Local Transport Bill [HL]

We are inclined to think that this is a somewhat curious amendment. Section 106 of the Transport Act 1985 was always intended as a very particular power to be used specifically for expenditure by local authorities or PTEs that could not be provided under other powers, most notably on vehicles, facilities and equipment for services for disabled people. By omitting the words as indicated in the amendment, it would potentially become a very wide and general power. It would duplicate and overlap in a confusing way with the existing powers in the Transport Act 1985, which enable local transport authorities to subsidise services where particular transport needs would not otherwise be met. As noble Lords will know, we are proposing to introduce, by means of Clauses 58 and 59, greater flexibility for local transport authorities to subsidise the provision of services to a particular standard. However, we still consider it appropriate to retain the requirement that such subsidy can only be made if the service, or particular standard of service, would not otherwise be provided. Extending Section 106 of the 1985 Act to the generality of services would seem to have the effect of removing that requirement. Broadening the powers in Section 106 to services already provided commercially would, for instance, raise the question of whether such subsidies might be disallowed under the European Community’s state aid rules. Quite apart from all that it is important, as I am sure noble Lords will agree, that there should be specific grant-making powers for facilities for disabled persons. Such facilities can be expensive to provide, and an operator with an eye purely to profitability may not chose to provide them. We have heard on many occasions how essential it is for many disabled persons to have access to good public transport. If Section 106 were replaced by a much more general funding provision, persons with a disability may be forgotten or given much lower priority. That would be contrary to the many clear messages that we have given and that we have been given, in particular by the noble Lord, Lord Low of Dalston, at various stages in Committee. While I am sure it was not the intention of my noble friend Lord Rosser, it could well be the consequence if the amendment were accepted. I hope on that basis that my noble friend will withdraw his amendment.