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The Committee divided: - Ayes: 2 / Noes: 11 - Question accordingly negatived.
The Committee divided: - Ayes: 6 / Noes: 11 - Question accordingly negatived.
The Committee divided: - Ayes: 6 / Noes: 11 - Question accordingly negatived.
The Committee divided: - Ayes: 4 / Noes: 11 - Question accordingly negatived.
The Committee divided: - Ayes: 6 / Noes: 10 - Question accordingly negatived.
The Committee divided: - Ayes: 6 / Noes: 10 - Question accordingly negatived.
The Committee divided: - Ayes: 6 / Noes: 10 - Question accordingly negatived.
The Committee divided: - Ayes: 6 / Noes: 10 - Question accordingly negatived.
The Chair
Before we begin, I remind Members to switch electronic devices to silent. Tea and coffee are not allowed during the sittings. The selection and grouping document shows the way in which the amendments and new clauses have been arranged for debate. Any Divisions on amendments and new clauses will take place in the order that they appear on the amendment paper.
Clause 15
Rail strategy
Amendment proposed (27 January): 134, in clause 15, page 8, line 18, at end insert
“for the next 30 years for”.—(Olly Glover.)
This amendment would ensure that the rail strategy set out in Clause 15 must cover a 30-year period.
Question again proposed, That the amendment be made.
The Chair
I remind the Committee that with this we are discussing the following:
Amendment 137, in clause 15, page 8, line 21, at end insert—
“(c) the support given to rural communities in accessing rail travel, and
(d) the co-operation with relevant local and regional transport authorities for greater integration between trains, buses, trams, cycling, walking and other active travel options.”
This amendment would require the rail strategy to set out the long-term strategy for supporting rural communities in accessing rail travel and co-operating with transport authorities to integrate travel options.
Amendment 207, in clause 15, page 8, line 21, at end insert—
“(c) the consideration of the national rail network as a whole, and
(d) the development of national and regional integrated timetables including—
(i) any infrastructure enhancements necessary to facilitate such development,
(ii) strategies at a local or regional level to deliver these enhancements in line with the 5-year funding periods; and
(iii) a system of prioritisation of connections between services, taking into account interchange times and overall end-to-end journey times resulting from those connections.”
This amendment introduces a requirement for the rail strategy to consider the rail network as a whole, and the relationship between integrated timetables and infrastructure enhancement to enable such integration.
Amendment 224, in clause 15, page 8, line 21, at end insert—
“(c) the development of rail freight network usage.”
This amendment would require the rail strategy to include developing rail freight.
Amendment 25, in clause 15, page 8, line 21, at end insert—
“(1A) The document issued under subsection (1) must be in force for a minimum of three control periods.
(1B) A control period as set out in subsection (1A) must be no shorter than five years.”
This amendment would require the rail strategy to remain in place for three control periods at a minimum.
Amendment 260, in clause 15, page 8, line 23, at end insert—
“(2A) The rail strategy must include a strategy for level crossings (‘the level crossings strategy’).
(2B) The level crossing strategy must set out an assessment of the impact of level crossings on the economy and community of the area in which the level crossing is situated, for the purpose of reducing disruption caused by level crossings.”
Amendment 261, in clause 15, page 8, line 23, at end insert—
“(2A) The rail strategy must include an assessment the ability of passengers to change between—
(a) main line rail services and branch line rail services, and
(b) rail services and other modes of public transport.
(2B) An assessment under subsection (2A) must consider how to reduce delays and disruption to end-to-end journeys involving a change between rail services, or between rail services and other modes of public transport.”
Amendment 135, in clause 15, page 8, line 25, at end insert—
“(3A) The rail strategy must include an international rail strategy to—
(a) support the development of new international routes,
(b) support operators in introducing and operating any such new routes, and
(c) support new and existing operators in using the Channel Tunnel and London St Pancras High Speed.
(3B) In meeting the objectives under subsection (3A), the international rail strategy must—
(a) consider options to increase rail depot capacity at, and to supplement, Stratford Temple Mills;
(b) consider any enhancements that may be required to conventional rail network in the Southeast of England for the purpose of enabling international rail travel;
(c) consider options for electrification, changes to gauge clearance, and any other alterations to rail infrastructure as may be necessary to increase the potential for increased rail freight to travel via the Channel Tunnel.”
This amendment would require the Secretary of State to include an international rail strategy as part of the Government’s long-term rail strategy. The international rail strategy would specifically look to support new routes and operators, and increase Channel Tunnel and London St Pancras High Speed rail capacity.
Amendment 136, in clause 15, page 8, line 25, at end insert—
“(3A) The rail strategy must include a network electrification strategy to—
(a) require that any new rail lines are electrified, and
(b) set criteria for determining which existing rail lines should be fully electrified, based on current and potential operation of those lines, and set a timetable by which electrification should be completed.
(3B) In preparing the network electrification strategy under subsection (3A), the Secretary of State must take into account the current and potential future—
(a) maximum operating speed of,
(b) average number of trains in an hour using,
(c) average volume of freight transported on,
(d) maximum potential reliability of rolling stock using, and
(e) acceleration requirements of
trains using the relevant lines.”
Amendment 225, in clause 15, page 8, line 32, at end insert
“, and persons wishing to operate services for the carriage of passengers or goods on Great British Railways’ infrastructure.”
This amendment requires consultation with freight operators during the preparation of the rail strategy.
Amendment 213, clause 15, page 8, line 35, at end insert—
“(8) The Secretary of State must lay before Parliament an annual report setting out any progress on the rail strategy.
(9) The report under subsection (8) must be sent to the Transport Committee of the House of Commons.
(10) References in this section to the Transport Committee of the House of Commons—
(a) if the name of that Committee changes, are references to that Committee by its new name, and
(b) if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as references to the Committee by which the functions are exercisable.”
This amendment requires regular reporting to Parliament and the House of Commons Transport Committee on delivery of the rail strategy.
New clause 27—Great British Railways: national rolling stock strategy—
“(1) Within 12 months of the passing of this Act and every subsequent 12 months, Great British Railways must publish a national rolling stock strategy.
(2) Each strategy under subsection (1) must set out rolling stock requirements by operating region and route.
(3) Great British Railways must align each strategy to the infrastructure capacity plan in section 60, the rail strategy in section 15, and each funding period as set out in Schedule 2.
(4) Great British Railways must set out how the strategy is used to inform procurement, leasing and allocation decisions.”
This new clause would require GBR to publish a national rolling stock strategy each year, setting out the expected rolling stock requirements per operating region and route, aligned to current and future planned infrastructure, and aligned to the long-term rail strategy and 5-year funding periods.
New clause 28—Great British Railways: cyber security and technology strategy—
“(1) Great British Railways must publish a cyber security and technology strategy (“the strategy”).
(2) The strategy must set out how Great British Railways will—
(a) use emerging technologies, including artificial intelligence, to innovate in respect of its operations and services,
(b) develop resilience for rolling stock and critical systems in line with industry and international standards, and
(c) increase the use of technology to improve passenger experience and services including—
(i) WiFi access,
(ii) digital ticketing,
(iii) real time information systems, and
(iv) accessibility for passengers with sight or hearing loss.
(3) Great British Railways must publish an annual report describing progress that has been made against the strategy and any challenges that have arisen in delivering the strategy.”
This new clause would require GBR to publish a cyber security and technology strategy, as well as an annual report on progress.
New clause 29—Railway services: Sunday working arrangements—
“(1) Within one year of the passing of this Act, Great British Railways must publish a report on demand for railway services on Sundays.
(2) The report must set out—
(a) current figures for use of railway services on Sundays, and
(b) projected figures if services on Sundays were increased.
(3) The report must identify and set out actions that can be taken to increase demand for railway services on Sundays.
(4) When setting out actions under subsection (3), the report must have due regard to five-year funding periods for Great British Railways.”
This new clause would require GBR to publish a report on current Sunday demand, suppressed Sunday demand, and identify actions to be taken to increase demand for railways services on Sundays in line with the 5 year funding periods.
New clause 54—National signalling strategy—
(1) Within 12 months of the passing of this Act and every subsequent 12 months, Great British Railways must publish a national signalling strategy.
(2) Each strategy under subsection (1) must set out expected signalling renewal requirements by operating region and route.
(3) Signalling requirements as set out in subsection (2) must be informed by the principle that new or renewed signalling will be digital and based on standards set by the European Train Control System.
(4) Great British Railways must align each strategy to—
(a) the infrastructure capacity plan in section 60,
(b) the rail strategy in section 15,
(c) each funding period as set out in schedule 2, and
(d) current and future planned infrastructure including electrification and rolling stock changes.
