The Parliamentary Under-Secretary of State for Transport (Paul Maynard)
It is a pleasure to serve under your chairmanship, Madam Deputy Speaker.
I congratulate the hon. Member for Liverpool, Walton (Dan Carden) on securing the debate, and also on delivering his thoughts in such a cogent and well-balanced way. I am pleased to see that so many Members from both sides of the Mersey and, indeed, slightly beyond it are present this evening: I think that that demonstrates the importance that so many in the Mersey area attach to the issue. I suspect that I am not the hon. Gentleman’s whole intended audience, and I am sure that many more will pay attention to it in the area of the city region.
As I am sure all Members know, Adjournment debates give Members worthwhile opportunities to raise important constituency matters, and the hon. Gentleman has certainly done that this evening, but he will probably not be surprised to hear me say that their value can be weakened when the issue under discussion falls not just without the jurisdiction of the responding Minister, but without that of—in this instance—my Department.
Since 2003, matters concerning Merseyrail have been entirely devolved, and have been the responsibility of the transport authority, Merseytravel, and the train operator itself. Although that prevents me from commenting directly on many of the points raised by the hon. Gentleman, I will do my best to give him a worthwhile response that deals with the broader issues that he has raised. Sadly, tempted though I am to try to engage with his wider points about Labour party policy, time probably does permit me to explain fully why I think that the idea of a state monopoly should fill every single passenger with nothing but dread.
Paul Maynard
Given the lack of available time, it is only fair that if there are interventions, I should devote my responses to the hon. Member for Liverpool, Walton. He can choose the moment at which to launch his salvo in my direction, but I suspect that divergence will increase as my speech proceeds.
Merseyside in particular has experienced the value of the public-private partnership that has driven the renaissance in passenger rail services since 1996, but before I say more about Merseyrail in particular, I want to take a minute to look at the bigger picture.
Just a few weeks ago, we published our rail spending commitments for the period up to 2024: £34.7 billion of public investment in our railway plus £13.2 billion from private sources including network charges and fares. This carries into another decade the greatest investment in our railways since the time of Queen Victoria. It will deliver improvements in punctuality and reliability for passengers, as well as supporting thousands of jobs in the supply chain and the wider economy. Why are we making this money available? It is for quite a simple reason—because the privatisation of our railways has succeeded. I will never apologise for repeating the statistics. Passenger journeys have more than doubled since 1995. We now have the most improved railway in Europe, and the safest major railway.
As Merseyrail is a devolved concession, key strategic decisions are made at a local level by the Liverpool City Region Combined Authority. Merseyrail holds a 25-year concession, which commenced in July 2003, with the efficient operator reviews undertaken every five years. Merseytravel lets the concession for the Merseyrail network, setting the specification for service provision and the terms and conditions of contract under powers devolved from the Department for Transport back in 2003. The Merseyrail concession is different from most train franchise contracts, which are awarded by the Department for Transport. The only other franchise that is even remotely similar is that of the London Overground network. This local concession agreement has allowed both Merseytravel and Merseyrail to work closely together to respond to local demands and needs. Ultimately, the greatest beneficiaries are the passengers.
The length of the concession—25 years—distinguishes Merseyrail from many other train operating companies, whose contracts average between seven and 10 years. For this reason, Merseyrail and Merseytravel are in the enviable position of being able to take a long-term perspective on the investment and development of their rail services. This arrangement means that control of the concession rests wholly within the city region, ensuring strategic direction and leadership with a strong local focus and ensuring that developments fit with the city region’s prioritised requirements embedded within the wider long-term rail strategy that it has developed itself. The nature of the concession sees Merseytravel working in close collaboration with Merseyrail, directly addressing local demands for the ultimate benefit of passengers.
When the previous franchise ended back in 2003, local politicians quite clearly wanted to respond to the needs of the rail users much better, and to implement changes that would improve the network for the benefit of customers and support the growth of the city region economy. They wanted a longer-term partnership approach with the operator to enable ongoing investment programmes to continue with risk being shared. This led to a highly demanding specification based on customer requirements and the needs of the local economy. Following a robust procurement process, 2003 saw the transfer of responsibility for the Merseyrail Electrics heavy rail franchise from the then Strategic Rail Authority to Merseytravel.
