Select Committee on Transport Written Evidence


APPENDIX 20

Memorandum submitted by Castle Morpeth Borough Council, Northumberland

INTRODUCTION

  Castle Morpeth is one of six districts in Northumberland. It covers 618 km2 and about a third of its 50,000 population lives in the two main settlements of Morpeth and Ponteland. The rest of the Borough is relatively sparsely populated with small rural settlements, broadly with former coalmining communities in the coastal areas to the east and farming communities to the west. Geographically, the Borough forms a broad arc around the Tyneside conurbation, with the main transport corridors (A1, A696, A69) radiating outward from the conurbation, and relatively minor roads forming the "circumferential" links within the Borough.

  There is a significant bus station in Morpeth, though the local bus garage/depot was closed in 2001. The commercially viable bus routes largely follow the radial transport corridor linking into the conurbation, a pattern reinforced by Northumberland County Council's bus strategy. In particular, the Borough has no main hospitals within its boundaries. Patients, outpatients and visitors have to travel to Alnwick, Ashington or Hexham to reach General Hospitals and to Tyneside for specialist hospitals. This has a particular impact on those eligible for the concessionary fares scheme, since the basic scheme funded by government only operates within local authority boundaries.

  Most of the bus services in Castle Morpeth (and Northumberland) are operated by Arriva, with Stagecoach NE operating some services in the south west of the Borough and two or three local bus companies involved as well.

  Bus services in Castle Morpeth (and Northumberland) have been poor and unattractive for some years, but this submission was inspired by the impact of three events of the past nine months: increased unconstructive competition between the bus operators, problems associated with the introduction of the new concessionary fares scheme and the County Council sharply reducing their public transport support budget. The details and impacts of these will be given in the answers to the relevant questions.

(a)   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? If not, can deregulation be made to work? How?

  Bus fares in Northumberland have increased three times in the last fifteen months. The increases have been piecemeal, so it is difficult to set an overall percentage increase, but full fare increases would be of the order of 6-12%. There has been little outcry over these increases compared with increases in say petrol costs or car parking charges, largely because bus users seem by and large less articulate.

  Competition between bus companies has actually proved destructive and disruptive to bus passengers, particularly since September 2005. Up until then, the various bus companies had exercised discretion and accepted the return, all-day or season tickets issued by their competitors. However, when Northumbrian Buses tried to expand their operations by operating an hourly service from Widdrington through Morpeth into Newcastle, complementing the existing hourly Arriva 518 service which travelled the same route (though starting from Alnwick), Arriva refused to accept any Northumbrian Bus tickets on any route, and within days Northumbrian Buses were reciprocating. This was done without any publicity by either company, so that for three to four weeks, regular passengers found themselves having to pay nearly twice as much for the same journey (£7.50 instead of £4.50).

  The destructive competition escalated with a price war between Arriva and Northumbrian Buses on local bus services around Morpeth, with sharply reduced return fares available for a couple of months until Northumbrian Buses were forced to withdraw their services. Arriva have since reverted to their pre-existing fare structure.

  The maximum car parking charge in Morpeth is 50p an hour, and free elsewhere in the Borough and in neighbouring Wansbeck and Blyth Valley districts. The full return bus fare into central Morpeth is £1.80 from the town's outlying housing estates and £2.80 from surrounding villages.

  In eight of the 33 Super Output Areas of the Borough (including some of the most deprived areas), the percentage of residents who did not have access to a car or a van was higher than the national average for England & Wales of 27%. Nevertheless the provision of bus services is presented in both the Regional Transport Strategy and the Northumberland Local Transport Plan 2006-15 largely as a social inclusion measure "for those who cannot afford to run a car".

  Some of the feedback from potential concessionary fare travellers this year has underlined the problem that many bus travellers encounter of no services being provided between certain settlements in the Borough at all or very infrequently.

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

  Castle Morpeth BC has no evidence on this question.

(c)   Are priority measures having a beneficial effect? What is best practice?

  The relative lack of congestion on roads in Northumberland makes bus priority measures relatively unnecessary, while the character of the roads makes them impractical.

  Northumberland County Council has, within the past 12-18 months, started switching from providing lay-bys for bus stops to having bus stops directly on the road. This change was made without any evident consultation of bus users etc. The rationale given is that buses had been delayed by being unable to pull out from laybys into the stream of traffic. Instead, traffic is now delayed behind buses picking up passengers. The "jury is still out" on this particular "priority measure".

  The introduction of priority bus lanes in Newcastle has improved the capacity of Northumberland services into the conurbation to keep to schedule during the rush hours.

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

  The County Council's bus strategy as incorporated into the County LTP 2006-15 is broadly to encourage main bus services along the key transport corridors (A1, A69, A189) with local feeder services linking into them. By and large, the main bus routes are commercially viable, but the local and rural feeder services need extra funding.

  Unfortunately, as part of a major cost-cutting exercise, the County Council has reduced their public transport support budget for the current year by £250,000, resulting in the loss of 35 bus services including 12 in Castle Morpeth. The rationale used was to withdraw evening and Sunday services which were perceived as having the least impact on essential services to employment, education, health and shopping. Additional withdrawals have been those services that failed to reach the County's benchmark revenue/cost ratio of 40% and exceeded the maximum of £3 subsidy per passenger journey. Services to all "major" settlements have been maintained. In effect, support funding has been used to maintain the "nearly commercial" services rather than any real consideration of community need or support.