(5) Great British Railways must set out how each strategy is used to inform procurement, leasing and allocation decisions.”
This new clause introduces a national strategy for digital signalling rollout to create an approach to signalling renewals, enhancements, and interfaces with rolling stock, and to realise signalling safety, capacity, and performance benefits of digital signalling.
Clause stand part.
Edward Morello (West Dorset) (LD)
As always, it is a pleasure to serve under your chairship, Mr Western. I am doing a rapid rewrite as this speech was full of witticisms and pithy things to do with speeches that none of us can remember from earlier this week— or last week; whenever it was. I would like to speak in support of amendments 134, 137, 136 and 213 and new clause 28, all tabled by my hon. Friend the Member for Didcot and Wantage.
Amendment 134 would require the rail strategy to cover a 30-year period. That matters because decisions on electrification, rolling stock, workforce planning and passenger experience simply cannot be made on short political cycles.
Amendment 137 is particularly important for rural constituencies such as West Dorset. Too many rural communities are poorly served by rail and have limited alternatives when services fail. The amendment would ensure that the rail strategy explicitly supports rural access and strengthens co-operation with local and regional transport authorities so that trains, buses, and cycling and walking routes actually connect. No one should miss a bus just because a train arrives three minutes late or wait 40 minutes because timetables were not aligned in the first place—an experience familiar to anyone arriving at Crewkerne.
Amendment 136 would place electrification at the heart of the rail strategy. Electrification is not just about missions; it improves reliability, efficiency and resilience.
Amendment 213 would introduce a vital safeguard, which the Government refused to put in place earlier when they rejected our new clause 26, to prevent Great British Railways from hiding from accountability to those who gave both it and the Secretary of State their power. The amendment would require regular reporting to Parliament and the Transport Committee. The Secretary of State for Energy Security and Net Zero has agreed to provide an annual update to Parliament on how we are doing against our climate and nature targets. I would hope that what is good enough for the Department for Energy Security and Net Zero is good enough for the Department for Transport.
New clause 28 would require a cyber-security and technology strategy. We need to know whether and how GBR will use emerging technologies, including artificial intelligence, to innovate, develop resilience and improve the passenger experience. I know from my work on the Joint Committee on the National Security Strategy under your leadership, Mr Western, that the threats to national infrastructure are real and increasing. We must make sure that our public and national infrastructure remains safe and protected.
At the same time, we continue to campaign for passengers to be placed at the heart of the Bill. They deserve modern, accessible services, reliable wi-fi, real-time information and inclusive design. For these and future technologies to benefit the passenger now and long into the future, we need real investment and real innovation so that we will always have a modern railway planned over the long term.
Edward Argar (Melton and Syston) (Con)
I will be brief, as I know that a number of hon. Members wish to speak.
I can see the intent behind amendment 134 in the name of the hon. Member for Didcot and Wantage, which would ensure that the strategy covers a 30-year period, and I think it is important that one looks to the future. Given our relative ages, I suspect that, notwithstanding any decisions by the electorate, the Minister may be the only person who is still in this place to assess whether the strategy has worked in 30 years’ time. The hon. Member for Didcot and Wantage was right to highlight that a 30-year strategy would set a baseline, but, as with any strategy, it would be right to refresh and, if necessary, amend it every few years to reflect changing externalities or new Government who wish to tweak it in a different direction. I think that is a sensible approach.
Amendment 137 has an important focus on rural transport links. I have four stations in my constituency: Syston, Bottesford, Sileby and Melton Mowbray. Apart from Melton Mowbray and Syston, those stations are in relatively small villages that are served by only irregular buses. The intent behind the amendment, as I understand it, is to not only focus on investment in those rural services, but ensure that there are linkages so that people in outlying villages or elsewhere can access them. I know that my constituents would very much welcome that.
Amendments 207 and 261 focus, in different ways, on interchanges and integrated transport, which are hugely important. The hon. Member for West Dorset rightly highlighted the experience, which I expect many of us and our constituents have had, of landing at a railway station five minutes after the train has gone because the bus service is not integrated in its timetabling.
I gently caution the Minister that a national integrated transport strategy may not be something he wishes to take on himself. If I recall, that was something mooted in “Yes Minister”, and Jim Hacker took on the job, in an episode known as “The Bed of Nails” because it was deemed virtually impossible to win when trying to integrate all aspects of transport strategy. Fond as I am of the Minister, I would counsel him not to take on that role, even if the Bill has the right intent of trying to integrate transport a little better.
Amendments 224 and 225 would rightly require freight services to be considered carefully, and would require consultation with freight operators. Throughout the Committee’s proceedings, we have spoken a number of times about the potential tension between passenger services and GBR’s own services, and the need for freight services to be protected and supported, as well as whether there is an explicit target for freight versus passenger services. Again, I think the amendments are sensible.
Finally, I think new clause 29 in the name of the hon. Member for Didcot and Wantage, which would require an assessment of the need for Sunday services, is extremely sensible, and I hope that others on the Committee will speak to it. I mentioned Sileby station in my constituency. Sileby is a large village, but on a Sunday it has only one bus to Leicester first thing in the morning and one bus back from Leicester in the afternoon. That is the extent of the public transport available to that large and growing village. Constituents have written to me to ask what can be done to better understand the demand for and possible implementation of a Sunday rail service there—even if it is only irregular, running once or twice a day, it would be something—to give them that option, so I know that they would welcome new clause 29.
Rebecca Smith (South West Devon) (Con)
It is a privilege to serve under your chairmanship, Mr Western. I will speak to a few of the amendments and new clauses, including those tabled by my hon. Friend the Member for Broadland and Fakenham, as well as some of those tabled by the Liberal Democrats, because some of their ideas are worth noting.
It is obvious why I would support amendment 224, which yet again seeks to include in the Bill more mention of rail freight. As someone who is keen on looking at how we can use rail, and even sea, for freight, I emphasise the necessity of ensuring that it is a central part of the Bill. The Government speak about wanting to tackle climate change and bring net zero into play, but that will be hampered if the rail freight network is not strongly represented in the Bill. I appreciate that the Minister will say that it does mention rail freight, but we do not feel it is explicit enough, and we want to ensure that we get it nailed into the Bill wherever we can.
Amendments 260 and 261 in the name of my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer) would require the rail strategy to consider local need, in particular in respect of level crossings and integrated transport. That is something that the Select Committee on Transport, which I am a member of, is also looking at. Indeed, we had our first hearing on integrated transport yesterday, and one thing that came across strongly to me was that we should really have been looking at an integrated transport strategy before this Bill was introduced, because how rail and buses—I have had the privilege of serving on Bill Committees on both subjects—slot into such a strategy is really important. Therefore, having something on the face of the Bill that pushes towards ensuring that we have regard for integrated transport is important.
Jerome Mayhew (Broadland and Fakenham) (Con)
My hon. Friend is quite right that we need to look at modal interoperability. Does she agree with my hon. Friend the Member for Runnymede and Weybridge that a level crossing in a conurbation has a negative impact on road use and, in some instances, cuts one side of a town off from the other? Is he right, as I suggest he is, that that should be part of GBR’s consideration?
Rebecca Smith
Yes, absolutely. Indeed, amendment 260, tabled by my hon. Friend the Member for Runnymede and Weybridge, would require the forthcoming rail strategy to have specific regard to level crossings. Fortunately, I do not have anything like what my hon. Friend the Member for Broadland and Fakenham describes, where a level crossing splits an entire town in half, but I presume that the Government will not want to invest in bridges everywhere there is a level crossing, so having at least some regard for level crossings in the rail strategy, and ensuring that one thing does not negate the other, will be essential. I entirely agree with my hon. Friends.
Amendment 137, in the name of the hon. Member for Didcot and Wantage, relates specifically to rural communities, and no doubt it overlaps with amendment 260. Like my right hon. Friend the Member for Melton and Syston, he has highlighted the importance of good rail connectivity in our rural communities. Again, that came up in the Transport Committee’s oral evidence session yesterday: how do we make sure that we are not just weighting the system in favour of urban areas, and make sure that due and serious regard is given to rural communities? My rural community has only one station, and we are keen to see more stations that will serve rural communities, both in my constituency and others. But ultimately, if we really want to see that modal shift away from cars to the railway, we have to make sure that everybody stands a fair chance of accessing it.
I will turn to new clauses 28 and 29, again in the name of hon. Member for Didcot and Wantage. The first is about technology and the need for connectivity on the railway. As somebody who does the right thing and uses my mobile phone rather than Great Western Railway’s wi-fi to connect to the internet—because that is what the parliamentary security people tell me to do—I am entirely reliant on my 4G network to work on the train. I sit there for three and a half hours one way and three and a half hours back, if I am lucky—I have that to look forward to later on today—and I rely on that time to complete my work. I am sat in Bill Committees half of the week, so that time on the train, doing my constituency work and reading in preparation for this Committee, is essential. When there is no decent wi-fi or 4G connection, that is a problem.
