Select Committee on Transport Memoranda



Transport Committee Inquiry Bus Services Across the UK

My name is Ray Wilkes, and I am chair of T2000 WY Bus Group, Chair of Keighley Bus Users Group, a member of Harrogate Bus Users Group and a member of Bus Users UK, formerly National Federation of Bus Users. I am the Co-ordinator for Yorkshire & Humberside Transport Roundtable. I attended the Oxford Bus Conference 2003, York Excellence in Transport Conference 2004 and many presentations on bus policy including that of Cambridge. I read the transport press and study the annual reports of the main bus broups.

My wife and I are lifelong users of public transport for work, shopping and leisure. By choice we do not drive. We are keen walkers and travellers and this gives us experience of nationwide bus and train services which complements our knowledge of transport issues in the West Yorkshire Conurbation.

Introduction. In the Press Notice it is stated "Despite the Government's emphasis on buses being a major part of an integrated transport policy since 1997, bus usage outside London has continued to decline". This oft repeated statement is true only as an average. However, there are many urban areas where buses are undergoing a dramatic revival in quality, frequency and patronage growth. These include established pro-bus towns like Brighton, Oxford, Nottingham, Edinburgh, Cardiff and Glasgow.

The list also includes recent converts to pro-bus policies: Cambridge, York, Blackpool, Peterborough, Exeter, along with some exceptional bus companies in Harrogate and Burnley & Pendle (Transdev Blazefield). Other towns seeing a significant turnaround in bus patronage include: Hull, Lancaster & Morecambe, Cwmbran, Bedford, Basingstoke, Colchester, Weston Super Mare, Telford, Swindon, Warrington, Crawley, Kidderminster, Bristol/Bath, Swansea, Maidstone, Thanet and Canterbury, Winchester, Neath, Norwich, Dundee, Aberdeen and Stoke on Trent. There are reasons to believe that Torbay, Derby, Leicester and other places will join this list soon.

¾  These are places where patronage is growing and congestion is being addressed. There is every reason to believe that within a decade most of these places will be where Brighton and Oxford are now, while Brighton and Oxford will be even further ahead.

Bus companies are learning how to turn themselves from boring utilities to fashionable travel. They mostly have a long way to go, but it is now clear that bus companies know what they have to do.

It is worth noting that at the time of the last Select Committee report only a handful of real success stories could be highlighted.

Before answering the particular questions asked by the Transport Committee I would like to examine in some detail important background issues so that it will be possible to identify why some areas are experiencing a bus renaissance while others seem to be in terminal decline:

¾  Congestion and bus productivity.

¾  Bus priority.

¾  Demand management.

Congestion and bus productivity. For a given frequency of service, in areas of high congestion, more buses are needed. This puts up costs. High congestion slows journeys and reduces or destroys reliability. This reduces patronage. The outcome is that the bus company has to reduce frequencies or pass on fare increase to a dwindling band of customers, some of whom will then travel by car making congestion worse. There is a vicious circle of decline. We will look at two Bradford routes in detail.

On Blazefield's 'Keighley & District' service 662 Keighley-Bradford, a high frequency route with luxury leather-seated buses, three extra buses (at £300 per bus per day) have been put into the route. That is nearly £1000 per day, or £250,000 p.a. to cope with congestion: money which could be invested for other customer benefits if buses had a clear run.

Almost every Overground route (First Group high frequency services in West Yorkshire) will be carrying an overhead of one, two or three extra buses for congestion.

This is a colossal drain of money, upwards of £10m p.a., which could be used to meet customer aspirations if congestion was tackled. In addition, the delays and uncertainty caused by congestion create customer resistance to bus use, and there is therefore a loss of fare income which might be 50% of current revenue.

While these sums may seem 'small beer' compared with total transport expenditure, a very significant improvement could be made to the attractiveness, utility and marketing of bus services by the productivity gains from reduced congestion.

Where companies put in extra time for congestion, this leads to unacceptable journey times. On 'Keighley & District' service 760, Keighley-Leeds, the off peak daytime allowance of 46 minutes from Leeds to Shipley is extended to 69 minutes in the evening peak, 17.10 journey, and 61 minutes for the 17.40 journey. As well as the extra time customers have to endure when they may wish to get home quickly to their evening meal and loved ones, the extra vehicle resources required for this extra running time could be used instead to increase frequency in sensible traffic conditions. Recently further adjustments have been made to counter congestion and now the service is no longer at regular times throughout the day.