  In this instance, there was no consultation with District councils or the public on the principles adopted to determine the cuts. Rather, we were notified of the services to be cut and invited to comment.

  Increasing fuel costs have also lead the major bus companies in the county to review the viability of their services, with the result that they have identified an increasing number of routes that they claim need local authority support. With this not forthcoming due to County Council budgetary constraints, there have been several reductions in services previously assumed to be commercially viable.

(e)   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?

  Castle Morpeth Borough Council experienced a number of problems with the introduction of the current concessionary fares scheme:

    (i)  Timing: we were expected to arrive at an agreement with the bus operators in November 2005, but did not receive confirmation of the funding available till the December and government guidance came out in January 2006.

    (ii)  Co-operation: Despite our best efforts, differing funding expectations discouraged the various District councils from co-operating to establish a county-wide scheme, and the County Council have shown no interest in showing any leadership in this context. Similarly, the Tyne & Wear PTE, Nexus, have been too tied up in bringing their metropolitan scheme into operation to consider cross-boundary arrangements beyond the conurbation boundary.

    (iii)  Publicity: It took careful political management by the Council to defuse public expectations raised by Government publicity about a national concessionary fares scheme starting in 2006. And now, any prospects for local development and future improvement of the scheme are blighted by the promise of a revised national scheme in 2008.

(f)   Why are there no Quality Contracts?

  Reference to Quality Bus Contracts is made in the Regional Transport Strategy and Northumberland Bus Strategy.

  Improvement in infrastructure eg low loader buses, CCTV on-board buses, real-time destination information at bus stations are subject to discussion between the County Council and the bus operators, discussions to which we are not party.

(g)   Are the powers of the Traffic Commissioners relevant; are they adequately deploying the powers and resources that they currently have? Do they have enough support from Government and local authorities?

  The Department for Transport's objective is to oversee the delivery of a reliable, safe and secure transport system that responds efficiently to the needs of individuals and business whilst safeguarding our environment.

  Whilst the Borough Council has no direct evidence in response to this question, the public transport system does not appear to be responding to the needs of a large proportion of the residents within Castle Morpeth Borough.

(h)   Is London a sound model for the rest of the UK?

  There is an unhealthy perception in the North East that the continuing regulation of buses in London, and the unified approach to transport integration clouds London-based government's awareness of the problems caused by bus deregulation elsewhere in the country. Obviously MPs will be aware of problems in their own constituency, but there can be no "common or shared experience" of bus deregulation.

  The combination of flexibility and co-ordination in transport management through London governance structures allows local authorities to develop transport solutions in response to community needs. This is the aspect of the London model that should be replicated. Public transport should meet the needs of the community and local authorities generally are better informed and motivated on this than bus operators.

  However, London is a densely populated metropolis so the specific model solutions adopted in London, especially the funding formulae, would not be appropriate for a sparsely populated county like Northumberland.

(i)   What is the future for the bus? Should metropolitan areas outside London be able to develop their own form of regulated competition? Would this boost passenger numbers? If not, what would? Does the bus have a future? 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?

  In Castle Morpeth (and Northumberland) buses can serve four distinct purposes:

    (i)  Local services within towns (10-20,000 population), essentially connecting outlying estates with the town centre.

    (ii)  Local services connecting outlying villages with the local market towns and service centres, meeting the "market towns initiative" model originating in the Rural White Paper. These also feed into the long distance services (iv).

    (iii)  Services linking into the Tyne & Wear conurbation, accessing higher level employment, shopping, health, cultural opportunities.

    (iv)  Long distance services connecting the main settlements along the main transport corridors (eg Berwick-Newcastle is 60 miles).

  These last two (iii) and (iv) might be better run as local rail services but there is really no scope for regional or subregional provision of local rail services.

  The first two (i) and (ii) are only marginally commercial, if at all, and need support through public funding. There is plenty of scope for innovative approaches to serving outlying villages—postbuses, demand-responsive taxi-buses, links with the health sector transport system etc However these are not seen as a priority, with the Regional Transport Strategy and LTP 2006-15 both recognising that rural transport will continue to depend on the private car for the foreseeable future. Certainly unless there is a change in public perception of public transport, then a public "need" for bus services will not be identified. Buses will benefit and retain/gain passengers if only if they contribute to peoples' overall quality of journey.

  Despite problems with its introduction, increasing numbers of older people are taking up the new concessionary fares scheme, so that fewer buses are travelling empty. However, since buses are in competition with cars, the proper comparison is with the "fresh air" transported by cars occupied only by the driver.

CONCLUSION

  Primarily, Castle Morpeth Borough Council has little or no input into discussions with bus operators except in relation to concessionary fares. The County Council is obliged to constrain its public transport funding severely, and has not chosen to consult let alone discuss its approach to prioritising the funding it does have. We are thus unable to serve our community as effectively as we would like in this area.

23 May 2006





 
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