The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)
I apologise for my slightly late arrival at the Dispatch Box, Madam Deputy Speaker. Perhaps that was rather apt, given the subject we are discussing.
I congratulate the hon. Member for Lewisham East (Heidi Alexander) on securing this debate on Southeastern services. At the very outset, I want to make the point that the rail franchising system and the way in which the Government engage with private sector operators is all about improving rail services for people, not some ideological opposition to state provision. In practice, the system has been shown to deliver in many parts of the country. As we have seen during the period since privatisation, rail usership has doubled from 750 million to 1.5 billion. Of course, that is part of the problem: as more and more people use rail services in this country, the overcrowding on trains and the problems of squeezing more and more trains on to what is by and large a Victorian network is a real challenge that I know frustrates commuters daily.
As the hon. Lady has contributed so fully to previous discussions in the House—for example, the debate in February secured by my hon. Friend the Member for Dartford (Gareth Johnson), who I note has joined us in the Chamber—some of my points will sound familiar. I hope that she will forgive that repetition, but I will cover some of her questions from the last debate, particularly on overcrowding and passenger compensation.
I thank the hon. Lady for her invitation to join her on the train to Lewisham. I suggest that I can do better than that, as I have a member of staff who lives on that very line, and I get a daily update about the problems of getting a seat on the train. Indeed, when she moved slightly further away from the centre of London, she said, “Although it’s a longer journey, at least I can get a seat.” It is something of an indictment of that particular service that people see living further away as a good idea, because they can get a seat before the train sets off. I am made aware of some of the daily trials and tribulations; indeed, I also sometimes get excuses about why she sometimes arrives at work late.
Let me first state that this Government are committed to continuing the strong growth in rail travel experienced over recent years. We have invested billions of pounds in railway infrastructure, and we have set out our plans to continue to do so. The Thameslink programme is one of those key investments, and we are committed to funding and delivering it in its entirety. On completion in 2018, it will virtually double the number of north-south trains running through central London at peak times. It will deliver 1,140 carriages of high-capacity next generation rolling stock, in addition to about 600 new carriages that will be provided as part of the Crossrail project. That represents a significant enhancement to the capacity of the entire UK rail network. That might be no consolation to people in Lewisham, but it shows that we recognise the problem and are investing not only in new infrastructure, but in new rolling stock.
Heidi Alexander
I was aware of discussions about the new Thameslink franchise that could have meant that some services would call at stations such as Lewisham. I wonder whether the Minister can update me on whether there is any chance of some Thameslink services being routed through Lewisham, instead of along the more traditional routes, and on whether that could add capacity to our part of the network.
Mr Goodwill
I am afraid that I cannot give the hon. Lady any news on that subject. However, as it has been raised on the Floor of the House, I know that officials will be keen to revisit it to see what potential there is. In her contribution, she spoke about the potential for improving services on the Catford loop. However, the system is by and large operating at capacity, particularly at peak times in the morning and evening. In fact, it is operating at more than capacity given that many people cannot get a seat on their train.
The key headline indicator for rail performance is the public performance measure, which measures the percentage of services that arrive within five minutes of their timetabled time. From April 2013 to March 2014, the Southeastern network achieved a disappointing PPM score of 89%. That is 3.8 percentage points below the target agreed between Southeastern and Network Rail. I note the point that the hon. Lady made about aggregation, which means that those figures may hide worse performing parts of the network. She mentioned that High Speed 1 has a good punctuality record. That is a good reason why we should be building brand new rail infrastructure in this country. It does not have the same problems, such as those related to bad weather, that we see on parts of the creaking Victorian network.
PPM is the responsibility of Network Rail and the train operating companies, and a failure by one or both will cause the PPM to fall. To assess where the blame for the declining PPM lies, it is necessary to consider performance against the delay minute targets agreed between Network Rail and Southeastern. In general terms, Network Rail is responsible for approximately two thirds of the delay minutes across the UK rail network, with the train operating companies accountable for the remainder.
