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Concessionary Bus Travel Act 2007 (Variation of Reimbursement and Other Administrative Arrangements) Order 2010

My Lords, I thank the Minister for introducing the order and confirm that we on this side of the House have always been supportive of the national concessionary bus fare scheme. We recognise that access to public transport is particularly important to the elderly and those with disabilities, as he said. However, we have always been worried about the mechanism for funding the scheme set up by the Government, and have felt that it was not fit for purpose. Our fears have been realised since the introduction of the scheme, as a huge number of local authorities have been left with a shortfall of funding. For some years, we have called on the Government to review the funding mechanisms. I therefore welcome the fact that, belatedly, the Government have acknowledged the problems with this scheme and have proposed three measures to address them. The first is to reopen the final year of the agreed three-year funding settlement. That is highly controversial and most unfortunate, and has led already to great uncertainty, especially in London. The second is to link the eligibility criteria to the state pension age, which we think is sensible as it ensures that the scheme is targeted at those who need it most. The third is the subject of today's order and relates to moving the administration of the scheme from travel concession area to county level. We also consider the move to county level to be sensible and something that will help iron out local inconsistencies, as the Minister described. We need to rid ourselves of the situation where one area receives inadequate funds and is left with no choice but to cut services and raise council tax, whereas its neighbour has plenty of funds. The whole system has therefore become little more than a postcode lottery. It might be worth looking at Lancashire for a moment. The borough of Preston faced a shortfall of £824,000 in respect of the scheme, yet just down the road in Blackburn the council had surplus funds. Half the boroughs in Lancashire were getting too much money, and half were not getting enough. Those unfortunate enough to live in one of the boroughs with a shortfall could expect reduced services and the possibility of increased council tax. The concession areas were too small, and widening them will be of benefit. I am therefore happy to support the order. However, I would like reassurance from the Minister on one or two points. First, can he confirm that the change will apply to all travel concession areas outside of the passenger transport executives and London? Secondly, what will the administrative costs of this change be, and who will bear them? Thirdly, what impact will this have on the revised three-year funding settlement? Fourthly, what does the Minister believe the impact will be on previously agreed reimbursement deals between travel concession areas and bus operators? Is it likely that those will have to be renegotiated? Pending the answer to those four questions, we are happy to accept the order.