Concessionary Bus Travel Bill [Lords]

My hon. Friend makes a good point. Following the discussions in Committee, I hope that when the Government introduce the scheme in April next year they will be able to introduce it with a smartcard. If they can do that, we will be able to see clear ridership patterns and identify who is using the scheme. If a person is not using the card, they will not be attracting any recompense or reimbursement, but it will be possible to follow the ridership pattern. That is the overwhelming advantage of smartcards, and I believe that the Minister said in Committee that it was her intention, if possible, to introduce the scheme with smartcards. Let me turn now from the adequacy of central Government funding to the relationship between operators and local authorities. I shall explain why new clause 3 is relevant and applicable in this regard. As the experience of the 2006 concessionary bus travel scheme has shown, there has been considerable disagreement between local authorities and the Government. There was also considerable disagreement between local authorities and bus operators as to the level of reimbursement provided for carrying concessionary fares. The Government have stipulated that the reimbursement should be on a ““no better off, no worse off”” basis, but there is some dispute as to exactly what that means. It is clear that the 60-odd appeals that were initially registered with the Secretary of State by operators over reimbursement arrangements suggest that there is the potential for problems. Reimbursement on a ““no better off, no worse off”” basis is, in reality, an extremely difficult balance to achieve. After all, the marginal cost to an operator of carrying a few extra passengers is virtually nil. However, when numbers reach the point at which extra vehicles have to be brought in and extra drivers hired, the cost is not only an operating cost but a capital cost. Should the local authority at that point be presented with a large bill for the capital cost, or merely with a bill for the operating cost reimbursement? A review of the systems put in place by concession authorities after two years of operation would allow the Government to establish whether costs were being borne fairly between authorities and operators. It would further enable the Government to establish best practice nationally and to advise concession authorities on how to improve efficiency and achieve savings. When introduced, the 2008 scheme will involve so many variables and unknowns that a review of the kind proposed by our new clause could be extremely valuable. A further concern is that the Bill does not lay down the mechanisms by which local authorities will be reimbursed by central Government for the cost of funding concessionary travel. The Government have said many times that the details have yet to be decided. Understandably, local authorities across the country are extremely worried about the lack of clarity over funding, and what the arrangements that are eventually put into place will mean for them. Given that the details of the funding arrangements are, at best, opaque, and that they are unlikely to become more transparent until after the passing of the Bill, we believe that the new clause would provide the concession authorities with a degree of reassurance. They would have some hope of redress, should they find themselves short-changed by the funding arrangements. As the Opposition made clear on Second Reading, there is some scope for some authorities in so-called hotspot or honeypot areas to find themselves heavily out of pocket. The funding for the 2006 scheme was shown to be insufficient in a number of areas, even when based on fairly static numbers for residents over 60. Because the nationwide eligibility for over-60s is established in the Bill, the potential for error will be hugely exacerbated. The new clause would oblige the Secretary of State to provide a review to Parliament, to ensure that the total sum of central Government funds made available to local authorities in the previous financial year for the provision of bus services and the funding of concessions on those services was appropriate.