Transport (Wales) Bill

Amendment No. 15 would allow operators of bus services within or mainly within Wales to enter into agreements which would normally be prohibited, as the noble Lord, Lord Bradshaw, has told us, by the Competition Act 1998, and to make the traffic commissioner for Wales rather than the Office of Fair Trading the arbiter of whether such agreements are in the public interest. Currently, competition policy is a UK-wide matter largely governed by European Community and other international obligations. In our view, it would be impossible to have a different regime in Wales. Furthermore, competition normally acts in the interest of the consumer and restraints on competition are likely to lead to increased fares or reduced choice. However, we recognise that there are exceptions and many ticketing schemes are covered by a block exemption order which allows a ticket or travelcard to be valid on more than one operator’s services and marketed at a common price. There are also powers under the Transport Act 2000 for local authorities to initiate ticketing schemes involving a number of operators. The Office of Fair Trading’s view is that the bunching of buses as a result of competition between operators is not a significant problem. The Competition Act 1998 does not prevent operators from co-ordinating the timing of complementary services that link but do not directly compete with each other. Currently there is no evidence to show that competition between bus operators has led significantly to poor co-ordination of services. In addition, it is unclear how a traffic commissioner in Wales or elsewhere would determine whether an agreement is in the public interest. Traffic commissioners’ current functions do not include competition or economic regulation. Traffic commissioners across Britain are appointed by the Secretary of State for Transport. The role is mainly of a quasi-judicial nature and therefore statutorily independent. As a result, the practical effect of devolving responsibility for the commissioner to the Assembly would, in our view, be minimal, although the noble Lord, Lord Roberts, would argue that it would be a very symbolic thing to do. The licensing of operators of heavy goods vehicles and buses and coaches is not a devolved matter. Although locally administered by the traffic commissioner for the relevant area, a licence allows the vehicles to be used throughout Great Britain and for international licences across the European Union. I understand that the Assembly is not seeking changes to this unified system. Moving on to Amendment No. 19, there is a separate traffic area for Wales, although the traffic commissioner in charge of it is also the traffic commissioner for the West Midlands. The Birmingham office serves both areas. The noble Lord, Lord Roberts of Llandudno, talks about Wales being under the control of the traffic commissioner for the Midlands, but that is an extraordinary statement. In fact, the traffic commissioner for Wales is also the traffic commissioner for the West Midlands. We cannot say how his time is divided between the two, but he has made it absolutely clear that he goes to Wales as often as is required. If we can find out more information on how exactly he divides his time, the better. Would the noble Lord, Lord Roberts of Llandudno, feel happier if the person was a Welshman? It is difficult to see the point that is being made—