I am sure the Minister is well aware of the very exciting pilot that GWR has been doing using Formula 1 technology, which is right up my street, as those who know me well will appreciate. It is excellent. Effectively, it uses that thing no one likes because it technically belongs to that American Musk guy—is it Skylink?
Rebecca Smith
That is it. It still works, though, and provides a very good internet signal.
I suppose that is a question for the Minister: what regard is he giving to such pilots? That might not be on the face of the Bill, but a large part of the population will want to know we have talked about how to ensure that connectivity on Great British Railways is up to date. Connectivity means getting from A to B, but also the ability to work using the internet. I completely agree with the hon. Member for Didcot and Wantage on that point.
I will just briefly speak to new clause 29, on Sunday working arrangements. I have mentioned this already, but those far-flung parts of the country that rely on a possibly hourly service into London that connects all the way through the south-west region need the guarantee of Sunday services. I have to leave at 6.55 am to get here. If I want to get here for an early start on a Monday, I have to leave the night before—if there was no train available, I would lose nearly a whole day just to get to London for a meeting on a Monday morning. It is a privilege to be able to do that, but I would rather not, and more frequent trains would help.
Joe Robertson (Isle of Wight East) (Con)
It is a pleasure to serve under your chairmanship, Mr Western. I want to speak in support of amendment 137, in the name of the hon. Member for Didcot and Wantage, and amendment 261, in the name of my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer). The two amendments attempt to deliver the same thing: better integration between rail and other modes of transport. The hon. Member for Didcot and Wantage is a man of great attention to detail, but it was perhaps a little sloppy of him on this occasion not to include in his list of trains, buses, trams and cycling the word “ferries”. Of course, ferries are fundamental in my constituency; we cannot get off the Isle of Wight without using them.
Olly Glover (Didcot and Wantage) (LD)
The hon. Gentleman is quite right to rebuke me, albeit very politely and gently. I should have worded the amendment in a non-exclusive manner, to make sure that I did not forget any other form of transport. He is right to highlight, as I know he is about to, the critical importance of the integrated transport terminal in Portsmouth harbour for access to and from his wonderful island. There are many other examples of such terminals, including the one in Ardrossan harbour for getting to and from the Isle of Arran in Scotland. I am sure that, if I had had the Government’s resources at my fingertips rather than having bashed away at this over Christmas, I would not have made that error.
Joe Robertson
I thank the hon. Member for his apology, if that is what that was; it is accepted. My argument for integration between rail and all modes of transport, although I will use ferries as a particular example, is important. The Minister is also the Maritime Minister, and is well aware of the specific issues that my constituency faces.
The two amendments seek to deliver integration through strategy. If we think back to the evidence given to this Committee last week by the future Prime Minister who is currently apprenticing as the Mayor of Greater Manchester, he said that integration is essential—and he would know, being in charge of a combined mayoral authority. We are due to get a combined authority for Hampshire and the Isle of Wight, and the amendments can be viewed as mirroring the strategic responsibilities put on combined mayors, who have responsibility for travel and the interoperability of transport connections in their areas.
What the amendments—and particularly amendment 137 —seek to do is ensure that the Minister and the Government also have the responsibility to ensure co-operation. That is explicit in amendment 137, which calls for
“co-operation with relevant local and regional transport authorities”.
The amendments would end situations such as, for example, the one where, if I was to travel home on the 3.30 train from Waterloo down to Portsmouth Harbour station, the train would arrive five minutes after the ferry had departed. I imagine those are frustrations across pretty much every constituency in the land between trains and other forms of transport. If that situation is not addressed in the explicit way set out by the two amendments, it will continue to be a significant problem that will never get dealt with. Giving more attention and powers through the Bill will help to deliver improvements even for modes of transport, such as Isle of Wight ferries, that are not regulated by the Government and where they do not have explicit and express powers.
Laurence Turner (Birmingham Northfield) (Lab)
The Transport Act 1981, which privatised British Rail’s ferry operations, including the Sea Link service to the Isle of Wight, contained no passenger interest provisions of the type contained in this Bill. Does the hon. Member agree that such an omission was an oversight and an historical missed opportunity?
Joe Robertson
I do. It is not difficult for me to agree and accept that the way Wightlink, which was part of British Rail, was dealt with was more than a missed opportunity; it was a bad decision. Locally, I work cross-party with the hon. Gentleman’s colleague, the hon. Member for Isle of Wight West (Mr Quigley) on that.
This Government have an opportunity. I thank the Minister for the work he is doing and I hope he will be prepared to intervene in a way no Government have done. There are clearly opportunities to make small improvements to the Bill, and accepting the amendments would do that not just in my constituency, but in others. I will leave the Minister with a question: if he does not support the amendments, how else might he use powers in the Bill, or would he be prepared to introduce amendments of his own, to improve connectivity for other modes of transport that do not have any formal regulation?
The Parliamentary Under-Secretary of State for Transport (Keir Mather)
Good morning, Mr Western. It continues to be a pleasure to serve under your chairship.
I thank right hon. and hon. Members for their contributions and for the clarity and succinctness with which they delivered them. I am afraid I will not be able to follow in their footsteps when responding to what is a chunky group of amendments and new clauses, so they will have to bear with me for this section of our deliberations. Clause 15 has been of considerable interest to members of the Committee and to the rail industry more generally, as we heard during oral evidence. I am thrilled that so much enthusiasm is being expressed for the strategy both verbally and in amendments, each of which I will now address.
Amendments 134 and 25 relate to the timing of the strategy. Amendment 134 would require the strategy to be set for 30 years. The Government have already confirmed that the strategy will cover a 30-year period. Setting that in legislation, however, is inflexible and unnecessary. Although the Government’s ambition is for a 30-year-long strategy, we need to provide for the ability to make reasonable changes to that term when needed.
Amendment 25 would remove the ability for the strategy to be amended within a 15-year period. That would fundamentally limit the railway’s ability to respond to unforeseen circumstances such as the covid-19 global pandemic. I hope the hon. Member for Broadland and Fakenham agrees that such a circumstance, or any number of other possible events, would clearly require the strategy to be revisited within a timeframe of less than 15 years.
Rebecca Smith
The Minister’s comments imply that a 15-year strategy would be fixed in concrete and could not be amended. I am assuming that the 30-year strategy will be fluid and flexible to take into account the circumstances that he has just mentioned, such as—God forbid—a future pandemic. I feel the way he has described the amendment is not entirely in the spirit of what was meant, so it is worth reflecting that. Ultimately, we all want a flexible railway; we are just trying to say that the strategy could last for 15 years instead of the current 30.
Keir Mather
I thank the hon. Lady for her intervention. My reading of the amendment is that it would remove the ability to amend the strategy within a 15-year period. Her broader point, about having flexibility to make determinations about the long-term rail strategy and cater for unforeseen events, technological innovations and global events that we cannot predict, strengthens the argument that we made about amendment 134, when we considered whether to set the period in stone and make it exactly 30 years. There has clearly been deliberation between the official Opposition and the Liberal Democrats about whether it should be 15 or 30 years, but we think that not being overly prescriptive is the best way to ensure that the rail strategy gives a long-term perspective and is sufficiently malleable to meet changing operational realities on the railway.
Jerome Mayhew
I just want to give the Minister some further clarity about what amendment 25 actually does. He is right that it says,
“The document issued under subsection (1) must be in force for a minimum of three control periods”,
but that should be read in the light of subsection (4), which gives the Secretary of State express power to
“keep the rail strategy under review”,
and paragraph (b), which says that they
“may revise or replace it.”
Does he accept that it is quite clear that the amendment, read in conjunction with subsection (4), does not prevent reacting to new events?
Keir Mather
On locking in a 15-year strategy that can be reopened only if the Secretary of State chooses to revise it, it has been said throughout our deliberations that we do not want politicians micromanaging the railway. I therefore presume that the Secretary of State would want to reopen the three control period review envelope only in extremis. Given our deliberations about whether it should be three control periods or 30 years, I think it is better overall to bake that flexibility into the Bill and allow those discussions to take place.
I have to make a lot more progress, and I do not want to detain the Committee for long. In the evidence sessions, several witnesses said that the ability to update and change the strategy in response to unexpected events is critical. No one can accurately predict things such as technological and environmental changes over the next 15 years. For that reason, the Bill has been drafted so that the strategy is not a once and done document, but can be revised when it needs to be.
