East Midlands Rail Franchise

Andrew Jones Excerpts

Tuesday 7th May 2019 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)(Urgent Question)]

To ask the Secretary of State for Transport to update the House on the bidding process for the East Midlands rail franchise.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

As has previously been confirmed in a written ministerial statement and at the Dispatch Box on several occasions, Abellio was awarded the contract after presenting the Department with a compliant bid, following a rigorous competition that was consistent with public procurement rules. Our assessment of bids has been comprehensive and fair and I have absolute confidence in the process. It was a fair, open competition and Abellio provided the best bid for passengers, in which it demonstrated that it would not only meet but exceed the Department’s specifications. The Department’s procurement process is absolutely clear: submitting a non-compliant bid that rejected the commercial terms on offer, as Stagecoach chose to do, can lead to disqualification.

We have a winner. Abellio won the competition with a compliant bid. We are currently in the standstill period, which is a standard part of procurement practice. Within that period, the Department is able to answer unsuccessful or disqualified bidders’ questions, enabling them fully to understand the details of the decision that has been made. Towards the end of the standstill period, the Department received a request for further information from one of the bidders and, in view of that, we decided to extend the period until tomorrow, 8 May. After that, we will be looking forward to the mobilisation from the successful bidder, which will lead to improved services for those who use the East Midlands franchise. Abellio will invest more than £600 million in trains and stations between August this year and 2027. Meanwhile, the Government will continue their £1.5 billion upgrade of the midland main line, which is the biggest upgrade since its completion in 1870. That is part of our £48 billion investment to modernise our railways over the next five years.

[Andy McDonald]

During Transport questions last Thursday, the shadow rail Minister, my hon. Friend the Member for York Central (Rachael Maskell), asked about the non-compliance of bidders for the East Midlands rail franchise. The Transport Secretary, who is not present, dismissed her questions as inaccurate and incorrect. However, according to a formal legal disclosure from the Department for Transport, which was published on 15 April and sent with the full authority of the Secretary of State,

“All bids contained some non-compliances.”

The ministerial code requires Ministers to make truthful and accurate statements to Parliament, so will the Transport Secretary now correct the record and rectify the inaccurate and incorrect statement that he made to the House last week?

Given that all bidders for East Midlands were non-compliant, will the Minister tell us how the non-compliances of the respective bidders were assessed? The Department has mandatory and discretionary levers over non- compliances in franchise bids. Can the Minister explain how the criteria were applied during the evaluation of bids for East Midlands?

The leak of the Stagecoach bid details to Abellio during the bidding casts further doubt on the integrity of the process. Why did it take months for the data-breach investigation to start and why was it so limited? Given last week’s cancellation of the ferry contracts and now this latest debacle, is there not serious doubt about the Transport Secretary’s ability to procure services? Will the Minister’s boss sign off the East Midlands franchise contract this week, in view of the serious concerns about the transparency of the process? Given the appalling record of defending legal challenges to failed procurement decisions—Eurotunnel and P&O being cases in point—what contingency plans are there to defend future legal action against the East Midlands award?

In 2012, rail franchising went into meltdown on the west coast main line. Seven years on, it has never been clearer that it is not working and will never work. It needs to end, and to end now.

[Andrew Jones]

Let me deal with the hon. Gentleman’s questions one at a time. In a complex procurement process such as this, or indeed in other complex public sector procurements, it is a matter of course that there may be small technical non-compliances. These could include, for example, incorrect font sizes or submitting bids in the wrong format—in docx rather than in PDF, or vice versa. This does not constitute a material non-compliance, which would affect the compliance of the bid as a whole. What would be a serious issue would be something like the reallocation of risk, or acceptance or non-acceptance of the commercial terms that have been offered. That is where the difference between material and non-material would come in.

We have been clear at the outset that non-compliance risks exclusion and Stagecoach chose to put in a materially non-compliant bid rejecting the commercial terms on offer. In doing so, it is responsible for its own disqualification.

On the bid leak, I am aware that an email was sent incorrectly by Network Rail, which was received by one of the bidders, but that has been investigated and it was proved in that investigation that the email was not opened and none of the information that was possibly within it was accessed, so it has not been material to this award.

The hon. Gentleman said that franchising is dead and buried. I could not disagree more. Franchising has been a significant part of the turnaround of our rail industry. It has led to more entrants into the market. It has led to investment from the private sector. It has led to over £10 billion of investment. It has led to a renewal of focus on customers in the rail sector. It has been an ingredient in the turnaround we have seen, with the more than doubling of passenger journeys on our railways over the past 20 and a bit years. So franchising has been a success. We of course need to evolve it because what we face now is how to take the process on to the next stages. That is the question that the Williams review has been tasked to solve.

Mr Williams is starting to give us some of his thinking. He has made speeches at various rail conferences. We look forward to receiving his report in the early summer, with a view to a White Paper in the autumn.

The comment from the hon. Gentleman was that the Secretary of State had misled the House. The Abellio bid was won in a competitive franchise process and it won with a compliant bid. The comments by the Secretary of State were, therefore, accurate. I am aware of the media story, but it is wrong. He does not need to correct the record. The Abellio bid was compliant and has been won in an open, fair and consistent way. We look forward to seeing the benefits of that for the passengers on the East Midlands network.

[Mr Philip Hollobone (Kettering) (Con)]

Can the rail Minister confirm that under the terms of the new franchise passengers from Kettering will enjoy the reintroduction of two trains an hour going north from Kettering, which had been taken away, extra seat capacity on the Corby to London service and the introduction of electrification to Kettering by 2020?

[Andrew Jones]

My hon. Friend makes, as ever, a wise point on behalf of the constituents he serves so well. The point about this franchise, and indeed all our franchises, is that they bring benefits for the travelling public. This franchise will do just that. It will be delivering more trains from Kettering, it will be delivering more seats from Corby, and the Government as a whole through their electrification of a significant part of the midland main line will be delivering the electrification that he specified. So his constituents will be receiving a better service in both quantity and quality as a result of this franchise award.

[Mr Speaker]

I trust the hon. Member for Kettering (Mr Hollobone) will go about his business with an additional glint in his eye and spring in his step, buoyed by knowledge of the approbation he has received from the Minister on the Treasury Bench describing him as “wise”; I have a feeling it will be framed and appear in an important and public part of the hon. Gentleman’s home.

[Toby Perkins (Chesterfield) (Lab)]

There will be concern in Chesterfield that the East Midlands rail service currently provided by Stagecoach will no longer be in place. In terms of what the Minister is able to tell us about the process, how many fully compliant bids were there? In terms of the process going forward, what benefits will constituents in Chesterfield see when we move to Abellio trains?

[Andrew Jones]

The Department wants to provide bidding feedback to those who have been unsuccessful or disqualified, but it has never given bidding feedback in public in relation to losing bids. That would not be particularly fair on those who have bid, and there are commercial confidentiality points that could have market implications, so we have never done that. I am aware that some of the bidders have made public statements themselves, but that is up to them. I do not think it is up to me. The people of Chesterfield will be able to look forward to an enhanced service. We have put out an interactive map that details the benefits for all the different areas of the franchise award. It is publicly accessible on the Department for Transport website and the hon. Gentleman might be interested in looking at that. Separately, I will of course write to him with the details of what will happen for the people of Chesterfield as a result of this franchise award.

[Colin Clark (Gordon) (Con)]

Can the rail Minister assure me and the House that he will continue to ensure good value for money for taxpayers and for passengers, unlike Labour, which allowed fare rises of 13% during its time in government? I was once a resident of the east of England and therefore used the rails.

[Andrew Jones]

I am absolutely clear that we will continue to seek good value for money for fare payers and taxpayers through the franchising process. The amount of money that is being invested in our railways is at a record level, because the Government believe strongly in rail underpinning our economy and our move for clean growth. Fares are obviously a matter of some concern, but I remind my hon. Friend that we are in the sixth year of freezing fares in line with inflation, which is in marked contrast to the fare system that we inherited when we came into government. I think there were fare increases of up to 10% in the previous Government’s last year. We will focus on delivering not only better value but better quality and quantity at that better value.

[Anna Soubry (Broxtowe) (Change UK)]

Never before have I heard a question on East Midlands trains that begin at St Pancras and terminate in Sheffield being asked by someone from north of the border, but the hon. Member for Gordon (Colin Clark) is always welcome to come and enjoy the midland main line.

In any event, this is a serious matter, and I pay tribute to the hon. Member for Middlesbrough (Andy McDonald) for raising it. As the hon. Member for Chesterfield (Toby Perkins) said, there will be concern about this franchise and the manner in which this has been done. My hon. Friend the Member for Nottingham East (Mr Leslie) and I met Abellio on Friday, and I put that squarely on the table. I have a concern about the level of expectation. The Minister rightly speaks about new trains being introduced, about refurbishment and about bi-mode trains, but none of that will come on stream for at least three years: there are high expectations, but they will not be delivered.

My real question to the Minister is this. It is my understanding that those train doors that have to be slammed—the ones where people have to reach up through the window to turn the handle on the outside when they want to open or close the doors—are rightly going to be made unlawful in order to comply with rules, regulations and laws covering people with mobility difficulties. Can he confirm that, in order to satisfy those laws, there will have to be new trains? Can he also confirm that that cannot be done in time for January next year? In that event, what are the Government going to do?

[Andrew Jones]

I am sure that expectations are high; they always are higher at the start of a franchise. We have been talking about the customer benefits that will flow from the £600 million that Abellio is investing in trains and stations along the franchise. I understand the right hon. Lady’s point about how benefits can sometimes be delayed, and there has, on occasion, been a sense of jam tomorrow in the delivery of timely upgrades for our railways, but this is a positive announcement and it should be welcomed as such. I recognise that change can cause challenges for people who are used to dealing with a particular operator. That is inevitable whenever we have a change of franchise operator—[Interruption.] May I just make one more point, Mr Speaker?

