RESPONSE _TO CONSULTATION ON A_PROPOSED PRIVATE MEMBERS BILL TO REGULATE BUS SERVICES The Councit Executive considered a report (copies of which had been circulated) by the Head of Operational Services outlining a draft response to a consultation on a private members bill being proposed by lain Gray MSP to regulate bus services and for possible introduction into the Scottish Parliament. The Head of Operational Services explained that the bill advocated legislation which would overturn the free market led approach to bus services that had been in force for over a century. The key proposals were :- * To give councils the power to decide on service levels and to define a franchised network along the line of operation in London; + Allow a mixture of profitable and non-profitable routes to be grouped together so that cross subsidy would help sustain a network of services * Allow the use of council vehicles to provide services; * Give financial penalty powers to the Traffic Commissioner for ‘operator failure to meet franchise commitments; and + Remove the legal need to demonstrate market failure before Ministers could intervene and take action to improve bus services via powers of invoking a Quality Contract. Overall the bill promoted @ much greater level of influence over bus service design and offered the opportunity to overcome some of the negative effects of deregulation. A copy of the consultation document and the council's proposed response were attached to the report as a series of appendices. The response proposed by the council was supportive of the bill, Decision To approve the terms of the report.DATA LABEL: PUBLIC DATA LABEL: PROTECT wy m pa cs Lothian Council COUNCIL EXECUTIVE RESPONSE TO CONSULTATION ON A PROPOSED PRIVATE MEMBERS BILL TO REGULATE BUS SERVICES REPORT BY HEAD OF OPERATIONAL SERVICES A PURPOSE OF REPORT The report seoks approval for a response to a consultation on a private members bill being proposed by lain Gray MSP to regulate bus services for possible introduction into the Scottish Parliament. RECOMMENDATION It is recommended that Council Executive approve the consultation response and ‘agree that it is forwarded via the required consultation channels before the submission deadline on 30 August 2013. ‘SUMMARY OF IMPLICATIONS Focusing on our customers’ needs;; making best 1 Council Values use of our resources; working in partnership. I Policy and Legal (including if enacted the proposed bill will fundamentally Strategic Environmental alter council powers in influencing bus services. Assessment, Equality Transport services can affect equality of Issues, Health or Risk opportunity and access to services, Assessment) ll Implications for Scheme of None Delegations to Officers IV__ impact on performance and None performance Indicators. V_ Relevance to Single The proposals would give councils greater Outcome Agreement powers to infiuence bus service availabilty and quailty. VI Resources - (Financial, The proposal does not identify or propose Staffing and Property) additional funding for bus services. Vil Consideration at PDSP The Development and Transport PDSP of 13 June 2013 agreed that the response be forwarded to Council Executive with the recommendation that it be approved.VIll_ Other consultations The consultation is widely circulated and open to responses from individuals and organisations. CONSULTATION Proposed Bill The proposed Bus Regulation (Scotiand) Bill being consulted on by lain Gray MSP who intends taking it forward as a private members bill if he gains sufficient support for his proposal and if parliamentary time can be secured, The bill advocates legislation which will overturn the free market led approach to bus. services that has been in force for over a quarter of a century. Key proposals are: * Giving councis the power to decide on service levels and to define a franchised network along the lines in operation in London * Allowing @ mixture of profitable and non profitable routes to be grouped together so that cross subsidy will help sustain a network of services ‘+ Allowing the use of council vehicles to provide services + Giving financial penalty powers to Traffic Commissioner for operator failure to meet franchise commitments + Removing the legal need to demonstrate market failure before ministers can intervene and take action to improve bus services via powers of invoking a Quality Contract. Overall the bill promotes a much greater level of influence over bus service design and offers the opportunity to overcome some of the negative effects of deregulation. The causes of these negative effects and the council's lack of power to govem them are not well understood and it is known that some of the effects of deregulation are ‘unpopular. ‘A supportive response is proposed to the questions posed in the consultation document. This is laid out in Appendix 1 to this report, The consultation document is attached as Appendix 2 to this report. ‘The proposed bill was discussed at the meeting of the Development and Transport Policy Development and Scrutiny Panel on 13 June 