The Express & Star's Mark Andrews talks to West Midlands mayor Richard Parker about his plans to franchise the bus service, during his visit to Wolverhampton Bus Station.
Category
🗞
NewsTranscript
00:00You're presumably pretty pleased that your big project has finally been given the seal of approval?
00:08Absolutely, it's a really momentous day today for the West Midlands.
00:13I committed during my campaign once I was elected to bring the bus network in this region back under public control
00:21and today I've made that decision having received the evidence and discussed it with my board
00:27and today we now start the real hard work of that transition from a privatised bus service in the West Midlands
00:35to taking it back under public control.
00:38It needed a two-thirds majority on the board to be approved. How did that go?
00:45Was there any votes against it?
00:47No, it didn't actually. We had to get additional support from the board to go through the process
00:53of undertaking the value for money review and the consultation.
00:57Those approvals were received previously and subject to that work being carried out
01:03and that work, independent work demonstrating franchising would be value for money
01:08and that the public supported the franchising process.
01:11It was then my decision to make today to bring the buses back under public control
01:17and that's the decision having received the evidence, having been briefed on the evidence,
01:23having consulted the board today, I've then made the decision just earlier this afternoon
01:28to bring the buses back under public control, delivering one of my big key pledges during my campaign.
01:35It's a franchising model you've chosen to do. In a nutshell, how's that going to work?
01:41So, in essence, we will consult with members of the public and leaders of councils and others around the region
01:47about how we deliver a new bus service across the region, including consulting on routes and the timetable
01:54and then we will let lots out, bidders, bus operators will bid to run those contracts for us
02:01based on a route, a series of routes and a network that we want to be delivered.
02:08Do you envisage there might be difficulties if some routes are less attractive than others,
02:12you might struggle to attract contracts in the first place?
02:16So, we run a competitive process and we'll be designing routes that work for people across the West Midlands
02:23and we'll be looking for best value for money from the network we design and the bids we get from operators.
02:29You've spoken about you wish to increase competition in this industry.
02:34How confident are you that new companies will enter the market?
02:39Well, we've got a system that works for no one currently.
02:42We've got a private sector monopoly running the bus network across the West region, West Midlands
02:47and that's costing us around an additional £50 million a year now subsidising that private sector operator.
02:53Under franchising, our approach will be to create a bus network that is attractive to operators
02:58and delivers competition in best value for money and that hard work about designing that network
03:03and putting the infrastructure in place to secure that competition, that work starts today.
03:08It's going to need some money up front though, isn't it, because your project is going to be £77 million
03:14to buy the existing fleet of diesel buses and I think it's £48.5 million to buy the existing bus depots.
03:22So, the initial work we need to do, we put aside around £22 million to help the transition
03:27from the current system to where we're going and then we have got some costs to incur
03:32but that bus fleet and those depots are then leased back through franchising to operators.
03:38So, the net cost to the taxpayer and to the combined authority is expected to be zero.
03:45It's expected but obviously there's an element of risk, it depends on how efficiently it works.
03:49I mean, have you factored that risk in?
03:52There's always risk and as we go through the process of transition to franchising,
03:57the council leaders and myself have been really, really clear to the officers.
04:02We expect them to assess those risks and design a system that offers best value for money
04:08and I'm confident we've got the expertise and the understanding of what we needed
04:11and we can learn from places like Greater Manchester and we'll deliver a network
04:15that's best value for money, keeps costs down and delivers for everyone.
04:19Have you had indications from all the bus operators that they'd like to sort of tender for contact?
04:24So, obviously at the Mount, these need some monopolies because only one company has really expressed an interest in tendering the Mount.
04:29No, you're right. Well, currently National Express deliver about 95% of the routes across the region
04:34but the evidence, whether it's from Greater Manchester or Liverpool or West Yorkshire
04:40is that if we go about this in the way that we plan to, it will be really attractive to operators
04:45and it will be a very efficient and effective competition.
04:48Will that be the judge of whether it's succeeding or not, whether more companies that do enter the flight compete?
04:53Absolutely. We want this to be, we want to attract the best in the market
04:57to deliver the best services for the people across the region
05:00and that's where I want to go and that's the plan and that's the plan that we're going to execute.
05:06Yeah. You have previously suggested there's parallels between this and the rail franchising system
05:11but also that your government has criticised the rail franchising system.
05:14So, how will it work better for buses than it will for trains?
05:17No, it's very, very important. We're designing a network in the West Midlands.
05:22The people across the West Midlands and the leaders on my board will help us design a network in a timetable
05:28that connects people in all of our communities to where their jobs are, to college, to our high streets and to hospitals.
05:35We'll be designing that system and letting a series of contracts for operators to deliver it.
05:40We remain in control, we remain with the governance and the oversight and we'll be using that process to drive high quality services and value for money.
05:50You've mentioned, I believe, your first targeted franchise route will be towards the end of 2027.
05:57It will be from Warsaw to Sourley Hall via Birmingham, I believe.
06:01Yes, yes.
06:02Why have you chosen that route?
06:03Well, we just think it's a route which is already established and will deliver really good value for money and connect the region
06:11and it will set a great example about the benefits we can deliver.
06:16But the plan, of course, is to roll that process across the whole region from 2027 until 2029.
06:24When you say it's a route which is well established, how are people going to notice the difference when he's launched?
06:29Well, we're hoping, or the plan is, frankly, that we'll have a network that will deliver buses that run on time and run to timetable.
06:39When will it be fully implemented?
06:42So the plan is that it will take two years from around 2027 and we think that it will take about 24 months, two years from then.
06:48Yeah, so that might be after you, depending on the election, that might be in your second term as mayor if you're re-elected.
06:54Indeed, but the plan is in place to deliver franchising, there's hard work ahead, but I'm really looking forward to delivering a system and a bus network here that will deliver benefits for everyone across the region.
07:05So when will people finally start to see the difference in the bus services?
07:09Well, they'll start to see the difference from the time that we start franchising and it's exactly the same in Greater Manchester and that's the plan and we're working on that.
07:17And that plan about that transition and delivery starts today.
07:21Richard Parker, thank you very much.
07:22Thank you, OK.
07:23Thank you, OK.