Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses (Questions 382 - 399)

TUESDAY 14 SEPTEMBER 2004

MR ROY WICKS, MR KEN KEMP AND MR STEWART FRANCIS

  Q382  Chairman: Gentlemen, please introduce yourselves for the record.

  Mr Wicks: Roy Wicks, Director General, South Yorkshire Passenger Transport Executive.

  Mr Kemp: Ken Kemp, Planning Manager at Nexus (Tyne & Wear Passenger Transport Executive).

  Mr Francis: I am Stewart Francis. I am here representing CFIT in the Chairman's absence, David Begg. Perhaps I should explain, Chairman, that my position in CFIT is to represent the consumer interest as I am also Chairman of the Rail Passenger Council, the national statutory watchdog for rail passengers. I am also Chairman of the Strategic Health Authority in Eastern England, which also has an interest, of course, in access and transport matters

  Q383  Chairman: Does anyone want to say anything else or are you happy to go straight into questions?

  Mr Wicks: I am happy, Chairman.

  Q384  Christine Russell: Do you think the Bill as presently proposed will help or hinder the development of a truly integrated transport system?

  Mr Francis: Our view is that it is a step in the right direction but that it does not actually go far enough in terms of integrated transport. We believe that regional assemblies should have the ability to set regional transport strategy, and therefore provide a framework for those delivering the strategy at a local level. From the consumer of transport point of view, the vast majority of journeys made in this country are, of course, local journeys be they by bus or by train. What we are looking for are mechanisms and structures that can deliver a more integrated journey for the consumer and, therefore, get the national benefits from them.

  Mr Wicks: Certainly from a PTE point of view I would share Stewart's view that it is a step in the right direction, but genuine integration requires three things to come together: it requires integration of policy. I think particularly in terms of economic development, housing and transport, bringing those together at the regional level ought to enable better joined-up thinking in terms of investment levels. Secondly, it requires integration of funding streams. At the moment spending on the highways network, the rail network and on local transport, although all under the aegis of the DfT, is not necessarily treated as interchangeable units of expenditure. Certainly at a sub-regional level we cannot make decisions across each of those modes, and that is true equally at the regional level. I think the hints in the Regional Assemblies Bill and in the DfT's White Paper The Future of Transport, to move in the direction, first of all, of joining up those spending heads and then, secondly, giving authorities more flexibility over how they spend them, is quite critical to the delivery of integrated transport. I think, as Stewart says, the third key aspect of integrated transport is delivery on the ground. I do not radically see this proposal changing that because, as your previous witnesses have said, this is much more about a strategic overseeing authority than a delivery agency; and delivery will still be on the ground through local councils, ourselves and other organisations.

  Q385  Christine Russell: If I could press you further. Do you think there is a real lack of clarity in the Bill in its present state as to who exactly is going to do what; what the role of the county council is going to be; the local passenger transport executive; even the district councils? Is there a real lack of clarity at the moment?

  Mr Wicks: I do not think there is a lack of clarity. I think the Bill says that the assembly will produce the regional transport strategy and it will have to work with those other stakeholders in doing that. I think there is a question about whether that gives you the best integrated transport network on the ground. In my view, I think those duties on the regional assembly need to go a bit further than they do.

  Q386  Christine Russell: Could you spell out how much further you think they need to go.

  Mr Wicks: Going back to my earlier point, to an extent it is signalled in the DfTs The Future of Transport White Paper that if the Government is going to move towards, in the first instance, indicative regional allocations for local transport spending, there is no reason why those decisions could not be devolved from the centre to the region as to actually what the local transport plan allocations are. Secondly, I think you could look at—and I know it is more complicated—devolving some of the rail and highways expenditure so that then you will make decisions across those three areas. So I think if you are serious about devolving some of that decision-making in order to achieve an integrated network that is one area in which the powers could be pushed further. A second way in which they could be clarified, as we have said in our evidence, is that there does appear to be some duplication of powers between the PTEs, PTAs and the Regional Assemblies, in relation to who can actually do what to the rail network, which I do think need thinking through in order to make sure they work correctly.

  Q387  Chris Mole: Should that be between rail franchises and regions?

  Mr Wicks: No.