At present the temptation to use a car and rat run instead of using impeded buses would be very strong, and may account for some of the resistance to modal shift to bus.

The operator once had aspirations to raise the 760 frequency to every 20 minutes, but this has had to be abandoned as congestion has corroded productivity.

Where services are not financially strong enough to allow the maintenance of frequency by the introduction of extra vehicles, the frequency has to be dropped, 10 minutes to 15 minutes, 15 to 30 etc. Weaker services will be cut entirely or evening and Sunday services will be cut to make ends meet.

In addition, the heavy levels of congestion make services unreliable. A 15 minute journey may take 15 minutes one day and 45 minutes at the same time a week later. Unreliability is unacceptable to customers, it contributes to declining patronage and works against patronage growth.

¾  In high levels of congestion, it is inevitable that bus services will be unreliable and expensive and that bus networks and patronage will inevitably decline.

Having examined the disastrous effect of congestion on bus services, it must be emphasised that all road users: freight vehicles, people travelling to business appointments, health visitors, to name but a few of the many categories of road user, suffer the same expensive and corrosive effects on productivity. Yet freeing up routes for buses would also help every other road user by encouraging modal switch.

Some bus industry critics say the delays are caused by inefficient fares collection. One way bus companies are trying to cut down on boarding times is by raising cash fares at a faster rate than prepaid tickets. It would be useful if when they did so local councils were supportive rather than encouraging the media to focus entirely on the cash fare increases. In Brighton, where there is excellent informal partnership, only 40% of fares are cash. While in London this figure is 20%, which is even better for bus productivity, according to a recent Independent article (14th Feb 2006), in London fraudulent travel is too easy. Quite reasonably bus companies want to be sure that fare systems elsewhere are fraud resistant.

In high levels of congestion, customers are unwilling to buy season tickets as it may turn out on a particular day to be quicker to walk, seek a lift, or use a taxi. Therefore, congestion indirectly exacerbates other problems. It accelerates staff turnover, because drivers find the work demoralising when they are often late and have to face customer dissatisfaction much the time. Staff turnover is a major cost for bus companies as new drivers need at least five to six weeks training.

Bus industry critics also say that bus companies put profits before public service. Bus companies are legally private businesses who have stringent obligations to their customers, staff and creditors.

Shareholders are creditors who offer very competitive loans in the hope that the business, and hence the share value, will grow. This growth is something that policy makers and environmentalists are hoping for in the case of bus businesses. Dividends are around 4%, similar to other FTSE companies.

The 15-20% margins often referred to are not dividends but operating margins which have to pay for investment, corporation tax, dividends and other charges. The higher these margins, the more the bus company can invest for the future. This is something that visionary councils like Cambridge use to their advantage as they can persuade the bus companies to invest in infrastructure.

Where congestion destroys profitability, bus companies are legally obliged to manage the decline in such a way that they can still meet obligations to their staff and creditors. Sadly, usually this means cuts in frequencies, services and fares increases.

Bus Priority. Many cities have introduced bus priority measures but either do not enforce them or allow pinch points to remain. Where bus stop clearways either do not exist or are not enforced, passenger loading is delayed while the bus has to occupy the traffic lane instead of the bus stop area. This delays all traffic, and on high frequency services the next bus is also delayed. Disabled, elderly, people with pushchairs, and heavily laden passengers are all seriously inconvenienced and may have to choose a car or taxi instead. Some local authorities put in expensive but ineffective measures and then blame the bus companies when patronage continues to fall.

¾  Bus priority measures and bus stop clearways must be fit for purpose and properly enforced.

Demand Management. Not even Los Angeles can meet peak-time travel demand. What chance have our cities if there is a traffic free for all? In the long-term some form of road pricing which leaves motorists better off if they choose to leave the car at home is essential. In the meantime, it should be recognised that city centre land is a very expensive resource and that parking charges should reflect the full costs. City centre parking should be prioritised for shoppers and short stay visitors. Commuters should be encouraged to use high quality Park and Ride. If buses can keep time in the commuter peaks they are likely to be able to provide an attractive service to shoppers and visitors. The evidence from existing Park and Ride cities is compelling. Car parks must be attractive and secure so that people perceive the charge as a service charge rather than a rip off.

¾  In all the areas of bus renaissance, all of these measures are being successfully progressed, although in all cases there is still some way to go.