[Mr Speaker]

Oh, very well. Blurt it out!

[Andrew Jones]

Blurt it out I will. In terms of PRM compliance—compliance with regulations covering passengers with reduced mobility—I am extremely keen that all our train operating companies should have trains that are PRM compliant by the end of the year. That is the expectation that we have of them.

[Martin Vickers (Cleethorpes) (Con)]

East Midlands services that run from Cleethorpes extend to Lincoln and Newark. In the not-too-distant past, we used to have services through to Nottingham, Leicester and even more exotic places. Could the Minister give an assurance that Abellio will look at extending the services out of Cleethorpes? Will he urge it to ensure that they are not provided by a single unit? The services, particularly those to Lincoln, are frequently overcrowded, especially after they stop at Market Rasen in the constituency of my right hon. Friend the Member for Gainsborough (Sir Edward Leigh).

[Andrew Jones]

I am not sure we can describe Leicester as an exotic destination, but I understand the point that my hon. Friend is making. It is a key part of the economy and the central part of this country and its connectivity is therefore very important, as he highlights. I will have to check and have a further conversation with Abellio and then write to my hon. Friend with the answer to his question.

[Mr Jim Cunningham (Coventry South) (Lab)]

There have been press reports again today regarding who is responsible for pensions, particularly in relation to Virgin contracts and Stagecoach. Can the Minister clear that up? What is he trying to achieve? Who is responsible for paying the pensions?

[Andrew Jones]

The responsibility for paying train operator pensions is the responsibility of the train operator. That is the case with the franchises that have just been awarded and are being considered, and it has always been the case since franchising came into form 25 years ago. There are no plans to change that. Train operators have the responsibility and we expect them to fulfil it.

[Tom Pursglove (Corby) (Con)]

Is the Minister confident that the new contract will deliver positive benefits for rail users in Corby and east Northamptonshire and that the transition from the old contract to the new will be seamless?

[Andrew Jones]

There will be significant benefits for the constituents whom my hon. Friend serves so well. Those benefits will be in the form of new trains and significantly increased capacity, particularly with the connectivity into London. There are significant benefits for those he represents. There is obviously operational risk with the handover from one franchise to the next, but many of the staff will TUPE over, as is standard when a franchise changes. I expect all sides to go through the process with good will to ensure that customers are at the centre of their thinking.

[Tom Brake (Carshalton and Wallington) (LD)]

I wonder whether there is a way to formalise this slot as an urgent question to the Secretary of State for Transport, because this is clearly a weekly event that could be formalised in the parliamentary calendar.

My question to the Minister is this: what is the Secretary of State’s responsibility when it comes to making market-sensitive information available? Given how leaky the Government are, was it appropriate to leave nine days between disqualifying Stagecoach and announcing its disqualification?

[Andrew Jones]

After the decision has been made within the Department for Transport, there has to be a period of communication with other Departments, such as the Cabinet Office and the Treasury. That is entirely standard in public procurement. It is not a question of the Government sitting on their hands within the Department. There was a standard process. That is typical in rail franchises, as it is in other parts of public procurement. I am aware of the press story, but it is simply wrong.

[Jeremy Lefroy (Stafford) (Con)]

The Minister will be aware that the East Midlands service between Derby, Stoke and north Staffordshire, run by East Midlands Trains, is inadequate. It is often only one carriage and overcrowded. Can he assure me that that service will be improved under the new franchise?

[Andrew Jones]

I can assure my hon. Friend that the service will be significantly enhanced. That enhancement will take the form of more services, particularly earlier in the day, including on a Sunday—I know he and others along that route have campaigned for that. The trains themselves will be new and much bigger. I am aware that the service is often a single carriage and is absolutely full. That is an indication of the pent-up demand along that line. That is why we will be seeing more services to meet that need.

Oral Answers to Questions

Andrew Jones Excerpts

Thursday 2nd May 2019 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

1. What progress he has made on the electrification of the Great Western main line.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

We have so far electrified the Great Western main line as far as Newbury, Bristol Parkway and Chippenham, and electrification to Cardiff is progressing towards delivery by November this year.

[Jessica Morden]

I certainly welcome the electrification work in south Wales, although it should have gone through to Swansea, but what is the Department doing to ensure that Network Rail works closely with communities such as Magor in my constituency, which is right on the line, to ensure that where work does have a big impact on residents it listens, reacts to problems and compensates accordingly?

[Andrew Jones]

I cannot comment on the specifics of that community, but I will take that up with Network Rail on the hon. Lady’s behalf. As a general principle, I raise, and have raised repeatedly, with Network Rail how community engagement and communication are absolutely critical for all communities along the lines they serve.

[Steve Double (St Austell and Newquay) (Con)]

The electrification of the main line railway through Devon and Cornwall would be massively challenging and hugely disruptive because of the geography, with a number of bridges, tunnels and steep inclines. Does the Minister share my view that the best way forward for places like Devon and Cornwall is to use bimodal trains that make use of electrification where available, but then have clean diesel engines where electrification is not possible?

[Andrew Jones]

My hon. Friend makes a very wise point. Electrification has always been part of the answer to improve the network, its environmental performance and its running capability, but it will not be the right answer on every single occasion. There will be occasions where electrification provides no significant journey time savings, yet has a significant capital cost. In those situations, we should seek to get the benefits via technology and the technology in the rolling stock. I agree with my hon. Friend.

[Thangam Debbonaire (Bristol West) (Lab)]

Further to the point made by my hon. Friend the Member for Newport East (Jessica Morden), my constituents, particularly those in Lawrence Hill, one of the most challenging parts of my constituency, had to endure months of inconvenience as the electrification work was carried out. To add insult to that injury, we are not even getting electrification to Bristol Temple Meads. They have to put up with the inconvenience without the electrification. What compensation, assistance or help can the Secretary of State or the Government give to my constituents in Lawrence Hill?

[Andrew Jones]

The issue of compensation when we do works on either the railways or the roads is raised repeatedly, but it would simply just add to the cost of projects. I recognise that we cannot work on the roads or the rails without causing some disruption. That should be minimised. As I said to the hon. Member for Newport East (Jessica Morden), we should be working to communicate and collaborate with communities. In terms of compensation, there is no plan to change any of the current arrangements, but I just remind her that the services at the end of the work will result in the best ever services from Bristol.

[Ben Lake (Ceredigion) (PC)]

The Minister may be aware that the Welsh Affairs Committee reported on the cancellation of electrification to Swansea and pointed out that although Wales has 11% of the UK’s rail network it receives 1.5% of rail investment. Does the Minister not agree that that disparity needs to be addressed?

[Andrew Jones]

We are keen to see investment right across our network. I know the hon. Gentleman has campaigned for a variety of infrastructure investments—indeed, we had a Westminster Hall debate on this subject only a few weeks ago—but we are investing at a record level. The budget for England and Wales for control period 6, which started last month, is £48 billion. That money is being spent on upgrading, maintaining and renewing our network. As proposals come forward for inclusion within schemes, they should of course be based on merit. I look forward to working with Welsh colleagues to see what happens.

[Neil O’Brien (Harborough) (Con)]

It is extremely welcome that a scheme is now being developed for electrification to Market Harborough. Can the Minister say when further decisions will be taken about exactly when that will happen?

[Andrew Jones]

I cannot say exactly when without going off and checking, but I will of course do that and get back to my hon. Friend with a more detailed answer.

[John Grogan (Keighley) (Lab)]

2. What assessment he has made of the potential merits of restoring the rail link between Skipton and Colne.

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[Mr Jim Cunningham (Coventry South) (Lab)]

3. What assessment he has made of the potential effect on (a) capacity and (b) ticket prices on the rail network at peak times in the event of the introduction of seating-only policies.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The Department has made no recent assessment of the potential effect of the introduction of seating-only policies on our national rail network. I understand that Virgin set out a number of proposals in its submission to the Williams rail review, including seating-only services. Those will of course be considered by Mr Williams and his team as their work progresses.

[Mr Cunningham]

When do the Minister or his officials propose to have discussions with Virgin Trains? There is a great deal of concern that this could affect Virgin employees and, equally, pensioners’ freedom to travel, so I hope the Minister will discuss this with Virgin.

[Andrew Jones]

I look forward to the Williams review’s response to Virgin’s submission. I see Virgin’s point, but I have to say that the turn-up-and-go principle that has always been part of our rail network is important and, I think, valued by passengers. I understand the hon. Gentleman’s point about the impact on passengers and those who work on the railways, but the underlying turn-up-and-go principle is a fundamental part of our rail network, and we would only challenge that with extreme care.

[Mr Philip Hollobone (Kettering) (Con)]

Far too many rail passengers have to stand, which is especially inconvenient for those on lengthy journeys. Many other countries successfully run double-decker trains. Why do we not, with a bit of vision and ambition, introduce double-decker trains on our network?

[Andrew Jones]

My hon. Friend makes an interesting suggestion. Our challenge is that we have a very old infrastructure, including many cuttings, tunnels and bridges. Cuttings are perhaps less of a problem, but the tunnels and bridges would be more of a challenge. The height capacity, which also impacts on freight, is being considered, but the way to deliver the capacity that my hon. Friend seeks for his constituents and that we want is perhaps not through that route, which would require huge interventions and a large capital budget, but to use other forms of technology and development.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

4. Where the trains for the new franchise for midland main line will be made; and what the timetable is for the delivery of those trains.

