg to move.