Transport Times Bus Conference
Let me start with a simple statement of what I believe personally - buses are crucial to the success of Britain's transport system.
Without good bus services that are accessible, affordable and attractive to a broad range of people across society, local transport simply cannot work.
Yet despite this, the bus does not receive the press coverage and public debate it deserves.
Let me thank Transport Times for organising today's important and timely conference - not least given the ongoing consultation on Putting Passengers First.
The headline statistics are striking: Today in 2007, two out of three public transport journeys in Britain are made by bus; four billion passenger journeys a year in England alone.
That's because they're often the most efficient, cost-effective, flexible and sustainable way to provide high-capacity travel to local communities.
Four billion journeys is a significant figure.
But I believe it could be higher.
The Bus Review we undertook last year showed that although services in some areas are working well, in too many communities today passengers are not getting the service they deserve.
At a time when demand for travel by car, train and air has been soaring, too many towns and cities have seen only limited or no increase in bus use.
This is a shared challenge: our ambition must be to exploit the full potential of the bus in every part of our country.
For too long, different groups that make up the bus sector have been working towards their own objectives, instead of shared objectives.
Here in this room today, we have representatives from bus operators; from local authorities; from central government; from PTAs, PTEs and regional development agencies; from industry suppliers, community transport providers and trade unions.
In other words, all the groups needed to transform bus services across the country.
Together, under this roof, we have all the knowledge; the expertise; the experience; the access to funding; the entrepreneurial skills and marketing know-how that's needed to change this industry for the better.
The Review has given us a chance to put buses centre stage - to rethink the way they are run - to show what we can do by working together - for the benefit of everyone - but in particular for the benefit of the passenger.
That means operators improving services, and local authorities providing effective priority schemes, better traffic management, and an infrastructure that allows buses to thrive.
We know that different approaches will be needed to reflect the diverse range of local conditions that exist across the country.
But we also know that higher quality, more reliable services are needed to make the bus an attractive alternative to the car, to support economic growth, to increase social inclusion, and to minimise the impact of transport on our environment.
If we're to tackle congestion, we need better bus services.
If we're to cut overall vehicle emissions, we need better bus services.
And if we're to develop successful road pricing schemes in busy cities, we need better bus services.
I believe that a strong foundation for a more successful bus industry has been established in recent years.
This Government has changed the way local transport is managed.
We've been devolving power to councils, so local priorities are tackled by local people.
Backed by record increases in funding, and a doubling of investment in buses, we've given authorities more control over transport, and the stability to begin to plan ahead.
But if we're to get the full potential out of the system, we need a step change in the way we think about buses today.
A new approach, that redefines the role of the bus in the wider local transport context - an approach that's based on partnership.
Frankly, for much of the 20th century, buses were seen as transport for people who had no other choice.
In the 21st century, they must be for people who do have a choice.
But that means the industry needs to raise its game.
Putting a bus on the road isn't all that needs to be done.
It needs to be clean, comfortable, and convenient for people who might otherwise use their car.
It needs to be on time.
It needs to be safe, secure, and affordable for passengers.
And it needs to be accompanied by a package of local transport measures designed to support growing bus use.
This is what partnerships are all about - such as those in cities like Brighton, York and Cambridge, about which I've spoken about in recent months.
Cambridge, for example, has seen a 70% increase in bus passengers.
Thanks to intelligent partnership working between First York and York Council, passengers in York are enjoying better bus travel.
In Brighton, the authority has made great strides providing bus priorities and tackling parking issues - and the bus operator is providing services that customers really want to use.
And in the West Midlands, Red Routes have been introduced, and a sophisticated Real-Time Information system is revolutionising services in that part of the country.
The West Midlands achieved this by putting into practice a very simple strategy: partnership - between transport authorities, Centro, Travel West Midlands and a consortium of communications specialists.
These aren't flukes. They're the result of hard work, entrepreneurial skills, strategic investment, and innovation.
