Chris Gibb Report: Improvements to Southern Railway

Alan Brown Excerpts

Tuesday 4th July 2017 Commons Chamber

[Chris Grayling]

Since last year, we have worked to sort out some of the underlying problems with the management of this railway line, joining up the operations of the track and trains, spending more money on infrastructure, and helping to contribute to a better performing railway. Performance has been rising steadily since the start of the year. Chris Gibb rightly identified a range of problems—I have said to the House that we are working to try to solve those problems—but he was absolutely clear that the principal cause of the disruption experienced by the constituents of the hon. Member for Brighton, Pavilion (Caroline Lucas) and others was industrial action by the unions. He said that passengers would have experienced a relatively normal service had that action not taken place.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Secretary of State continues to argue that the principal reason for the delays is industrial action. Does that not mean that the £300 million pledged by the Government in January is a waste of money and that they should be sorting out the industrial dispute?

[Chris Grayling]

No, it does not. We have provided additional money for the infrastructure owned and operated by the public sector Network Rail—an additional £20 million last year and then a further £300 million that is being spent right now to stop regular signal failures, for example—but it is disappointing that all the unions and others can do is misrepresent the situation and claim that we are giving that money to the train operator. They know that that is not true. It is simply not the case. One part of solving the problem on this railway and ensuring that it is the good performing railway that it has not necessarily been in the past, even when the industrial action was happening, is to spend money on the infrastructure, so that we do not get points and signals failures—the things that frustrate people and cause problems day by day.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I am sure that quite a few hon. Members are wondering what the Scottish National party Transport spokesman can bring to a Southern rail debate. I am hopeful that I can provide a more rounded opinion on the Gibb report, which is what this debate is meant to be about. The Transport Secretary stood up for nearly 20 minutes and union-bashed; he did not give us much about what was in the report, and I think he made a poor start. I say gently to the right hon. Member for Arundel and South Downs (Nick Herbert) that his suggestion that staff are falsely taking sick days does not bode well for future worker relations. It is indicative of where the Government seem to be with the unions.

In this Chamber, we continually have debates about ideology. The Tory ethos is that the free market will always outperform the public sector, but the fiasco of GTR and Southern rail’s performance over the past few years—not just the past year—suggests otherwise. Calls have been made repeatedly for the franchise to be terminated, but the Government have always refused to act. Instead, they initially helped to reset benchmarks to ensure that GTR was not in breach of contractual performance measures.

Looking back, the report by the Transport Committee complained about a lack of transparency in performance data against contractual obligations. That in itself does not help those who want to understand the contractual position and find solutions. The Gibb report was a welcome interlude, although we have to question why the Government sat on it for six months. They have brought this general debate before us, not in a constructive manner but in a politically motivated, union-bashing fashion, and that will not help things.

I touched earlier on the fact that the Gibb report identified £300 million that had to be spent within the next year to ensure that the 2018 timetable could be achieved. That is quite an eye-watering sum, and it is a massive commitment. The Government committed that £300 million in January, but we are now a quarter of the way into the two-year process, and it would be good if the Secretary of State had told us how the work was advancing. I hope that the Minister will give us an update on that later on.

It took the Government 10 months to complete the programme of work and spend the £20 million that they pledged last November. I will just throw out there the fact that it took them 10 months to get through the initial £20 million programme, but they now expect to deliver a £300 million programme in two years. I presume that some of the £300 million programme will follow on from work identified in the initial raft.

The Secretary of State admitted that the Gibb report confirmed that franchise arrangements have been completely inadequate in their understanding of how infrastructure upgrades would impact on services. That is a failing of the Department for Transport, and the Government have to get to grips with it. The Gibb report also suggested that an immediate revision was required to the overnight timetable to allow for maintenance on the Brighton main line. Again, I throw that out there. What is happening about that, and about the production line maintenance that was supposed to be brought in as a consequence of the report?

[Maria Caulfield]

I am not sure that the hon. Gentleman has actually read the report. The appendix sets out both the short-term and long-term infrastructure projects, all the way to 2020. If he wants answers to those questions, I suggest that he reads the report.

