Clause 29
Local Transport Bill [Lords]
11:15 am
Rosie Winterton (Minister of State, Department for Transport; Doncaster Central, Labour)
My hon. Friend’s amendment relates to clause 29. As I said earlier, the clause extends the maximum length of each individual quality contract from five years to 10. At present, while a scheme can run for 10 years, a contract can run only for five. We have responded to points made to us by local authorities and others that it is more appropriate for it to be able to run for the same period as the scheme.
I understand the points that my hon. Friend has made, but under the system that we propose a quality contracts scheme will replace deregulated services with a series of contracts and, at the same time, suspend the free market in the area. The task of setting up a regulated network from scratch, which is what we are talking about, is rather different from adapting an existing one, which is more the case that we have in London. That is why the Bill provides for a review point.
After the period for which the scheme is approved, which may not exceed 10 years, it must be reviewed. If the authority is minded to extend it, a further consultation must take place to ensure that it has delivered at least some of what was promised, and that a scheme is still relevant and likely to deliver more. If, however, the scheme is not intended to expand in scope and will not involve new areas or new bus services, it can go ahead without approval, although there will be an appeal mechanism in it. If it is going to expand, the approval of the board—or in Wales, the Welsh Ministers—will still be necessary.
The amendment would affect the length of individual contracts within a quality contracts scheme. The 2000 Act extends the contracts from five years to 10; the amendment would allow further extension. However, we consider that the best way forward is to set the contract length at the same length as the overall scheme. We believe that much can change in 10 years—whether it is demand for services, travel patterns, technology and so on. It is not unreasonable to require authorities to review quality contracts schemes at least once a decade. If the duration of the scheme is to be limited to 10 years, the duration of individual contracts must be similarly limited.
I know that my hon. Friend the Member for Manchester, Blackley believes that there should not even be a 10-year quality contracts scheme duration, and therefore that it is reasonable to extend the contracts themselves. However, for the reasons I have set out, we believe it reasonable to ask local authorities to look at the schemes after 10 years to ensure that they are delivering what was promised and that if they are to continue they can do so without having to go through a whole approvals board if they are not particularly different. We believe that that is the right balance to strike, and in view of that I hope that my hon. Friend will withdraw his amendment.