What we're doing as a government is putting in place legislation that will make it easier for other partnerships to blossom around the country.
Today, for example, the first Statutory Quality Partnership scheme is being signed in Sheffield - a move that will make a real difference to the way bus services are managed and delivered in that city.
Through the draft Road Transport Bill, we're aiming to give authorities more flexibility to improve bus services as part of a package of transport measures - such as local road pricing pilots.
It will also include proposals to reform PTAs and PTEs to develop a more coherent transport approach in our major cities.
And in the "Putting Passengers First" document I announced on December 12, we set out our plans to further strengthen the working relationship between local authorities and bus companies.
Putting Passengers First is all about shared plans, and shared objectives.
For example, on punctuality - giving Traffic Commissioners increased powers to improve performance……
….. not by divisive means, but by holding both bus operators and local authorities to account for poor reliability.
And by encouraging a co-operative approach to the planning of remedial measures.
We also want to make it easier for operators and authorities to arrange frequency of services, timetables and fares - by strengthening voluntary and yes, statutory partnerships.
Putting Passengers First includes arrangements for a new legal test for voluntary agreements, which could allow authorities to work with more than one operator if it's in the public's interest.
We've concluded it is right that local authorities should also have the option of using Quality Contract powers where they make most sense - for example, in England's larger urban areas, and in locations where they're part of a package of measures to improve local transport and cut congestion.
Elsewhere, the voluntary sector plays an important role providing transport where it may not simply be commercially viable.
But it could do more if certain restrictions were lifted.
So, for example, we are proposing to lift the restriction on paying community transport drivers more than expenses.
This would encourage more drivers to offer their services, so services could in turn expand.
And we want to lift the restriction on vehicles of not more than 16 passenger seats - so larger buses can be used.
And we're proposing to remove the lower size limit on vehicles with Section 19 permits - typically those carrying elderly or disabled people.
Finally, we want to simplify the permit issuing system for these operators, so all permits are issued by Traffic Commissioners.
This will encourage more uniform standards and better enforcement.
It's vital that those areas - and those communities - that are poorly served by other forms of transport have access to better bus services. The community transport sector will help us meet this objective.
Putting Passengers First also explains how buses must help us achieve our broader environmental goals - making sure bus subsidies, for example, support our overriding policies on climate change.
In fact, we want to have a debate about broader funding issues.
We want to see if certain parts of the bus subsidy programme need to be reformed in this year's Comprehensive Spending Review.
After declining in the decade after 1986, bus subsidy in England has almost doubled in real terms since 1997/98.
Total subsidy back then, when this Government came to power, was estimated to be £0.9 billion (or £900 million). This year spend will be some £2.5 billion.
And so we need to make sure this money is being spent as effectively as possible.
Perhaps by providing a more direct link between subsidy levels and bus patronage targets; or congestion targets; or targets to improve accessibility and environmental performance; or punctuality targets, or the quality of passenger service?
These are crucial questions we are considering at the moment.
And so with the entire Putting Passengers First initiative, we must above all make sure that we get the detail right, so the final package of reforms is workable on the ground.
That's why we'll be discussing the issues carefully with you over the next few months so the right powers are included in the draft road Transport Bill.
I must say I'm pleased with the reaction to the proposals so far.
We've had support from across the industry.
That unity of purpose is vital - and I hope it's a unity we can sustain long after this important conference.
But just as we should look to the future with shared optimism, we should also be realistic about the size of the task ahead.
We have a lot more work to do before the examples of Brighton, Cambridge and York can be replicated across the country.
We have to break down outdated barriers that have held back bus growth at a time of booming demand for both mobility and travel.
But today we have our best chance in decades to forge a new future for buses in Britain.
I firmly believe Putting Passengers First is an important step towards making that happen.
And I look forward to working with you all to achieve it. It is our shared responsibility - and working together it can be our shared success.
Delivered: 29 January 2007
(This speech represented existing departmental policy but the words may not have been the same as those used by the Minister.)