Dan Carden
In my speech, I congratulated Merseytravel on the ability to secure provision of these trains in the public sector, which means that they will be 30% cheaper than if they were bought through private means and private loans. But the one thing we cannot do is have a publicly run rail network across Merseyside because of the legislation of the UK Government. It is okay for Dutch public railways and public railways from other countries to come and run our railways; does the Minister not think that his Government might like to run a railway system sometime?
Paul Maynard
I heard the hon. Gentleman’s point earlier. My response is that that is not Government policy and nor do I ever see it being Government policy while my party remains in power. The opportunity to have a public monopoly on our railways may be in the interest of the Labour party, but it is not in the interests of passengers.
The agreement with Merseytravel is worth hundreds of millions of pounds. Indeed, the grant for 2017-18 alone is close to £82 million. This framework gives the transport authority the confidence necessary to plan major long-term investments. That is why the quality of train services, stations and the whole experience of travelling on the Merseyrail network have been transformed since 2003. Indeed, Merseyrail has to be seen as an exemplar for the value of devolution and for local decision making where that is appropriate and practical.
On the day of devolution, Merseytravel rightly stated that its ambition was to shed the label “Miseryrail” by putting passengers first. Within a year, the first results of this transformation were apparent. Passenger satisfaction was up, particularly in relation to punctuality and the way in which passenger requests were handled. By autumn 2004, Merseyrail was top of the national customer satisfaction league for the first time in its history, and since 2008, satisfaction has never dropped below 90%.
A major contributor to this success story has been the collaborative partnership between the operator and Merseytravel within a concession agreement that also sets out a demanding service specification. The flexibility of local control has allowed both parties to develop a stream of initiatives to increase capacity, to tailor fares and services to local markets, to enhance trains and stations—such as Liverpool South Parkway, which I know well—and to improve punctuality.
Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
I hope that the Minister will respond to the point made by my hon. Friend the Member for Liverpool, Walton (Dan Carden) about the £32 million cut in central Government funding for Merseytravel, which is forcing it to make decisions that it would not want to make if it had the funds available.
Paul Maynard
As I have said, we have committed £82 million in this calendar year, which will give Merseytravel the confidence to make investments in rolling stock. It can choose how to invest that money. I think that Labour Members would be deeply disappointed, or indeed apoplectic, if I were to start questioning the decisions of the elected city Mayor of Liverpool or of the city region Mayor. The point of devolution is that local people have to take these decisions, through their representatives, and that is what they are doing.
The investment that we have made facilitated the operation of longer trains in 2008 and the doubling of Liverpool to Chester services in 2010. In 2014, Merseyrail also invested £3 million to make a second fleet refurbishment possible. Those are all examples of investment occurring in Merseyrail. Indeed, Merseytravel and Merseyrail have regularly jointly funded extra late-night trains during special events and trains on Boxing day, and this approach has been a great success. Passenger demand has consistently exceed targets. It has grown over 30%, from 27 million passengers a year to well over 35 million now, and it is approaching the point where the current train fleet, one of the oldest in the UK, will need the £460 million investment in new trains that will be rolled out for passengers by 2020.
In closing, I hope that I have been able to demonstrate how the public-private partnership between Merseytravel and Merseyrail has helped to transform rail services in Liverpool over the past 14 years, and that there is no reason to suspect that local politicians in Liverpool are unable to take decisions in the interests of their city region.
Paul Maynard
Given that I have a short time left, it would be churlish of me not to give way.
Ian Mearns
The Minister is not addressing the issue of having a second safety-critical person on the train. This applies not only to Merseyrail but to franchises around the country. He should have a clear position on the presence of a second safety-critical person on the train.
Paul Maynard
The topic of our discussion tonight is the presence of guards on Merseyrail trains. As Labour Members will know, they have a multiplicity of local Labour politicians to discuss this matter with, including the chair of Merseytravel, the elected city Mayor in Liverpool and the elected city region Mayor, all of whom have stood behind this decision. If we truly believe in devolving transport powers, we have to respect the decisions that are taken.
Let me restate my congratulations to the hon. Member for Liverpool, Walton on securing the debate. I am sure that he has had a ready audience across Merseyside for his comments—as I have said, I am sure that I was not the intended audience for those comments—and I am sure that the discussion will continue among his colleagues around Merseyside. We will monitor with interest what occurs.
Question put and agreed to.