Clause 59
Local Transport Bill [Lords]
6:00 pm
Stephen Hammond (Shadow Minister, Transport; Wimbledon, Conservative)
I beg to move amendment No. 247, in clause 59, page 53, line 5, leave out from ‘money’ to end of line 7.
The amendment deals with a very specific power of the traffic commissioner. I welcome and support the general thrust of clause 59, which states that, when an operator is fined by the traffic commissioner, the money must be invested either in the provision of local services or used to compensate passengers on such services. That is clearly sensible and laudable. If passengers suffer as a result of poor services, it is only right that the fines should be used to improve the services or directly compensate passengers.
I can think of other areas of transport in which such an approach might be welcomed. When Network Rail was fined by the regulator for disruption to passengers over new year, the money went straight to the Exchequer and not back into rail improvements. Perhaps the Minister could impress it on her colleague the Under-Secretary of State for Transport, the hon. Member for Glasgow, South (Mr. Harris), that a similar approach in that field would be welcomed as well.
To return to my amendment and compensating bus passengers, the clause says that the compensation can take the form of payments of money or such form, including the provision of free travel or travel at a reduced price, as is specified. That raises a number of questions about whether or not the latter part is tightly defined or clear enough. For example, does it mean that only passengers previously affected by the poor provision of service will be offered free or reduced travel? Or does it mean that travel on the offending routes will be free or reduced for a period of time, which would benefit people who had not previously been caught up? Therefore, if an operator was obliged to offer the latter—the free or reduced travel for a period—it could result in some unintended consequences.
I am in favour of fining the operators if they fail to provide the right service and of reinvesting the money or giving it to those who need to be compensated. The best way for that to happen and to ensure that there is no ambiguity—unless the Minister wishes to add some other words to the clause—is to make a direct monetary payment to the passengers.