UK Parliament / Open data

Bus Services Bill [HL]

Proceeding contribution from Lord Bradshaw (Liberal Democrat) in the House of Lords on Wednesday, 12 October 2016. It occurred during Debate on bills on Bus Services Bill [HL].

I hope the Minister may be able to agree with me on this occasion, which will make a slight change to the proceedings. The Competition and Markets Authority has adopted a very strange response to the letting of railway franchises and has created, in the case of the northern franchise and Arriva buses, a situation which has cost the taxpayer and the companies millions of pounds in looking at the overlap between Northern’s rail services and those of Arriva buses. The northern train franchise had gone out to consultation some time before. The Competition and Markets Authority had sight of that, and after some extremely complicated negotiations, the franchise was let. Immediately, the Competition and Markets Authority started to nitpick over the

franchise, saying there was a bit of overlap here and a bit of overlap there. In none of the cases was it a significant issue.

In the Bill, the Competition and Markets Authority is nominated as a consultee in some cases. The purpose of this amendment is to say that if there is a consultation over a franchise, or for that matter over an advanced quality partnership or a railway franchise, there should be some restriction on the ability of the Competition and Markets Authority, having been a consultee, to reopen the matter. It wastes a huge amount of time setting up a franchise if the authority comes back again to raise points that are small or trivial in contrast to the large scale of the businesses concerned. I have not said it should not get involved, but I have tried to lay down in this amendment some conditions or limitations on when it should become involved, and I believe it should have to have received significant complaints. I do not think it received any in the course of its intervention between Arriva trains and Arriva buses. Secondly, there would need to have consequently been a significantly adverse effect on competition.

It is important that we have a Competition and Markets Authority, but it should concern itself with real matters of competition in or between industries that restrict competition between large-scale participants. I do not think the law was ever meant to deal with very small-scale altercations between bus companies and train companies. In any event, Arriva gave undertakings that it would not alter fares in a way which diminished competition—not that in most cases any real competition existed. I hope the Minister may give us a reasoned answer to this, because what we have in mind is a lot of unnecessary and expensive bureaucracy that is likely to surround the franchising services. Provided that they have had the opportunity to be involved beforehand, it is quite wrong that after the event, they should be able to come back again and raise what are virtually trivial points. I beg to move.

About this proceeding contribution

Reference

774 cc1928-9 

Session

2016-17

Chamber / Committee

House of Lords chamber
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