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[Patrick Grady (Glasgow North) (SNP)]

10. What discussions he has had with Cabinet colleagues on improving rail punctuality.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The Government take performance seriously and understand it is crucial to passengers and freight users, which is why we agreed a Network Rail settlement for England and Wales of £47.9 billion for control period 6 specifically aimed at maintaining and renewing the railway to improve reliability and punctuality for all rail users. The budget in Scotland is £4.85 billion, and I would encourage the hon. Gentleman to make similar representations to the Scottish Government, who have devolved control of railway infrastructure funding in Scotland.

[Patrick Grady]

I am sure the Minister and the whole House will want to welcome Monday’s launch of the new sleeper stock on the Caledonian Sleeper service. I recommend the service to you, Mr Speaker, should you ever want to come and visit us up in Glasgow.

Of course, the first services were slightly hampered by delays and a fall in punctuality as a result of signal failures and problems with Network Rail. Given the success, the ambition and the vision that the Scottish Government have shown with this new sleeper service, should they not now also have the power devolved to control the whole of Network Rail so that we can deal with some of these punctuality issues?

[Andrew Jones]

The whole of Network Rail would include England and Wales, which might be a stretch for the Scottish Government. I obviously also welcome the arrival of the Caledonian Sleeper. I have not seen the service yet, but I understand it is fantastic and I look forward to seeing it, and potentially even using it.

On how this is structured, the Scottish Government, as they should, have control of the spending north of the border in Scotland. I am keen to see devolution across our rail network. Local solutions to local problems is a merit that we should be considering.

I just point out that we have had a good run on punctuality over the past few months in the UK. Performance obviously needs to be constantly improved but, when I checked this morning, 95% of trains were on time, including 94% of trains in Scotland. That is a strong performance from ScotRail and a strong performance across our whole network.

[Simon Hoare (North Dorset) (Con)]

Punctuality is often viewed through the prism of the big strategic journeys, but may I urge my hon. Friend also to take into account, when considering how to improve punctuality and bringing pressure so to do on the operators, those small, intercounty and over county boundary journeys that are often so important to students and workers? I think particularly of those from Gillingham in my constituency through to either Salisbury or back to Dorchester—those journeys are vital to the local economy, and the service is not quite good enough.

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[Mr Speaker]

Indeed. But it is not a sleeper service, so he will have to be awake.

[Andrew Jones]

I do sometimes fall asleep on the trains at the end of the week if I am heading north again. I was not planning such a visit, but I am always happy to visit and I would be happy to take up the invitation that you have just suggested my hon. Friend makes, Mr Speaker. I never think of punctuality as purely an inter-city question; everybody who uses our rail network should be able to expect to be on time every time. That is why the measure of punctuality is being changed to include “on time every time”, including all the stations on a route, not just the final destination. That data is being collected for the first time now and is very encouraging. Let me confirm to my hon. Friend that I agree entirely with his basic point, which is that passengers deserve an on-time service every time, and it is part of my planning.

[Several hon. Members rose—]

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

I think this a bit tangential to punctuality, Mr Speaker, but I might try to get it in. [Hon. Members: “Give it a shot.”] Will the Secretary of State honour the pledge he made to me on 17 July 2017? I realise that that is not a punctual request, but now is the time. I asked him about the mutual mistrust between NW10 residents and HS2, and he said that his door would always be open. Now that construction has started, they feel as though they are living in a war zone, a dustbowl and the longest and largest building site in Europe. So will he make a visit or sit down with me and my constituents to sort this out?

[Andrew Jones]

Yes, there was a little bit of a tangent in that question. I am not the HS2 Minister, but I can, having just checked with the person who is, say that she will be happy to meet the hon. Lady. We will set that meeting up soon.

[Tom Pursglove (Corby) (Con)]

I know that, like me, the Minister will welcome the electrification of the midland main line, a project currently being undertaken, and the new half-hourly service to and from Corby, which will be a real boost for our rail services in north Northamptonshire. But there is still a demand for more northbound services from Corby, so will he help me to explore that possibility, as I think we ought to be tapping the huge potential there?

[Andrew Jones]

My hon. Friend is a great champion for his constituency, and for the rail services to and from it. The new franchise will certainly bring a wide set of positive developments for the rail passengers of Corby. I am more than happy to agree with him on this and meet him to work together to see what we can do to make these services even better.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

If the Government are going to take on my predecessor Tom Harris, who sits on the Government’s own rail review board, they had better make sure that they are right. So can the Minister explain why Mr Harris is wrong when he calls for control over Network Rail to go to the Scottish Government?

[Andrew Jones]

I am aware of the work that Mr Harris does as part of the rail review, and I am looking forward to seeing what the rail review says. We have had some early indications on its thinking. We have seen some speeches made by Mr Williams to give some indicative direction on its thinking, and we will see more later in the summer. I think we should be looking forward to its work with enthusiasm.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

11. What steps he has taken to encourage (a) cycling and (b) walking.

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[Mr Philip Hollobone (Kettering) (Con)]

T3. The new east midlands train franchise is likely to increase capacity southwards from Kettering, but will it improve connectivity north on the midland main line? The previous Labour Government cut our half-hourly service northwards and it is about time that we had it back.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I can confirm that, compared with today, there will more trains from Kettering going north. The trains will be new, so they will have more seats, which means that, in terms of capacity, there will be more trains and better trains. On timing, we will see the start of more services for my hon. Friend’s constituents from December 2020.

[Mr Stephen Hepburn (Jarrow) (Lab)]

T5. Train commuters faced 35,000 cancellations last year owing to driver shortages. That is purely because train operators are running the service on the cheap. What will the Government do about that?

[Andrew Jones]

I simply do not accept the premise of the hon. Gentleman’s question. This service is not being run on the cheap. We are seeing record levels of investment—both private and public investment is at a record level. Perhaps I should point out to him that his party’s policy is to nationalise the railways, which will result in more cash required from the Government, but of course the Labour party has not yet said where it might come from. We are focused on delivering the enhancements to the network, which will meet our aspirations for a high-capacity, environmentally clean rail network underpinning the UK economy. Therefore, I am afraid that I cannot really agree with the premise of the question.

[Sir Desmond Swayne (New Forest West) (Con)]

Is there any progress internationally in discussions to include maritime and aviation emissions?

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[Jessica Morden (Newport East) (Lab)]

Constituents have contacted me again this week to highlight the eye-watering increases in the cost of commuting by rail to Bristol, and how that is forcing them into their cars. After yesterday’s climate emergency debate, is it not time for Ministers to act on extortionate rail fares?

[Andrew Jones]

We are in the sixth year of capping regulated fares in line with inflation. Also this year, we have introduced the railcard for 16 and 17-year-olds—effectively extending child fares up to their 18th birthday. The hon. Lady should recognise the action that is taking place and remember that Labour gave us a 10% fare increase during its last year in office. Where Labour is running the devolved railways, it is also increasing fares in line with inflation, so she should be backing the Government’s policy, not criticising it.

[Justine Greening (Putney) (Con)]

I was hugely concerned to see that, although the Secretary of State was sent a memo in November 2017 outlining how many millions of people would be affected by the third runway expansion at Heathrow—up to 13 million people were planned to be part of a publicity campaign letting them know what was going on, and 5 million people were to be leafleted directly—that campaign never took place because it was vetoed by officials at the Department. We effectively had a vote in this place when communities and the people who represent them were entirely unaware of the extent of extra noise from Heathrow. How can the Secretary of State be confident that there really is public support for this project when the public are wholly unaware of its impact on them?

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[Andrew Jones]

I had a very interesting visit to my hon. Friend’s constituency. He laid on an extremely good range of businesses, so I have clear insight into the concerns of the business community that he serves. I would of course be very happy to meet him. I can confirm that increasing capacity and having more freight services in the UK is a Government priority.

[David Hanson (Delyn) (Lab)]

Holywell Town Council, in conjunction with Tesco, has recently put in place the first electronic vehicle charging point in a town centre in my constituency. I know the Minister will agree that the Government need to do more, so will he give an update on what progress has been made since the fanfare announcement last July of support for electronic charging points? How many have been introduced as a result of a Government initiative?

Transport

Andrew Jones Excerpts

Thursday 25th April 2019 Ministerial Corrections

The following is an extract from the response by the Under-Secretary of State for Transport, the hon. Member for Harrogate and Knaresborough (Andrew Jones), to an urgent question on Thursday 11 April 2019.

[Andrew Jones]

Stagecoach is an experienced bidder and fully aware of the franchise competition rules, so it is regrettable that it submitted a non-compliant bid that breached the established rules. In doing so, Stagecoach is responsible for its own disqualification. Bidders were invited to bid on the basis of a pension deficit recovery mechanism. They knew that at the very start of the process.

[Official Report, 11 April 2019, Vol. 658, c. 460.]

Letter of correction from the Under-Secretary of State for Transport:

An error has been identified in the response I gave to the hon. Member for Sheffield South East (Mr Betts).

The correct response should have been:

[Andrew Jones]

Stagecoach is an experienced bidder and fully aware of the franchise competition rules, so it is regrettable that it submitted a non-compliant bid that breached the established rules. In doing so, Stagecoach is responsible for its own disqualification. Bidders were invited to bid on the basis of a pension deficit recovery mechanism. They knew that was part of the process.

South-Eastern Rail Franchise

Andrew Jones Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Sir Michael Fallon (Sevenoaks) (Con)]

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on his decision to delay, yet again, the award of the south-eastern rail franchise.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

In June 2017, the Department for Transport announced that the shortlisted bidders for the south-eastern franchise competition were: South Eastern Holdings Ltd; London and South East Passenger Rail Services Ltd, a wholly owned subsidiary of Govia and the current incumbent; and Stagecoach South Eastern Trains Ltd, a wholly owned subsidiary of Stagecoach Group plc.

