To ask the Secretary of State for Transport if he will make a statement about the deregulation of buses in London.

May I, on behalf of my colleagues, and the House, wish you, Mr. Speaker, a very happy birthday?

The Government intend to deregulate bus services in London and privatise London Buses Limited as soon as possible in the next Parliament. Free and fair competition is the best way to ensure that bus services are tailored to the needs of passengers.

Does the Minister acknowledge that even London Transport is alarmed at the way in which—[Interruption.] I use its words—the Government are handling, the deregulation? That alarm is shared by those who believe that deregulation will cause traffic chaos and will put in jeopardy concessionary fares and the travelcard scheme. Why does not the Minister abandon his ideological obsession with breaking up the London bus service and get on with the job of getting transport moving in London?

I do not recognise the facts as the hon. Gentleman has presented them. First, the senior management of London Transport and the operators of the London bus subsidiaries are in favour of deregulation and privatisation. Secondly, we have no intention of jeopardising the concessionary fares and the travelcard, which are two essential forms of travel subsidy not only for the disabled and pensioners, but for those who want to use different modes of transport.

Is my hon. Friend aware of the appalling bus service in south-east London and that improvements are necessary to benefit my constituents? I understand that my hon. Friend intends to propose a new London bus executive, which would ensure that socially desirable routes are maintained when deregulation takes place.

I am grateful to my hon. Friend, who has put his finger on the key advantage of deregulation. When privatised, the bus companies, including the London bus subsidiaries, will take the decision on when and where to run commercial services, but the London bus executive will, on behalf of the taxpayer, subsidise socially necessary services.

Would the Minister consider an extension of the franchising of the bus service? At the moment, one third of bus miles are on franchise in London, and that initiative seems to be working. Is not that a better way to proceed than deregulation, which seems to be a shambles?

I think that the hon. Gentleman is referring to tendering, which relates only to operating the service—successful tenderers do not keep the revenue. That initiative, welcome though it has been, has gone as far as it possibly can in benefiting London Transport. The next sensible step is deregulation, which will allow the London bus subsidiaries to run their own services.

Is my hon. Friend aware that there are great advantages under the existing system and that tendering and licensing have served people in the peripheral areas of the metropolis, such as my own, very well? We hope that we will be not be exposed too much to the dogma of total deregulation.

I am sure that my hon. Friend would want to see the private sector extend to the outer-London suburbs and offer a variety of additional services. That must be to the benefit of his constituents.