Select Committee on Education and Skills Appendices to the Minutes of Evidence


Memorandum submitted by The Public Transport Consortium (ST 8)

1.  LOCAL AUTHORITY RESPONSIBILITIES

  1.1  The Public Transport Consortium is a Special Interest Group of the Local Government Association for local authorities outside the metropolitan areas with a particular interest in public transport. The majority of County Councils in England are in membership, together with a number of unitary Councils in both England and Wales. All members have responsibility for the provision of both socially necessary local bus services and home to school transport.

  1.2  These duties come together in the provision of school transport. This is a two-fold responsibility—as LEAs they are required to provide statutorily free school transport for those children living beyond prescribed walking distances or whose routes between home and school are hazardous. As Transport Co-ordinating Authorities they must consider and fulfil as deemed appropriate the public transport needs of those who do not qualify for free transport to school. In many authorities the Transport Co-ordination Unit undertakes both these two functions.

  1.3  The situation is significantly different in metropolitan areas, where the average home to school distances are much lower, and local bus networks are more intense. Also particular circumstances apply in some shire areas because of historic situations or quirks in the nature of local bus networks (eg the Isle of Wight).

2.  PREVAILING VIEW OF AUTHORITIES

  2.1  Given that the legislative requirements around school transport date back to the Education Act 1944 while matters of local bus operation are largely governed by the Transport Act 1985, there is long standing experience of the difficulties which surround school transport provision.

  2.2  The Consortium therefore welcomes the considerable progress that has been made recently by the Department for Education and Skills (DfES) and the Department for Transport (DfT) in addressing the Travel to School issue, and is encouraged by the publication of the Draft Bill and Prospectus.

  2.3  Broadly, Member Authorities consider that there are four main areas to be addressed in modernising the approach to travel to school, and these are discussed in turn.

Congestion, sustainability and health

  2.4  A considerable proportion of children today are taken to school by car, and as a result volumes of cars setting-down and picking up children at schools are the cause of congestion and, in many cases, hazards in the vicinity of the school gate. Furthermore, it is self evident that the "school run" is a significant cause of general peak period congestion in towns, suburbs and villages throughout the country, witnessed by the significantly lower volumes of peak period traffic during school holidays. This is working against wishes to introduce greater sustainability into local travel, and it is recognised that children carried by car are missing the health benefits of cycling or walking (at least to bus pick-up points) on their way to school.

School bus costs

  2.5  LEAs spend substantial sums on the procurement of statutory free school transport. This is largely in the form of contract bus services, though passes are also purchased for use on commercial and supported local bus services. Furthermore, supported local bus services are extensively provided for the journey to school for fare paying pupils. (A typical county may allocate about half of its total expenditure on local bus support to services that are essentially for the journey to school).

  2.6  The costs to local authorities of contracted bus services for school and local bus services are generally rising at rates considerably in excess of the rate of inflation. Nationally the average rate of increase is 12% (school bus) and 15% (local bus), though in some areas average increases can be as much as 40% year on year.

  2.7  This is placing excessive pressures on local authority budgets, and, while free school transport levels must be maintained, supported local bus networks are as a result contracting.

School bus quality and safety

  2.8  With some exceptions, school transport is provided by fleets of older vehicles. Typically a three or five year contract for school transport will be operated by a vehicle towards the end of its life, idle or available for maintenance between school peaks, and less prone to high costs of repair in the event of vandalism.

  2.9  Even so, many bus operators are unenthusiastic about school transport operation, which is reflected in the level of bids for these contracts.

  2.10  Quality standards of school buses can therefore be low, though even the oldest buses must meet rigorous licensing and inspection procedures. Older, poorer quality buses are less popular with schools, parents and pupils, whilst newer buses are regarded as more reliable, safer and environmentally friendlier. They are more likely to prompt better behaviour from travelling pupils, and engender a better image of the bus for new generations of potential public transport users.

  2.11  In some cases, local authorities have taken positive steps to introduce better standards of quality for school buses. This can be achieved by specifying maximum bus age in contracts or by specifying, or purchasing and operating, purpose built school buses (commonly the US style "Yellow Bus"). However, a new bus can typically cost £120,000, whilst a 20 year old bus may be available at around 5% of this cost, so that the cost of improving bus quality is high, especially when considered in the context of the financial pressures described in paragraphs 2.5-2.7 above.

Equity

  2.12  The present rules for the provision of free transport to school are anachronistic and grossly inequitable. In a typical County perhaps 15-20% of the total school population is eligible for free transport, while others using public transport pay the commercial fare. Hence, the child living 3.01 miles from school get entirely free transport, whilst the pupil living 2.99 miles from the school gate must pay perhaps £2.50—£3.00 per day in bus fares. It is unrealistic to expect today's children to walk up to six miles per day for the combined journey to and from school.