[Alan Brown]

I am asking for answers from the Government, and I expect Ministers or the Secretary of State to give them to me. The Government announced a £300 million package to be delivered over two years. I am asking what is going to happen and whether the programme is on track, because we are a quarter of the way through the time period already.

The Gibb report also called for a review of little-used stations that have, it claims, too many services, which seems incredible against a backdrop of nearly 59,000 fully or partially cancelled trains in 2016. That is an issue that the Department for Transport could have identified earlier, and it should be resolved.

In terms of industrial relations—a subject that has formed the cornerstone of the debate so far—I am pleased to see that Gibb did say that negotiations must be entered into. Again, I repeat calls from other Opposition Members to the Secretary of State to show leadership and try to lead those negotiations. I disagree with Gibb’s negative comments about collective bargaining, and I do not think that that should have been within the remit of the report. His suggestion that discussions about driver-only operation could have a roll-back effect on other services that are already driver-only operation is a conclusion too far for me.

We have to be clear about the fact that safety is a key issue. The Gibb report confirms that narrow platforms at Gatwick cause overcrowding, and that the lack of station shelters elsewhere is an issue for passengers accessing trains. It is therefore fair for me, looking at this from the outside, to say that DOO can be seen as a problem for staff, because at the end of the day the staff have to deal with the consequences if an incident arises due to overcrowding or when people alight from trains. I would also say to the Secretary of State that this is a serious dereliction of duty, given that the Government are picking up a £38 million tab for lost revenues, as well as setting aside £15 million in compensation for passengers. Think what that £15 million could have done in infrastructure upgrades if there had been proper forward planning.

In Scotland, there has been far wider national scrutiny of the Abellio ScotRail Alliance, which operates Scotland’s trains. It came into being in April 2015, and I must say that it came in as a living wage employer right away, which is to be applauded. However, we must also acknowledge that its early performance was below contractual levels. The Scottish Government took the lead by intervening, and a performance improvement plan was agreed. Since then, 181 of the 249 actions have been completed, and a further 180 action points have now been agreed. The plan has been reviewed by the Office of Rail and Road, which found it to be robust and deliverable, but challenging. Punctuality on ScotRail is now at 90%, and it has been ahead of the UK average for four years.

Looking ahead, the Scottish Government are now exploring a public sector bid for ScotRail when there is a franchise break. On public sector bids, the UK Government have demonstrated, with the east coast main line, that public sector services are not only viable, but profitable for the taxman. The refusal of the Government to acknowledge this in the rush to reprivatise the east coast main line is frankly shocking. The franchise has raised £1 billion, and 2015 was rated as the best year in its history. It shows that public sector franchises can lead the way over private sector ones. [Interruption.] The hon. Member for Hove (Peter Kyle) is just delaying me further. To be fair, he made an intervention earlier that was frankly a speech, so I presume he will cut out some of his own speech. Additionally, the UK now has a franchise system that allows state-run bids from foreign countries, yet the Government still refuse to allow public sector bids. There is absolutely no logic to such a conclusion.

Finally, as was mentioned earlier, there has been some industrial action involving ScotRail in Scotland. The Scottish Government were willing to meet the unions, and they ultimately agreed a deal that the unions and the Abellio ScotRail Alliance have signed off. [Laughter.] That is actually what should be happening, so instead of laughing about it, the Transport Secretary should show leadership and face up to being willing to speak to the unions and getting around the table with them.

To conclude, I hope that the Gibb report will show how these matters can be progressed with GTR. In truth, the Scottish Government have shown what can be done by showing a different attitude north of the border, and I suggest that the Transport Secretary should think about that as well.

[Several hon. Members rose—]

Air Travel Organisers’ Licensing Bill

Alan Brown Excerpts

2nd reading: House of Commons
Monday 3rd July 2017 Commons Chamber

[Mr Hayes]

Madam Deputy Speaker, let me say—as the Speaker leaves the Chamber—that I was about to move to John Ruskin, who said:

“the first test of a truly great man is his humility.”