The next theme in this group of amendments is to ensure that the long-term rail strategy includes specific content. Amendments 137, 207, 224, 135 and 136 all do that. The strategy will not go into specific operational requirements in the way sought by the amendments, which relate to topics such as rural railways, co-operation with local authorities, timetable integration, international rail and electrification. Those are all vital topics—of that there is no doubt—but they are all matters for Great British Railways to consider as it develops its strategic plan for the operation and optimisation of the rail network, informed by the long-term strategy.
Although I agree that co-operation with local authorities is critical to the success of this reform, I do not think that that objective needs to be captured in the long-term rail strategy. Rather, it is already captured in the Bill via GBR’s duty to co-operate with mayoral strategic authorities. That duty is provided for in legislation and will be enduring, so it does not also need to be in the strategy.
The suggestion that the long-term rail strategy should set out obligations relating to the timetable is in opposition to the views of the majority of stakeholders who responded to the Railways Bill consultation. They want Great British Railways to have the autonomy to manage the timetable without Government micromanagement, and I wholly agree with that.
Olly Glover
We seem to be losing track of the words that have been tabled. Either that or, like a group of management consultants, we are in danger of getting plans confused with strategies and tedious things such as that. Amendment 207 is neither intended nor drafted to encourage or enable the micromanagement of timetables. It is about the development of and the longer-term vision for what those timetables are supposed to achieve, and that is very much in line with what should be a 30-year strategy. I just want to assure the Minister on that point.
Keir Mather
I thank the hon. Gentleman for that assurance. I suppose that, in response to the amendments that he tabled, we agree that timetabling is of special significance because of the diffuse way in which it is currently organised between Network Rail and the Office of Rail and Road. We are conscious of the fact that making GBR a single driving mind for the railway means that timetabling needs to be dealt with in a way that is operationally responsive, but also not scattered throughout the Bill.
Although I agree with the hon. Gentleman about the importance of timetabling and having due regard for how it is implemented over the long run, I think the way in which the duties under clause 18 allow us to consider the best interests of passengers through that work has a necessary long-term impact on the timetabling process overall. I hope that that would be adequate in meeting some of the concerns that he outlines and seeks to address through the amendment.
Jerome Mayhew
I am grateful to the Minister, who is doing his job in highlighting some of the practical challenges that the amendment might entail. The important bit is not so much the strategy; I think what my hon. Friend the Member for Runnymede and Weybridge is trying to get at is that, when Network Rail or GBR assesses the function of a level crossing, it also needs to take account of the impact on the society in which it is based: for instance, cutting a town in two or stopping vehicular access for multiple periods during a day. Does the Minister not agree that, if GBR did not consider that—it was not in the list of considerations that the Minister mentioned a moment ago—it would not be doing its full job?
Keir Mather
I thank the shadow Minister for his intervention. I very much identify with the sentiment identified by the hon. Member for Runnymede and Weybridge. This is something that impacts Selby town, much as it affects communities across the country. It is right that GBR has regard to managing the way in which level crossings impact road users as much as it does the way that railway infrastructure and passenger services do.
My question is whether that obligation is best placed in this part of the Bill. Network Rail already has a system for considering the impact of changes on local communities, and that will be mapped over into the way that GBR functions. I believe that the transfer of that process, in a way that is reactive and operationally agile, is probably the best way to ensure that those considerations remain integral to how GBR carries out that work.
On connectivity and multimodal journeys, I am happy to confirm that strategic objectives in the long-term strategy will already include supporting better connectivity between communities. This will provide direction on the long-term trends affecting the railway. However, as with others in this group, amendment 261 would make the strategy a document focused on short to medium-term assessments of passengers’ ability to change between rail services or different modes—things that could change frequently, and are therefore not appropriate for inclusion in a document that sets out long-term strategic aims.
However, the hon. Member for Broadland and Fakenham will be pleased to hear that we will soon be publishing our integrated national transport strategy, which will set out the Government’s vision for domestic transport across England. It will focus on a transport network that works well for people across the country, including improving integration across modes, but I will of course take the sage advice of the right hon. Member for Melton and Syston about my personal role as part of that process.
Amendments 225 and 213 both seek to make the strategy subject to additional procedural requirements. Amendment 225 requires consultation with operators during preparation of the strategy. I can reassure the hon. Member for Broadland and Fakenham that the Government have already committed to consultative engagement with key stakeholders, including freight and passenger train operating companies, which will be essential for gathering evidence and informing the strategy’s development. Therefore, in our view, this amendment is unnecessary.
Amendment 213, meanwhile, requires regular reporting from the Secretary of State to Parliament on delivery of the strategy. However, as GBR will be the principal organisation responsible for delivering the vision and outcomes that will be set out in the long-term rail strategy, it will be for GBR to report on its progress in delivering it. GBR already must have regard to the strategy, and will respond to it through its business plans, on which it will report regularly. Given that and other existing reporting mechanisms, the amendment would be duplicative.
The new clauses in this group all propose new strategies or reports—for example, on rolling stock, cyber-security and technology, Sunday working arrangements or signalling. Those all naturally cut across the long-term rail strategy and, if accepted, would, in my view, risk GBR being busier completing strategies than actually running the railway. However, I would like to take each new clause in turn to give them due regard.
On new clause 27, the Government absolutely agree with the principle of a long-term rolling stock strategy. In fact, we would go a step further and say that this strategy should cover not just rolling stock, but the related infrastructure as well, in a single integrated strategy. Such a strategy was sadly lacking during the last three decades of privatisation, with decisions about rolling stock and related infrastructure taken to meet short-term and route-specific needs of operators seeking to maximise their profits. It is this Bill, establishing GBR, that will put that right.
However, I do not agree that the Bill needs this as a duty on GBR. Rather than creating a duty for GBR to deliver at some time in the future, we are already working with relevant parties across the industry to develop a rolling stock and infrastructure strategy to be published this summer. GBR will inherit that strategy and act on it to deliver improvements for industry, taxpayers and passengers.
Likewise, there is no need for a reporting requirement relating to cyber-security and technology. Cyber-security remains a priority for my Department; we are committed, through both existing cyber legislation and policy, to ensuring that GBR operates safely and securely. While new clause 28 reflects priorities that the Government share, the measures it proposes, such as on artificial intelligence, digitalisation and innovation, are already being delivered without the need to include them in this Bill.
On new clause 29, relating to Sunday working arrangements, I would first like to say that I have no doubt that creating GBR to improve both the quality and dependability of train services on Sundays will drive up demand and allow more people to benefit from the railway. We want a railway that operates reliably and sustainably, seven days a week, on a lower net subsidy than today, with built-in resilience and a diverse workforce. However, this is not an overnight change, but a long-term one, and not a process that, in my view, needs to be set out in legislation. Rather, we will continue to work with staff, managers and unions across the future railway to deliver this change collaboratively.
Jerome Mayhew
The Minister is touching on a key issue that the railway will have to address if he is serious about achieving a reliable Sunday service, and that is operating a seven-day schedule with a six-day roster. Does the Minister intend finally to address the six-day roster issue and to move working practices on to a seven-day roster?
Keir Mather
We want GBR to be empowered to address and deal with all these questions relating to personnel and timetabling in a way that is consultative and in partnership with both unions and private sector operators. My point merely remains that it is not appropriate to freeze them in aspic as part of this Bill, in a way that might prevent GBR’s ability to work properly through those considerations with the workforce once it exists. Producing a separate report on the demand for Sunday travel would duplicate the work that GBR already has to undertake through its business plan, which will set out the outcomes and key deliverables for GBR, including train service levels, which will be agreed with the Government and published accordingly.
Finally, new clause 54 relates to a signalling strategy, and again there is no need to place such requirements in this Bill. Network Rail has released its approach to digital signalling for 2024 to 2029, setting out the routes that will be converted to digital signalling. GBR will take over that approach and would be expected to develop it in its future business plans.
To bring the focus of the discussion back to clause 15, the long-term rail strategy will ensure that the railway will always have long-term direction from this Government and future Governments. Such directions are vital for stability and confidence within the rail industry. The strategy will help to prevent the constant short-termism that has been called out by both the industry and its supply chain.
I hope that, following my response to these amendments, the hon. Members will feel able to withdraw them, and I commend clause 15 to the Committee.
Olly Glover
I apologise, Mr Western; I had forgotten I was due to speak, because we started to discuss this group the other day.
I do not have too much to say. I can understand some of the Minister’s points, but I certainly disagree with others. There is, of course, a balance between being too prescriptive and something being so woolly that it ends up being—this is a very tenuous analogy, but it could end up being like a glass of Ribena for a two-year-old, or predominantly water. That is the debate that we have been having, but I shall not detain the Committee for too much longer. I wish to press these two amendments to a Division, as I stated on Tuesday.