  Q388  Chris Mole: Would it be practical to disaggregate rail spending to—

  Mr Wicks: There are two sorts of rail spending: there is infrastructure investment, because certainly most regional authorities have very clear views about the priorities that are needed in their areas to open up access, not just in terms of connections to London, connections with other regional centres and with sub-regional centres. There is often a view that at the sub-regional and regional level it is very difficult to influence national priorities. So I think, first of all, in terms of investment in the infrastructure there clearly is a regional dimension. I am not advocating breaking up the network into regional blocks, but in terms of actually making sure that the national rail investment programme actually reflects regional priorities. When you come to services, my answer is a quick one in that in general there is not a regional network that fits neatly within a regional boundary. However, there are services—usually the local rail franchise and one or two others, such as Trans-Pennine and to an extent Cross-Country—which largely fulfil a regional function. You could look to how the regional assemblies have a greater involvement, first of all, in the specification of those franchises and then, ultimately, in how they are funded.

  Mr Francis: I agree that the pressure is clearly on to reduce the number of franchises. So I can see your point. However, there are bite-sized chunks you can do. One bite-sized chunk, for example, would be Mersey Rail. If I can just pick up on your previous point, I do detect that there are inconsistencies between this Bill and the Government's White Paper on the future of transport. CfIT believes that the Bill does need to be amended to make it consistent with what the White Paper is saying. Roy Wicks has given an example of that. We believe that RAs should be given funding powers because if not they do not have teeth. They should not have the powers to deliver; it should be others who carry out that duty. But powers over funding is the only way that RAs will have teeth to ensure that local authorities work to deliver a regional transport strategy.

  Q389  Christine Russell: What about concessionary fares? Who do you feel should have the responsibility for deciding the level of concessionary fares?

  Mr Francis: There are, of course, a whole range of activities, and I think that is probably down to the elected representatives in the local communities to make those choices. For example, the delivery of the bus service would still reside locally. However, the difficulty comes if you do not have a regional transport strategy for the passenger who is seeking an integrated transport solution. What about road charging? What about congestion charging? What about park-and-ride schemes? If each local authority makes a different decision, for example if one local authority makes a particular decision on park-and-ride schemes and another local authority does not, that leaves the consumer confused. That is why the Regional Assembly should have the powers to be able to say "Here is the strategy, here is the funding, now you deliver".

  Q390  Christine Russell: It is not going to develop any kind of distinct regional identity on the part of local people, if you—for instance you said Merseyside—have free bus passes in Merseyside but you still have to pay 50% of the fare in Cheshire next door.

  Mr Francis: These are decisions that are made locally and are driven by the local population, and politicians make their decisions based on that.

  Q391  Chairman: The Passenger Transport Executives have had a pretty poor record, have they not, for getting integrated ticketing? The Mayor has taken a long time but has managed to produce the Oyster, which does enable people to get on and off buses and tubes much more quickly. Would it not be logical for the Elected Regional Assemblies to take over the responsibility for that sort of thing and demonstrate that it can be done with a bit of vigour rather than the 20 years, is it, that Passenger Transport Executives have been messing about with ticketing?

  Mr Wicks: Thank you, Chairman, for injecting an interesting note of controversy into the proceedings. The first thing I would say is I do not think the PTEs have taken 20 years to introduce integrated ticketing because of their inability to do it as organisations; most of the problems rest in the way that public transport is actually organised in this country.

  Q392  Chairman: Give it to someone who can do it properly!

  Mr Wicks: In the case of London they have a regulated bus market which enables them to organise the ticketing in a very different way to the way you can outside London. Notwithstanding that, South and West Yorkshire PTEs together do have funding from the DfT to introduce a card very similar to the Oyster card in London which would cover all bus operators, all rail and all tram—

  Q393  Chairman: 2010?

  Mr Wicks: 2006 is the date for introduction. Similarly, in Manchester they are currently working on a similar system. So we are working on those.

  Q394  Chairman: You have been working on them for 10 years.

  Mr Wicks: I cannot speak for Manchester, as unfortunately Chris was unable to join us today, but I do think that we are making progress. A lot of the issues in ticketing rest around the bus operators' ability, as commercial operators, to fix the commercial fare, which is something they do not do in London because all of the network is, in effect, franchised.

  Q395  Mr Clelland: I know you see that the new Regional Assemblies will have some effect on the work of the PTEs and there may be some areas of conflict. Does that mean that you feel that this is not an opportunity that ought to be grasped to improve the work of both PTEs and local authorities within the region in terms of transport, or do you think that things should be left the way they are and we do not need a new authority?