Subsequently, in December 2018, the Department exercised an extension with the existing south-eastern operator, London and South Eastern Railway, until 23 June 2019 to allow further time for the competition to identify the next operator for the franchise. The Department is now in the process of negotiating a further direct award which, subject to a successful negotiation, will run until 10 November 2019, with an option to extend the agreement until April 2020. We are taking these steps to ensure continuity of services for passengers. This additional time is necessary to deliver the best possible outcome for passengers and taxpayers alike. We will update the House in the usual way as soon as this work is concluded.

[Sir Michael Fallon]

I am grateful to the rail Minister, but he has not quite explained why such a mess has been made of this franchise. Can he confirm exactly when my constituents, who already pay the second-highest fares in the home counties, will get the long-promised new carriages? Can he explain why, if the franchising system is now under review, he has been able to award an eight-year franchise for the east midlands? Finally, can he explain why the compensation in respect of last year’s timetable chaos is not going to the two stations most affected in my constituency, Shoreham and Eynsford, when the two operators enjoy common ownership? Is it not time to restore confidence in the whole franchising system?

[Andrew Jones]

I thank my right hon. Friend for those questions. He has been a strong and tenacious champion for rail passengers in his constituency, raising issues with me and speaking in Westminster Hall debates. I share his impatience to get the benefits that are emerging from our franchises to his, and indeed to all, constituents. This is a huge and complex piece of public procurement, and it is right to take the time to make sure we get it right and to finalise this competition. The area is one of the most complex on our network; it has a mix of high-speed and commuter services, with a highly intensive use of infrastructure. I cannot tell him the date on which we will be able to make the announcement. This is a live competition involving market-sensitive information. There is an established method of communication to the House and the markets, so I cannot answer him and am able to say little on that point today.

I can confirm to my right hon. Friend why the east midlands franchise was awarded, with the rail review taking place. That was simply because it was considered that with the east midlands franchise award and this one we could get the benefits to passengers before the work of the rail review came into play. On compensation in respect of the two stations he mentioned, I will look at that carefully. On the point about the compensation following the May 2018 timetable changes, there were some significant problems, but they were not everywhere. The issue was to get the compensation to those who had been most affected. They received compensation that I think was appropriate, but I will check out those two stations and write to him as quickly as possible.

[Rachael Maskell (York Central) (Lab/Co-op)]

So here we are again: a Transport Minister forced to the Dispatch Box to defend the actions—or, in this case, the lack of action—of the ever-failing Secretary of State. Following four delays on the south-eastern franchise, we now know that the Government are planning a direct award. After 12 other direct awards, including on south-eastern, is this approach being taken to avoid the embarrassment of failure further down the road? Two monopolies, Govia and Abellio, are left in the competition to run Britain’s most beleaguered franchise. Following a litany of failures under Govia, highlighted in Chris Gibb’s report two years ago, and a lacklustre response by the Secretary of State, who, frankly, should have brought the franchise under direct operation, the travelling public are being failed.

What discussions has the Minister had with the trade unions, as the hard-working staff face further uncertainty, not least over their jobs and pensions? Will he also confirm that there is no intention to cut pensions to staff through this franchise process? Are the Government going to stall on all franchises until the conclusion of the Williams review, which is undertaking a comprehensive look at why our rail system is floundering? If so, when will this report be published? In the light of revelations this weekend that sensitive confidential information was leaked from Stagecoach into the hands of Abellio during the east midlands process, what changes has the Minister made in his Department to ensure that commercially confidential information is not shared with competitors in this broken process? How are the Government measuring past failure of these rail monopolies? In the light of evidence, will he then rule out their bidding, as he has for other companies involved in other franchises?

With 176 million journeys being made each year, how can these passengers have any confidence that they will not pay the price for failure—something they have had to endure under the current award? They are paying some of the highest fares in exchange for one of the worst services, so it is clear that this franchising fiasco must end. If the Secretary of State will not take back control of our rail, Labour will.

[Andrew Jones]

I thank the hon. Lady for her questions. We are negotiating a short direct award to allow the competition to reach its end. This is not the end of franchising, which has been a significant ingredient in improving and turning around rail performance in this country. It has led to our having more services and passengers and at a greater level of safety than at any point in our country’s history. Franchising has been part of that success. This is an issue not of failure but of making sure that we get it correct.

Have I discussed the franchise bid with the trade unions? No, because the bids are assessed by officers of the Department for Transport, who anonymise them. It is important, market-sensitive information. Such information runs through a standard procedure, of which the hon. Lady should be aware; it operates in councils, in the Government and in devolved Assemblies, too. I have of course met the trade unions, and I was able to confirm with them that my aspirations for the rail industry include the careers of those who serve the industry. The Chair of the Transport Committee, the hon. Member for Nottingham South (Lilian Greenwood), asked about the same point in an urgent question just before the Easter recess. I do not want to see any cut to pensions; I want to see those who work on our rail services retire with secure and stable pensions. Nevertheless, we are talking about pensions from a private business, not something that comes from the Government.

The work on the Williams review is under way. I am sure the hon. Lady will have seen some of the evidence papers and heard about the emerging thinking that Mr Williams has discussed in some of the speeches he has made over the past few weeks. We look forward to seeing the output of that review. Franchising has been an ingredient in the turnaround of our rail industry that has been so fantastic for this country. The question now is how we take that to the next stage, which is what the Williams review is all about.

[Damian Green (Ashford) (Con)]

My constituents are as anxious as anyone about the reasons that lie behind this continuing delay, but they are even more anxious that the improvements we have all been promised under the new franchise do actually happen. Will my hon. Friend assure me and my constituents that the improvements, particularly the extra capacity on the high-speed line, will be available when the franchise is eventually awarded?

[Andrew Jones]

My right hon. Friend asks about how the bid may finally be judged. I cannot comment on the work in progress, but I can say that an invitation to tender was published in November 2017. It was the result of a significant consultation, to which there were 10,000 or so responses. I am as anxious as my right hon. Friend to get the benefits of that invitation to tender out to the constituents whom he serves so well, and as fast as possible, but I cannot give an answer today on who will win the franchise. That work is carried out separately by officials, away from Ministers, and the information is anonymised because it is so important and market sensitive, but his point will have been heard by all those in the industry.

[Lilian Greenwood (Nottingham South) (Lab)]

The south-eastern franchise was originally due to end in 2014. The failure of the west coast franchise delayed that ending until August 2018, and now the direct award to Govia could be further extended. It is hard to understand why, if the Government still believe in competition for rail services, the Department for Transport seems absolutely unable to run a competition for this franchise. Will the Minister clarify how many compliant bids were received for the south-eastern franchise and how many were received for the east midlands franchise that was awarded two weeks ago?

--- Later in debate ---

[Andrew Jones]

The hon. Lady makes the point about whether franchising is dead; no, it is not, because of course we managed to award a franchise only in the week before Easter recess. As a process, then, franchising is working. Can we get the benefits out to passengers as fast as possible? That is of course what it is all about, but these are complex questions and it is appropriate that we take our time to get it right. On the number of compliant bids, the issue of pensions obviously attracted a lot of attention in respect of the east midlands bid. We have two pension-compliant bids for the south-eastern franchise and look forward to making the announcement as soon as we possibly can.

[Joseph Johnson (Orpington) (Con)]

Will my hon. Friend assure me that this further delay to the award of the franchise will not hold up long-awaited works for Petts Wood and St Mary Cray stations to become fully accessible—something for which residents have been campaigning for many years?

[Andrew Jones]

I thank my hon. Friend for that question. I share his enthusiasm for the access-for-all process and the recent announcement of extra funds and where those funds will be targeted by the Under-Secretary of State for Transport, my hon. Friend the Member for Wealden (Ms Ghani). I can tell him that design work on the stations selected will be starting over the summer, with construction as soon as possible thereafter. I know that he is anxious for the benefits to serve his constituents. So am I and so is the Under-Secretary of State, who I know is listening. She has indicated that she would be very happy to meet him to take the matter forward.

[Rosie Duffield (Canterbury) (Lab)]

Further to his letter of 10 April in which the Under-Secretary of State assured Members that robust scrutiny would be used in this decision-making process, can he please reassure my beleaguered constituents in east Kent that that scrutiny will also apply to the exorbitant fare rises, constant delays and disruptions, arbitrary timetable changes and removal of services?

[Andrew Jones]

I can most certainly provide the hon. Lady’s constituents with the assurance that she is seeking. We will obviously be focusing on fares. We want to make sure that the travelling public get a great deal, which is why we have frozen regulated fares in line with inflation for the sixth year in a row. It is also why, in January, we saw the launch of the 16 to 18-year-old railcard, which will come into play later this year. So will there be attention on costs and scrutiny of fares? Of course there will. We will be maintaining that. This policy, which has delivered its sixth year, against Labour’s intentions, will be continued.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

Will the Minister please confirm that the City Thameslink service from Maidstone East will still be delivered before the end of the year? It is desperately needed and it has been promised on a multitude of occasions.

[Andrew Jones]

My hon. Friend has been a very diligent campaigner on this issue. I know that it matters a lot to her and to her constituency. She has been a real vocal champion on this issue specifically. However, this is also an industry-led process and we are working with it to deliver the benefits as soon as possible. I cannot comment immediately on that matter because it is not part of this franchise but, of course, I will check the information and keep her posted on progress.

[Tom Brake (Carshalton and Wallington) (LD)]

If the rail review recommends that suburban services in the London area be transferred to London government, will the Government allow south-eastern suburban services to be transferred in that way to maximise integration of transport services in London?

