Written evidence from Unite - the Union
(BUS 04)
1. Introduction
1.1 This submission is by Unite the Union. Unite
is the UK's largest trade union with over 1.5 million members
across the private and public sectors.
1.2 Unite the Union's current membership in transport,
together with our membership in other trade groups, such as supervisory
and administrative grades, and some maintenance engineering members,
exceeds 250,000. Unite represents workers in all areas of transport
including coach, tram, taxi, rail, road haulage, logistics, civil
aviation, docks, ferries, waterways and, of particular relevance
to this inquiry, buses.
1.3 Unite has 90,000 bus worker members and is
continuing to grow. Unite has obtained the views of our members
through our lay member committees at national and regional level.
Therefore Unite is in a unique position to submit a response to
the Transport Committee Inquiry into the funding of bus services
in England (outside of London) in the light of the outcome of
the Comprehensive Spending Review.
2. EXECUTIVE
SUMMARY
2.1 Bus passengers, many of whom are on low incomes,
pay more fuel tax than wealthier air and rail passengers. While
buses still pay a significant amount of fuel tax, aviation pays
none. The Bus Service Operators Grant (BSOG) is equivalent to
a £437 million a year investment in buses. In contrast, aviation
gets a £6.5 billion a year tax break by paying no fuel duty.
2.2 BSOG helps to lower the cost of providing
services, resulting in lower fares, a more comprehensive network
of services, less congestion on our roads and a better and healthier
living environment in our communities. It also helps support the
170,000 jobs in the bus industry and thousands of others in bus
manufacturing and supporting services.
2.3 Unite believes that a reduction in BSOG would
have damaging and wide-ranging consequences for local communities,
public transport services, low-income groups, the UK economy and
the environment.
2.4 Maintaining current levels of funding of
local authority grants support to bus services and other funding
of local authority bus schemes is the absolute minimum requirement
that is needed to provide these vital services to local people.
2.5 Unite believes that the concessionary bus
fare scheme is money well spent because it provides an opportunity
for greater freedom and independence to around 11 million older
and disabled people, which in turn produces wider economic and
social benefits.
2.6 Unite believes that re-establishing the link
between concessionary bus travel and the state pension age is
a regressive move, which will widen social exclusion and stop
millions of older people from being able to contribute to society.
2.7 Clearly passengers views are extremely important
and need to be taken into account when planning bus services and
Passenger Focus can play a key role in this area in helping bus
passengers voices being heard.
2.8 However it is important not to overlook what
can be learnt from the experience of bus workers who are on the
buses every day more then anyone else.
2.9 If the Government wants to make improvements
to the UK's transport policy then Unite's "Safer Way Campaign"
would be an appropriate place to start.
— a maximum
single piece of driving duty not to exceed 4.5 hours;
— a maximum
length of driving time of no more than eight hours in one day;
and
— a maximum
of 10 hours total working time in any one day.
3. THE IMPACT
OF THE
REDUCTION IN
BUS SERVICE
OPERATORS GRANT,
INCLUDING ON
COMMUNITY TRANSPORT
3.1 Firstly it is important to put the Bus Service
Operators Grant (BSOG) into perspective. BSOG is the only direct
national funding for bus services. BSOG, formerly known as the
Fuel Duty Rebate (FDR), is a rebate to bus operators on the fuel
duty they pay.
3.2 Operators who run local registered bus services
are reimbursed for the major part of the tax paid on the fuel
used in operating these services. Government provides a fuel duty
rebate on approximately 80% of the fuel used by buses. Bus operators
pay fuel duty tax on the remaining 20% of their fuel.
3.3 Bus passengers, many of whom are on low incomes,
pay more fuel tax than wealthier air and rail passengers. While
buses still pay a significant amount of fuel tax, aviation pays
none. BSOG is equivalent to a £437 million a year investment
in buses. In contrast, aviation gets a £6.5 billion a year
tax break by paying no fuel duty.
3.4 BSOG helps to lower the cost of providing
services, resulting in lower fares, a more comprehensive network
of services, less congestion on our roads and a better and healthier
living environment in our communities. It also helps support the
170,000 jobs in the bus industry and thousands of others in bus
manufacturing and supporting services.
