Local Transport Bill [HL]

moved Amendment No. 65: 65: Clause 57, page 50, line 28, after ““subsidies,”” insert ““or where the vehicles concerned are let to a person who operates a vehicle or vehicles under a permit granted under section 19 of the Transport Act 1985,”” The noble Lord said: I wish to speak to this group of amendments. As I understand it, the Bill proposes reinstating the power of passenger transport executives to own and provide vehicles to operators. This amendment would enhance that power formally to allow passenger transport executives to provide vehicles to community transport operators. I believe that most PTEs do this as a matter of course but Amendment No. 65 would regularise that position. Amendment No. 66A would give passenger transport executives the operator of last resort powers if a quality contract was terminated or services under that contract ceased, perhaps because the operator had defaulted on the contract. Not dissimilar powers are available to the Government under rail franchising and, I believe, to Transport for London for bus franchises in London. Obviously, the power is intended to be used as a last resort and only for so long as it is necessary for the passenger transport executive to procure an alternative provider of services. Amendment No. 66 relates to the infrastructure. Depots are an obvious requirement for any quality contract scheme. The incumbent operator will generally own their own depots and is under no obligation to release them to a local transport authority or, indeed, to any other successful bidder to help facilitate an initial quality contract. Reference has already been made to the fact that a prominent bus operator, the chief executive of Stagecoach, was quoted in a Sheffield newspaper in October 2006 as saying: "““If franchising or Quality Contracts are brought in we will put all our depots up for sale in South Yorkshire. That is not a threat, it’s just that we don’t think it is the way to make the system work””." Local transport authorities may decide to build and lease new, modern, purpose built facilities to help facilitate the quality contracts schemes. However, as we well know, in some of the largest urban centres with the strongest economies, finding a suitable site and getting planning permission, which is also a headache, could prove to be very challenging indeed. The amendment would allow passenger transport executives to acquire land compulsorily where this is required for the purposes of securing services under a quality contracts scheme. For example, the power might be required to acquire a depot without which services might not be effectively operated. I have sought to explain the purposes of these amendments. I hope that my noble friend will be able to respond sympathetically. I beg to move.