Jerome Mayhew

My hon. Friend is entirely right. I refer the House to Norfolk county council—another Conservative council, and the one in which my constituency is based—which has an enhanced partnership with bus companies. That partnership has been more effective in driving bus ridership than the franchised process has been in Manchester—at least as enacted by the Mayor of Manchester, Andy Burnham. I will now deal with franchising more fully. This bizarre draft legislation appears to have taken a good idea in principle and made it worse in practice. The hon. Member for Burton and Uttoxeter (Jacob Collier) is quite right that the Conservative Government recognised in 2016 the potential for region-based transport integration. In principle, mayoral combined authorities had the scale, resources and financial sophistication to take on the responsibility of creating a franchised scheme, and would thereby have more control over the design of public transport in their area. That was a Conservative innovation, and I support it. Under the 2017 legislation, other local transport authorities also had the ability to apply for franchise status, if I may loosely call it that. However, there was concern that smaller local authorities would not have as many resources—be they financial or top-tier management resources—to deal with and design such operations, so a critical safeguard was inserted in that legislation requiring such authorities, should they wish to go down the franchise route, to obtain the approval of the Secretary of State for their plans. It is a sense-check—a needed safeguard—because franchising exposes local transport authorities to huge commercial risk. They are not just letting contracts and, as with an enhanced partnership, adding a bit extra on, after negotiation with commercial operators; they also become responsible for the design of the full bus map and timetable, and have the resulting commercial liability of providing all the buses and drivers. Authorities can either pay a bus company to operate for a fee, and so take no commercial risk—the company just turns up and does what it is told—or expose themselves further by creating a municipal bus company and doing everything themselves. If that goes wrong, it can bankrupt a local authority.