3.5 BSOG also helps the Government achieve its
aims of carbon reduction, lower road congestion, and social inclusion.
The Government has publicly recognised the value of BSOG with
the Transport Minister Norman Baker telling the House of Commons
on 29 June: "The benefits of that grant are clear: it ensures
that the bus network remains as broad as possible, while keeping
fares lower and bringing more people on to public transport, with
the obvious benefits of reducing congestion, lowering carbon emissions
and improving air quality in our towns and cities".[1]
3.6 The Department for Transport's own submission
to the review of the local bus market said that BSOG represents
high value for money.[2]
A previous study for the Government by the Commission for Integrated
Transport found that every £1 invested in BSOG provided between
£3 and £5 of wider benefits.[3]
3.7 Unite believes that a reduction in BSOG would
have damaging and wide-ranging consequences for local communities,
public transport services, low-income groups, the UK economy and
the environment.
3.8 Bus fares and services: Ticket prices would
likely rise by 10%, with a similar 10% cut in commercial bus services.
The cuts would seriously affect both urban and rural areas and
be most acute in rural areas and on lower-used evening and weekend
services.
3.9 Bus operators: Costs would rise by around
10%. Combined with running fewer services, this could lead to
the loss of up to 10% of the people employed in the bus industry.
Around a quarter of the industry is made up of independent and
smaller operators, many of whom run rural and tendered services.
Reduced investment would also result in drastic cuts to investment
in new buses, with devastating consequences for UK manufacturers
and suppliers. Bus operators would carry 10% less passengers for
the same level of costs (excluding BSOG) and the same level of
revenue as now.
3.10 Local authorities: Transport authorities
and local councils, whose budgets have already been cut, would
be unable to make up the funding shortfall. The withdrawal of
BSOG would make it more expensive to support socially important
bus services that provide vital links for local people.
3.11 Government finances: Savings on BSOG would
be significantly eaten up by increases in the welfare budget through
higher unemployment (including reducing the ability of those with
disabilities to return to work), higher costs of supporting previously
commercial bus services, and lower tax income from successful
bus operators, manufacturers and suppliers.
3.12 Communities: The sharp rise in the cost
of bus travel and cuts in bus networks would result in a 10% drop
in bus passengers. It would increase car use, worsen congestion,
damage the environment and lead to higher costs for businesses.
4. The Impact of the Reduction In Local Authority
Grant Support to Bus Services and Other Changes to the Funding
of Local Authority Bus Schemes and Services by the Department
for Transport
4.1 The backbone of any local transport network
is the bus. 4.8 billion journeys are made every year on buses.
For the 25% of UK households that do not have a car, to get to
work, to school, to visit the shops or the hospital, the first
and often only travel choice is a bus.[4]
4.2 Therefore maintaining current levels of funding
of local authority grants support to bus services and other funding
of local authority bus schemes is the absolute minimum requirement
that is needed to provide these vital services to local people.
4.3 Unfortunately local authorities transport
budgets have already been cut and they will be unable to make
up the funding shortfall. The withdrawal of local authority grant
support to bus services and other changes to the funding of local
authority bus schemes as well as a reduction in BSOG has made
it more expensive to support socially important bus services that
provide vital links to many local people.
4.4 All local authority-subsidised services will
become unprofitable, requiring either 10% more contract payment
or service cuts. It would also push up the costs of running a
significant number of school services, many of which are registered
as local bus services and qualify for BSOG. All local authority-funded
concession travel reimbursement would have to increase by 10%
in line with fares.
4.5 At the same time the Government is pursuing
a severe programme of spending cuts in which unprotected departments
like the Department for Transport are to see budgets slashed by
a cumulative 35% over a period of four years.[5]
4.6 Unite believes that's increasing investment
in transport infrastructure is what is needed at this time. Within
the bus industry there is so much that could be done e.g. financial
support for tendered bus services, new buses, bus stations, bus
stops and shelters and the timetable and service information provided
on them. Unite fear that local authority spending cuts will impact
heavily in this area and make public transport less attractive
and more difficult to use, particularly if timetable and service
information is degraded.
