Passenger Railway Services (Public Ownership) Bill

(Limited Text - Ministerial Extracts only)

Consideration of Commons amendments
Wednesday 20th November 2024 Lords Chamber

Moved by

[Lord Hendy of Richmond Hill]

That this House do not insist on its Amendment 1, to which the Commons have disagreed for their Reason 1A.

1A: Because the proposed purpose clause is unnecessary.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, in moving Motion A I will speak also to Motion B. I am grateful for the collaboration and engagement up to this point on the Bill, which is a critical step towards our manifesto commitment of reforming our fragmented railway system. This system has cost taxpayers and passengers dearly in huge fees paid to private operators and in the delays, cancellations, overcrowding and poor service that passengers have endured for far too long. There is a strong public desire for public ownership. In September, a YouGov survey found that 66% of people nationally agreed that railway operations should be run by the public sector and only 12% favoured private operation. I hope that the House can agree that we need to pass this Bill and move on to the critical work of the next one.

Motion A is about the purpose clause proposed by the noble Lords, Lord Gascoigne and Lord Moylan. I completely agree that public ownership and wider reform should be guided by a clear purpose, with users of the railway placed at the heart of that purpose. Turning specifically to Motion A1, tabled by the noble Lord, Lord Gascoigne, I was disappointed to see that the noble Lords were insisting on this, despite the overwhelming majority against it in the other place. This is not in keeping with the collaborative approach that I hoped we were taking to the Bill in this House—and quite an unusual approach for this House to take as well.

The Government have already set out the purpose of public ownership and wider reform in our policy document Getting Britain Moving. This identified six objectives. People can see what they are and can hold the Government to account on delivering against them. These objectives are already at the heart of our decision-making. For example, my right honourable friend the Secretary of State and I have met the worst-performing train operating companies and their Network Rail counterparts and have demanded that they do better for passengers, right now. We have brought to an end long-running industrial disputes that inflicted misery on passengers. We have convened Network Rail and train operators to work together to tackle overcrowding at Euston and provide a better service for passengers. We have made new commitments about accessibility, following debates in this House, and we have pledged to increase transparency by publishing train performance data at stations. So there is no need to place a purpose on the face of the Bill—especially one that tells only part of the story.

I also remind noble Lords that during the previous Government’s 14 years in office, they never felt the need to legislate to impose this new statutory purpose on the Secretary of State, either in relation to the privatised railway or to the train operations that they chose to keep in public ownership for years—one now for six years—with no sign of a plan to return them to the private sector. However, I agree with noble Lords on all sides of the House that we must ensure that the future Great British Railways will have a clear purpose. In consulting on our wider reform plans, we will restate our objectives for the railway and its purpose. I assure noble Lords that delivering a reliable, punctual train services will be a prominent part of that purpose, as it already is.

I urge the House to support Motion A for two reasons. First, the purpose clause is unnecessary: we have already set out our objectives for the railway; we are already acting to achieve those objectives; and we are ready to be held to account for whether or not we deliver against them. Secondly, we will ensure that we set out a similarly clear purpose for Great British Railways in the forthcoming consultation.

Regarding Motion B, this House will be aware that Amendment 2 was rejected in the other place on the grounds of financial privilege. The Government understand the calls for the worst-performing services to be brought into public ownership first. But Amendment 2 was not the right approach. Its effect would be to delay the transfer of services into public ownership and so require taxpayers to continue to foot the bill for millions of pounds in fees for longer than necessary. Instead, the Government’s approach is the right one, and I am grateful to the noble Baroness, Lady Randerson, and her noble friends for recognising this in previous debates.

We have made it clear that where the contracts we have inherited from the previous Government allow it, we will bring failing operators’ services into public ownership as soon as we can. There is sufficient flexibility in the existing contract expiry dates to allow us to do that without overwhelming the public sector operator. Beyond that, we will bring services in-house as existing contracts end. This will avoid paying compensation for early termination and will avoid delaying the benefits of public ownership, as Amendment 2 would have done.

I urge the House to support Motion B so that the Government can get on with delivering the benefits of public ownership in accordance with the very clear mandate on which they were elected. I beg to move.

Motion A1 (as an amendment to Motion A)

Moved by

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[Lord Snape (Lab)]

And perhaps learned; that is another point.

The fact is that these are delaying tactics by the party opposite. I am amazed that the Liberal Party should want to be associated with this amendment. It is contrary to custom and practice in this place—not that I am a great one for adhering to the rules, necessarily.