What else is needed?

Bus companies must run a tight ship, providing attractively marketed clean and attractive bus services. However, in conditions of good traffic flow it is a commercial imperative to ensure that customers have every reason to be loyal, as these conditions are ideal for competitors, actual or potential, to take a share or all of the market. The evidence from Oxford is that competition greatly benefits customers.

Local authorities should ensure that bus stops and bus stations have a modern and comfortable ambience.

The committee's questions addressed.

Has deregulation worked? Are services better, more frequent, meeting passenger need? Are bus services sufficiently co-ordinated with other forms of public transport; are buses clean, safe, efficient?

The answer is clear: that in good bus operating conditions, deregulation has provided excellent service and a growing army of loyal customers. It should be noted that the London regulated system also works, and that it has a very strong network of red routes (bus priorities) and strong demand management, parking controls, and the congestion charge.

If not, can deregulation be made to work?

Neither the regulated nor the deregulated system can work unless the buses can operate in free flowing traffic. Both work in free flowing traffic.

Is statutory regulation compromising the provision of high quality bus services?

OFT rulings appears to deter cooperation on frequencies and fares between bus companies where such cooperation would help customers. For instance, although the competition in Oxford has led to an excellent service for customers, it is likely that some collaboration would bring even more benefits. The OFT appears to be an expensive overhead for bus companies.

Are priority measures having a beneficial effect?

Bus priority measures, where they are fit for purpose and enforced, allow reliability and high bus productivity which are essential for bus success.

What is best practice?

This is still being evolved to suit local needs. However, York and Cambridge demonstrate good practice.

Is financing and funding for local community services sufficient and targeted in the right way?

No. There is no long-term commitment. Services are often abandoned due to cessation of grants just when success appears to be around the corner.

Concessionary fares - what are the problems with the current approach? Does the Government's proposal to introduce free local bus travel across the UK for disabled people and the over 60s from 2008 stand up to scrutiny? Should there be a nationwide version of London's Freedom Pass - giving free or discounted travel on all forms of public transport?

Free fares will reduce car use and congestion but road user charging may be a cheaper way of doing this. There should be concessionary fares, say half fares for young people up to 25, as a road safety measure. However, all schemes should be designed to incentivise operators to carry more passengers.

Why are there no Quality Contracts?

Largely because they would be very expensive and the DTp has probably sensed that the Oxford type system offers a more affordable alternative for most of Britain.

However, circumstances can be envisaged where regulation might be better than deregulation.

¾  In deep rural areas a quality contract might be the best way of providing networks like North York Moors National Park 'Moorbus' which is currently provided by tendering. Something like the 'Moorsbus' is needed in all National Parks and a QC might be the best way of achieving this. At present National Parks suffer intense loss of amenity from heavy visitor traffic, yet much of the population is excluded from the Parks by the lack of bus services. Rural services would be more economically sustainable if there was an imaginative policy of encouraging visitors by bus.

¾  In small towns and cities like Ripon it may not be possible to provide the required quality and frequency to reduce car dependency on a commercial basis and here a QC may be appropriate.

¾  In the future urban and city networks may need to run on electricity (trolley buses or LRT) to reduce CO2 emissions and to reduce oil dependency and improve diversity of supply. This may need a different kind of regulation to any envisaged at present. Finding a way of making Transport for London leaner and more cost effective may be a good preparation for this eventuality.

Are the powers of the Traffic Commissioners relevant; are they adequately deploying the powers and resources that they currently have?

The Traffic Commissioners enforce a '6 minute rule' on reliability. This is tougher than the 10 minute rule for train operators who operate in a much more controlled and predictable environment. There are no 'void days' for bus operators. In some ways the rule has been useful in encouraging reliability through realistic timetables. However, because of congestion, this has often led to unfortunate side effects. These include: less efficient use of vehicles and staff, splitting of through services, reduced frequencies, irregular frequencies, slower journeys and 'waiting for time'. Traffic Commissioners could help bus users and all road users by enforcing higher standards by freight operators which too often park at bus stops or break down or crash on bus routes. Traffic Commissioners should have powers to fine local authorities who do not keep bus routes fit for purpose.

We are concerned that 'low cost ' operators can undermine quality operators, in a way that may harm customers or destabilise bus networks, by running at peak times only or unfairly winning LA contracts for off peak services. Operators should have to show they are financially sound, have fit for purpose depots and maintenance facilities. New services which are in competition with existing ones should be required to use vehicles of a similar age and quality to the existing operator.

