The Bus Emergency Scheme

Part of 3. Topical Questions – in the Senedd at 3:05 pm on 15 February 2023.

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Photo of Lee Waters Lee Waters Labour 3:05, 15 February 2023

Well, thank you for raising the question, because it is an issue that is concerning us greatly. Clearly, this is not a happy situation. We have a privatised bus network, which relies on commercial operators being able to make a profit. Clearly, the pandemic has turned that business model on its head and it was our intervention, with £150 million of public investment, that kept the sector from going under. It was always meant to be an emergency scheme; it was meant to be temporary. We do spend, every year, £60 million subsidising concessionary fares for older people, we spend a further £2 million subsidising the mytravelpass scheme for 16 to 21-year-olds, plus we provide £25 million of grant to local authorities for the bus services support grant, plus school transport now accounts for about a quarter of local authority education budgets. So, we're putting a lot of public money in, and on top of that, we've had the bus emergency scheme.

Now, in this year's budget, it was always intended to wind that down. One of the things that the industry themselves say is that we are ossifying—that's the word that they've used—bus networks to run along lines that suited passengers pre pandemic, but passenger behaviour has changed. There are fewer older people travelling, there are more leisure journeys than there are commuting journeys. So, we're probably still running a bus pattern based on pre-pandemic behaviour. So, regardless, there does need to be a reconfiguring of the networks. Clearly, we'd prefer to do that in an orderly way. Now, we have been trying to square a very, very difficult budget settlement with our policy aspirations and, as you know, we do have great ambitions for bus. But, essentially, unless we're prepared to fully subsidise the industry, we're not able to do anything to retain services as they are. And this is a problem right across the UK. A quick internet search will show this right across England and Scotland. They're all facing the same.

We haven't seen any additional money coming from the Treasury and the Department for Transport that would produce any consequentials for us to put further funding in this year. We're also having to meet significant cost pressures in the rail industry. So, we are in a fix here. We did manage, through last week, through some very constructive conversations with the industry and local government, to get a reprieve. So, we've got a guarantee of the BES scheme for a further three months, and we hope to work closely with them during that time to try to work out which routes should be maintained within the declining bus budget envelope to give us the best chance to have a skeleton service that then will take us into the new franchise, which is still a couple of years away. So, we'll have a real bridging problem.

I would desperately like to find the money to be able to do it properly, but our options are limited. We know the cost pressures that the Government is under, and together, Labour and Plaid Cymru have prioritised a whole range of funding for free school meals, for the cost-of-living crisis and for a pay deal for the NHS. Now, that money can't be spent twice. So, there simply isn't money floating around within the Welsh budget that we can move onto this, much as I would dearly like to. So, we've got a real challenge now to try, as best we can, to get a smooth glide path out of BES in a way that causes the least amount of disruption to passengers, whilst keeping a core of bus networks that allows people to use public transport and achieve the modal shift, as we want them to do. But, I can't in all conscience say that we're going to be able to do all the things we want to do, given the money that is available. I desperately hope, and I would make a plea to the UK Government, because they're having these problems as well, to put extra money into the transport budget at the UK level to deal with the crisis there is in England, too, which will produce extra consequentials for us that we can then put into the bus system and work with the industry to create a rational network.