Reforming bus services is an important aspect to revitalising many local economies

Rail services and infrastructure dominate the debate around transport, but with two thirds of all public transport journeys made by bus we are right to talk more about the importance of local bus services.

I serve an area with no rail or light rail link, where many people are entirely dependent on buses. I hear from older residents who are left cut off and isolated, unable to easily access GP or hospital appointments. Shift workers who simply cannot get to work and employers who find it difficult to retain staff as a result. Families that are still struggling to make ends meet face above inflation fare rises.

In 2010, I first began to campaign on this issue when local parents asked for my help in trying protect a route that had served the community for decades but was about to be cut, making it difficult for their children to get to school. Despite the fact that operators receive over 40 per cent of their income from the taxpayer, local people had little to no say. The operator made clear that although we could raise our concerns, they were under no legal obligation to even consult on changes.

That was the start of my campaign to re-regulate bus services in Tyne and Wear and this week we moved one step closer to making this happen. The North East Combined Authority voted unanimously for a Quality Contract Scheme for bus services, made possible by a change in legislation we passed when in power. If approved by an independent board, we will be the first area outside London to take back control of buses since the Thatcher government deregulated services in 1986. Mary Creagh, Labour’s Shadow Transport Secretary has backed Tyne and Wear’s bid and made it clear that any area pursuing a Quality Contract will have Labour’s full support.

Deregulation has been a failure. Fares go up and up pricing people off buses, routes are cut and needlessly changed and whole areas are left without a service. It’s hardly surprising that the number of people using bus services continues to fall. Since deregulation, passenger numbers in metropolitan areas have fallen by 42%, in stark contrast to London.

The Quality Contract proposals will see routes and timetables set by the transport authority, with bus operators bidding to run services in open competition. Just as in the energy sector, a small number of companies dominate the market. There will be a simple fare structure and Oyster-style smart ticketing, fare rises capped and extra help for families with children.

Part of the profits made will be reinvested back into improving local services reducing the subsidies paid by local taxpayers and at the same time increasing passenger numbers. Over a decade, this would result in £272 million in economic benefits to the region.

Bus companies have bitterly opposed the plans. Stagecoach’s Brian Souter claims that those of us who want a better local bus service are ‘unreconstructed Stalinists’. He threatened to pull out of the region altogether. Yet Stagecoach are happy to run services under London’s regulated system and there’s no good reason why they couldn’t do the same in Tyne and Wear. This is typical of the bluster and the negative campaign of scaremongering that has characterised their opposition to change. They have frequently threatened legal action in the hope they could bully the councillors making the decision into giving in. Their threats have so far failed, but they haven’t gone away. It’s time the operators respected this democratic decision and contemplated why it is so many people are dissatisfied and angry.

I’m proud to be from the North East. It’s a wonderful place to live, work and do business but we face major challenges: the highest rate of unemployment, some of the lowest paid workers in the country and too many of our young people struggling to find work. A re-regulated, accountable and transparent transport system would support the long term change we need. This week, we moved closer to making this happen and where we lead, other areas can follow.