Select Committee on Environment, Transport and Regional Affairs Minutes of Evidence



Examination of witnesses (Questions 320 - 342)

WEDNESDAY 17 MAY 2000

LORD MACDONALD OF TRADESTON, MR WILLY RICKETT, MR DAVID ROWLANDS, MR RICHARD BIRD and MR PETER MCCARTHY

  320. I go back to my bus companies who I know quite well, should I say to local authorities, "If you want some more money advise the bus undertakings to get rid of some drivers." Do you see the point?
  (Lord Macdonald of Tradeston) I do take the point. With respect, there is a very tight labour market within London now and there is a great difficulty in trying to recruit drivers at the wages paid so you could say—

  321. I understand that but the other side of that particular coin is that while vast additional resources in London as a result of the circumstances there have been provided and may have helped to stabilise the situation, outside of London where no additional resources have been made available for the reasons you have identified, Minister, the down side of that is that services are being chopped. That cannot be acceptable, surely, and therefore there seems to be a case that can be made for additional resources outside of London? It may be a different case but the case can be made, I would suggest.
  (Lord Macdonald of Tradeston) It is certainly a case that we would listen to very closely but again to put it into context, we have increased by 20 per cent this year the amount of money paid in local transport plans and that increases again next year. We have been in close contact again with the industry and through our agencies DVLA and DSA on what steps we can take to try and ease the driver shortage because it is going to develop elsewhere in the country too. If there any evidence you wish to give us we are happy to be informed on this.

  Chairman: We will give you our report again. Dr Ladyman?

Dr Ladyman

  322. On April last year you lifted borrowing restrictions on local authority airports, why have you never done that for local authority over sea ports? When are you going to do it on local authority over sea ports?
  (Lord Macdonald of Tradeston) I was not around last April—I can pray that in aid—I hand over to Mr Rowlands, if he has a memory of that.
  (Mr Rowlands) We have not gone for local authority ports and to be candid I am not aware of any pent-up demand for it.

  323. My letter is in the post.
  (Mr Rowlands) Were it to be considered we would have to go back to the basis on which it was done for local authority airports. The regime was changed for financially stable local authority airports, not every local authority airport got through the gate and met the criteria. If we were to go down that road it would have to be same position for local authority ports. Those that are financially unsound could not expect such a concession.

  324. Will you undertake to look at it?
  (Lord Macdonald of Tradeston) I will undertake to look at

  325. My second question is, the Civil Aviation Act has a section which allows the Secretary of State to designate an airport for the purposes of allowing local authorities to control local environmental concerns. It is a section that has never been used, the previous Government said it was unworkable, for one reason or another, and they were going to repeal it. The current Government said that they would replace it and give local authorities a new power. Do we have any indication as to when that legislation is likely to come forward?
  (Mr Rowlands) I will have to check this, subject to memory, I thought we had addressed the issue in the Transport Bill. I will need to check that, if I may do so.[1]

Miss McIntosh

  326. I have two questions, the first relates to the financial support for rural bus services. I gather that the sum will increase this year but will fall back in 2001/2002. Has the Department assessed whether or not the increased expenditure on rural buses will reduce the number of rural parishes that have only very limited services and by the same token have they assessed when rural bus grants are cut back in 2001/2002 that bus services may be cut?
  (Lord Macdonald of Tradeston) Let me start by saying that we have already announced that the grants will be continued at least at their current level for a further three years, beyond March 2001, so that recognise the need for continuity. That continuity would be based on a total of 1,845 new or enhanced services introduced as a result of grants in 1998/1999. Nearly 700 of those were entirely new services and 1,100 of them were enhancements. Some 6,000 communities have benefited from increased off-peak daytime services, 3,000 from peak-time services that have been increased during the week and, very importantly, some 2,000 communities now have improved evening services. That is about ten million passenger journeys, we believe, that have been supported by the additional grants.

  327. Rural?
  (Lord Macdonald of Tradeston) All rural.

  328. Will they factor into the programme a full consultation on the service so that all parish councils can be consulted, even if it means extending the deadline to that which is currently proposed? Could I just turn to the tendered bus service contracts, ATCO noted that authorities withdrew bus services providing 364,000 journeys during the twelve months under review as a result of a lack of funds. Could the Minister give a commitment to the Committee today that local authorities outside London will be provided with additional funds to offset a continuing rise in bus contracts. Just those two points, first, to extend the period to allow a full consultation for the rural grant services.
  (Lord Macdonald of Tradeston) If I may put it in context, again if there were 364,000 journeys lost there were ten million journeys gained in 1998/1999. There are some complexities here about using grants to cover existing services. We tried to insist there would be new and enhanced services. We are now beginning to open up our criteria. Perhaps Mr Bird can give us the details.
  (Mr Bird) Obviously the difficulty here is that we do not want to be in a position where we want to encourage bus companies to withdraw services in the expectation that they are getting support for them, that obviously would not represent good value for money. Nevertheless, as time goes on, as the arrangements started in May 1998, there may be circumstances where it would be reasonable to reconsider the possibility of funding services which have been withdrawn since that date. That is something that we are looking at and there would be wide consultation on.

  329. On the tender bus service contracts, which is a slightly different point, ATCO did express a concern because of the cost going up so much and profit going down. I am sure we all have examples in our own constituency where services are being cut.
  (Lord Macdonald of Tradeston) We have obviously been trying to get information on the impact of the investment we have made in these 1,800 new rural services. It is still too early to reach a firm judgment. We too get a lot of reports in of success stories from councillors and local communities writing in to talk about the increase employment and the better service. If there are specifics you would like to give us I will try and address it in more detail.