Also, I have a thought for our subsequent proceedings. We talk a lot about preserving things in aspic, but for the interest and attention of the Committee we may need a different analogy. Perhaps we should preserve things in stone, as the right hon. Member for Doncaster North (Ed Miliband) did in the 2015 general election. Perhaps we should turn to that analogy a bit more.
Question put, That the amendment be made.
Jerome Mayhew
I have listened carefully to what the Minister has said on amendment 25, particularly his comments on the Secretary of State, so I will not press it to a Division.
Amendment proposed: 135, in clause 15, page 8, line 25, at end insert—
“(3A) The rail strategy must include an international rail strategy to—
(a) support the development of new international routes,
(b) support operators in introducing and operating any such new routes, and
(c) support new and existing operators in using the Channel Tunnel and London St Pancras High Speed.
(3B) In meeting the objectives under subsection (3A), the international rail strategy must—
(a) consider options to increase rail depot capacity at, and to supplement, Stratford Temple Mills;
(b) consider any enhancements that may be required to conventional rail network in the Southeast of England for the purpose of enabling international rail travel;
(c) consider options for electrification, changes to gauge clearance, and any other alterations to rail infrastructure as may be necessary to increase the potential for increased rail freight to travel via the Channel Tunnel.”—(Olly Glover.)
This amendment would require the Secretary of State to include an international rail strategy as part of the Government’s long-term rail strategy. The international rail strategy would specifically look to support new routes and operators, and increase Channel Tunnel and London St Pancras High Speed rail capacity.
Question put, That the amendment be made.
Jerome Mayhew
I beg to move amendment 26, in clause 16, page 9, line 11, leave out “have regard to” and insert “seek to achieve”.
The Chair
With this it will be convenient to discuss the following:
Amendment 218, in clause 16, page 9, line 20, after “and” insert
“each single strategic authority, and”.
This amendment would require GBR to have regard to the transport strategies of single strategic authorities when exercising its statutory functions.
Clause stand part.
New clause 33—Long-Term Rolling Stock Leasing Framework—
“(1) Within 12 months of the passing of this Act, the Secretary of State must publish a framework for the long-term leasing of rolling stock (‘the Framework’).
(2) The Framework must apply to all rolling stock agreements for use on infrastructure managed by Great British Railways.
(3) The Framework must include measures to—
(a) provide that rolling stock leases entered into, renewed or extended by Great British Railways or passenger operators for use on infrastructure managed by Great British Railways, have a minimum lease term of 15 years for new or renewed rolling stock, unless the Secretary of State determines that a shorter term is justified by exceptional operational or market circumstances;
(b) require Great British Railways to assess whole-life asset cost, maintenance, refurbishment and residual value when procuring or approving leases;
(c) provide Great British Railways with the power to specify obligations in long-term leases that support accessibility, improved energy efficiency, and interoperability across the network;
(d) ensure that long-term certainty supports—
(i) manufacturers of, and
(ii) persons who maintain
rolling stock by enabling investment in skills, supply chains and technological innovation;
(e) require that lease terms are consistent with Great British Railways’ long-term network strategy, its five-year funding settlements and its access and capacity allocation duties;
(f) require Great British Railways to publish an annual statement setting out—
(i) projected rolling stock needs for the 15 years following the publication of the statement;
(ii) any lease terms agreed within the year prior to the annual statement;
(iii) an assessment of the alignment of lease arrangements with the Framework’s objectives;
(iv) a value-for-money assessment of any new or renewed leases.
(4) Before issuing or revising the Framework, the Secretary of State must consult—
(a) Great British Railways,
(b) the Passenger Council,
(c) the Office of Rail and Road, and
(d) any other persons the Secretary of State thinks appropriate.
(5) Within 12 months of the passing of this Act and every subsequent 12 months, Great British Railways must lay an annual report before Parliament setting out its compliance with the Framework and the reasons for any departures from the minimum lease requirement.”
This new clause would require the Secretary of State to publish a Long-Term Rolling Stock Leasing Framework, and for Great British Railways to comply with this framework.
New clause 36—Rolling Stock Investment Framework—
“(1) Within 12 months of the passing of this Act, Great British Railways must publish a report containing a framework for rolling stock investment (‘the Framework’).
(2) The Framework must include an assessment of needs for rolling stock for the period of 15 years following its publication, including—
(a) procurement of new rolling stock,
(b) refurbishment of rolling stock that is already in use,
(c) digital signalling and onboard technology upgrades,
(d) decarbonisation, and
(e) accessibility improvements.
(3) The Framework must set out the routes through which private investors may finance—
(a) new trains,
(b) refurbishments to existing stock,
(c) upgrades to low-carbon traction,
(d) modernisation of interiors of trains,
(e) predictive maintenance, and
(f) digital systems.
(4) The Framework must promote private-sector investment in energy-efficient rolling stock and accessibility improvements.
(5) For the purposes of subsection (4), the meaning of ‘energy-efficient rolling stock’ includes hybrid, battery, or hydrogen technology.
(6) The Framework must set out how procurement undertaken by, or on behalf of, Great British Railways will—
(a) ensure competitive tendering,
(b) encourage innovation in design and maintenance,
(c) provide private investors with a stable commercial investment environment, and
(d) ensure a consistent pattern for the placement of orders.
(7) Great British Railways must align any plans for investment in the Framework with—
(a) its integrated business plan, and
(b) funding determinations for the relevant Control Period.
(8) Great British Railways must update the Framework at least once each year after it is first published, including in relation to—
(a) updating Great British Railways’ strategy for its fleet of rolling stock,
(b) opportunities for private capital investment in rolling stock,
(c) the reasons for any major changes to planned procurement,
(d) expected timelines and volumes for procurement, and
(e) how it will use private investment to—
(i) reduce whole-life cost of stock,
(ii) improve quality of stock, and
(iii) support jobs in the rail supply chain in the UK.”
This new clause would require GBR to publish a rolling stock investment framework.
New clause 37—Great British Railways Accountability—
(1) Great British Railways must publish a business plan each year.
(2) The business plan set out in subsection (1) must include—
(a) a summary of activities that Great British Railways intends to undertake during the following year,
(b) how these activities will support the delivery of the Rail Strategy,
(c) the outcomes Great British Railways expects to achieve, and
(d) how these outcomes reflect the funding settlement for the relevant Control Period.
(3) Great British Railways must publish a delivery report each year (‘the Report’).
(4) The Report must set out progress made against the outcomes in the Rail Strategy, including—
(a) passenger experience,
(b) freight growth,
(c) accessibility,
(d) passenger growth,
(e) integration with housing and local transport, and
(f) long-term infrastructure and service improvements.
(5) The Report must assess Great British Railways’ performance against its statutory duties as set out in this Act.
(6) The Report must include Great British Railways’ performance against its key performance indicators set by the Office of Rail and Road, including—
(a) areas of underperformance,
(b) risks to delivery,
(c) corrective actions taken, and
(d) financial performance related to its business plan.
(7) The Office of Rail and Road must assess Great British Railways’ performance against its business plan, key performance indicators set out in section [Great British Railways: Key Performance Indicators] and statutory duties, and publish an annual assessment of its performance.
(8) If the Office of Rail and Road makes any finding of material underperformance in the assessment set out in subsection (7), it must give notice to—
(a) the Secretary of State, and
(b) Great British Railways.
(9) The Secretary of State must publish a written response within 90 days of receiving a notice under subsection (7).
(10) Within 90 days of receiving a notice under subsection (8), Great British Railways must set out—
(a) how it will rectify any underperformance identified in an assessment under subsection (7), and
(b) and how it will measure progress against any areas of underperformance.
(11) The Secretary of State must lay before Parliament a copy of—
(a) each business plan under subsection (1),
(b) each delivery report under subsection (3), and
(c) each assessment made by the Office of Rail and Road under subsection (7).
(12) When the Secretary of State lays a copy of the delivery report in accordance with subsection (11)(b), a Minister of the Crown must make a statement to each House of Parliament about the contents of the report.
(13) For the purposes of this section, ‘Control Period’ has the meaning given in any final decision taken by the Office of Rail and Road which concludes each periodic review of access charges as described in Schedule 4A of the Railways Act 1993.”
This new clause sets out a reporting and accountability framework for GBR.
Jerome Mayhew
The usual procedure applies again. Clause 16 requires both GBR and the Office of Rail and Road to “have regard to” a number of different requirements, such as the long-term rail strategy, the statutory transport or rail strategies published by the Welsh and Scottish Governments respectively, the mayoral combined authorities and the Mayor of London. There is a key political question within this clause: why has the Minister chosen to apply a duty on GBR and the ORR to only “have regard” to those strategies? In practice, that means only that GBR and the ORR will consider transport plans, not that they must, or even should, follow or prioritise them.
