Jerome Mayhew
Q
John Larkinson: That fits again with the idea that things go back to GBR to reconsider; it is all put back in GBR’s court. That is the fundamental design, as I understand it.
The Parliamentary Under-Secretary of State for Transport (Keir Mather)
Q
Jeremy Westlake: I will kick off by bringing us back to the duty that GBR, along with the Secretary of State and the ORR, will have to make best use of the network. Network capacity is constrained, so we have published an access and use consultation document setting out how this would work in practice. First, capacity allocation must be set out so that the market can see what capacity exists and what it might be used for, and to reserve capacity for those uses. Clause 63 then deals with how GBR will prioritise its services. The first duty is to allocate capacity for best use. Clause 63 kicks in later to define how GBR will actually do that. You define best use first.
Keir Mather
Q
Jeremy Westlake: First of all, the Bill contains a provision for rail freight growth. That is set out already by Government, and I think the Transport Committee and the rail Minister have set out how that will still be a target. We will therefore have a duty to grow rail freight, and rail freight will then fit within the capacity allocation processes. We are actually doing a lot of work, as it stands today, to make sure that we are promoting rail freight growth, including how you might discount the charges for access to the network to encourage new freight flows, or invest in freight infrastructure and the like.
Keir Mather
Q
Jeremy Westlake: First of all, I think it is well set out. When you look at how GBR will fulfil its functions, it will do that with regard to long-term strategies for rail, and I think those will set out various roles as well. Personally, I think the balance is about right; you actually want to have multiple consultations and checks and balances in the system, so I think it works.
Baggy Shanker
Q
Jeremy Westlake: On the first one, about being an effective system operator, in principle, yes. What the Bill intends GBR to have to do will also require it to grow its capabilities in these areas, particularly in how it does capacity allocation. So the Bill has the intent, but GBR will need to develop key capabilities to fulfil it.
Alex Hynes: It is probably worth saying that one of the benefits of the system envisaged by the Bill is that Great British Railways, the ORR and Ministers will work to a set of aligned duties. The creation of alignment across all industry parties is an important part of the Bill, and those duties are essentially the criteria that we will use to make decisions in the future. One of those key duties is to promote the interests of passengers, including disabled passengers, and of course the interests of passengers include affordability—the price paid by passengers. I therefore think that we will see a more coherent decision-making process for the railway. The key policy intent here is the creation of a directing mind—under public ownership—for the railway, and the Bill sets out how we will do that.
The Chair
We have two minutes and 30 seconds left if anyone wants to creep in and get a response to any further questions.
The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)
Q
Alex Hynes: Yes is the short answer, because the current consumer landscape in rail is fragmented. Transport Focus, the Rail Ombudsman and ORR each have a role. The Bill creates a single watchdog for passengers that has more power and resources. My understanding is that MPs will be able to refer matters to it. Essentially, it puts all the passenger-facing consumer obligations into one organisation and strengthens the accountability that Great British Railways will be subject to in the event that it delivers sub-standard service.
Lilian Greenwood
Q
John Larkinson: From our point of view, some of the things that we do now will transfer over to the passenger watchdog. That is a straight transfer. The Rail Ombudsman is a contract that we let. Effectively, in the future, that contract would move over to the passenger watchdog—that is very clear. When the passenger watchdog finds a problem and wants that problem resolved, and cannot resolve it with GBR, the enforcement role is with us. The Bill effectively aligns enforcement in a number of areas through us, through the licence. That will be done through the licence, so that provides a very clear role when the passenger watchdog wants to move something across. There will be a process to deliver that and we are working with the watchdog on how that will work in practice.
Lilian Greenwood
Q
John Larkinson: When it comes to some decisions that are on the way, there will still have to be a balance—
The Chair
Order. I am afraid that we are at the end of the time allocated for the Committee to ask questions. On behalf of the Committee, I thank the witnesses for their evidence.
Examination of Witnesses
Keith Williams and Richard Brown gave evidence.