5. THE IMPLEMENTATION
AND FINANCIAL
IMPLICATIONS OF
FREE OFF-PEAK
TRAVEL FOR
ELDERLY AND
DISABLED PEOPLE
ON ALL
LOCAL BUSES
ANYWHERE IN
ENGLAND UNDER
THE CONCESSIONARY
BUS TRAVEL
ACT 2007
5.1 Unite applauds the previous Labour Government
for extending free off-peak travel for elderly and disabled people
on all local buses anywhere in England under the Concessionary
Bus Travel Act 2007.
5.2 The concessionary bus fare scheme ensures
that bus travel, remains within the means of those on limited
incomes and those who have mobility difficulties. Bus travel remains
the most used form of public transport, especially by older people.
So the concessionary bus fare scheme has been a direct tool to
help tackle social exclusion.
5.3 The Labour Government estimated at the time
of the 2005 Budget that the additional cost of providing free
travel on local bus services for pensioners and the disabled would
be £420 million for 2006-07 (£350 million for English
local authorities, including London and the rest to Scotland and
Wales) and £440 million for 2007-08.[6]
5.4 Unite believes that this money is well spent
because it provides an opportunity for greater freedom and independence
to around 11 million older and disabled people, which in turn
produces wider economic and social benefits.
5.5 However since April 2010 the age of eligibility
for a free bus pass in England has begun to gradually increase
from 60 to reach 65 for both men and women by 2020. It re-establishes
the link between concessionary bus travel and the state pension
age.
5.6 Unite believes that re-establishing the link
between concessionary bus travel and the state pension age is
a regressive move, which will widen social exclusion and stop
millions of older people from being able to contribute to society.
6. HOW PASSENGER'S
VIEWS ARE
TAKEN INTO
ACCOUNT IN
PLANNING BUS
SERVICES AND
THE ROLE
OF PASSENGER
FOCUS IN
THIS AREA
6.1 Clearly passengers views are extremely important
and need to be taken into account when planning bus services and
Passenger Focus can play a key role in this area in helping bus
passengers voices being heard.
6.2 However it is important not to overlook what
can be learnt from the experience of bus workers who are on the
buses every day more then anyone else.
6.3 Our bus members are telling us that if the
Government wants to make improvements to the UK's transport policy
then Unite's "Safer Way Campaign" would be an appropriate
place to start.
6.4 British bus drivers are presently driving
longer periods than their European counterparts. This is wrong
on grounds of safety because the deepening congestion on Britain's
roads makes their job increasingly stressful and hazardous. The
British Driving Hours Regulations currently provide for bus drivers
to work for up to 5.5 hours without any breaks, and up to 16 hours
in a whole day.
6.5 Unite believes it is time for:
— a maximum
single piece of driving duty not to exceed 4.5 hours;
— a maximum
length of driving time of no more than eight hours in one day;
and
— a maximum
of 10 hours total working time in any one day.
6.6 How can it be right that in the UK a HGV
driver carrying livestock or goods is due a rest after 4.5 hours
of driving when a bus driver carrying hundreds of people everyday
has to drive 5.5 hours before getting a rest? Is a chicken's life
or a computer worth anymore then a human's?
6.7 The issue of excessive driving hours and
the poor quality of UK regulations ought to be a matter of serious
public concern and we urge the Transport Committee to support
our campaign calling for steps to be taken to tighten the current
driver's hours regulations.
December 2010
1
http://services.parliament.uk/hansard/Commons/bydate/20100629/mainchamberdebates/part005.html
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2
www.bettertransport.org.uk/system/files/10.07.09.bsog_briefing.pdf
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3
www.bettertransport.org.uk/system/files/10.07.09.bsog_briefing.pdf
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4
www.bettertransport.org.uk/campaigns/public_transport/buses/facts
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5
http://cdn.hm-treasury.gov.uk/sr2010_completereport.pdf
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6
www.parliament.uk/briefing-papers/SN01499.pdf
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