Local Transport Bill [HL]

I shall speak to Clause 37 stand part. We are told that the Bill will put power into the hands of local transport authorities, and allow them to decide the appropriate mode of bus operation for their areas. I was therefore interested to see that Clause 37 allows the Secretary of State in England, and the Welsh Ministers in Wales, to issue guidance concerning the performance of quality contract schemes; we have had a lot of discussion about that this afternoon, but this is an additional point. Under the second part of the clause, it is stated that authorities must have regard to such guidance. What sort of guidance does the Minister expect that national authorities may have to give, and why is it required? In the case of poor performance, how does he envisage this guidance may be of assistance and what could be done? My concern is that this advice could turn into central regulation—we have seen enough of that—which is not what local bus operators need or would benefit from. I am therefore uncertain that this clause is needed. The Bill already contains measures to consult widely and, although these could be improved by our previously suggested amendments, they should presumably suffice in ensuring a quality contract scheme is fair. Can the Minister justify why this clause is needed, and what would be the effect if it were removed?