[Andrew Jones]

That is a very interesting question. I would expect the rail review to make some interesting recommendations about devolution. I am personally a fan of devolution, but we had better see what it says before commenting on the outcome.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

I note my hon. Friend’s statement today on the south-eastern rail franchise. I am, of course, bitterly disappointed that we have not made any progress on this matter. In the meantime, my constituents continue to suffer a poor service into London. It is also disappointing, but rather ironic, that, just like the rail service, all we seem to see from his Department is continual delay. As he is well aware, improvements are desperately needed to our service in the borough of Bexley—and not later this year, next year or sometimes never. Our constituents are paying more money for a poor service. What we are expecting is a decision so that we can look to a better future and the travelling public from Bexley have a better service. At the moment, they do not.

[Andrew Jones]

My right hon. Friend makes a very important point. He is a diligent campaigner on rail issues for his constituency. We saw that at an important level when there was the landslip earlier this year. He was a great champion in making sure that the voices of his travelling constituents were heard in this House. I cannot yet tell him when we will be making the announcement on the decision on who wins the south-eastern franchise competition, but I can tell him that I am extremely keen to get the benefits that the franchise will bring to his constituents. I will make sure that he is kept fully posted on progress.

[Teresa Pearce (Erith and Thamesmead) (Lab)]

There appears to be a serious issue around rail pensions. The Minister has said that there are two pension-compliant bids on the table. Could he tell me whether the Department has made any changes to the franchise specifications in respect of pension obligations, and what conversations have been held with the Pensions Regulator regarding the deficit?

[Andrew Jones]

The Pensions Regulator is an independent body and the pensions that we are talking about are those of private companies, so the role for the Government is not a direct one. Operators are currently liable for the full pensions risk during their franchise term. These competitions—including the east midlands competition, which was mentioned by the hon. Member for Nottingham South (Lilian Greenwood)—included a risk-sharing mechanism with the Government that actually reduced the risk to which operators are exposed. Under this mechanism, the operators retain risks that they are able to manage. There have been some changes, but they are about risk-sharing for the future; so there was a notable change in the franchises.

[Helen Whately (Faversham and Mid Kent) (Con)]

It is disappointing that, like so many Southeastern trains, the south-eastern franchise is itself delayed. My constituents expect the new franchise to give them improved services, to reduce overcrowding, and to introduce Delay Repay 15, smart ticketing and flexible season tickets, which are all really important. Will my hon. Friend ensure that, although the franchise is delayed, these improvements will not be? Could they be introduced in advance of the new franchise, rather than our having to wait for so long?

[Andrew Jones]

I will have a look at my hon. Friend’s point. The key benefits that have come into our rail services over the past few years have come in through the franchising process, as it has brought in private investment. That investment has purchased or leased new rolling stock, which has meant a transformation across the country for the travelling public. My hon. Friend is as impatient as I am that the benefits that we are seeing come to fruition for her constituents, and I will of course work to deliver them as fast as possible.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

The franchise specification promised extra capacity, new rolling stock, greater frequency of trains and 15-minute Delay Repay, but my constituents will now not see those improvements for at least another seven—perhaps 12—months. What specifically is the Department going to do to improve services for passengers on Southeastern throughout the period of the franchise extension?

[Andrew Jones]

We are working to bring the franchise decision to a conclusion as fast as possible, and to get the benefits that will come with that decision right across the franchise as quickly as we can.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

The delay to this franchise is not only a delay to the people of Tonbridge and West Malling, and to the towns and villages around the area; it is also a delay to a strategy that the Minister already announced—the 15-minute delay compensation. I do hope that his initial statement that this scheme will wait until a change of franchise will no longer apply, and that he will instead introduce the change from a 30-minute to a 15-minute delay compensation now. If we are to wait still further, it will cost commuters in the wonderful towns that I have the privilege to represent, as they will have to pay more for delayed services.

[Andrew Jones]

Delay Repay 15—a compensation system that will give any passenger who has been delayed by 15 minutes or more 25% of their fare back—will be a part of all future franchise awards. We have recently been able to make some in-franchise changes in other areas, such as on Northern and Great Western. I will look into my hon. Friend’s point. I am aware of how well this scheme has been received where we have been able to make the changes. It is not quite as straightforward as saying that we can do this immediately, but I know that he is hungry for that benefit and I will do what I can to help him achieve it.

[Clive Efford (Eltham) (Lab)]

I do not quite understand how the Minister can anonymise the two bids when there are only two bidders, one of which is the existing franchise. Setting that aside, this franchise is fraying at the edges. There have been yet more delays this afternoon because of a broken down train. Is it not time that the Department for Transport spoke to the Mayor of London about London’s suburban services and sorted out this mess once and for all?

[Andrew Jones]

The process for the assessment and award of bids is handled away from Ministers and by the content of the bid rather than by the bidder’s name, so these things are handled in a way that is perhaps a little different from that which the hon. Gentleman suggests. I have had a conversation with the Mayor, but not on this issue. He came to the Department for Transport seeking a loan facility of over £2 billion to help with the completion of Crossrail. We were able to help with that. It is of course a loan that will need to be repaid, but the loan has been made and he is, I believe, drawing down on it. He needs to answer some questions about the long-term viability of Transport for London’s finances.

On the performance on the network, of course there is more to be done on every single franchise. I want to make sure that we have services that are on time, every time. Ninety per cent. of trains on this franchise have been on time over the past few months. When I looked at the performance figures earlier today, I saw that it was 97%. But of course nobody wants to have any delays, and that is why this is my top priority.

[Tracey Crouch (Chatham and Aylesford) (Con)]

Rail users and constituents of mine on the Maidstone East line and the Medway Valley line from Chatham are fed up with being forced to pay through the nose to use a service beset by delays, lack of information and poor-quality rolling stock. Continuous delays in deciding the next franchise provide no incentive for the current franchise holder to make any investment to improve services for those users. What can the Minister do to ensure that passengers receive the service that they pay for now rather than in the future—for which, like Southeastern’s, the timetable keeps changing?

[Andrew Jones]

My hon. Friend has been a champion for her travelling public. I know that because she has made this point to me on a number of occasions, both in this House and in meetings outside. On the management of the franchise, there is, as with all franchises, a performance regime that is operated through the Department for Transport. Whenever we see franchises failing in any way, we take action right away. I say what I have said to other colleagues across the House: I am impatient to see the benefits of this franchise award out there as soon as possible. Consequently, I will be making sure that we get this decision made as fast as we possibly can, and I will keep her informed of progress.

[Janet Daby (Lewisham East) (Lab)]

This is the fourth time that the award of a new franchise has been delayed. Commuters from my constituency and from others across the south-east have been facing delays, cancellations, and overcrowding on trains. The continued delay is preventing long-term investment and improvements, placing millions of passengers at a disadvantage. Will the Minister therefore provide an update on the timeline for the award, be transparent about the reasons for the repeated delay, and outline a long-term view on the viability of the franchise system as a whole?

[Andrew Jones]

My view on the franchise system as a whole is that it has been a part of our improvement in our rail performance as measured by the number of services, the number of passengers, and the quality of journeys over the past few years. The benefits of a privately run industry have been profound. I cannot answer the hon. Lady’s question because this is market-sensitive information. There is information that will need to be announced to the markets and to the House in the normal manner when the decisions are made.

[Robert Neill (Bromley and Chislehurst) (Con)]

I happen to agree with my hon. Friend the Minister about the benefits that come from franchising. Having said that, perhaps he will take this point in the spirit in which I make it when I say that if one was paying someone to discredit the franchising process, the way his Department has gone about it could not be bettered—it is an utter shambles. In order not to add insult to injury to my long-suffering constituents, will he return to the very fair point made by my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat)—that the very least the Department can do is to ensure that if the company seeks an extension to the current franchise and continues to get financial benefit, it shall be obliged to bring in 15-minute Delay Repay straight away, and not wait?

[Andrew Jones]

The issue for me is how to ensure that the trains are run on time every time, but when things go wrong we need a compensation scheme that is fair to the traveling public. I share my hon. Friend’s impatience to get the benefits that will come from this franchise award to the constituents he serves so well. I will keep him updated on progress, including on DR15.

[Phil Wilson (Sedgefield) (Lab)]

As the Minister knows, the contract for the rolling stock for the London underground deep tube was awarded to a company that intends to build the majority of the rolling stock in Austria, having promised that it would be built in the UK. What guarantees can he give that the company awarded the new south-eastern rolling stock contract will build the trains in the UK and provide work for train companies such as Hitachi in Newton Aycliffe in my constituency?

[Andrew Jones]

The hon. Gentleman is a great champion for that rail company in his constituency. He has told me about it on a number of occasions, and I hope to visit the plant shortly. I have met the company, and I am aware of the quality of its product. I cannot direct where a private company places an order. We are in an open market economy—we have competition, which delivers passenger benefits, value and passenger experiences that were never possible when this railway was nationalised. I am sure that those who are making the purchasing decisions will be aware of the point he makes and of the merits of British manufacturing.

[Gareth Johnson (Dartford) (Con)]

These delays are regrettable, but they at least give the Minister an opportunity to look again at the terms of the franchise. I was pleased when the Oyster card system was extended to Dartford, to cater for my constituents. Does he agree that any new franchise contract should include a term to ensure that smart ticketing is extended beyond the current boundaries?

[Andrew Jones]

My hon. Friend makes a wise point, as ever. Smart ticketing is a part of the rail future right across the country, not just in Dartford. The pay-as-you-go extension has been very popular across the south-east. The benefits of smart ticketing are profound, including convenience for passengers and the ability to change tickets more easily, and we are trying to ensure that they are part of all franchises.