  Mr Wicks: I think our view is you have actually got to look at what is right for each region in terms of how you make some of the delivery changes. Certainly I think there is benefit in there being a clearer regional accountability for the overall funding, because I am a great believer that transport problems are broadly solved within a travel-to-work area, which tends to be the sub-region but it does not necessarily have to be a particular PTE area because they can vary. That is where you will actually solve transport problems, but they then have to be solved within a regional context, because it is no good Leeds or Sheffield sorting out its problem and competing, in a sense, with York or Hull or somewhere else. So there has to be a regional dimension, which is why I think I welcome the regional transport strategy that is there already, and we work very closely with the regional assembly at the moment in doing that. I think that the funding powers have to be given alongside that which are commensurate with that, and I think the appropriate funding powers at the regional level are initially allocational and, if you like, organise spending profiles that fit in with those collective political priorities. So I think, yes, that is welcome and that is something that could improve things, because at the moment it is very much a sort of bi- to tri-lateral relationship between individual local authorities, the government office and the centre. By making, in effect—although this is not what the legislation proposed—the Government more accountable at the regional level you could improve that part of the process. So we certainly see it as an opportunity, and I think what I am really saying is that to grasp that opportunity we need to go a bit further and a bit faster.

  Q396  Mr Clelland: Local funding is one thing but there are other areas of responsibility that might be usefully housed in the Regional Assembly's power. We are very conscious in this Committee and those of us who believe in regional government that we are devolving power down from the centre, not up from local government. On the other hand, as I am sure you are aware, in some PTE areas local authorities have different policies when it comes to things like bus lanes and traffic regulations, which PTAs themselves would like to see brought under the one umbrella, so we have a commonality. Is this not an opportunity for regional government to have a regional overview of regulations like that?

  Mr Wicks: Certainly a regional transport strategy would. I think there is an interesting debate about at what level some of those delivery type powers should rest. I think that whilst I see a strong role for the planning, the funding and the strategy at a regional level, necessarily having traffic management powers at a regional level may not necessarily work. I think the evidence shows that that, perhaps, (if you look back to the mid-70s and 80s at the metropolitan county councils, which was, in effect, an attempt to do some of that at the sub-regional level) did not necessarily prove a success. I think a lot of those things—I go back to my opening—want to relate generally to the travel-to-work areas because I think that is the area over which the policy requires. Separately from that, the White Paper Future for Transport does signal that the Government wants to keep an eye on how the powers in the Traffic Management Bill, which presently influence the management of the highway system, are used. They have flagged up in that an intention, if they do not feel that is effective, to look at whether those powers might not more appropriately rest with the PTA or PTE. I am not arguing that because I work for a PTE, my view is I think most of those powers work best at that local, sub-regional level rather than necessarily at the regional level.

  Q397  Mr Betts: You are arguing quite strongly that there should be a funding responsibility on transport for the Regional Assemblies. Looking at other possible powers, would you be seeing a role for the assemblies in giving the pull, maybe, to schemes to bring back regulation (since you have identified the ones with problems) at a local level for getting some of the issues resolved? Would you see the assemblies having a role in, maybe, approving congesting charge schemes and those sorts of issues?

  Mr Wicks: My own view is that they should be able to be approved at the appropriate level. Certainly PTEs—

  Q398  Chairman: Come on, what is the appropriate level?

  Mr Wicks: Sorry, I was just coming to that, Chairman. We certainly do not believe that things such as quality contracts and the ability for an authority to congestion charge should be decided at the national level; they should be decided at the level over which they would have an effect. So I think that is not at a single local authority level, it is at a higher level than that. In some cases it may be the sub-regional—for example, something that happens in Leeds or Sheffield will have relatively little impact in Hull. So it could be decided at the sub-regional level. If you were looking at a charging system relating to the highway network in South Yorkshire or West Yorkshire, that would clearly have an impact across the whole region. Generally, those sorts of decisions about charging could be made at the regional level or, indeed, the sub-regional level; I do not think they need to be made at the national level because it is the area over which they have a competitive impact. My answer was not meant to be evasive, but I am always conscious there are boundaries, and in the case of my own authority we are at one corner of Yorkshire and Humberside, and whilst we are part of the Yorkshire and Humberside region a lot of South Yorkshire's economy actually links into Nottinghamshire and Derbyshire. So therefore you do have this issue where even with regional boundaries there are always places at the edge of the boundaries over which you have to make decisions. I think if you were looking at a congestion charging system, as Clive mentioned, you would have to have regard to the impact in Nottinghamshire and Derbyshire.

  Q399  Mr Betts: Just looking at it the other way round as well, one of the constant complaints from regions in the north is that sometimes we do not feel we are getting a fair share of the national cake passed down to us, and are saying that the future funding for rail infrastructure improvements is very weighted towards the south east and there is precious little happening in the north. Do you think, therefore, there should, within the Regional Assembly, be a statutory right to be involved and consulted on the development of all regional transport strategies?

  Mr Wicks: Yes, and I think it is also in the CfIT evidence. We think that bodies such as Network Rail and the Regulator should have a statutory requirement to consult and have regard to the regional transport strategies.


 
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