Local Transport Bill [HL]

Clause 69 provides a power for the Secretary of State to be able to direct two or more authorities to carry out a review in certain circumstances. As well as directing a review, the Secretary of State would also be able to direct that the authorities in question should publish a scheme containing proposals for establishing an integrated transport authority. Clause 71 would give the Secretary of State a similar power to direct one or more authorities in an existing integrated transport authority area to carry out a review of those matters which could be included in an order made by the Secretary of State under Clauses 72 to 78. The matters which the Secretary of State could direct authorities to consider in such a review include the existing constitution of the ITA and its boundaries and the distribution of statutory transport functions between the ITA, other local authorities and the Secretary of State. As I mentioned in the context of Clause 68, we are clear that in the first place it should be for local authorities and ITAs themselves to decide whether to undertake a review of governance arrangements in their area. We would intend to make that very clear in the guidance that we issue to authorities on carrying out a review, a draft of which we have already made available. However, the power in the clauses for the Secretary of State to direct a review provides a sensible contingency. It might be used, for instance, in circumstances where governance arrangements in an area were demonstrably not working properly but the authorities were unable to reach agreement that a review should be undertaken, or perhaps to reach agreement as to the area to be covered by a review. A direction from the Secretary of State in those circumstances could be of considerable assistance in resolving issues and providing a way forward. A further case in which a direction could be of use is to set out for the authorities in a particular area the individual issues which, if included in a scheme, the Secretary of State thinks would be likely to meet the conditions under which he or she can make an order. That could help to ensure that the work undertaken by a review would lead to proposals which the Secretary of State would then be able to bring into force in an order under this part of the Bill. We would also expect to be able to say more in the guidance that we intend to issue under Clause 83 about the particular circumstances in which a direction might need to be issued. I hope that the noble Lord understands that in most circumstances we need that contingency power. In most instances, I hope that a review would be conducted, as the noble Lord suggests, in the best possible terms of being bottom up.