Jerome Mayhew
Do you think they have the balance right here? How do we drive value for money for taxpayers given those very significant constraints on competition?
Richard Brown: Yes, I do. I think the balance is right. Putting everything together into GBR makes it the single directing mind. It will be up to GBR and its integrated business leaders to strike the balance and deliver better value for money. There is a lot of duplication and friction in the current system, which I think is one of the things that Keith Williams was highlighting in his review.
The accountabilities are very strong with this Bill. GBR is accountable to the Secretary of State, but is also regulated and overseen by the ORR and the passengers’ council, and has a responsibility to mayoral authorities. First and foremost—I think this featured in the previous discussion—the integrated business units and their CEOs, or whatever they are called, will be accountable to their local towns, communities and passengers. There are strong pressures and forces created with this Bill to actually deliver value for money for taxpayers, as well as for passengers.
Keith Williams: Can I add one thing, there? Even in my time on the review, one of the things that started was bringing track and train together again. That allowed cost simplification, but it also enabled GBR to get a full picture of the revenue and costs of running the railway, which previously did not exist. It was surprising to me, on the review, that getting the costs together was an enormous exercise and a bit of guesswork, because the costs were in so many different areas.
Keir Mather
Q
Keith Williams: It is a great question, because that, to me, was fundamental to the better running of an integrated transport system. I was listening to the earlier questions, and the advantages of bringing in the mayors and local authorities are twofold. First, there is deciding what the appropriate mechanism for running transport is in their area. I visited Manchester, where you have light rail, heavy rail and buses, so you need to make a decision as to which you are going to promote. In my opinion, that was better done at a mayoral level than a central level. That is one aspect.
The second aspect is integration. We looked at systems overseas and—guess what?—you find that the bus comes to the station, the train starts and then stops. That did not exist in the UK, and bringing the mayors and local authorities into that decision making was hugely important for running an integrated system.
Olly Glover (Didcot and Wantage) (LD)
Q
Richard Brown: I think the Bill talks about a 30-year strategy and the Secretary of State having responsibility for producing that. There will be a degree of evolution, because when you are running an organisation, you need to be the person who is, if you like, giving birth to the strategy, in very close collaboration with your shareholder—if this was a business. The Secretary of State’s strategy will set the long-term objectives about what the Government wish to see the industry do, and then it will be up to GBR to produce the business plans, whether you call them business plans or more detailed strategies, about how it is going to deliver that. I am quite sure that, putting everything together, there are plenty of people in the industry who desperately want to produce a longer-term strategy for rolling stock procurement, electrification and reducing carbon impact, and they are frustrated that it is very difficult to do it now because of the range of parties involved.
Keith Williams: I come from the airline world, and the problem there is that you buy an aeroplane and it lasts for the next 30 years. Rail is very similar: you operate the rolling stock, and that is a long-term decision. I was surprised that decisions were set over five-year periods, because the decisions that you make today partially define the future for a much longer period than five years. Again, a problem of running an airline is that you order the aeroplanes and unfortunately the market declines because of economic factors, commercial factors or whatever. You are therefore taking long-term decisions—that is not wrong—but within those you sometimes have to change direction because of the situation that exists at the time. The classic example of that in rail is franchising: franchising worked while the railway was growing, but once it went ex-growth, franchising came under pressure, and then obviously more pressure when covid arrived.
Jerome Mayhew
Does anyone else on the panel disagree with that assertion?
Michael Roberts indicated dissent.
Lilian Greenwood
Q
Alex Robertson: You are right that we are introducing a new duty and that that is extremely important in terms of accessibility. The general point I would make is that it is important that Parliament and the Government set out their intent in the legislation. How that is enacted and delivered will depend on a lot of things that are not in the legislation, such as the culture of the railway and how disabled passengers are engaged in the co-creation and delivery of it. As the passenger watchdog, we are very conscious that we have a duty to make sure that we do that as well. It is a definite step forward, but whether it delivers on the ground for disabled passengers in the way that is intended depends on a lot of things that are yet to come.