This is a meaningless amendment, putting a duty on the Secretary of State which he already has. What Secretary of State wants to do anything other than improve the railway system? I mean, he did not always succeed, though it might have been well-meant during the time of the party opposite, but certainly the Secretary of State’s intention at that time—at any time—would be to improve the railway system. It really is not necessary to add such a clause to this Bill. I would be grateful if my noble friend treated it with the contempt it deserved.

[Lord Hendy of Richmond Hill (Lab)]

I thank all noble Lords who have taken part in this debate. I will address just a few points.

I very much agree with the noble Lord, Lord Moylan, and his description of the previous Government as being dilatory. It is six and half years since the timetable went wrong in the north-west of England and on Thameslink, in May 2018, and nothing really has been done. The railway is suffering and its passengers are suffering, and something needs to be done about it. I have referred to this before but, at some speed, we will be consulting shortly about the content of the wider Bill to reform the railway. I think that differentiates this Government and the speed at which they choose to operate.

On Motion A, I want there to be no doubt that this Government will undertake reform with a clear purpose and direction. As published in Getting Britain Moving, our objectives are set and are more ambitious and wide-ranging than the proposed purpose clause. We want to see reliability, affordability, efficiency, quality, accessibility and safe travel as the DNA of our railways—the foundational values that drive reform and deliver on what passengers expect. Public ownership will be the first step in ensuring better services, by placing the passenger front and centre as we rebuild public confidence, trust and pride in our railway.

I listened carefully to the noble Baroness, Lady Randerson, on the commitment that passengers should be at the core of the future of the railway. In that respect, the wider railways Bill is a different matter. It will establish Great British Railways as a new body at arm’s length from government, which will not be directly accountable to the electorate in the same way as the Government are. In that context, it is essential that the railways Bill should clearly set out two things.

The first of those is the functions of Great British Railways—what it is actually going to do. The second is what Great British Railways is supposed to achieve by exercising those functions—in other words, its purpose. I can absolutely confirm to your Lordships’ House today that the forthcoming railways Bill will set out both of those things, and that delivering improvements for passengers and maintaining high standards of performance will be a crucial part of its purpose. I will be more than happy to engage with the noble Baroness on how we express that in the Bill.

I urge your Lordships’ House to support the Government’s Motion A and to reject the amendment in Motion A1, tabled by the noble Lord, Lord Gascoigne, for two reasons. First, it is unnecessary, because the Government have already set out our objectives for the railway, we are already acting to achieve those objectives, and we are ready to be held to account on whether we deliver against them as we transfer the services to public ownership under this Bill. Secondly, as I have just assured the House, we will ensure that the railways Bill sets out a clear purpose for Great British Railways.

With regard to Motion B, the Government simply cannot accept an amendment that would delay reform, therefore going against the wishes of the electorate, and which would place additional cost on the taxpayer. We will use every tool at our disposal to resolve poor performance, including contractual termination rights, where they are triggered.

On the Bill itself, public ownership is not only the will of the voters but the right step towards bringing an end to years of fragmentation. Tens of millions of pounds in fees will be saved each year due to public ownership and, with the new direction and focus that this Government are now providing, current in-house operations are already seeing a reduction in cancellations. The evidence that public ownership is the way forward is clear.

On top of this, poorly performing train operators are being held to account, as I described earlier, and with Great British Railways coming further down the line, this Government have shown that we are serious about reform. None the less, improvements are needed now, and the Bill starts that process.

[Lord Gascoigne (Con)]

My Lords, I thank everyone who spoke in this brief debate, particularly the two Opposition Front-Benchers. I thank the noble Baroness, Lady Randerson, for Lib Dem support up to now; I hope that will continue. I am especially grateful to my very good friend, the noble Lord, Lord Snape. It is always a pleasure to hear from him. Before I came into this House, I was told repeatedly that everyone is very friendly, very compassionate, very polite and respectful. Yet, there we are.

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16:41

Division 1

Ayes: 210

Noes: 213

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Moved by

[Lord Hendy of Richmond Hill]

That this House do not insist on its Amendment 2, to which the Commons have disagreed for their Reason 2A.

2A: Because it would alter the financial arrangements made by the Commons, and the Commons do not offer any further Reason, trusting that this Reason may be deemed sufficient.

[Lord Hendy of Richmond Hill (Lab)]

My Lords, I have already spoken to Motion B. I beg to move.

Motion B agreed.