That seems a slightly unusual position for the Government to take, given their keen approach to oversight of GBR in other clauses, such as 7 and 9, where it looks like they wish to maintain their role as key stakeholder over that of the devolved Governments and the mayoral combined authorities. The weak obligations are shared, whereas the strong obligations are kept primarily to themselves. It is a surprising approach, particularly given that clauses 7 and 9 effectively strip GBR of operational independence. I recognise that the Scottish Government and, to a lesser extent, the Government in Wales have their own clauses to guide and direct, but the mayoral combined authorities certainly do not. I wonder whether this clause is directed at overweening powers demanded by certain mayors, but I could not possibly look into the depths of the psychology of the Labour party as it struggles with its issues at the moment.
It is very noticeable, as Mayor Andy Burnham said to us last Tuesday in oral evidence, that there is a substantial difference between the Government’s proposed treatment under the Bill of mayoral combined authorities and that of Transport for London. There does not appear to be any rationale for that deliberate divergence—or at least not one that the Government have identified.
As other mayoral combined authorities come online, the Bill provides no formal mechanism for their wishes to be respected. Members of the Committee who were in the oral evidence session will remember that Andy Burnham said he would “insist” on greater authority in that area. The Bill as currently drafted does not provide that avenue for him or for others, so those looking for advancement in the future might like to consider their voting strategy on this clause. After all, page 33 of the Labour manifesto states:
“Mayors will have a role in designing the services in their areas.”
Can the Minister outline the mechanism for existing and future mayoralties to be put on a statutory footing, and for their local transport plans to be given greater consideration from GBR and the ORR?
There is one other question regarding this clause. It relates to subsection (3). What does GBR do if the strategy of a mayoral combined authority or Transport for London conflicts with that of the Secretary of State? How are potential conflicts between strategies resolved, and who will be the arbiter? Will it be the Secretary of State, or will there be an independent structure? With that in mind, the clause should be strengthened to ensure that GBR and the ORR respond more clearly and act under greater requirements.
That is where amendment 26 comes in. It would replace the very weak “must have regard to” with “must seek to achieve”. That change seems small on the face of it, but it would strengthen the requirement on GBR and the ORR to engage and work with mayoral combined authorities, the Welsh and Scottish Governments and the Mayor of London. Will the Minister support this modest proposal to strengthen that relationship?
The clause currently restricts the duty of mayoral combined authorities and the Mayor of London. It is silent on other strategic authorities, yet the same arguments apply to areas that are not yet or will never be mayoral combined authorities when identifying regional needs for current and future transport. We heard that concern eloquently expressed by my hon. Friend the Member for South West Devon. I hope that she will be able to expand some of her thinking on this in a moment. We have heard examples from the west country where local government reform is floundering, as it is around the country, including in Norfolk where I am a Member of Parliament. It is already delayed until 2028. That is perhaps just the first of further delays as well, as this Government lose steam. There is no idea where, when or even if it will go ahead.
There are also many areas that will never have a mayoral combined authority because of the structure of their local government settlement. We do have local transport authorities, though, which are the base level of local government that has responsibility for local transport co-ordination. It seems like a very significant omission that the Bill currently only relates to mayoral combined authorities. That is the lowest level of regional government to which it deigns to provide any form of requirement for co-operation with the ORR and GBR. Why is that? Where there is, for sound local reasons, no mayoral combined authority, why are the Government designing out the ability of local government representatives, the local democrats, to co-operate and co-ordinate with the ORR and—more importantly in this instance—GBR? What happens to their interest? There is simply no explanation as to why these large authorities, which will be the local transport authorities in their own right, have been excluded from consideration. That leads me neatly on to amendment 218, which adds them to the list.
New clause 33 requires the Government, or rather GBR, to set out a long-term rolling stock leasing framework. The clause would require the Secretary of State to publish a long-term rolling stock leasing framework, and require GBR to comply with that framework. It mandates a minimum 15-year lease, save in exceptional circumstances. That is because the longer the lease, the better the value for money for the taxpayer.
Longer leases lead to lower costs, which will lead to more UK investment, more trading and better value for taxpayers, as the industry and supply chain are able to plan ahead and produce effective business plans. There is a consequence to the leasing’s being done by the public sector, rather than the private sector: the Government will have to consider the impact of the cost of leasing on the national debt. That is, after all, the logical consequence of their political decision to nationalise the railways—the operating companies. There is a cost that comes with it, and that is moving from the private sector balance book on to that of the public sector. The Government need to own the financial consequences of their political and ideologically driven decision, and that is one of them.
Rebecca Smith
Does my hon. Friend agree that one of the positives of new clause 33 and its attempt to rectify things as they stand, is that it is not throwing private investment in our rolling stock out of the window? We have heard in evidence and throughout the Bill process, whether that is in Transport Committee evidence or the Bill Committee, that millions and millions of pounds have been accepted by this Government by the private sector for rolling stock investment. If we are not careful, we will completely dissuade them from being involved. We are already seeing them moving to Europe with that investment instead.
Jerome Mayhew
My hon. Friend is absolutely right. New clause 33(3)(a) to (d) is aimed at reducing short-term decisions and focusing more on long-term efficiency and savings. I am sure there are many former business people on the Labour Benches—or maybe not, actually—[Interruption.] I am glad to hear that there are. There are many former business people on these Benches, and all those who have run businesses will know that predictability of the future is one of the key drivers of economic success and of driving down costs. New clause 33 will help to achieve that for the taxpayer.
GBR will also be mandated to produce an annual public report that enables Parliament and the public to properly hold GBR to account. We have heard time and again how light the Bill is on the ability of the public and of Parliament to hold GBR to account; we are the representatives of the people and we are being denied, by design, the opportunity to do that adequately. Yet it will be spending £20 billion-plus each year, about 50% of which, at the current rate, is public money. Why are the Government running scared of public oversight of these operations?
Baggy Shanker (Derby South) (Lab/Co-op)
It is a pleasure to serve under your chairship, Mr Western. I think this is an opportune moment to ask a question, as a Derby MP with Alstom in my constituency— the only place in the UK now where a train can be designed, engineered, manufactured and tested. Under the previous Government, Alstom had to make thousands of redundancies because there was just no certainty about work and there were delays on various projects. Can the hon. Member explain why the previous Government did not take any steps to come up with a rolling stock strategy?
Jerome Mayhew
I thank the hon. Member for his intervention, and for standing up for the jobs in his constituency, which is something we all need to do. I cannot speak for the actions of the Government before I was even elected as a Back-Bench MP, but we are certainly looking to improve. I would be the first person to say that the status quo ante was capable of improvement. Privatisation did bring many benefits to the railways, particularly in encouraging innovation and focus on the customer, leading to the increase in passenger numbers, which I have already spoken about in previous sittings, but was it perfect? Of course not.
As has been trailed by the Government, this is a once-in-a-generation opportunity to redesign and improve our approach to the railways, and I think that taking a long-term approach to rolling stock investment and creating this framework would be taking advantage of that opportunity to try to improve predictability for the supply sector—for Alstom, but also for Siemens and other manufacturers as well.
New clause 36 would require GBR to publish and keep under annual review a 15-year rolling stock investment framework that sets out future needs for new and existing trains. That includes—this is important—not just the replacement of trains but refurbishment, digital upgrades, decarbonisation and accessibility improvements. It would establish how private investors could finance rolling stock and related upgrades, promote energy-efficient technologies such as battery, hydrogen and hybrid traction, and set expectations for competitive, innovative and, importantly, predictable procurement. The framework must align with GBR’s business plan and control period funding, which are two very sensible requirements, and it must also provide transparency on procurement volumes and timelines, explain changes to plans and show how private investment will be used to reduce whole-life costs, improve train quality and support jobs in the UK rail supply chain.
The Government have thrown the sector into a period of uncertainty—that is inevitable with large-scale redesigns like the ones we are going through at the moment. My concern is that the way in which they have chosen to do this, through a process of drifting nationalisation before knowing the details of its replacement, has exacerbated that uncertainty and extended it over a prolonged period. As the hon. Member for Derby South has already noted, we are already seeing that uncertainty in the supply chain and the manufacturing base.
There is uncertainty—that is the problem. This is a shell Bill; it does not have the answers, and it does not give any confidence to industry that things will be better in the future. It relies on a whole raft of provisions in the 19 documents to which we have referred to time and again, but they do not exist. We do not know whether things will get better or worse, and neither does the industry. There is no supporting documentation on how GBR will function in practice. I am not sure the Government even know that yet, and they really ought to have done better than this. New clause 36 would point them in the right direction, and I certainly look forward to pressing it to a Division, should the opportunity arise.
