Lord Moylan:

Moved by Lord Moylan

13: After Clause 11, insert the following new Clause—“Poor performance of franchising(1) If, due to poor operational or financial management by the franchising authority or franchisees, there is a persistent failure to deliver a service specified by the contract, the Secretary of State may take over the management of the service.(2) In exercising this power, the Secretary of State may substitute themselves for the franchising authority in the relevant contract.(3) The Secretary of State shall continue to manage the service until such time as—(a) a new contract is let, or(b) another permanent solution is found.”Member’s explanatory statementThis amendment seeks to provide the Secretary of State with the power to intervene in cases where franchised bus services are persistently failing due to poor operational or financial management.

My Lords, it is common ground between the Minister and me that, in the event of a local authority failing financially, it is possible for the Secretary of State to send in commissioners to sort out the matter. It is also common ground between us that, in the similar event of a local transport authority failing financially and not being able to deliver the bus services that it has contracted, or a franchisee falling into bankruptcy, the Secretary of State would have no power under this Bill, and no power under the Transport Act that the Bill amends, to step in and do anything about it.

I think that every noble Lord in this House would agree, if they were entirely disinterested, that that is a power the Secretary of State should have. Amendment 13 would simply give the Secretary of State the power to step in, in those limited and prescribed circumstances, in the interests of passengers. It has been barely an hour since the Minister stood at the Dispatch Box and told us that the interests of passengers were absolutely at the heart of the Bill. Of course the Secretary of State should have this power, and for that reason I wish to test the opinion of the House.

Ayes 129, Noes 185.

Amendment 13 disagreed.

Clause 12: Socially necessary local services