I understand that establishing a company for the purposes of operating local bus services may be something that some local authorities would like to do. However, this is not something that has happened for many years, and no local authority has indicated to Ministers that they wish to pursue such a course of action.
Private sector bus operators have been delivering local bus services for the last 30 years and we do not want to lose their experience and know-how. I want to ensure that we get the right balance of local authority knowledge and private sector experience. Local authorities, with their knowledge of the local area, local needs, and controls over other aspects such as local roads and parking policies, are well placed to help shape and influence the services that are provided, with private sector bus operators using their operational experience on the road.
I also believe that local authorities have other, more pressing priorities to attend to, and that they should therefore focus on partnership with private operators. The Bill will provide local authorities with a number of opportunities to influence the provision of local bus services in their area, whether through enhanced partnerships or franchising.
There is no doubt that, in a small number of places, municipal bus companies continue to play an important role in the local transport system. However, I believe that the creation of further municipal bus companies would stifle the private sector investment that has made such a significant difference. For these reasons I believe that the commissioning and provision of services are best kept separate, and that local authorities should not be able to set up new companies to run bus services.