The Traffic Commissioners hearings appear to be an expensive overhead for bus companies.

Do they have enough support from Government and local authorities?

We are not in a position to answer this question.

Is London a sound model for the rest of the UK?

From the available evidence, Oxford and Brighton are better models. London is an exceptional area, and almost everyone was using public transport before the congestion charge, which got rid of a small percentage of car traffic which then freed up the roads for buses.

What is the future for the bus? Using best practice, buses could be the mainstay of transport around the country except in deep rural areas.

Should metropolitan areas outside London be able to develop their own form of regulated competition?

No. If Nottingham and Edinburgh can make deregulation work, so can the metropolitan districts.

¾  The PTEs say they can operate a deregulated system more cheaply than London. If this is true they should be seconded to TfL to sort out their spiralling and unsustainable bus support costs.

Would this boost passenger numbers? If not, what would? Free flowing bus corridors and demand management are the only way to boost passenger numbers in both regulated and deregulated regimes.

Does the bus have a future? Buses clearly have a future in the cities and towns quoted at the beginning of this submission. They also clearly have a future in rural areas like Lincolnshire and Norfolk where the LA has been as visionary as those of Oxford and Cambridge etc.

¾  Visionary authorities use public support for kick-start schemes rather than long term support.

In addressing rural railways, the Secretary of State has said that we "cannot be in the business of carting fresh air around the country"; is the same true for buses?

There is no point in carting fresh air around the country. However, it should be remembered that a heavily laden bus may have to return empty or be empty on sections of route.

Buses should be a popular form of mass transport for all social classes.

Buses are not a form of ambulance or door to door transport for the less abled, although they can often fulfil this role as part of their main role. They are not part of the social security system but where buses are successful they reduce social exclusion.

¾   The bus industry needs intelligence, vision, understanding and pragmatism more than it needs public money.

However, public money is needed to make our roads safe and fit for purpose. A congested road is of little utility and is a waste of an important public resource.

Bus friendly cities are good for cycling and walking. The established bus friendly cities and many of the new ones have high shares of active travel (cycling and walking). A quarter of journeys are under two miles and in the bus friendly places the active travel share is typically 25%, which is good for congestion, air pollution and health. Cycling and walking are powered by solar energy in food! Cycling and walking cannot co-exist with high traffic density. Improved health would be a serious and valuable spin-off from a good bus policy.

I am told by officers and councillors in Bradford that West Yorkshire is too hilly for active travel. My hobby is hiking and I have walked all over the mainland UK. There are more cyclists and walkers in the Lake District and the Pennines than there are in the Fens! Bradford is the custodian of the Saltaire World Heritage Site. It allows residents to park on the historic stone pavements consequently everyone, including elderly, those with push chairs etc are seriously disadvantaged. This is why active travel is rare in Bradford. The car, especially the badly driven car, is king in Bradford, our roads are congested, our air polluted, and we have the worst heart disease rate in Europe. It is similar in Leeds.

If Oxford, Cambridge and Brighton represent the future of urban transport and quality of life, Leeds and Bradford represent a dystopian nightmare.

Conclusions.

¾  Britain needs its buses and bus provision needs imagination and vision. Buses can only be attractive and economically viable in free flowing traffic. However, in the right conditions buses can reduce congestion, air pollution, road casualties making urban areas more attractive.

¾  The OFT and Traffic Commissioners should be changed so they are more supportive of the bus industry, while ensuring good safety standards and good practice. A non-confrontational approach is needed. Traffic Commissioners should have powers to ensure that bus routes are free flowing.

¾  The local authorities' role should be to make sure roads are safe, pfit for purpose and free flowing; ensure new developments are bus friendly; ensure bus stations, interchanges and bus stops are excellent and user friendly. A more pro-active role for local authorities in rural areas and for National Park/AONB leisure services is desirable.

¾  Active travel is complementary to a good bus policy and demand management. Active travel is a key component of good health.

¾  In high levels of congestion buses will become more expensive, patronage will fall and networks will be unstable and liable to cuts.

¾  Where traffic is free flowing, buses can compete with private transport on quality and convenience.

¾  Buses are for all social classes and any necessary regulation should not get in the way of a direct good relationship between bus companies and their customers.

22 May 2006


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2006
Prepared 3 November 2006