Community transport operators are increasingly providing health and social care services, taking pressure off public sector bodies and allowing people to live independently for longer. However, few operators receive financial recognition for this, relying on volunteers to go the extra mile to ensure that individuals have the support they need. Finding and retaining volunteers is already a challenge, especially as people are working later and often have additional responsibilities. Budgets are therefore needed that support cross-departmental working in order to develop innovative solutions that enable the sector to deliver the activities so obviously required.

Operating community transport is more expensive than an average charitable enterprise, and, despite fundraising, some operators will be unable to raise capital for future investment, compromising the development of their services. For example, many converted their vehicles to diesel when told that that was the right thing to do, and replacing these with wheelchair-adapted electric or hybrid vehicles will be costly. A well-targeted capital funding programme could therefore drive innovative projects, extend the scope and reach of community transport operators throughout Wales, and save money for the statutory sector.

In 2015, the European Commission told the UK Government to address how its directives on passenger transport operator licensing were interpreted into UK law. This focused on the rules that operators should follow when fulfilling local authority contracts and how derogations from the regulations apply. Alongside this, there's been a campaign from a small but noisy group of commercial operators to force a settlement through threats of legal challenges to community transport operators, local authorities and the Driver and Vehicle Standards Agency. In consequence, the UK Government is currently consulting on plans to change how EU rules for regulating passenger transport services apply in the UK.

Its consultation document states that it remains committed to supporting the sector, but that concerns have been raised that some community transport operators that use permits are competing with commercial operators, which, quote, is not allowed by EU law. The proposed changes would mean that, under section 19 and 22, permits used by community transport operators to deliver minibus services and community bus services, many organisations will only be able to engage in competitive tendering for public service contracts, such as social care contracts and school contracts, if they obtain a public service vehicle operators licence, unless there's been no competition for any of these services from holders of PSV operator licences. This is costly and requires that the organisation has a number of paid roles with professional qualifications.

During my own most recent visits to community transport operators in north Wales, they emphasised that most operators in Wales are small, unlike some of the giants in England, and that the proposals now threaten the continuation of community transport here. Further, whilst the consultation is still under way, the EU interpretation that community transport in the UK is in breach of its rules is already being treated in some cases, at local level in Wales, as though it's already in force.

The UK Department for Transport has announced a transition fund of £250,000 and that they're exploring what further assistance they can give, but it's unclear if a proportion of this will be reserved for Wales, and it's unlikely to be enough to cover transition costs for all organisations affected.

Local authorities have said that there'll be a shortage of accessible minibuses if they're unable to work with community transport to deliver services, impacting on passengers who need them most. The older people's commissioner has said that community transport makes a significant contribution to older people's health and well-being, helping them to maintain their independence for longer and participate in community life, plugging the gaps in the public transport network that are particularly important for older people and those living in isolated communities and rural areas.

We therefore call on the Welsh Government to work in partnership with the community transport sector and public bodies to ensure the sector can continue in its unique role, providing bespoke transport options for vulnerable people to ensure access to services while the consultation process is under way; to develop contingency plans to mitigate any impact on transport provision through minibus services delivered through section 19 and 22 permits; to publish a clear strategy that recognises the cross-cutting aspect of community transport provision across Welsh Government departments in delivering the Welsh Government's strategic aims; to provide much-needed stability for the sector by moving towards three-year funding arrangements to allow organisations to develop and take forward plans to ensure greater sustainability and a more strategic approach to service provision; and to ensure engagement with relevant partners and stakeholders across Wales to inform the Welsh Government's own response to the UK Government consultation and ensure understanding in the sector of the Welsh Government's position.

Evidence has shown that community transport provides £3 value for every £1 spent on it. Community transport offers an invaluable service for those who face particular barriers to accessing transport for whatever reason. Whilst it's a very resilient sector, the individuals and organisations who work within it must be valued and supported. Despite the challenges, Community Transport Association Wales believes there is an opportunity for organisations and authorities in Wales to work together to ensure continued services for our communities. Let us justify their belief. Diolch.