Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 140-159)

MR DAVID ROWLANDS, CB, MR BOB LINNARD

23 JANUARY 2006

  Q140  Mr Davidson: Do we assume then that does not work?

  Mr Rowlands: I think the local authority ought to know.

  Q141  Mr Davidson: No, I was discussing in terms of passengers. Do we assume that the right of passengers to complain, activate the Traffic Commissioners, take action and such, that that route does not work?

  Mr Rowlands: I think it is unlikely to work for many people.

  Q142  Mr Davidson: The second one was the local authority. I get the impression from all of this that the local authorities are in relationship to the operators more a supplement than anything else, because unless the local authorities are willing to fund bus routes, they are dependent entirely on the goodwill of the operators because the operators do things as and when they see fit. There is mention in the Report on several occasions about wishing to maintain a good relationship. Do you think that is a reasonable assessment?

  Mr Rowlands: If you are asking should local authorities seek to build a productive partnership with the local operators, that must be right. I do not think that precludes a local authority putting a formal complaint to the Traffic Commissioners where they have an operator whose performance seriously departs from the registered timetable.

  Q143  Mr Davidson: How often does that happen?

  Mr Rowlands: From memory in the last couple of years the Commissioners have had 38 public inquires into bus companies.

  Q144  Mr Davidson: How many of those came from local authority complaints?

  Mr Rowlands: That I do not know, I would have to write to the Committee with that.[6]

  Q145 Mr Davidson: You do not know whether or not any local authority has ever complained, do you?

  Mr Rowlands: I cannot honestly answer.

  Q146  Mr Davidson: That route would not seem to be feasible either?

  Mr Linnard: I cannot answer that direct question, but one of the things we are asking local authorities to do over the next five years of the second local transport planning period is to set targets for, among other things, bus punctuality, and then to monitor and report to us on the achievement against targets. They will be doing their own monitoring of punctuality of local bus services, or a sample of them, and that will give them the information if they want to pursue complaints.

  Q147  Mr Davidson: We have got nothing on that at the moment?

  Mr Rowlands: Sorry, to go back to what I said earlier, that is what I think we need to explore in terms of getting more information.

  Q148  Mr Davidson: The third route of complaint was the other operators. How many other operators have complained about poor punctuality by a particular company?

  Mr Rowlands: As I could not answer your first question I cannot answer that.

  Q149  Mr Davidson: Of the three routes for complaints none of them would seem to be effective at all?

  Mr Rowlands: There were nevertheless 38 public inquiries, so they must be getting complaints.

  Q150  Mr Davidson: Do you think that is a good figure? How many buses do you think are running at any one time or how many routes are there in England?

  Mr Linnard: I cannot answer that off the top of my head.[7]

  Q151 Mr Davidson: To the nearest million, how many routes? Give us to the nearest 1,000, 100,000?

  Mr Rowlands: Heaven knows; I have no idea. There are four billion journeys a year.

  Q152  Mr Davidson: Do you think 38 is a reasonable figure?

  Mr Rowlands: That requires you to know in detail down at route level and by region, bus punctuality performance. That is the information we are going to get the local authorities helpfully to put together in the context of the new Local Transport Plans.

  Q153  Mr Davidson: You do not seem to know very much about this in terms of you controlling the bus companies, do you?

  Mr Rowlands: Mr Davidson, we are not trying to control the bus companies. This is a private sector industry. 80% of bus services are provided commercially.

  Q154  Mr Davidson: That is right, but you do have some degree of responsibility for them, do you not?

  Mr Rowlands: I am not denying that either.

  Q155  Mr Davidson: That is right. You can only exercise your responsibility if you know what is going on. There is quite a noticeable contrast, is there not, between what happens in the regulation of buses and the regulation of rail operators where there is a whole structure of measurement and targets and production on detail and so on? Why do you think that has developed in this discrepancy?

  Mr Rowlands: Because it reflects the different natures of the two industries. As I have said, 80% of bus services are provided commercially on a non-franchised basis. The railway industries are all franchises, and most of them are receiving subsidy directly from the Government. It is a completely different structure. Franchises reflect franchise obligations in terms of the contract and they are therefore monitored. 80% of bus services are provided commercially, in just the same way that the airlines provide services commercially.

  Q156  Helen Goodman: Earlier on you were at pains to point out to me that you did not have control over the relative subsidies because the decisions were taken largely at local level, but in answer to Mr Clark you revealed that there is, in fact, something called the Transport Innovation Fund. Am I right in thinking also that the Department sets the level of the rural bus subsidy grant and the rural bus challenge fund?

  Mr Rowlands: I think the rural bus challenge fund is being wound up but, yes, we do provide a rural bus service grant.

  Q157  Helen Goodman: Have you done any assessment of the effectiveness of that?

  Mr Linnard: We have done an assessment of how many services have been supported through it. We can let you have the details of that.

  Mr Rowlands: It is something over 2,000 services are supported through the rural bus subsidy grant.

  Q158  Helen Goodman: It would be possible in theory to make a comparison between the effectiveness of that and the effectiveness of what is being done at a local level, would it not?

  Mr Rowlands: I guess we can in terms of that particular grant and those services. The rural bus subsidy grant runs at about £50 million a year which is a relatively small part of whatever it is, the £1 billion a year, that goes into bus subsidy one way or another.

  Helen Goodman: It certainly is and I am wondering if it would be economic to increase it, but I would not want to draw you into policy matters so I will not.

  Q159  Mr Mitchell: Since it is now in large parts of the country an oligopoly, two big companies dominating the service and operating nationally together, would it not be useful to have the figures which Mr Davidson was talking about in terms of delays, consumer dissatisfaction, breakdown and age of the rolling stock on a national basis so you can see which companies are performing best through what degree of subsidy and which are performing badly?

  Mr Rowlands: What we are going to get out of the new Local Transport Plans is each local authority setting targets for reliability, satisfaction and then monitoring it. That is coming back through the Department, so, yes, you can then begin to build a picture together. As I say, there are some interesting questions as to how you get that information out at a public and a local level.


6   Note by witness: Traffic Area Offices received a total of 470 complaints about bus services in 2004/5. Some of the complaints covered a number of aspects but complaints were predominantly about service reliability. We do not have a detailed breakdown of the number of complaints submitted by different categories of complainant. Back

7   Ev 17 Back


 
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