[R] signifies the Member has declared an interest. [W] signifies that the question was tabled in Welsh.

I have accepted two urgent questions under Standing Order 12.66, and I call on Llyr Gruffydd to ask the first urgent question.

In light of the Traffic Commissioner’s decision to revoke the public service vehicle operator’s licence of RJ’s of Wem, will the Minister make a statement on the future of bus services in north-east Wales? EAQ(5)0096(EI)[W]

Yes. We’ve been working with Wrexham County Borough Council and other local authorities in north-east Wales for some time to help identify and support a sustainable local bus network. We’ll continue to work with them and with others, including Bus Users Cymru and Business Wales, to help to create circumstances in which a sustainable bus network can be achieved.

Well, thank you for your answer. I’m not sure that tells us much more in relation particularly to the services that are now going to be lost in a week or so’s time. After the shambles of the GHA Coaches situation over the summer, of course, the last thing we need is more uncertainty about the services over Christmas and the new year period. Now, I understand that a new tendering process is under way, but, apparently, with a new contract start date of 1 April 2017. So, could you tell us whether that means that there’ll be no services in the meantime and where that leaves passengers who need the services to get to work, to education, and to access essential services?

Surely, the revocation of these licences wouldn’t have been a surprise given the history around GHA Coaches, so where were due diligence and financial standing checks when the local authority issued the contract to RJ’s of Wem? Surely, this could have been foreseen, and does that not raise the question as to how they got the contract in the first place?

Yes, the Member will be aware of local controversy that accompanied the announcement of RJ’s of Wem’s contract with the council. Wrexham County Borough Council went into a contract with RJ’s in the knowledge that the directors were formerly overseeing GHA Coaches. Now, the loss of the operating licence means that Wrexham council will be responsible for assessing local circumstances and priorities, including any service that can be provided to those residents who will now be left without a service, potentially, for a period following 19 December, when the revoking of the licence will take effect. I can tell the Member today that I am currently considering offering local authorities in north Wales financial assistance, and I’ll be determining that over the coming days to assist with the pressures that not just Wrexham face, but also Flintshire and Denbighshire. I’ve also decided to provide funding for a dedicated bus resource within the local authorities to ensure that the sustainability of the bus network can be guaranteed.

In a statement in October, you told the Assembly that you were

‘surprised and saddened by the recent and sudden demise of three local bus companies’, including GHA Coaches, providing services on school bus routes across north-east Wales as well as Cheshire and Shropshire. However, you were written to on your appointment in May—seven weeks before GHA Coaches shut—by a range of companies and organisations stating that they would be unable to sustain their services if grants continued to be received late, and that they were in danger of closing down because of the cash-flow problems that this was causing—of course, referring to the bus services support grant, which is also funding community transport schemes. The problem in Flintshire has been compounded by the council’s unique proposal to transfer bus services to the community, despite the excellent community transport providers there stating that they’re not bus companies and they’re not interested in providing community bus work. How, therefore, will you address these issues, not only because of the imminent and current problems, but the bigger problems coming down the road that will impact on community and wider community bus route users in terms of the continuity and advance payment of the bus services support grant, noting that we can’t wait for another review in the new year, this money needs to be in their bank accounts before the start of the next financial year?

I think the criticism specifically of Flintshire County Council was politically motivated, if I may say so, because there are other local authorities utilising GHA’s services. The fact of the matter is that Flintshire County Council—actually, unlike other local authorities—have retained a service support grant of over £1 million. As a consequence, they have been able to restore services in many parts of Flintshire. That said, I am currently considering additional resource for the local authorities in north-east Wales to be able to overcome what I hope to be short-term difficulties whilst powers that we require over bus services can be gathered, and for change to actually take place. I recognise that the Member has reflected the concerns of bus operators from earlier in the summer, but, actually, those concerns have been around since deregulation, which has been, quite frankly, a disaster.

In terms of the support that we offer local authorities, in spite of huge financial cuts to our budget, we have maintained, at £25 million, the level of support for local authorities for several years now. As I’ve said on a number of occasions, we would hope that local authorities would show a similar degree of commitment to bus services by maintaining the sort of support that Flintshire County Council has done. We will go on working with Bus Users Cymru, and with other organisations, as we lead into the new year and the bus summit that I have decided to host on 23 January in Wrexham.

Thank you, Cabinet Secretary.