New clause 37 would increase accountability by setting out a reporting and accountability framework for Great British Railways. The new clause states:
“Great British Railways must publish a business plan each year”,
which we have already considered, and it dictates:
“The business plan…must include…a summary of activities that Great British Railways intends to undertake during the following year”
and
“how these activities will support the delivery of the Rail Strategy”.
At the end of the year, GBR would be required to produce a second report setting out its progress against the business plan objectives, the first of which is passenger experience—we all know the Government substantially ignore passenger experience at the moment, apart from reliability in short trains, and have just brushed the other aspects under the carpet. The other objectives include
“freight growth…accessibility…passenger growth”,
which is also ignored by the Government in the Bill as drafted,
“integration with housing and local transport”
and
“the long-term infrastructure and service improvement.”
The ORR must assess GBR’s performance against the key performance indicators set out in new clause 2, which we have already debated but not yet voted on. If the ORR finds any material underperformance, it must give notice to the Secretary of State, who must publish a written response. This general approach is very business focused; it simply asks that GBR sets out what it is planning to do at the start of the year, and then having worked through the year, there is a process for GBR to mark its homework at the end of the year. Has GBR done what it said it would do? If it has not, the spotlight is on. It is also being assessed by the ORR, which retains its role as an independent expert adjudicator that is trusted by all parts of the rail sector.
Perhaps the best thing is that, in response to that, GBR must also set out what it will do to rectify any underperformance, and it must lay a report before Parliament and make a statement. The new clause would add critical levels of parliamentary and public scrutiny to GBR, allowing both to hold this new organisation to account, which we believe is paramount when such vast amounts of taxpayers’ money will be used. The current Bill is woefully short on accountability. It lacks strong incentives to encourage GBR to perform, to be held to account and to answer for its actions—or lack of action.
This all feels a little too comfortable. We have a nationalised industry reporting to officials from the Department for Transport, and it is not focusing on the experience of customers and passengers, passenger growth or all the other imperatives of rail in the future. The Minister will of course tell us that none of that is necessary. However, with the greatest respect, direct experience of running a business tells us that we need to design in strong incentives—this is crucial; it is not primarily a political point but a trying to improve this Bill point—so that GBR is inclined to focus on the right objectives, without having to respond to external direction. These new clauses would help to point GBR in the right direction. I look forward to the Minister’s support.
Olly Glover
I should have said earlier, Mr Western, that it is a pleasure to once again serve under your chairship as we debate another exciting group of amendments. I want to make some brief remarks on the Conservative amendments in this group. I eagerly await the Minister’s polite but withering put-down.
Amendment 26 is a matter of wording. Alas, unlike the shadow Minister, my only experience of the law is occasionally watching “Kavanagh QC”, a reference that no doubt reveals my age. I shall await the Minister’s comments on that amendment and shall reach a view in the no doubt incredibly nail-bitingly tight Division on it. On amendment 218, I agree with the shadow Minister that we need to get mayoral consultation right, and to have plenty of it.
New clause 33 seems sensible, given the Conservatives’ and Labour’s total obsession with rolling stock leasing rather than purchase, which I find utterly bizarre. Rolling stock leasing can make sense, particularly when gilt prices or the cost of capital is high, but it is quite expensive on a whole-life cost basis. Otherwise, why would rolling stock companies do it? There are some very nice people in them, but they are not charities. Rolling stock leasing happens elsewhere in Europe, but it is not as universal as it is here. However, that feels like either yesterday’s war or tomorrow’s—probably not today’s.
On new clause 36, I note that the shadow Minister has tabled amendments about the private sector to similar effect in group 36. I politely suggest to him that, in the same way that members of the governing party can sometimes be too ideologically committed to the idea that public sector is automatically better, the evidence does not necessarily support the view that private sector is automatically better in the rail context. It is context-dependent. ORR benchmarking from 2012 showed that our train driver and rolling stock maintenance costs, both of which have been in the private sector for some time, were generally significantly higher at that time than those of our European counterparts. I do not believe that those trends have changed significantly.
I would be interested to hear from the shadow Minister and from the Government the evidence that private sector is automatically better than public sector, or vice versa. I think it depends on the context. Perhaps more important is getting requirements and specifications for tenders right or deciding in each individual context the best way to get value on a whole-life cost basis. We definitely have a problem on the railway, and perhaps as a nation as a whole, with being obsessed with getting up-front capital costs down, but there is not quite the same level of attention for a decent appraisal of whole-life costs and deciding how to move forward on that basis.
On new clause 37, I understand the intention of an annual business plan, but my slight worry is that it could undermine the logic of the five-year funding review period. Perhaps the shadow Minister can address that when he sums up.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
I have a couple of small points to make. Cornwall has a very well-developed local integrated transport plan and devolution of bus franchising as well. Will the Minister reassure Members representing non-mayoral areas that GBR will have some regard to the solid local plans we already have in place?
The shadow Minister commented on running businesses. In a previous life, I was an equity partner in a law firm. Some of us have done a lot of other things. It might be worth considering how many shadow Ministers now in opposition worked in the public services they ran as well.
Rebecca Smith
I want to make a few comments in support of the amendments in the name of my hon. Friend the Member for Broadland and Fakenham. He suggested that I might want to make some comments on amendment 218. I acknowledge the comments and the request for clarification and reassurance from the hon. Member for Truro and Falmouth, who, like me, often speaks about issues with railway service in the far south-west. What is going on in Cornwall is good. It is a devolved county that has been given foundation status. Devon has something similar, but Plymouth is not part of that, so the way in which transport strategies are being developed at the moment is further complicated. Local government reorganisation will not solve that problem; it will take further devolution. I believe Devon has been told that it will not be in the next round of opportunities to be a mayoral authority.
Daniel Francis (Bexleyheath and Crayford) (Lab)
I thank the hon. Member, who is advocating for her constituents. Within London, Transport for London operates at least four lines—the Elizabeth, Central, Lioness and Metropolitan lines—all of which leave the London boundary. They would therefore potentially enter the boundaries of strategic authorities. If the amendment were passed, which would Great British Railways need to have regard to: the mayor’s transport strategy or the strategic authority’s transport strategy?
Rebecca Smith
I believe that the Mayor of London’s transport strategy is already considered within the wording of the Bill. I did not draft the Bill; it is not my Bill. I am just highlighting those areas. Ultimately, many of those areas may well be further down the road towards becoming mayoral authorities. I am talking about the areas that are not even on that path. We know that certain counties outside London are doing so, but ultimately the point the hon. Gentleman is making is a valid one. However, I do not believe that it means we should not have the amendment that we are putting forward, because it would give strategic authorities the ability to communicate with the Mayor of London and with GBR. That is an additional layer of engagement and ensuring that those voices are heard. I do not see how that would be contrary to what is going on in London.
I will briefly speak to the new clauses and then bring my comments to a close. It is worth looking at the rolling stock leasing framework, and I was interested in the comments made by the hon. Member for Didcot and Wantage about pursuing a leasing framework. At the end of the day, let us be real: the Government and the country at this point in time are not in a position simply to buy new rolling stock just because GBR comes into ownership. Forgive me if I am wrong—I am not an expert on this—but ultimately there will be some requirement to continue leasing. As much as it would be great to have brand-new trains that all look identical and all do the same thing, realistically we are just not in that position.
That leads me to one point that has come up in some of the evidence sessions I have sat in, which is accessibility. I know that a lot is being done to ensure that accessibility is central to the Bill and that people who need access to trains are considered. The hon. Member for Hyndburn raised this issue specifically for those outside the disabled community, including people of particular ages who have mobility needs. We heard from Lord Hendy that it could actually be decades before we see an improvement to accessibility because of the rolling stock. I believe that the amendments tabled by my hon. Friend the Member for Broadland and Fakenham would give due regard to putting some system in place to ensure that that those accessibility improvements are looked at strategically and on a rolling basis—so to speak. I believe that the amendments add something, given the argument for accessibility.
We have talked a lot about supply chain manufacturing, which amendment 36 is about. I appreciate the comments of the hon. Member for Derby South. Ultimately, we need to ensure that a long-term strategy is in place for our manufacturing sector. I have already mentioned the defence sector; we have a huge requirement for our advanced manufacturing at the moment and we need that certainty. We have seen the role that private sector investment plays in the development of rolling stock. That is not to say that the private sector is better than the public sector—I happen to believe that they are both important in the right proportions—but we have had so much investment from the private sector while the railway has been privatised. To just walk away from that on an ideological basis does not seem right.