The performance of Southeastern over the past 12 months was 6% adrift of its cumulative delay minute target. That 6% represents an additional 16,000 delay minutes over its target of 271,000. Network Rail, on the other hand, finished the year more than 50% adrift of its targets, which represents 200,000 delay minutes above its target of 400,000. The results of both Network Rail and Southeastern are clearly influencing the downward PPM trend, with Network Rail’s performance having by far the greatest impact.
What is being done to improve Network Rail’s performance? First, it is important to acknowledge that safety must remain the highest priority. Network Rail’s performance in that regard has ensured that the UK has one of the safest, if not the safest, railways in Europe. That said, Network Rail’s rapidly increasing share of delay minutes shows that its performance has simply not been good enough and must improve.
It would be remiss of us to ignore the impact that severe and unprecedented weather has had on its operational performance, and the inevitable delays that that has caused. Since October last year, the severe weather has led to landslips, flooding and vegetation issues—I presume that that means the wrong kind of leaves—all of which have impacted heavily on the service that Southeastern has been able to deliver. To take one example, passengers using the Hastings line endured closures and disruption between December 2013 and March 2014 owing to multiple landslips. Although it is fair to put Network Rail’s performance into perspective, extreme weather should not be allowed to mask underlying issues and risk factors that could have been controlled or at least mitigated. In other words, the weather is not an excuse for everything.
Southeastern recently referred Network Rail to the Office of Rail Regulation to highlight its poor performance with regard to trees on the track, landslips and engineering possession overruns. The ORR held a formal review of Network Rail’s performance in March in the presence of Southeastern and Network Rail’s senior management teams. At the review and in subsequent communications, Network Rail accepted that performance on the Southeastern network had fallen below acceptable levels of late, and it has provided assurances that performance will be improved—
Mr Goodwill
Encouragingly, Network Rail has already reviewed its management of engineering possessions and taken action to implement new processes designed to overcome identified weaknesses in planning and delivery.
Although Network Rail’s recent performance on Southeastern’s network has been unsatisfactory, investment through Network Rail has not been neglected by the Government. In control period 5—2014 to 2019—Network Rail will deliver a £38 billion programme to help transform the busiest parts of Britain’s rail network. That programme takes forward the plan set out by the Government in their rail investment strategy published in 2012.
Southeastern is currently performing within its contractual benchmarks for “cancellations”, “train capacity” and “delay minutes”, and has done so for the duration of its franchise. The Department monitors those benchmarks regularly and, in the event of a breach, swift and appropriate action will be taken. The hon. Lady raised Southeastern’s compensation scheme and overcrowding at the last debate in February. I shall now deal with those points in turn.
On passenger compensation, Southeastern’s official compensation scheme is called Delay Repay. Under Delay Repay, all passengers are entitled to claim compensation for each delay of more than 30 minutes, whatever the cause. There are no exclusions for delays outside the control of the train operator, such as those caused by Network Rail, or even outside the rail industry, such as those caused by vandalism or cable theft. Delay Repay is more generous than the previous compensation regime, and allows compensation to be claimed as follows: 50% of the single fare for delays of 30 to 59 minutes; 100% of the single fare for delays of more than 60 minutes; 100% of the return fare for delays of more than two hours.
Southeastern has paid out millions in Delay Repay compensation over the past 12 months, dwarfing payments made the previous year and showing increasing passenger awareness. It is certainly a way of concentrating the operator’s attention on shortcomings in that area. In addition, given the ongoing disruption on the Hastings line, and in recognition of the loss of service to season ticketholders, Southeastern decided to compensate those passengers with £50 Marks and Spencer vouchers. When the line opening was again delayed owing to a further landslip, Southeastern chose to further compensate season ticketholders with cheques ranging from £100 to £250. Those were commendable actions by Southeastern that it was not contractually required to make.
Overcrowding is a persistent issue on that and other lines, and from the passenger counts it collects, Southeastern is aware of services that are over-capacity and require strengthening. The Department encourages train operating companies to increase train length on overcrowded trains where it can reasonably do so without causing greater problems elsewhere on the network. Until additional rolling stock is introduced, increasing capacity will depend on Southeastern’s ability to deploy effectively its rolling stock to meet demand.