We present this legislation in that humble spirit, recognising that this is a changing market and the Government must act to reflect that change, but recognising, too, that the market will continue to change. Any Government who believed that this was the end of the story would, I think, be disregarding the further changes that are likely to result from technology, the way people organise their affairs, the way they book their holidays, the way the internet operates, and the fact that other technology will change the way we go about our business. I therefore have no doubt that there will be a need for further provision at some point in the future, but, at this stage, the Bill is an important step in bringing the ATOL provisions up to date and up to speed.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

rose—

[Mr Hayes]

I will happily give way to the hon. Gentleman, who played a useful role in the Committee to which I referred a few moments ago.

[Alan Brown]

I thank the Minister for giving way, and for saying that I played a useful role. As he knows, this legislation was part of the Vehicle Technology and Aviation Bill. What will happen to other measures that were in that Bill, particularly those relating to offences involving the use of lasers that affect pilots?

[Mr Hayes]

I would not want to test your patience, Madam Deputy Speaker, or indeed your largesse, by ranging widely across the provisions of the other aspects of the Vehicle Technology and Aviation Bill, but the hon. Gentleman is right to point out that, as I said earlier, these measures had their origin—their genesis—in that Bill. We will bring further measures to the House: the Queen’s Speech makes it clear, for example, that we will address the issues of autonomous and electric vehicles, which the hon. Gentleman debated, alongside the Opposition spokesman, the hon. Member for Middlesbrough (Andy McDonald), and others, in the Committee that I mentioned. Further measures will be presented, and—not wishing to test your generosity any further, Madam Deputy Speaker—I think I will leave it at that.

In this new Parliament, many of the measures that I described as essential will be introduced, and this ATOL reform is one of them. I hope that our debate today will match the convivial and consensual spirit of our discussions in the Bill Committee to which the hon. Member for Kilmarnock and Loudoun (Alan Brown) alluded. We made progress on both sides of that Committee, and I hope that it continues. I think it fair to say that those discussions demonstrated that there was really

“no difference of principle between the Government and the Opposition on this matter.”—[Official Report, Vehicle Technology and Aviation Public Bill Committee, 21 March 2017; c. 25.]

Those are not my words, but the words of the hon. Member for Birmingham, Northfield (Richard Burden), who also played a useful role in the Committee.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I welcome you to the Chair, Madam Deputy Speaker. It is a pleasure to follow the hon. Member for East Renfrewshire (Paul Masterton). It has been great to hear his and other maiden speeches, which have brought back diversity to what would otherwise have been a one-sided debate. I gently point out to him, however, that the irony of a Conservative Member mentioning divisive nationalism is not lost on us. On the question of the Government getting on with the day job, we are debating this Bill because they actually did not get on with their day job, and chose instead to call an early general election that was not needed.

As a Back Bencher, I find it frustrating when the Chair has to apply a time limit to cut speeches short, leading to frantic scoring out. I think that time limits would actually have been useful for some of tonight’s speakers, because some hon. Members have managed to speak at amazing length about a Bill that is only four clauses long. I will try to be a bit briefer.

This is a small but welcome Bill, although it is perhaps indicative of the Government’s lack of strength and ambition, given that its measures were originally part of the wider Vehicle Technology and Aviation Bill. Even so, this four-clause Bill was heralded in the Queen’s Speech, which, as we all know, lacked ambition.

The air travel organisers’ licensing scheme is well known and has provided comfort to thousands of holidaymakers over the years. It has rescued people financially and literally got them home in a timely fashion. It is a fantastic scheme. As other hon. Members have said, holiday travel and booking arrangements have changed over the years, so it is only appropriate that protections change too.

The Minister was keen to say that the UK has led the way in Europe with ATOL. I do not dispute that, but over the years the European Union has also strengthened passenger rights, and it is imperative that those rights are not weakened post-Brexit. The UK Government need to provide assurances that the rights and protections of travellers will not be diminished after the UK leaves the EU.

In fact, it is the 2015 EU package travel directive, which will be applicable from 1 January 2018, that is the driver for this Bill. The fact that three quarters of those who booked holidays last year did so online highlights the need for further protections. It is to be welcomed that protections will now extend beyond traditional package holidays. The new directive applies to three sorts of travel combinations: pre-arranged packages; customised packages; and linked travel arrangements.

I also welcome the fact that clear protection will be provided to 120 million consumers across the EU who book other forms of combined travel. A further advantage is that the measure is expected to reduce detriment to consumers across the EU by about €430 million a year, while at the same time reducing the administrative burden on businesses. It is suggested that compliance costs for traders will reduce from €11 to €8 per package.