2013. Panel members were supporting of the proposed regulatory changes as a means of having a positive Influence on bus service provision. The Panel agreed that the response be forwarded to Council Executive with the recommendation that it be approved, CONCLUSION The proposed bill to be introduced by lain Gray MSP would regulate local bus services in Scotland. The response given is supportive to the aims of the bill as it will if enacted, give a much improved framework for councils to influence services than has been the case since deregulation and privatisation of services in the 1980s. The last day for the submission of a response is 30 August 2013.F, BACKGROUND REFERENCES Development and transport PDSP 13 June 2013. Appendices/Attachments: Two Appendix 1- Consultation Response ‘Appendix 2- Consultation document issued May 2013 Contact Person: lan Forbes, Public Transport Manager, 01506 776510, jan forbes @westlothian gov. uk Jim Jack Hoad of Operational Services 6 August 2013Appendix 1: Proposed Council Response 1, Support for the general aim of the proposed Bill West Lothian Council welcomes and supports the proposed Bill to regulate bus services. The council has long been frustrated by the lack of influence it has over the majority of the local bus network and has seen the effects that service reductions and withdrawals have had on local communities. Service standards are a local issue and the council is keen to harmonise these and work towards all services achieving the highest available standard. 2. Advantages and Disadvantages of the proposed legislation The council has noted that there is a significant volume of public finance being invested in bus services with the national concessionary travel scheme, bus service operators grant and payments for council contracts without any significant degree of public sector influence over service design. The council is committed to securing a much greater role for local people to influence bus services and doing so in a deregulated environment will be difficult. Giving councils powers to determine standards of services to be provided in a franchise will ‘overcome this. It is recognised that some skills such as those in bus network design are not widely available in the public sector and a partnership approach to service specification may be needed. 3. How to use regulation to improve services ‘The council wishes to provide a more stable network than that provided by commercial services which are the majority of services locally and which can change at short notice. The proposal is seen as a means of improve service standards towards the standards provided in some areas and of making service timetable co-ordination and inter-availability of ticketing possible. 4, Utilising community transport on low volume routes ‘The ability of community transport providers to contribute to an overall network of services is restricted by both bus operating legislation and community transport groups’ constitutions which often restrict the types of service that they can provide. Overcoming some of the restrictions to operating may improve matters but It is recognised that there is a need to maintain the standard of service operations and maintenance at a high standard and we feel there is a need to guarantee this. 5, Traffic Commissioner financial penalties {t will be important to have penalties which deter operator failure or withdrawal. In doing so the council supports penalties that will provide an incentive for operators to provide services at the standards required. It Is felt that penalties will need to be carefully considered in any legislation to avoid operators’ financial standing being undermined in the event of a series of small failures outside its control6. Assessment of the likely financial implications on the council The council notes that there are no proposals to change how services are funded or to make additional funding available so it would be keen to fully understand the impact the legislation would have on local bus network or on its finances ‘About 80% of the local bus network in West Lothian Is currently operated on a ‘commercial basis and the viability of this is not wholly known, The remaining 20% of services are provided under contract to the council which cost a net £2m per annum. The ability of a franchise holder to cross subsidise within a group of routes will be beneficial and should allow a maintenance of services at least at current levels but the council would be keen to make significant improvements with the existing level of council resource input by working with bus companies under a new arrangement. Our assessment is that improvements will not come from a continuation of existing arrangements. 7. Effect on equality There are always equality impacts from changes to transport services. The council is of the view that there will be no prospect of a negative impact on equalities from implementing the proposals and that there will possibly be scope for improving equalities. 8 Comments and Suggestions ; None.Appendix 2: Consultation Document