Wednesday 29 June, W15 - driving better local bus services - David Brown
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Transcript of Wednesday 29 June, W15 - driving better local bus services - David Brown
You wait ages for reform, then three come along at once – driving better local bus services
Presentation to L G Group Annual Conference - ‘Localism Works’
David Brown, SYPTELead DG for pteg on bus issues
29 June 2011
Choppy waters ahead
• Concessionary Travel cost is going up but DfT funding going down
• BSOG cut on the horizon in 2012
• Tendered services are a major area of non-statutory local government transport spend and thus vulnerable
• Rising industry costs, eg labour and fuel
• Main funding block for local government capital improvements for bus infrastructure (the ITB) halved in a year
Policy Challenges
• Government policies offer choice = greater desire/need to travel
• Growth in economic activity is not always complimentary to carbon reduction
• Localism and sub-regional travel patterns
• Changes to land use planning rules
How is local government responding?
• Some Shires and Counties disposing of their supported networks – or nearly
• Bus networks in Met Areas are more extensive and enjoy more cross party political support - so big reductions in tendered networks are a last resort we generally haven’t reached yet
• Where efficiency savings don’t bridge the gap – then PTEs are turning to changes to CT fares and charging for services where they can
• But this is year one – and year two gets tougher and budgets less able to cope with unforeseen shocks (eg higher levels of commercial de-registrations)
• Are we moving to three Englands for buses – London, the Mets and cities, the rest?
Lifting our eyes to the horizon
• Getting through the next few years will be tough but…
• Funding levels do begin to pick up again in a few years’ time
• The essential advantages of the bus as a key tool of urban transport policy remain
• The planning for a smartcard revolution is picking up speed – transformatory potential in a few years’ time
• Buses getting more politically resonant – as the recent BSOG and Save our Buses campaign shows
• Buses recognised as essential to social mobility and addressing worklessness
LTA 2008 bus powers
• LTA 2008 was a big breakthrough by making VPAs, SQPs and QCs more effective tools
• We have been making good use of these tools – in partnership with operators wherever we can
• In any review of bus policy following on from the Competition Commission investigation we want to see these powers retained and strengthened
• Reducing or removing any of these powers will take the bus sector backwards
Making more of less funding
• Financial support for the industry is falling so we need to do more for less
• Better targeting of that funding is key
• In the Met areas we think we can work with operators to make sure the funding is targeted on local priorities
• We need to collectively look at total resources – Commercial, Tenders, CT, BSOG
• Devolved BSOG could be targeted on bus priority (to reducing operating costs and increase patronage), on supporting smart ticketing, travel planning or on vehicle standards
• Window of opportunity for operators / PTEs on BSOG reform – before something is done to us
Competition Commission Investigation
Provisional Findings:
• Some features of local bus markets which “prevent, restrict or distort competition”
• These features are present in a large proportion of local markets
• They have ‘an adverse effect on competition’ (AEC)
• CC estimate detriment to consumers and tax-payers in excess of £70m per annum
Competition Commission Investigation
Potential Remedies:
• Market opening measures:
- Ticketing- Regulation of operator behaviour - Service frequency
- Fares changes- Access to bus stations
• LTA–led initiatives
- Franchise approach – QCs- Partnership approach
• Tendered services
• Other remedies - Ruled out divestment and direct control of outcomes
Conclusions
• The key advantages of the bus in urban transport policy are as strong as ever
• We need to ensure that bus policy is quick to take advantage of new and wider policies on smart travel, sustainability and economic growth
• But we can’t wish away the fact that the story of the bus in urban areas in recent decades has been one mainly of decline – and the funding climate is not encouraging
• Empty platitudes about partnership won’t change that - practical application will
• Instead we need to redouble our efforts using the tools in the LTA 08 – as appropriate
Conclusions
That means:
• “Crunchy” Partnerships based on an evidence base and real measurable and delivered commitments
• SQPs that deliver better services using more bus priority
• The QC option retained in legislation and tried out on the ground Government to reduce transition risk?
• Devolution of BSOG
• It also means making the best use of the available funding (through better targeting)
• A more cohesive and effective structure for understanding, monitoring and where necessary enforcing performance improvements