I support the amendment. Do the lines that the amendment seeks to leave out represent a change from the draft Bill? I had an impression that in the draft Bill PTEs and local authorities would be allowed to set frequencies, timings and maximum fares as part of quality partnership schemes without being vetoed in the way they are now. I may be wrong in thinking that, but has there been a change in that regard from the draft Bill? If, and only if, that is case, what was the reason for the Government deciding to alter the terms of the draft Bill? As it is currently worded, it appears to allow operators to veto the fares, the frequencies and the timing provisions in a statutory quality partnership scheme on the grounds of admissible objections.
Reference has already been made to the guidance documents that have appeared but I have had no chance to look at this one; I do not know whether my noble friend knows it from back to front; no doubt he will tell us. I notice in the top right-hand corner it has the words ““Office of Fair Trading””. It would be helpful if my noble friend explained what the role of the Office of Fair Trading will be, if any, in the determination of, or challenge, to quality partnership schemes. Presumably it has a role as its name appears on the cover of the guidance.
For example, is it possible that there could be agreement on a quality partnership scheme between a local transport authority or authorities and a bus operator or operators, and a third bus operator could make a challenge to the Office of Fair Trading on the basis that an uncompetitive or non-competitive practice had been put in place by the agreement of the quality partnership scheme between the local transport authorities and two bus operators rather than three, the third bus operator being the one that is complaining? For example, a quality partnership scheme might provide four buses an hour on a particular route, and a third operator wants to come in because he believes that the market could stand six buses an hour. Could he be denied the right, perhaps by traffic commissioners—I do not know who—to run those two additional services? Could he then go to the Office of Fair Trading on the basis that the quality partnership scheme was affecting the ability to compete? It would be helpful to hear from my noble friend what the role is or is not of the Office of Fair Trading with regard to quality partnership schemes.
The issue of admissible objections is a weakness in the Bill’s proposals. If a local transport authority is investing significantly in new facilities, it should be able to specify standards on fares, frequencies and timings. As I mentioned in the example that I used in relation to the Office of Fair Trading, a quality partnership may specify that there should be four buses per hour on a particular corridor and that those services should be evenly distributed for the benefit of passengers and to try to avoid bus war scenarios, one of which is still going on in Preston. Under this provision, you could find that, although this had been done to assist passengers and stop bus wars, it could then be thrown out under admissible objections.
As I understand it, there is no compulsion on operators to provide a service where a quality partnership scheme is in operation but,. if they do, they should comply with the standards specified in the scheme. The Bill as it stands appears to allow an operator to object to the standards relating to frequency and timings even though such standards may have been specified following consultation and the full process. Objections are allowed by ““relevant operators””. The definition of who might be a relevant operator seems wide-ranging; it might be any operator who operates or has operated services in the area covered by the quality partnership scheme. I am sure that my noble friend will correct me if I am wrong, but that presumably means that operators not involved in the quality partnership scheme might be able to raise objections to it.
One admissible objection from a bus operator might be on the basis that the levels of services provided or proposed in the quality partnership scheme were such that at least some of them could not be operated on a commercial basis. To reiterate what has already been said, where does the issue or the role of subsidy come into quality partnership schemes? Where does it come into it in such a way as to negate any admissible objection by a bus operator seeking to argue that services provided for within the quality partnership scheme were not necessarily all commercially viable?
I am not particularly optimistic that my noble friend will accept the amendment, but I hope that he will give a full explanation as to how he sees it working and that he will be able to respond to some of the questions that I have sought to raise.
Local Transport Bill [HL] Bill
Proceeding contribution from
Lord Rosser
(Labour)
in the House of Lords on Thursday, 6 December 2007.
It occurred during Debate on bills
and
Committee proceeding on Local Transport Bill [HL] Bill.
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Proceeding contribution
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696 c78-80GC 
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2007-08
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House of Lords Grand Committee
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