Rebecca Smith
Bear with me one second. Ensuring that manufacturing process in the long term will be important. I will give way to the hon. Member, who is much more learned on this matter than me.
Laurence Turner
Much of the investment that has been channelled through the private sector since privatisation has in fact been underwritten by the state, and by Government guarantees. I will not put her on the spot to list specific examples but it would be helpful if Opposition Members could give examples of an at-risk capital investment that would actually be endangered by this Bill. I do not believe that such examples exist.
Rebecca Smith
The Committee heard from some representatives of the private sector. Lord Hendy has also highlighted that Hitachi—I believe it was—has made multi-million-pound investments that the Government were very happy to accept. It may well be that that is backed up by Government, but that was welcomed by the Prime Minister, so to say that we do not want private investment seems a bit churlish—ultimately, it has been accepted by the Government in its entirety.
The new clauses in this group are pushing the accountability piece: the reporting back, to make sure that the Great British public has the opportunity to see what Great British Railways is delivering and whether it is holding itself to account in the right way. I do not understand why the Government do not seem to think that the new clauses are a good idea. If Great British Railways will be so wonderful, would it not be great if the British people can see what it actually achieves and hold it to account? Marking one’s own homework is never good, and being able to hold GBR to account in all its forms will be essential.
Sarah Smith (Hyndburn) (Lab)
It is a pleasure to serve under your chairship, Mr Western. My remarks will be incredibly brief, ahead of the Minister’s responses. To echo some of what my hon. Friend the Member for Truro and Falmouth said, as a representative of Hyndburn in Lancashire—which is currently not part of a mayoral combined authority—I look for reassurances that GBR will have regard to Lancashire’s transport authority and the local transport plans. This Government are clearly committed to the important agenda of devolution, but it would potentially undermine some of those efforts if in the transition phase—while we are trying to move as quickly as possible for as many areas as possible to benefit from that full devolution opportunity—a national body is undermining the local plans and those on the ground who understand the complexities of the needs of somewhere such as Lancashire. I would thank the Minister for reassurances in that regard.
Keir Mather
I thank hon. Members from all parties for their well-considered contributions to this debate. I shall endeavour to give full answers to them.
First, on the point made by the shadow Minister about how GBR will handle conflicting priorities that emerge within different strategies, as laid out by mayoral combined authorities or otherwise. As part of the business planning process, GBR will need to demonstrate how its integrated business plan aligns with the objectives contained in the long-term rail strategy and the Scottish Ministers’ rail strategy, reflecting the role that they have as funders of the network. The Bill also requires GBR to have regard to the various other national and local strategies. Fundamentally, however, establishing no hierarchy between the general duties to which GBR is subject, in my view gives the necessary flexibility to allow it to manage competing priorities where those may arise. It will be the responsibility of GBR to ensure that its decision making demonstrates consideration of potentially competing requirements and strikes an appropriate balance in making trade-offs.
On the statutory role of mayors as part of the process, GBR must have regard to their transport strategies. Mayors of course will have the right to request services and work in active partnerships with GBR. However, I also hear clearly the concerns of not only the hon. Member for South West Devon, but my hon. Friends the Members for Truro and Falmouth, and for Hyndburn about those who do not live in mayoral strategic authorities. I appreciate the hon. Lady’s scepticism when comparing this to our existing system. When it comes to engaging with private operators and with other arm’s length bodies, at the moment it feels as if parliamentary accountability cannot always be applied, and that where power resides is very diffuse, making it hard to tell who is responsible. We are actively trying to avoid and redesign that through the creation of GBR.
The hon. Member for South West Devon points to the fact that the business units might not have the teeth to engage properly and to reflect the needs of local areas, but I would say that we are creating a decentralised Great British Railways, where local areas are imbued with the powers to enter into dialogue with local authorities especially to avoid that being the case. That does not change the fact that the reason that within the Bill we have referenced mayoral strategic authorities is that we believe they are the right unit of economic and of demographic power to drive forward truly devolved change on the railway. That does not mean that we cannot not have regard to those who do not benefit from living within a mayoral strategic authority.
Keir Mather
I will give way briefly in a moment, but first I will build on the point that was made by my hon. Friend the Member for Bexleyheath and Crayford about how services can run across the boundaries of mayoral strategic authorities. Through GBR, we will be able to enter into processes that engage not only with a mayoral strategic authority, but with such authorities acting in a sense as a representative of pressures that exist in cross-border dynamics that may arise. That offers another useful lens through which to engage with local areas that do not have a mayor. I appreciate that the hon. Lady might want a little more reassurance, so I will give way.
Rebecca Smith
On those local business units, how large an area are they likely to be structured on? That has not been in the debate to this point, and may reassure me. I appreciate that that may be a detail that is coming later, but some indication of how many counties might be included within each business unit would help.
Keir Mather
The hon. Lady must have read my mind about that detail being forthcoming. If she will allow me to take away that specific point over the break that we are about to have, I might be able to come back to her when we resume the debate.
For the moment, I will quickly turn specifically to the amendments in the group. The lead amendment would require GBR and the ORR to “seek to achieve” the long-term rail strategy and devolved strategies, rather than to “have regard to” them. The existing wording deliberately reflects the nature of those strategies within the system. The LTRS will take a 30-year perspective and set strategic objectives, rather than define a narrow set of deliverables.
We of course want GBR and the ORR to have regard to the strategies in all decision making, but they must also have the flexibility to balance long-term objectives with the practical business planning processes that operate over fixed periods. To legislate that such a vision should be achieved would not be in line with that principle, or with the overall approach to the general duties that set the conditions for successful decision making, but do not dictate specific outcomes. As I have reminded hon. Members, GBR, not the Government, will be running the railway.
New clause 37 also relates to GBR’s delivery and looks to establish a statutory annual reporting framework. The Bill already provides robust reporting and accountability arrangements. GBR is required to produce an integrated business plan for each funding period, which must be published and kept up to date, and that will give Parliament and stakeholders a clear view of GBR’s objectives, activities and expected outcomes. A separate statutory annual delivery report would in essence duplicate that information. Furthermore, the ORR will have a role in monitoring GBR’s performance against its business plan and will provide independent advice to the Secretary of State. Such oversight ensures that GBR can be held to account without the need for an additional statutory reporting requirement.
New clauses 33 and 36 relate to GBR’s long-term approach to securing rolling stock. The former calls for the Secretary of State to publish a long-term rolling stock leasing framework and sets out a substantial amount of detail on what that should include. Within that detail, there are certainly points on which we can agree, including the benefits of longer leases and the proper consideration of whole-life asset costs, both of which have been made more challenging to achieve under the franchising model. However, I profoundly disagree that the Secretary of State should dictate the detailed approach that GBR should take to rolling stock leasing, and with the specific terms set out in the new clause. It is rightly for experienced industry professionals within GBR, guided by the Secretary of State’s long-term rail strategy, to secure the best value and achieve GBR’s other objectives through commercial arrangements with the rolling stock leasing market. It should not be for the Government to dictate the detail of those arrangements.
On new clause 36, I of course agree that GBR should have a long-term rolling stock and infrastructure strategy, which is why we are already working with parties across the industry to develop one. The strategy will be published this summer, and will remain a live document. GBR will inherit and implement it as soon as it is established. The new clause is therefore unnecessary, as by the time it would take effect, GBR will already be up and running with a long-term rolling stock strategy.
Amendment 218 would require GBR to have regard to the transport strategies of single strategic authorities. We are of course supportive of a more locally focused railway under GBR. The provisions in the Bill are pitched at mayoral strategic authority level, reflecting their growth across England, the vital role that mayors play in convening local partners and the scale and capability required to integrate rail into the wider public transport network. Nevertheless, all tiers of local government will benefit from empowered local GBR business units that are outward facing and actively engage local authorities on their priorities and local transport plans. That engagement will ensure there is sufficient opportunity for local authorities outside the mayoral strategic authority areas to collaborate with GBR on their priories and to consider proposals. I hope the hon. Member for Broadland and Fakenham therefore feels comfortable withdrawing the amendments.
Clause 16 places duties on GBR to have regard to the long-term rail strategy, devolved transport strategies and local transport plans. Overall, it seeks to ensure that strategic decisions on matters such as future services and infrastructure plans appropriately reflect national, devolved and local priorities. I commend the clause to the Committee.
Jerome Mayhew
This is now a common refrain in our deliberations. The Minister says, “Don’t worry. All these things will be taken care of at some future date in documents that have not been drafted and certainly haven’t been shared with the Committee.” With the greatest respect to him, I do not take it on trust that the Government are looking carefully and in sufficient detail at these matters, so I will press the amendments to a Division.
Question put, That the amendment be made.