Local Transport Bill [Lords]

But the hon. Gentleman has just given the lie to that argument. Everything that local authorities wished to achieve under a quality contract could be achieved under either a voluntary partnership or a statutory quality partnership. That is the key point. The other reason I am concerned about quality contracts is that there is a chance that operators will challenge them in the courts. Quality contracts have damaging implications, the first of which is financial. In this day and age, the last thing that local authorities want is heavy legal costs. Quality contracts also have the potential to damage the relationship between the local authority and the bus operator. It is essential that that relationship should be good if good services are to be provided. Proposed new section 127A(2) of the Transport Act 2000 says that anyone who was or should have been consulted by a local authority wishing to make a quality contract scheme has the right of appeal to the Transport Tribunal. Under normal circumstances, that could be done on either a point of law or a question of fact. However, new clause 15 says that if the QCS board has decided that a local authority has followed due process, the appellant loses that right. As I have said before, that is likely to be tested in the courts under the Human Rights Act. My amendments therefore restore the much needed protection that the previous Transport Minister talked about when she did not want judicial reviews. My amendments (a) and (b) to the new clause would end that discrepancy and restore the right of appeal on a question of fact. That would be a major step forward in reducing the possibility of a judicial review. The second part of new clause 15 deals with the powers of the tribunal, were an appeal to be made. My amendments (c) and (d) would allow the tribunal to quash the decision of a local authority, not only where there were specific details in the scheme to be remedied. The right of appeal is undermined by the new clause, which would be undemocratic and unaccountable. I hope that the Minister will carefully consider the amendments that we have tabled. New clause 16 provides that certain extensions to quality contracts will be exempt from having to go through the approvals process. It is my view that a suitably equipped and independent approvals regime is the key to this whole process. Every quality contracts proposal, and every quality contracts extension, should go through the approvals process. I do not believe that we should be able simply to extend a quality contract without it being subject to the procedures and processes of the expert and independent scrutiny board that has supposedly been set up for that very purpose. I hope that if the Government are still in listening mode, they will have regard to the concerns that were expressed in Committee and that are still being expressed on this matter. There is a tranche of Government amendments in this group that are of a consequential nature. However, the substantive amendments Nos. 124 to 128 discuss the application of the Transfer of Undertakings (Protection of Employment) Regulations—the TUPE regulations. As employees are now to be afforded greater protection under TUPE in the case of the quality contracts scheme, and if there are extra costs to be borne as a result, who does the Minister think will bear those costs? Amendments Nos. 224 to 239 relate to certain circumstances in which a quality contract is extended, but where the extension is deemed to be exempt from having to go through the full approvals process. I commented on this matter in Committee, and I have done so again today, so I shall not go into it again at length. However, I ask the Minister to consider seriously whether, having put in place an independent scrutiny process, he thinks it is right that a local authority should be able to extend the schemes without those processes and procedures being undertaken. Amendments Nos. 240 to 244 are in a similar vein. I want to probe the Minister on amendment No. 262. It seems to provide that the Secretary of State may make provisions relating to individual quality contracts schemes, and even interfere in the whole approvals process. It seems, therefore, to be extremely significant. Will the Minister tell us in what circumstances he anticipates the measure being used, and for what reasons? The Minister will have noticed that we have tabled five amendments in this group. I should like to explain the rationale behind them. Amendments Nos. 5 and 6 are crucial, as they seek—as I did in Committee—to tighten up the public interest tests that must be passed by any proposal for a quality contract. I have already said that I oppose quality contracts, but if they are to be placed on the statute book, even for a limited period, they must be introduced only when the benefits of voluntary partnerships and statutory quality partnerships have been exhausted. The places where bus services have improved the most are those where there are strong partnership arrangements between the local authority and operators. That is absolutely the best way to align the local authority's priorities with the investment and innovation of the private sector, and such arrangements should be encouraged. Amendment No. 5 therefore modifies the second of the five criteria that must be met by any proposed quality contracts scheme. It would ensure not only that the scheme brought the benefits and improvements for people using bus services covered by it, but that those benefits would be"““greater than those that would pertain under existing arrangements””." This is a straightforward, important and fundamental amendment, so I will seek your permission, Mr. Deputy Speaker, at an appropriate time to test the will of the House on it. Amendment No. 6 would modify the last of the five criteria, which is slightly clumsy in stating that"““any adverse effects of the proposed scheme on operators will be proportionate to the improvement in the well-being of persons living or working in the area to which the proposed scheme relates””." That brings up a whole host of problems, as we discussed in Committee. How can personal well-being be quantitatively, or, indeed, qualitatively, measured? How can the effects of the scheme on local people be usefully compared with the effect on an operator? The Minister's predecessor wrote to me on this subject on 20 May, following the Committee's final sitting, citing the European Court of Human Rights in explaining how this might work out in practice. I remain wholly unconvinced, as I do not believe that we are talking about like for like. My amendment would thus get rid of that ill-defined and awkward test and replace it with one that is not only simple, but measurable and more effective—namely, that there be"““no adverse effects of the proposed scheme on operators or on persons living or working in the area to which the… scheme relates””." My other amendments in the group relate to clause 20, which deals with the consultation document that any local authority must issue if it desires to make a quality contract. The local authority is required to publish the document"““in such manner as they see fit””." Amendment No. 7 would remove those words. Unlike other words in the Bill, I do not think that ““publish”” is open to wild misinterpretation. Government Members will recall our enjoyable time spent in Committee trying to define ““economic””, ““efficient”” and ““effective””, but we did not try to redefine ““publish””, which I do not think is subject to wild misinterpretation. The phrase"““in such manner as they see fit””" is unnecessary. The subsequent subsections of clause 20 prescribe quite tightly what must be included in the consultation document, so it is extremely unlikely that the authority would be able to get it wrong. I hope that the Minister will thus look kindly on amendment No. 7. Amendment No. 8 extends the list of people to whom the consultation document, once published, is to be distributed. Those people are: the chief fire officer for each fire area, covering the whole or part of that area; the head of the local ambulance service; all persons living within 150 m of any part of the specified routes; and representatives of local groups representing disabled people. The problem is that the Government have set out a list that already includes certain people such as the chief of police; it seems odd that others who should be included are not. There is already a list of consultees, so it is difficult for the Government to argue that people who should be consultees are not on that list. There was considerable support in Committee for this type of amendment. I had hoped that the Minister would revisit the issues through Government amendments on Report; I have looked for them in the huge barrage of Government amendments that the Minister tabled 10 days ago, but I did not see them there. I still hope that he will give these amendments serious consideration. Amendment No. 9 re-addresses an issue that was brought up previously. We are going to have quality contracts scheme boards, which are to be chaired by a traffic commissioner, who is to be appointed by the senior traffic commissioner on the basis of his or her knowledge of the local area. Clause 22(8) states:"““If the senior traffic commissioner is unable to””" appoint a traffic commissioner, the Secretary of State will do so. I would be interested to hear from the Minister in what circumstances a senior traffic commissioner would not be able to carry out this duty. It is hardly his most arduous duty. When does the Minister expect the measure to be necessary and how will the Secretary of State consult to ensure that the traffic commissioner he appoints is an appropriate person? Finally, I see that some new clauses have been tabled by the Liberal Democrats and the hon. Member for Manchester, Blackley. I do not propose to speak to those at length because in many ways they are similar to some Government amendments and I have already given our critique of those.