Emma Vogelmann: An important consideration is the Transport Committee’s finding that the reason accessibility standards are failing and disabled people are having really negative transport experiences is that there are no statutory obligations. I completely agree that the Bill is a big step forward, but the duties themselves are very vague and do not necessarily at this point look at enforceable rights and corporate actions.
Ben Plowden: It is welcome that there is a duty to promote the interests of passengers and disabled people in the Bill. We think there is a case for strengthening that duty so that it aligns with the duty in relation to freight, which is to promote the use of the network for passengers and disabled passengers. There should also be an equivalent duty on the Secretary of State to set a passenger growth target, as she is required to do in relation to freight, so that, as we picked up on a minute ago, GBR does not end up being incentivised not to grow the network in order to meet its crowding and reliability duties, for example. It seems to us that giving it a statutory incentive to increase passenger use over time would be very helpful to build on the existing duty in the Bill.
Lilian Greenwood
Q
Alex Robertson: Yes, definitely. We are already in dialogue with the ORR about its change in responsibilities and the transfer of functions from it to us. We will put in place an MOU to make sure that works in practice. We are comfortable with it. As you will have heard from the earlier panel, it aligns very well with our general consumer functions, which I think makes sense. Having one single enforcement body on the licence in the new system also makes sense.
Olly Glover
Q
Emma Vogelmann: In the Bill now, the power is very much centralised with the Secretary of State. We feel that there is already a lack of sufficient safeguards in place to make sure that accessibility does not become beholden to political will and the discretion of the Secretary of State. The Bill as drafted depends too heavily on discretion, future strategies and changeable licences. We want to make sure that the accessibility considerations and requirements are meaningful and enforceable and do not leave disabled people politically vulnerable.
Michael Roberts: For my part, rather reiterating my earlier comments, what is important is the expression of what GBR wants to achieve in accessibility, which is not necessarily to be written on the face of the Bill but should be part of the long-term rail strategy or the business plan. Alongside a duty, however it is expressed in the legislation, there must be some clear milestones and outcomes to which GBR aspires—for example, a milestone for the proportion of stations that should have step-free access by a certain point in time, as the Mayor of London and TfL currently have in the capital, or aspirations for the quality of provision of passenger assistance. There has been a rapid increase in the demand for that sort of service by mobility-impaired passengers, but the level of resource has woefully fallen behind the need. Expressing the stepping stones to a truly more accessible railway in strategic documents needs to go alongside the duty, however it is expressed.
Alex Robertson: I agree with Michael about the important milestones. We need to see real shifts in the ambition on accessibility. One of the other things that has been mentioned is that we will have the ability to set the consumer standards for accessibility. Alongside taking over sponsorship of the Rail Ombudsman, I want to see a really good, strong set of standards on which we would consult and engage with disabled passengers. If they were not complied with, they would be passed to the ORR for enforcement.
On complaint handling, at the moment, if you have a failed passenger assist, it is possible for some of the train operating companies to refund you only the price of your ticket, and not compensate for the distress and inconvenience that caused you. That is completely wrong. We would be in a position where that could be looked at properly and changed, so we could take an individual’s complaint and get better redress for them, but also use it to identify systemic issues that might be affecting other people as well. It puts us in a stronger position to do all those things.
Ben Plowden: It is not clear to us that the Bill gives GBR a sufficiently strong incentive to increase accessibility over time, in the same way that it does not give an incentive to increase passenger use over time. One issue might be whether you could amend the Bill to require an increase in accessibility over time to be determined through the other documents that the Government and GBR will produce.
Michael Roberts: I want to pick up a point that Transport for All made separately on the public sector equality duty, which GBR will be obliged to fulfil. The observation from Transport for All is that the impact of that duty is felt retrospectively and depends on disabled members of the travelling public challenging a failure in service when they find it. There might be some merit in the industry—GBR, ORR—co-creating a definition of what the exercise of that duty feels like in practice. That should be up front, as part of the strategic documents against which GBR will be held to account, with the passenger watchdog monitoring and the ORR enforcing.