  2.13  For many years, it has been suggested that the present statutory requirements for free school transport be replaced by a modest flat bus fare (say £2.00 per day) for all children whatever the distance to school, subject to adequate provision to address hardship and the problems facing parents with large families.

3.  TAKING FORWARD THE GOVERNMENT'S PROPOSALS

  3.1  The Consortium welcomes the proposals in the Draft Bill to allow experimental action to improve school transport in pilot areas. It is clear, however, that the range of opportunities is large and the players (Government, Local Authorities, Schools and Operators) must therefore be aware of this to understand the scale of activity, organisational change and initial funding that is required to ensure that the major benefits of the proposed action might be achieved.

  3.2  Although the proposals implicit in the Bill seem to provide the opportunity for change to address the problems set out in section 2 (above), they do pose a major change to established patterns of behaviour, among schools, parents and operators. The opposition to some of them amongst those with a sectional interest may be considerable. Consequently it will be important to develop the right political momentum, recognising the benefits of a holistic approach to change. It is essential for the generation of this political commitment that there is early delivery of a substantial package of tangible and marketable benefits in advance of, or alongside, the potentially unpopular measures. Without this approach there is little chance that all the players will be willing to proceed.

  3.3  It also needs to be understood that the use of any proposals merely as a cost cutting exercise for the local authority is likely to stand almost no chance of proceeding. Lessons from recent transport innovation (congestion charging in London, speed cameras) show that change is only accepted when the benefits are recycled for perceived related purposes.

4.  FINANCIAL IMPLICATIONS OF PILOT WORK

  4.1  A clear overall advantage of the proposed new approach is the potential for significant financial gain, which might be delivered to some of the key players:

    —  There is clearly scope to make significant savings (probably between 10 and 20% of the current mainstream school transport budget) from interactive staggering of school hours, so that buses can be used for double journeys in the morning and afternoon by serving two schools consecutively.

    —  A modest flat charge to those currently receiving free transport would generate very worthwhile sums. One member county calculates that a charge of only £1 per day would generate some £2.7 million additional revenue. This would be enough to pay for another 100 fare-paying school buses—a 25% increase in the total of buses running at peak.

  4.2  In addition, it appears that the Government takes the view that a key source of finance to fund initiatives will arise from better co-ordination of the transport within a local authority's area of activity. Whilst savings can undoubtedly be made in this way, experience from Cheshire, where a co-ordinated approach has been progressively introduced over the last 20 years, shows that that the organisational task of achieving this is complex. It is also in the nature of such consolidations that each party (eg a participating social services department) would want to capture its own savings from the deal. Hence, over the proposed timescale of a pilot initiative, progress towards integration, whilst worthwhile in best value terms, is unlikely to deliver major savings to the school travel scheme.

  4.3  Thus, overall, considerable financial benefits could be unlocked by a scheme. However the scale and inter-relation of activity implied by this initiative, particularly in the context of larger authorities, suggests that pump-priming funding will be essential to gain local authority participation. This is dealt with in section 8.

5.  OPPORTUNITIES PRESENTED BY EXTRA FINANCE

  5.1  The funds released by the action suggested in 4.1 (above) could be used to provide a significant improvement in the quality (2.8-2.11 above) and quantity of buses provided for school transport. The opportunity thus becomes available to initiate an on-going virtuous spiral whereby the image of the bus, the attitude of the school and behaviour improvements can all contribute to more effective use of the bus to offer a more attractive option to greater numbers of pupils and parents. Furthermore, insofar as the additional funds mean that it will no longer be necessary to rely on the very poorest quality part of the market, there should be an inherent increase in safety.

  5.2  There is a need to recognise that the funds released would provide a huge stimulus to the bus industry, albeit for an activity which experience has shown is not necessarily popular with big bus companies (2.9 above). Representations from operators suggest that they need more stability and security of operation to encourage them to invest in new vehicles and depot modernisation and extensions. Fundamental to this is the willingness of local authorities to commit to longer term contracts, given that buses must be written off over a period of 12 to 15 years. As some contracts would be of a local bus nature to permit individual charging, it is essential that the pilot legislation brings relaxation to the Transport Act (1985) tendering rules.

6.  ENGAGING THE SCHOOLS

  6.1  The largest saving will depend on the willingness of schools to stagger hours (4.1 above). Various consultants have already demonstrated this potential in a number of areas (eg Essex), but delivery has been frustrated by the reluctance of schools to stagger.

  6.2  The incentivisation of schools to shift times is therefore crucial, but this runs contrary to the general trend for greater autonomy to schools with less control by the LEA. In this particular context, however, there is much to be gained from a degree of direction. At the very least therefore the Bill and Prospectus should be amended to give clear guidance to schools on the value of co-operation in staggering of hours. Consideration might be given to the allocation of a positive role for transport to an individual on each school governing body. There is certainly need for greater clarity on the responsibilities of schools with respect to pupils on their way to and from school. Recently sought counsel's opinion suggests that schools do have certain responsibilities for transport events outside the school gates.

