Transport (Scotland) Bill: Buses
Total Page：16
File Type：pdf, Size：1020Kb
SPICe Briefing Pàipear-ullachaidh SPICe Transport (Scotland) Bill: Buses Alan Rehfisch This briefing provides an overview of bus service regulation in Scotland and sets out how this regulatory regime would be amended by the proposals in the Transport (Scotland) Bill. 3 September 2018 SB 18-54 Transport (Scotland) Bill: Buses, SB 18-54 Contents Executive Summary _____________________________________________________3 Introduction ____________________________________________________________4 The current regulatory regime for local bus services in Scotland ________________5 Who provides Scottish local bus services? ___________________________________5 Who funds Scottish local bus services?______________________________________5 Who regulates Scottish local bus services?___________________________________5 What role do local authorities play in Scottish local bus service provision? __________6 Statutory Quality Partnerships _____________________________________________6 Bus Quality Contracts ___________________________________________________7 Key trends in bus usage and costs _________________________________________8 Changes proposed in the Bill_____________________________________________12 Provision of local bus services by local authorities ____________________________12 Bus Service Improvement Partnerships_____________________________________12 Local service franchises_________________________________________________14 Information relating to services ___________________________________________15 Provision of information for the public ______________________________________16 Financial implications of the Bill __________________________________________17 Consultation prior to the introduction of the Bill _____________________________19 Bibliography___________________________________________________________20 2 Transport (Scotland) Bill: Buses, SB 18-54 Executive Summary Bus services in Scotland currently operate under a regulatory regime set out in the Transport Act 1985, as amended by the Transport (Scotland) Act 2001 and the Transport (Scotland) Act 2005. Part 2 of the Transport (Scotland) Bill proposes further amendments to this regulatory system, including provisions to: 1. Clarify the law regarding the provision of bus services by local authorities 2. Replace Bus Quality Partnerships with Bus Service Improvement Partnerships 3. Replace Bus Quality Contracts with Local Service Franchises 4. Require bus operators seeking to vary or cancel a local bus services to provide financial and patronage information to the relevant local transport authority 5. Allow Scottish Ministers to make regulations requiring bus operators, local transport authorities and the Traffic Commissioner to provide bus service information in a standard format (also know as open data) to allow for the provision of better service information to the public 3 Transport (Scotland) Bill: Buses, SB 18-54 Introduction The Transport (Scotland) Bill ("the Bill") was introduced to the Scottish Parliament by Derek Mackay MSP, Cabinet Secretary for Finance and the Constitution, on 8 June 2018. Part 2 of the Bill deals with bus services. This briefing summarises: • The current regulatory regime for local bus services in Scotland • Key trends in bus usage and costs • The proposals set out in "Chapter 2: Bus Services" of the Bill • Financial impications of the Bill • Consultation on bus service regulation undertaken by the Scottish Government prior to the introduction of the Bill 4 Transport (Scotland) Bill: Buses, SB 18-54 The current regulatory regime for local bus services in Scotland The following sections briefly summarises how local bus services in Scotland are regulated, funded and operated. Who provides Scottish local bus services? Bus services are generally provided on a commercial basis by privately owned bus companies, the major exception in Scotland being Lothian Buses – which remains in public ownership but acts as a commercial company. There are roughly 200 commercial bus operators in Scotland, ranging from companies with only a few buses to those with several hundred. In addition, a number of bus services are operated by community transport providers in areas with limited, or no, suitable public transport. Who funds Scottish local bus services? Scottish bus operator revenue totalled £695 million in 2016- 17 1 . Fare revenue accounted for the £396 million (57%) of operators’ revenue. Adjusting for the effects of inflation, this figure is the same as it was in 2007-08. Financial support from the Scottish Government and local authorities accounted for £298m (43%) of operator revenue in 2016-17, which can be broken down as follows: • concessionary travel reimbursement: £194 million • Bus Service Operators Grant (BSOG): £53m • payments from local transport authorities for supported services: £52m It is worth noting that these figure do not quite tally, due to the rounding of specific elements Figures published by Passenger Transport Monitor show that Scottish bus companies operated on an average profit margin of 8.6% in 2016, a reduction of nearly 1% on the previous year, largely attributable to decreasing revenue against static costs. Who regulates Scottish local bus services? The Traffic Commissioner is responsible for Public Service Vehicle (PSV) operator licensing and regulation. Licensed bus operators are required to register any new services with the Traffic Commissioner (setting out details of routes, stopping points and timetables), giving 42 days notice before starting the service. A similar procedure and notice period is in place for altering or cancelling a service. The Traffic Commissioner can 5 Transport (Scotland) Bill: Buses, SB 18-54 take enforcement action against an operator if it does not provide the service as registered. The Traffic Commissioner has no role in setting or subsidising bus services. What role do local authorities play in Scottish local bus service provision? Operating bus services: The Transport Act 1985 limits local authority involvement in bus service provision to the subsidy of bus services deemed socially necessary that cannot be provided on a commercial basis, e.g. evening and weekend buses that serve hospitals or major employment sites. A local authority will normally run a competitive tendering exercise for the provision of socially necessary services, awarding the contract to the bidder that best meets the service specification. Approximately 80% of Scottish local bus services are operated commercially with the remaining 20% supported by local authorities. This varies significantly across Scotland, with some rural areas being more heavily subsidised, owing to distributed populations, lower patronage and longer trip distances. Provision of on-street bus infrastructure: Local authorities are also responsible for bus infrastructure, including bus stations and stops, bus lanes and other priority measures, and ensuring the provision of passenger information. The Transport (Scotland) Act 2001 granted local authorities the ability to create statutory Bus Quality Partnerships and Quality Contracts, details of which are outlined below. The Transport (Scotland) Act 2005 allowed these functions to be transferred to regional transport partnerships (RTPs) – to date these functions have been transferred to three RTPs, Strathclyde Partnership for Transport (SPT), SWestrans and ZEtrans. These are known as ‘model III’ RTPs. Statutory Quality Partnerships A statutory Bus Quality Partnership is defined in the Transport (Scotland) Act 2001 as an agreement between one or more local authorities or model III RTPs, and bus companies operating within their area. It can also involve other parties, e.g. large employers, airport operators, and the Scottish Government where the scheme involves services operating on trunk roads. It can also involve financial or other contributions from third parties, such as property developers who are building along a bus corridor or bus stop manufacturers. A Bus Quality Partnership Agreement requires each party to commit to deliver specific improvements aimed at securing better quality bus services in an area or along a bus corridor. Typically this involves both the introduction of better infrastructure, usually a function of the local authority, and better vehicles or service improvements, usually a function of the bus operators. A local authority may only enter into a Quality Partnership Agreement if it is satisfied that the scheme will improve the quality of local bus services in the area and/or reduce congestion and pollution. 6 Transport (Scotland) Bill: Buses, SB 18-54 Prior to specifying and implementing a statutory Quality Partnership Agreement a local authority must hold a public consultation. Following the establishment of a Quality Partnership scheme the local authority must submit an annual report on its operation to the Scottish Ministers. There has only been limited use of statutory Quality Partnerships, but quite a few voluntary arrangements - principally because the administrative burden of voluntary arrangements is less than for statutory partnerships. However, voluntary agreements do not benefit from enforcement powers available to local authorities who have agreed statutory Partnerships. Bus Quality Contracts A Bus Quality Contract Scheme, again defined in the Transport (Scotland) Act 2001, is a more formal arrangement than a Quality Partnership Agreement. A Quality Contract Scheme involves one or more local authorities, and/or model III RTPs specifying: • what local bus services should