[Diana Johnson (Kingston upon Hull North) (Lab)]

The Minister has referred to the Williams review several times. Keith Williams has already warned about the Government “micromanaging” the rail industry and driving passengers away. He has also said that the current franchise system is damaging to innovation. Does the Minister agree with those comments?

[Andrew Jones]

There are points in the current operation of the franchise system that can be improved, but micromanaging from Government is not helpful. The Labour position is to micromanage everything from Government by nationalising the railways, so there is—[Interruption.] There is a little bit of inconsistency in what the hon. Lady says.

[Huw Merriman (Bexhill and Battle) (Con)]

My constituents will be disappointed with this delay, but I have every faith that the Minister will get this right. The Transport Committee has looked at the franchising process in a number of reports. It is very complex and detailed, and as a result it can be expensive and litigious. Will there be an opportunity to simplify the franchising process, so that we do not experience such delays when making decisions?

[Andrew Jones]

I hope that simplification of the structure of the industry, including the franchising process, will be one output of the Williams review.

[Tonia Antoniazzi (Gower) (Lab)]

On a point of order, Mr Speaker. I seek your guidance. I went outside into Parliament Square to speak to members of Extinction Rebellion who wanted to exercise their right to come into Parliament to lobby their MP. I am holding over 100 letters to MPs. What guidance can you give those people who are unable today to exercise their right?

East Midlands Rail Franchise

Andrew Jones Excerpts

Thursday 11th April 2019 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab)]

(Urgent Question): To ask the Parliamentary Under-Secretary of State for Transport if he will make a statement on why Stagecoach has been disqualified from bidding for the east midlands rail franchise.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

On Wednesday 10 April, it was announced that Abellio is the successful bidder to operate the east midlands rail franchise and will be responsible for delivering new trains, smart ticketing and more frequent services for passengers. Passengers in the east midlands are to get new trains, more peak-time services, reduced journey times and over £17 million of station improvements as Abellio takes over the franchise from August 2019.

Abellio will invest £600 million in trains and stations between August 2019 and 2027, while the Government continue with their £1.5 billion upgrade to the midland main line—the biggest upgrade to the line since it was completed in 1870. This is part of the Government’s £48 billion investment to modernise our railways over the next five years.

As we informed the House in yesterday’s written statement, Abellio was awarded the contract “following rigorous competition.” It was a fair, open competition and Abellio provided the best bid, in which it demonstrated that it will not only meet but exceed the Department’s specifications.

Stagecoach chose to put in a non-compliant bid, which resulted in its disqualification, in line with the terms of the published invitation to tender. That said, Stagecoach has played an important role in our railways, and we hope it will continue to do so after the conclusion of the rail review. However, it is entirely for Stagecoach and its bidding partners to explain why it decided to ignore established rules by rejecting the commercial terms on offer.

[Mr Betts]

Thank you, Mr Speaker, for allowing this urgent question.

The Minister did not really answer the question. Abellio has been awarded the contract as the best bidder, but the bid of the existing franchisee was not even allowed. Generally, Stagecoach has performed reasonably well on the contract, so will he explain when the requirement was first introduced that a bidder has to cover pension costs? Is this the first franchise for which the requirement has been introduced? Why was it applied?

How much, in total, are the Government trying to cover in costs through the franchising process? When were the bidders notified of the requirement—was it at the beginning of the process?—and why was no one else told about it? Are any other companies refusing to cover such costs? Are any other franchises affected? If they are, what will be the effect on competition within the franchising system? What would happen to future competitions and to the costs that the Government seek to cover if all companies refused to cover those costs?

Finally, on the bid that has been accepted, do these hybrid trains actually exist now? When will they be introduced? What will the Government do if existing rolling stock is not disability-compliant in 2020? The Government have promised improvements to the timetable, but can we be assured that, at the beginning of the new franchise, journey times will be at least as good, and at least as short, as they were before the botched timetable changes of last year?

[Andrew Jones]

There are a lot of questions there. First, Stagecoach has acknowledged to the Department that it had bid non-compliantly. We have received offers from other bidders in all competitions that are fully compliant in providing the required pension arrangements for railway workers so, to answer the hon. Gentleman’s question on whether this means the bid process is failing and others are refusing, clearly they are not because we have a compliant bid that won in good form.

Stagecoach is an experienced bidder and fully aware of the franchise competition rules, so it is regrettable that it submitted a non-compliant bid that breached the established rules. In doing so, Stagecoach is responsible for its own disqualification. Bidders were invited to bid on the basis of a pension deficit recovery mechanism. They knew that at the very start of the process[Official Report, 25 April 2019, Vol. 658, c. 8MC.]. Stagecoach did not accept it and made some amendments as it submitted the bid. On what would happen if all companies refuse, clearly, by definition, they are not all refusing, so the question does not apply.

We will see an entirely new fleet of trains—a full replacement fleet—come into service. Inter-city services will receive new bi-mode trains, and regional services will receive new diesel trains. The express fleet, which is the Corby-Bedford-London service, will receive new electric trains that offer significantly enhanced environmental improvements.

What is interesting in this franchise is that we will see the first trial of a hydrogen-powered train. [Hon. Members: “When?”] In terms of timing, we will see the new trains coming into service in a phased way. We hope to see the first trains coming in next year, and so on over the next three years.

The bidding process was conducted in a fair and consistent way, applying the rules of engagement equally to all bidders. We have provided feedback to those who have not been successful. The reasons are always commercially confidential. Losing bidders may publicise them if they wish, but we will not do that because they are commercially confidential. The key thing that we are seeing here is a franchise awarded in the typical way that franchises are awarded in our rail industry, delivering passenger benefits.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

I am rather surprised at the late withdrawal, or barring, of Stagecoach from this franchise. It seems to have come right at the end, so it is odd that my hon. Friend is saying that somehow Stagecoach knew it was non-compliant, because if the Department knew so early that it was non-compliant, one would have thought it would have been told quite some time ago. These franchise bids are not cheap to make and they are very expensive for the company.

Will my hon. Friend be more specific, as usually is the case, about where the new trains are coming from? If they are to be in operation from next year, presumably an order is about to be made very soon. Where will that order come from? I congratulate the Government on widening state ownership of the railways, albeit that of other states.

[Andrew Jones]

There were a number of points in my right hon. Friend’s question. As soon as the decision was taken on this franchise, all the bidders were notified. That is entirely standard. He has a great track record of delivering improvements across our rail network. Bidders were notified, of course, across all competitions, so that they did not incur extra costs. These things are expensive to operate, so this was awarded in a fair and consistent way.

Obviously, the contract to deliver the rolling stock will be between the successful bidder and its rolling stock provider, but we expect to see significant improvement in the rolling stock, and the feedback I have had from passengers along the line and from colleagues who serve along the line is that they are looking forward to seeing the benefits that those will bring.

[Andy McDonald (Middlesbrough) (Lab)]

Clearly, the franchise system is in complete disarray. It seems that Stagecoach boss Martin Griffiths and Richard Branson have been taken completely by surprise by the announcement of the decision to disqualify Stagecoach from the discredited franchise process, seemingly for failing to provide sufficient commitments in terms of the pension scheme, bidders having been asked to bear full long-term funding risks on relevant sections of the railways pension scheme. Can the Minister inform the House about the pension commitments made by Abellio that warranted the award of the east midlands franchise and the extent to which any such commitments were distinct and more acceptable to the Department for Transport?

Is not this really payback for the east coast collapse, two years ago? The question on the airwaves today was whether this decision would propel Richard Branson back into his favourite hobby of suing Her Majesty’s Government over the awarding of contracts, which has served him so profitably over the years. What preparations has the Minister’s Department made in readiness for potential costly litigation flowing from this decision?

Why did the Department change the pension rules in the middle of the bids? On south eastern, that was only made clear after two rebids. Is not that moving the goalposts?

The real issue is that this Government, by sleight of hand, are trying to reduce their support for the railways pension scheme. They are trying to pass these costs on to the private sector. That is why both Stagecoach and Arriva defaulted on their bids for the east midlands franchise. The rail industry has a plan to reduce the deficits in its pension schemes, yet the Government have ignored that and are attempting to bulldoze through changes without consultation. That is reckless. It will concern rail workers and worsen the rail service for passengers. What discussions were there with the trade unions? Moreover, given that Keith Williams has been instructed to conduct a root-and-branch review of the operation of our railway, why has such a lengthy franchise been awarded before the Williams review reports later this year?

The announcement is accompanied by the decision to extend the franchise award on south eastern to Govia. How can it be right for that company to be given the nod to continue when it has delivered such a miserable service and completely failed its passengers? Is that not further reward for failure? Surely even this beleaguered Government can see what is staring them in the face: the franchise system is in total collapse. They need to respond to long-suffering passengers and do what the next Labour Government will do: bring track and train back together in state ownership—this state.

[Andrew Jones]

The hon. Gentleman asked a number of questions. Is the franchising system in disarray? Of course it is not. If we look at what has happened to our railways over the past 25 years, we see unprecedented passenger growth. We now have more people travelling on our railways and more services run on our railways, and at a greater level of safety than ever before. The franchising system has been a key ingredient in that delivery. Do I think the franchising system is over? Absolutely not. I think we need to look at how it will evolve in future, and that is what the Williams review is doing. Franchising has helped get the system from A to B, reversing years of decline. We now need to see what system we will have as we take it through to the next stage.

Stagecoach knew that its bid was non-compliant—it acknowledged that to the Department. The hon. Gentleman asked about litigation. The Government are completely confident that the bid was evaluated and decided fairly. It is business as usual in the awarding of a franchise on our rail network. He asked whether the decision on the east coast main line was payback. That question is absolute nonsense. This is an entirely separate matter. The bid was won on merit by the strongest bidder. It offered the best bid, with new trains and more services, including more Sunday services and more early and late services. It was won on merit. If a company chooses to bid non-compliantly, that is its fault.