Yet again, we have to be grateful to the EU for taking on big businesses, including the airlines, and extending consumer rights to meet modern travel needs. Since the EU legislated to provide a comprehensive system of air passenger rights in 2004, increased awareness of those rights, and of the ability to complain and appeal, has led to a significant increase in the number of people doing so.

That has been supplemented by a number of court cases that have ruled on the circumstances in which airlines must pay compensation. Appeals against some of those judgments have meant that some airlines have been reluctant to pay compensation until the legal position is absolutely clear. There is therefore still industry resistance to the current compensation schemes. I repeat that it is absolutely vital that the UK does not weaken any legislation in the future.

[Patrick Grady (Glasgow North) (SNP)]

I welcome you to the Chair, Madam Deputy Speaker, and congratulate the hon. Member for East Renfrewshire (Paul Masterton) on a fluent maiden speech. I am sure it will not be the last such speech he gives in this House.

Does my hon. Friend agree that this Bill demonstrates why we need Government assurances about the impact of Brexit? There are so many uncertainties about so many aspects of consumer protection and its impact on individuals’ daily lives. If we had had such assurances and clarity this time last year, perhaps we would not be in this situation.

[Alan Brown]

I completely agree with my hon. Friend. There seems to be great reticence on the part of the UK to come out and give the necessary cast-iron guarantees. We are a year down the line since the vote, but we have not moved forward in many regards. Too often we keep hearing how everything will be okay, but we need to start seeing some flesh on the bones.

We still do not know when the UK will develop its own system of passenger rights and compensation in the aviation sector post-Brexit, how similar that will be to the current arrangements and, importantly, how non-UK airlines and passengers will be affected. That brings me back to the point that we need a clear guarantee from the UK Government.

On a slightly different theme, Scotland has a large number of regional airports, many of which are completely reliant on low-cost airlines and outbound tourism to survive and be an economic success. Recent reports have stated that Prestwick airport in my neighbouring constituency is vulnerable to Brexit, given the number of low-cost airlines there and the type of passenger traffic, which is mainly outbound. Despite the fact that the Scottish Government have voted to reduce air passenger duty by 50%, which they hoped to use as a mechanism to grow the number of routes operating out of Prestwick, Ryanair has confirmed that, because of the uncertainty surrounding Brexit and the open skies agreement, it will not expand further at the airport. That is a cause for concern with regard to local jobs in my area.

The International Air Transport Association predicts that just a 12% reduction in sterling would result in a 5% decline in outbound travel from airports. Since the EU referendum, sterling is down 25%, so it has become even more vital for Prestwick airport that we continue within the open skies agreement and maintain outbound passenger numbers. It is incumbent on the UK Government to give an unequivocal guarantee that the UK will stay in the single aviation market after we are taken out of the EU.

Remaining in the open skies agreement—the single aviation market—is vital to ensuring that our airports remain economically viable, and low-cost airlines are vital for regional airports to be a commercial success. EasyJet is setting up a separate operation outwith the UK to ensure it can continue to fly without restrictions after the UK leaves the EU, which is in no small part due to the lack of clarity over the aviation agreement that the UK will eventually come up with.

It is clear that, despite the mantra that everything will be okay when we leave the EU, or even better than the current arrangements, the risks are materialising in front of us. It is clearly worrying if airlines are finding other EU member states a more attractive proposition, and the UK Government need to think seriously about how they are going to counteract that problem for our regional airports. The UK Government really must provide clarity and certainty sooner rather than later.

Clause 2 gives the Transport Secretary the power to reform ATOL and the air travel trust fund using only the affirmative procedure in each House of Parliament. The UK Government need to provide assurances that any changes that the Secretary of State makes to the ATOL scheme through secondary legislation will be preceded by a proper consultation of members of the industry and consumer groups, and by an appropriate impact assessment.

We welcome the Bill but, as I said in an intervention on the Minister, we are concerned about the status of legislation on laser pens and, as the shadow Transport Secretary said, drones. It is imperative that the Government move quickly to provide reassurances on those matters.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call Steve Double.