Chairman

  330. I do not want to detain you much longer but there one or two things that are important. Are you satisfied with the response from the railway industry to the Ladbroke Grove accident?

   (Lord Macdonald of Tradeston) With a tragedy of that kind and matters of such complexity as rail safety, I do not think one could ever be satisfied, Madam Chairman. What I do feel is that every effort has been made by the Department, very much led in this case by the Deputy Prime Minister with his commitment to safety and in particular rail safety. The work that has gone on in Railtrack and in the train operating companies, driven by our Department and by other agencies, has been very worthwhile. We have had two safety summits. We are looking forward to seeing the progress of that being reported back later in the year. I know that the Deputy Prime Minister has only very recently seen representatives of people who were injured and the relatives of those who were killed in the Southall and Paddington disasters and they are involved in putting together some kind of forum to look specifically at rail safety later in the year.

Chairman

  331. Why is it that all this time after the accident I am receiving written answers to questions saying that the new safety company has not been set up, a managing director has not been appointed, it is going to be some considerable time because of the statutory need for Railtrack to consult with people? This is really rather a leisurely response, is it not?
  (Lord Macdonald of Tradeston) I would certainly hope not, Madam Chairman. We have been pushing that along as quickly as regulation and legality will allow. We would hope to make the announcement on the chair of this new body very soon.

  332. And setting up the company? Because to say Railtrack under their existing licence have to consult does rather indicate there are some months to go before there will be any movement on this.
  (Mr Rowlands) The problem is that in setting up the new company we will require, for example, the HSE to change the safety case regulations and they cannot avoid the statutory requirement to consult on those changes.

  333. Nor should they, but we were rather given the impression that the reason the private company was preferred over the suggestion Parliament put forward was speed of action.
  (Mr Rowlands) It would still be speedier than resorting to primary legislation, although I think I ought to add that Ministers see the setting up of this company as a sensible step to take, but in no sense does it prejudice Lord Cullen's Inquiry. He may want to make recommendations for wider ranging changes and they themselves, of course, may encompass primary legislation.

  334. Are you satisfied with the fact that Mr Corbett has not removed himself from the scene and there has been no change of directors and indeed Mr Corbett was reported in the press as making a great fuss about several of his staff who were allegedly drunk but does not seem to think that a major accident requires the same degree of energetic response?
  (Lord Macdonald of Tradeston) Madam Chairman, if I could direct you towards the statement that has been issued by Railtrack today, I think you will see in that, it is a report on their performance, that a lot of progress has been made over the past year, overshadowed of course by the tragic circumstances of Paddington but we believe the investment is higher than ever before from Railtrack and there are very significant improvements in many areas of their operation.

  Chairman: Mr Bennett?

Mr Bennett

  335. Cycling: can you offer us any good news? Do you see any scope for your team making more journeys by bicycle are perhaps the Select Committee making more journeys by bicycle?
  (Lord Macdonald of Tradeston) We have a cycling Minister of Transport in Mr Keith Hill who does not hold a driving licence. We have certainly inherited a very ambitious target on cycling.

  336. But you have abandoned it, have you not?
  (Lord Macdonald of Tradeston) We have not abandoned it. We have a target of quadrupling cycling by 2012.

  337. That was a neat legal move. We can all have good targets for the future but, as I understand it, in 1996 we were to double the number of journeys by 2002. That is getting a bit close.
  (Lord Macdonald of Tradeston) That is a target I would anticipate not being met but we have not put that inside our formal targets. The 2012 target is there. I would personally prefer to re-base in the year 2000 and encompass it in our ten-year plan for 2010 but I think in the circumstances it is best left where it is as a target for 2012. I am heartened to read that the increase in cycling was five per cent last year in figures that came out in recent days.

  338. Do you think that the Government contributed to that in any way?
  (Lord Macdonald of Tradeston) I believe that we have. We have been encouraging to the SUSTRANS network. Again, that was something that we have inherited—

  339. That hardly covers people making journeys work or doing anything else rather than leisure activities.
  (Lord Macdonald of Tradeston) Again inside our local transport plans there is very firm encouragement towards cycling and walking, as we have heard earlier, so I do not recognise the suggested neglect.

  340. So you are cheerful about this prospect?
  (Lord Macdonald of Tradeston) No, determined rather than cheerful.

Chairman

  341. Finally, do you want to tell us what has been your most impressive achievement in the past year?
  (Lord Macdonald of Tradeston) Am I allowed to phone a friend?

  342. As long as you have got one in your Department, my Lord, yes, fine.
  (Lord Macdonald of Tradeston) I think the most impressive achievement, Madam Chairman, is the collective decision by the Government that it required a ten-year plan to have a sensible investment horizon for transport, something that had not been accepted by previous administrations. I now look forward to getting the resources in July which will show that that critically important strategic position is backed up by the resources which will give us the changes in transport that this Committee has very much taken the lead in demanding.

  Chairman: On that cheerfully unrealistic note, can I thank you and your troops very much and say we shall look forward to seeing you yet again when we shall have other figures to discuss with you and we look forward to the number of notes you are going to shower on us with great regularity. Thank you.


1   Note by Witness: This proposal is not in the Transport Bill. The Government intends, as promised in the Integrated Transport White paper, to consult on the details of the proposed measures and introduce separate legislation, in light of the responses. Back


 
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