With regard to passing the costs on to the private sector, that is also nonsense, because these are private sector pension schemes. The rail operating companies have a section of the rail pension scheme. Their trustees will meet the Pensions Regulator to discuss that. Is this a question of the Government seeking to remove responsibility? No, this is a private matter and the trustees will be dealing with that in their own way.

The hon. Gentleman asked whether I have met the trade unions. I have met the National Union of Rail, Maritime and Transport Workers and ASLEF, and on this occasion I have written to them to highlight the award today.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Williams said in his recent speech that the franchise system in effect is already broken, and today’s announcement proves it. Abellio is hopeless. The Minister will recall an Adjournment debate he had with a number of MPs a couple of months ago—the business of the House had collapsed early so lots of us piled in. I think six or seven Members from Essex, whose constituents suffer that company every day, got up and told him, one after the other, how utterly useless that company is. We have been waiting for years for new trains from Abellio, yet still they do not turn up. It is Dutch-Japanese owned and it does not give a monkey’s about the passengers. I am sorry, but this is a massive mistake and yet another Grayling cock-up.

[Andrew Jones]

I do not agree with anything my right hon. Friend has just said. That Adjournment debate was very enjoyable; we had many discussions because there were so many interventions. The core of the debate, which was secured by my hon. Friend the Member for Colchester (Will Quince), was about the introduction of the Delay Repay 15 offer for customers, which went live on 1 April and has been widely welcomed by passengers on the line. Indeed, on 1 April, I went to stations in Norfolk, Suffolk and Essex, and I met passengers, the Transport Salaried Staffs Association and the rail operating company, and the arrival of DR15 was widely welcomed. The key thing that people were looking for was the consistent delivery of a timetable, so the requirement to pay any form of compensation would not be necessary. That is, of course, at the heart of the Government’s CP6—control period 6—investment. We are investing £48 billion over the next five years to modernise and upgrade our railway to make sure that we can deliver the network and services that passengers rightly expect. Is Abellio a failing provider? No.

[Mr Francois]

Ask my constituents.

[Andrew Jones]

I have looked at the measures in terms of performance data and customer satisfaction. I recognise that we have had frustrations across our rail network over a number of years and that we had very poor performance last May, but I do not accept that Abellio is a failing performer. It operates 6,000 trains in the UK each day. The service is improving in all areas—[Interruption.] My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) is doing an awful lot of chuntering using fairly robust language, as he normally does—or as he has taken to doing recently. The point remains that we are delivering a network that is operating at the best that it has operated for a significant number of years. It has turned around decades of under-investment and underperformance. We are now seeing a network carrying more people with a higher level of safety than at any point in British history and this franchise award takes that further.

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

Yet again, we have not had a statement from the Department for Transport. We have to rely on media announcements and urgent questions to hold the Department to account, but when the Minister comes to the Dispatch Box, he says, “Oh, that’s a lot of questions.” That is because we are not getting information. Virgin Trains East Coast walked away from the east coast main line owing £2 billion. Many people called for Stagecoach not to be allowed to bid for other franchises, but the Department for Transport dug its heels in, saying that it could bid for franchises and then sat on the non-compliant bid for a long time. Why has the Department adopted such contradictory positions? Martin Griffiths, the Stagecoach chief executive, said:

“We are extremely concerned both at the DfT’s decision and its timing. The Department has had full knowledge of these bids for a lengthy period”.

Again, what discussions were held on pensions and how long has the Department sat on the non-compliant bid before making a decision?

What will happen with the west coast main line franchise, as we are told by the media that Virgin Trains will disappear in a year? Virgin previously won the 2012 franchise after a legal challenge, so what are the risks of further challenges from Virgin after this decision today, and will the Minister provide any legal advice that the Department has taken?

Abellio in Scotland pays the living wage. Is it part of this franchise award that all employees get the living wage? How robust are the pension protections in this Abellio franchise and how will pensions be protected in other franchises? Clearly, this is now a major issue.

Many of us have called for the Transport Secretary to resign. Now we have the irony of the Transport Secretary threatening the Prime Minister to resign over her position on Europe. Will he follow through on his threat, or will the Government take action and make the Secretary of State resign and shake up the Department?

[Andrew Jones]

Well, much of that was absolutely ridiculous—just complete nonsense. Let us turn back the page and remind ourselves about the idea that the Government have somehow been dragged to the Dispatch Box. I remind the hon. Gentleman that this was a contract that included a market sensitive element. There are strict procedures when a market-sensitive contract is awarded by any Government—and that includes the Scottish Government. The announcement is made first of all to the City. There was a written ministerial statement at 7 o’clock yesterday morning and by 9 o’clock there was a “Dear Colleague” letter sent out to all those Members who were affected, so what he says is simply wrong.

I have to say I cannot remember exactly the full range of questions the hon. Gentleman asked, but the key thing is that this contract has been awarded in a fair and consistent way. It is delivering significant passenger benefits, including a complete renewal of the fleet. I have already highlighted that the inter-city, regional and express services will all receive new rolling stock—new trains—and that there will be more services, more seats at peak and improved environmental performance. The benefits are clearly very significant. We should welcome them, not the opposite.

I think the hon. Gentleman got carried away with his own rhetoric when he asked whether the Secretary of State should resign. Of course not—what a load of complete nonsense. This franchise was awarded in a fair and consistent way, and it will deliver for passengers. We should celebrate that, not the opposite.

[Several hon. Members rose—]

[David Tredinnick (Bosworth) (Con)]

Thank you, Mr Speaker. As part of his response to the new franchisee, which will be broadly welcomed in my constituency if it really does produce new trains, better capacity and improved stations—from listening to my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois), I am not so sure about that—will my hon. Friend look at connectivity between Leicester and Nuneaton via Hinckley? There are also big concerns about the west coast main line.

[Andrew Jones]

I will of course consider my hon. Friend’s point, but we have produced an interactive map so anybody can log on and see where the benefits will fall right across the franchise area. That map is available at maps.dft.gov.uk and may provide the detail he seeks.

[Lilian Greenwood (Nottingham South) (Lab)]

I hope the Minister recognises that, although East Midlands Trains staff are covered by TUPE thanks to our membership of the EU, this will be a really uncertain time for them—especially those who have worked for Stagecoach for the last 12 years. Will he first join me in thanking them for their hard work, which I know will continue for the rest of this franchise and into the next? Does he also recognise the wider anxiety that this decision has prompted among railway staff about the security of their pensions? At privatisation, his Department promised to provide a long-term guarantee for their pensions. What assurance can he give them today that that has not changed?

[Andrew Jones]

The hon. Lady is quite right. I happily join her in thanking those who have worked in this franchise and, indeed, in all the other franchises to make our railway system work day in, day out. It is a hard job they do, and we should recognise that, not criticise them for it.

I also recognise that, when anything changes like this, there will be a degree of uncertainty. A level of uncertainty can come when there are takeovers in any sector of business, but when franchises change there are TUPE protections, which are positive, and I entirely support that. Pensions are a key part of having a comprehensive offer for workers in every sector, and the Pensions Regulator is working with the trustees of the railways pension scheme to ensure that workers’ benefits are protected. We want that to happen. We want to see people in the sector retire with secure, stable, good pensions.

[Neil O'Brien (Harborough) (Con)]

It is very welcome that we are going to have 80% more seats in the morning peak and new bi-mode trains that can benefit from the electrification to Market Harborough, but may I ask the Minister two things? First, when in the new franchise will those new trains arrive? Secondly, does he agree that if we are going to have new trains for the east midlands, they should be built in the east midlands?

[Andrew Jones]

My hon. Friend rightly never misses an opportunity to mention Market Harborough, of which he is a great champion. Obviously, the contract for the new trains will be placed by the new bidder, but I am always keen to see more manufacturing take place in this country. That is why we have been working to make the environment for manufacturing in this country so much better, which is one of the ingredients of the economic turnaround from the mess this Government inherited.

[Anna Soubry (Broxtowe) (Ind)]

I congratulate the hon. Member for Sheffield South East (Mr Betts) on securing this very important question. A large number of people across the east midlands will share his concerns about the granting of this franchise. Stagecoach at least backed the Access for All bid for Beeston station, and it is really unfortunate that the Government have not provided the money to make sure that we have that funding.

There is real concern about rolling stock and Abellio’s ability to provide it. In short, the Minister should know that Stagecoach certainly told me that there would be no new rolling stock. As he will know, we have on this line trains that are 40 years old. There will be no new trains for at least three years. We now need to firm this up. Will he confirm that Abellio will not provide trains for at least four years, or is there any chance that it might be a shorter period?

[Andrew Jones]

I recognise that the east midlands franchise has been successful. However, this bid was won on merit and awarded to the strongest bidder. It was the strongest bidder irrespective of any of the compliance issues that we have been talking about today.

As regards the Access for All bid for Beeston, it was not successful in this round. I imagine that we will see further rounds of Access for All funding because it is a critical part of this. We are working to make our railway network available for as many people as possible. There is no greater champion for that than the Under-Secretary, my hon. Friend the Member for Wealden (Ms Ghani), who is sitting next to me. I therefore suggest that the right hon. Lady speaks to her to discuss potential future bids for Beeston.

[Ben Bradley (Mansfield) (Con)]

I welcome any opportunity to improve the service through the east midlands and to get new trains. I echo the calls for those trains to be made in Derby if at all possible. Will the Minister confirm that the new contract includes a requirement for the new franchisee to bring forward a business case for the Robin Hood line extension through my constituency, for which we have been fighting for many years and will be a big step forward for my constituents?