I am aware that Southeastern is looking into the possibility of running 12-car trains in the London metro area, but that is subject to the successful completion of power supply upgrades, as well as ongoing work to ensure the safe deployment of driver-only operation at stations. I understand that Southeastern is working with Network Rail to resolve those issues as a matter of priority. On additional rolling stock, we are in discussions with Southeastern to determine whether an affordable solution exists to augment its fleet by the end of 2017. Those discussions are ongoing, as part of the direct award negotiation.
The hon. Lady will know that the Department is currently negotiating a four-year direct award contract with Southeastern from October 2014, in accordance with the re-franchising programme. Those points will be familiar following her debate in February, but I consider the enhancements to be of considerable benefit to passengers and worthy of repetition. The new Southeastern franchise has been purposefully designed with customer satisfaction at its core. For that reason, an innovative performance regime has been included, which contractually requires operator-funded investments where National Rail passenger survey targets are not met. In addition, a financial incentive regime will be linked to the standard operator benchmarks of “delay minutes”, “cancellations” and “train capacity”. Attaching financial reward to customer satisfaction and operational performance is an essential element of the new franchise. This is designed to drive passenger benefits and, ultimately, continued strong growth in rail travel.
Heidi Alexander
By which date will 12-car trains on the Southeastern network call at any station in my constituency in the morning rush hour?
Mr Goodwill
As I said, discussions are ongoing, so I cannot give the hon. Lady a precise date. I hope that she will be reassured that it is an issue of great importance to the operator. Given the incentives, and the penalties that non-performing companies will incur, it is in the company’s interests to improve services and meet those key performance indicators.
Making performance more transparent is a further key aim of the new franchise. While Southeastern currently reports an average public performance measure by monthly period, in the new franchise it will be required to publish PPM data by route, in addition to its overall PPM average, which answers the point the hon. Lady made about individual performances being masked by the best performing services such as HS1. We will also be discussing with Southeastern what other information can be published about customers’ experience of using its services. I hope that she will engage with that process and let Southeastern know which indicators she wants it to focus on. I suspect that overcrowding is probably the issue that most affects customers after delays. There is compensation for delays, but that does not help customers in overcrowded trains, especially in bad weather.
My expectation is that increased transparency will help passengers make better informed travel decisions, as well as allowing the operator and Network Rail to target improvement strategies on the worst performing routes. Greater transparency will also enable the Department to challenge more effectively the operator’s delivery.
The hon. Lady mentioned the platform 4 gate at Lewisham station. I have to admit that I was not aware of that problem, which is due to engineering works, but I will certainly look into it and see that it is addressed. She also touched on the extension of the contract through direct award. As with all direct awards, this is a necessary step to achieving a manageable and deliverable franchise schedule for both the market and the Government. We continue to monitor the performance of Southeastern very closely.
Southeastern’s operational performance has been relatively good in the last 12 months, although it remains 6% off its delay minute targets. For the first period in the new rail year, it is ahead of its targets. Southeastern continues to work with industry partners Network Rail to improve performance for passengers, and has recently called and attended a formal review of Network Rail’s performance.
The massive investment being made by the Government in the Thameslink programme will improve services for the whole of the south-east of England, with 40% more capacity on services between Sevenoaks and the Thameslink core, via the Catford loop. However, in the short term, the Thameslink programme will cause significant disruption at London Bridge station. We believe that certainty of ownership and a stable partner will help better to manage the services for passengers during this period.
In summary, operational performance has declined sharply on the Southeastern network since October last year, and I agree that this is not acceptable. I expect to see improvements now that the Office of Rail Regulation has conducted its formal review, and Network Rail has provided commitments to Southeastern. There is also room for improvement in Southeastern’s performance, given that it was 6% off its delay minute targets by year end in March 2014. It has, however, made a strong start to the new rail year, with delay minute performance for the latest period in April ahead of target.
I hope that, by outlining some of the Department’s plans for the four-year direct award period, I have shown that the Department is committed to driving real improvements in transparency, performance and customer satisfaction. I am grateful to the hon. Lady for her continued interest in the Southeastern franchise, and for bringing this debate to the attention of the House.
Question put and agreed to.