  6.3  In practice it will probably be necessary to show schools that there are direct benefits to accrue to them from action to initiate better use of school buses. It is possible that with an effective partnership approach some more co-operative schools will take the view that the promise of better quality buses alone will be enough to persuade a school to shift hours. However it must be recognised that bus users will still be minority stakeholders in the schools' decisions. At the end of the day it may be necessary to ensure that a significant part of the financial benefits from time shifts be given to schools (to spend as they will) if the desired better bus utilisation is to be achieved. There is already a view in some quarters that school transport is competing too heavily for other precious education resources, and some share in the benefits for schools would help assuage this.

7.  CHARGING

  7.1  It is necessary to return to this issue, as it is one that is potentially controversial enough to jeopardise the overall package of measures. As far as charging is concerned, it will be necessary to have the benefits, in terms of better quality buses or lower fares for those who presently pay, understood and on the way to delivery before charging becomes acceptable. Firstly, however, it is important to recognise that there will be no compulsion on individual authorities to introduce charges, and that some of the beneficial changes discussed in this paper can be achieved without addressing the equity issue (2.12/2.13 above) through charging those currently eligible for free transport.

  7.2  However the present inequity is a sufficient issue for most members of the Consortium that it is considered an important issue which should not be allowed to fall for reasons of short term political expediency. This is all the more so when it is recognised that research has shown that over 80% of households in a typical shire county receiving free school transport have incomes of over £30k, whilst for 50% it is more than £45k.

  7.3  A modest charge of, say, £1 or £2 per day should not be seen as an unreasonable amount. At least one member authority has, in recent years introduced, without difficulty, a daily charge in excess of £1 for over 16 year old pupils who previously had free transport, and similarly a £2.50 a day charge to out of zone ineligible pupils. The Bill requires that progress towards charging starts with extensive consultation. It is perhaps valid to point out that those being adversely affected are more likely to be vociferous than those intended beneficiaries, who are harder to identify, and may not yet have realised that they would indeed benefit.

  7.4  An option would be to use the income generated by introducing a modest charge to ameliorate the amount paid by those who currently pay the commercial bus fare. The fare cap at £1 or £2 per day could apply to all pupils. This will require the setting up of a concessionary fare scheme, or a multi-operator negotiated scheme. The former allows the operators to dictate the level of recompense from authorities while the latter may fall foul of Office of Fair Trading regulations and sanctions on collusion. The pilot legislation should create the freedom to devise, in partnership with bus operators, an effective and fair concession fare scheme for this purpose without reference to the OFT.

8.  PHASED IMPLEMENTATION

  8.1  The scale of the opportunity for major benefits from the piloting of these proposed measures is equalled by the scale of the effort to ensure effective implementation, particularly as, to be effective, this should be integrated with increasing effort on School Travel Plans and Safer Routes to School.

  8.2  It will be difficult for a large county to bring in a scheme comprehensively in one go. The work in rolling out the extra transport provision to use the funds from staggering of hours and/or charging will be enormous, even if the extra vehicles were immediately available. For this reason, if charging is to be accompanied by quality improvement, it may only be practical to introduce charging on a phased area by area basis. The authority will have to deal with the inequity of a partial charging regime, as well as interface and selection criteria issues.

  8.3  Furthermore, a charging regime is unlikely to be introduced all at once, but, as has been past practice, to each new cohort of scholars. Thus the income stream would take five years to build up, whilst the additional bus transport has largely to be provided all at once. (You cannot put half a bus on because only the first year pupils are eligible). This demonstrates a clear need for pump priming funding referred to 4.3 (above)—because without this, the political acceptability referred to in 3.2 is unlikely to be achieved, as the disaffected will outnumber the beneficiaries.

  8.4  Even with the best technical team and the latest technology, the preparatory work will be at the best speculative by the time the bid goes in, especially if it is on a county scale. The potential for saving might have been identified by then, but is unlikely to be clear enough to eliminate a significant level of risk. Some flexibility on the financial assumptions must be entertained and expected, otherwise there is the danger that only very small scale bids for relatively limited and unadventurous projects might emerge.

  8.5  The pilot bid will have to be submitted in parallel with the second five year LTP submission. This will require close co-ordination by those submitting bids, since the two interact, and there would be a different scenario if a bid failed. If properly constructed, the existence of a pilot area could help meet LTP objectives. Equally, a successful LTP programme will help provide the means to carry out pilot area schemes, especially in capital funding of safe walking routes, new buses etc which will be part of the measures needed to encourage participation by partners and stakeholders. It will be very important for the DfES and the DfT to co-ordinate activity on these two major activities.





 
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