[Andrew Jones]

I receive quite a number of lobbies on the Robin Hood line. I cannot provide the immediate reassurance that my hon. Friend is looking for, but I suggest that we could perhaps meet to discuss this further. I am aware that it will be of interest to many colleagues within the House.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

The Public Accounts Committee has repeatedly highlighted the problems with the franchising system, and the fact that we were whittled down to a single bidder underlines that. I thank the Minister’s Department for sending me details of the franchise. The interesting point is the extension of the Govia contract, which will go on until November of this year, with an option to extend the agreement, the Secretary of State tells me, to April 2020. Does this mean that the outcome of the root-and-branch rail review will be so conclusive that he will have the time to run a new franchising project within six months?

--- Later in debate ---

[Andrew Jones]

I think that the hon. Lady is referring to the south eastern franchise.

[Meg Hillier]

indicated assent.

[Andrew Jones]

Right. Well, that franchise is still under consideration and we will be announcing the results in due course. The point in the letter to the hon. Lady was that while that evaluation is taking place, there has been a short extension to the existing franchise to ensure that passenger services can continue to operate.

[Mr Philip Hollobone (Kettering) (Con)]

The main concerns of Kettering rail users are finding a seat on crowded peak time trains to and from London, the low frequency of services north on the main line to Leicester and the level of fares per mile being among the highest in the country. Does the winning bidder address any of those issues?

[Andrew Jones]

Yes, it does, because it puts more capacity into the franchise so that many more of the constituents my hon. Friend serves so well will be able to secure the seats they are looking for.

[Nic Dakin (Scunthorpe) (Lab)]

When does the Minister expect the new hydrogen-driven trains promised in his statement to run?

[Andrew Jones]

This is the very earliest of stages, so I am afraid I cannot provide all the details on that. However, I am extremely keen to see further environmental improvements on our rail network, and it is with great relish that I will be taking the first opportunity to bring a hydrogen-powered train on to the network.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

The Minister paints a very glowing picture of this new franchise—it almost sounds too good to be true. As somebody who will be travelling on these trains every week, as he will not be, can he assure me that the quality of the brand-new trains that he has promised us, which will apparently be amazing, will be at least as good as the ones we have now and better than Abellio usually has, or will they be of inferior quality? When will they come into the franchise, and will they be stopping more frequently between London and Belper?

[Andrew Jones]

The quality of the rolling stock will be upgraded. The rolling stock in this area is indeed quite old. I am fully aware that I do not travel on the line as frequently as my hon. Friend, although I am quite a regular passenger. As we replace trains across our network, we are seeing a much improved service. In this instance, there will be more seats and free wi-fi across the franchise, which should benefit her and those she serves. On stopping at Belper, I will need to do some further investigation and reply separately on that point.

[Melanie Onn (Great Grimsby) (Lab)]

The franchise system is broken. It does not work for staff or in the interests of passengers. The potential for a direct line between Grimsby and London was scuppered by alleged anti-competitiveness between franchisees. Does not the process need a complete overhaul?

--- Later in debate ---

[Andrew Jones]

I have already said how I think that franchising has been a key part of the turnaround in our rail network since privatisation. On services to Grimsby, a new Nottingham to Grimsby service, with limited extension to Cleethorpes, is part of the new franchise, and the hon. Lady should welcome it.

[Tom Brake (Carshalton and Wallington) (LD)]

What is the point of asking Keith Williams to conduct a root-and-branch review of the railways while at the same time awarding a very long franchise?

[Andrew Jones]

To make sure that we get the benefits to passengers as fast as possible.

[Ruth Smeeth (Stoke-on-Trent North) (Lab)]

After a 10-year campaign for station improvement, local residents in Kidsgrove finally secured funding under Access for All for an accessible bridge and an extended car park. Problems with Network Rail have delayed the project, meaning that the car park is now delayed. The car park programme is overseen by East Midlands Trains and will go over the franchise date. Can the Minister assure me that the change in franchise will not affect my car park?

[Andrew Jones]

I am keen to see the Access for All benefits implemented across the network as soon as possible. The detail of that question has been heard by the Under-Secretary of State for Transport, my hon. Friend the Member for Wealden, and she will make contact with the hon. Lady to discuss that issue further.

[Diana Johnson (Kingston upon Hull North) (Lab)]

I am really disappointed that the Secretary of State, who was in his place on the Front Bench earlier, was not able to take the urgent question, because franchising is one of the key planks of the Government’s railway policy. It seems to me that, as my hon. Friend the Member for Great Grimsby (Melanie Onn) said, it is failing passengers. Now an award to 2027 has been made, at the same time as the Williams review. How can that possibly make sense?

[Andrew Jones]

The diary of the Secretary of State is not relevant to this point. We have got a bid that delivers more seats, more capacity, more services, reduced journey times and a new fleet of rolling stock. This is not something that is failing: it is a positive thing and the hon. Lady should welcome it.

[Janet Daby (Lewisham East) (Lab)]

Yesterday the Department for Transport announced it has granted the south eastern rail franchise yet another extension. This is the fourth time that has been delayed. It is preventing investment and improvement for passengers. Does the Minister acknowledge that the delay is failing long-suffering passengers who rely on this service?

[Andrew Jones]

I will agree that franchising is one of the best ways to deliver passenger service improvements and new rolling stock, so we agree strongly on that. The hon. Lady might wish to speak with her Front Bench. In terms of the delay on south eastern, it is a complex matter and it is still being evaluated. We will make the decision as soon as possible.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Is it not correct that the franchise system is a fundamentally flawed business model? Over the past 10 years, we have seen £3.5 billion extracted in dividends—money creamed off our railways that could have been reinvested had we had a proper model of public ownership and democratic accountability in our railway system. Indeed, Virgin Trains alone has extracted £53 million in the last year. It is a thoroughly inefficient system that needs to be corrected, and that includes ScotRail too.

[Andrew Jones]

The hon. Gentleman is wrong. He talks about the dividends that are paid, but he fails to remember one important point, which is the amount of investment brought in from the private sector through the franchising process. That has totalled £10 billion. Would the Labour party take that from taxation or other spending areas? Where will that money be found if we do not bring in private sector investment? Those are great questions which the Labour party is not addressing in its ill-thought-through, uncosted attempts at nationalisation.

[David Hanson (Delyn) (Lab)]

The east coast decision is inextricably linked to the west coast decision, which is forthcoming in June and causing great uncertainty for Virgin rail users in north Wales, the north-west of England and north to Scotland. Can the Minister give an assurance that any concerns raised about the east coast franchise will be reflected on before the west coast franchise is awarded?

[Andrew Jones]

The bids for the west coast franchise will be assessed and the franchise awarded in the normal way. I am slightly puzzled by the Labour party’s position on this. After the east coast main line affair last year, Labour was broadly suggesting that Stagecoach should not be allowed to bid for anything; now it is broadly suggesting that it is bad to take away any franchises from it.

[Mr Jim Cunningham (Coventry South) (Lab)]

Can the Minister clarify the situation with Virgin on the west coast main line? And I do not want a lecture about the Labour party’s stance; I want a straight answer.

--- Later in debate ---

[Andrew Jones]

The answer is quite straightforward. Stagecoach bid for the east midlands franchise, it was not compliant and, as part of the feedback that it received, was told that it was not compliant, which it knew, on the other bids as well.

[Daniel Zeichner (Cambridge) (Lab)]

The rail industry, through the Rail Delivery Group and with the support of the trade unions, wrote to the Government some weeks ago with alternative proposals to deal with the issues around the pension scheme. Will the Minister tell us his response to those proposals and say whether they were considered in this important decision?

[Andrew Jones]

I received a letter last week from the rail industry on that matter. That is still being considered and we will respond in due course, but that is not part of this award. The franchise has been awarded on merit to the strongest bidder, and we should be looking forward to the passenger benefits that will flow from that award.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The Minister will know that Abellio runs part of the London Northwestern Railway, which replaced London Midland. It is now reducing its timetable arrangements, so what comfort can my constituents in Stoke-on-Trent have that the east midlands train franchise, whose services run all the way from Nottingham to Crewe through the great towns and cities of Staffordshire, will not later be subject to the same reduction in services because Abellio was the only bidder and there is no alternative?

[Andrew Jones]

I will look in detail at the points that the hon. Gentleman makes, but our objective is to run more services. That is the key thing that is happening right across our network. We are running more services and carrying more passengers, and with a record level of safety, than at any point in British history, so to suggest that franchising has been a failure is a complete misunderstanding. I will of course look at his points and get back to him to discuss them further.

Oral Answers to Questions

Andrew Jones Excerpts

Thursday 21st March 2019 Commons Chamber

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

9. What assessment he has made of the potential merits of extending the Tyne and Wear Metro to Washington.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The Department’s call for evidence, issued on 7 February, seeks views on how we can seize the opportunities to build on the success of light rail. I am grateful for the response that the hon. Lady sent to the Department highlighting the potential merits of extending the Metro system to Washington, and we will ensure that her comments are taken into full consideration.

[Mrs Hodgson]

Residents of Washington often feel like the town is an island compared with neighbouring cities and towns. It contains 70,000 of my constituents, 70% of whom use their car to get to work. Does the Minister not agree that investment in transport infrastructure—such as the extension of the best light rail system in the north-east to Washington—would be the perfect way to encourage people out of their cars, reduce congestion, improve air quality and reduce the nation’s carbon footprint? What’s not to love?

[Andrew Jones]

As ever, the hon. Lady has made a strong case for the original Washington. We are keen supporters of this local transport system. We are investing £317 million in the Metro renewals and refurbishment programme and a further £337 million in renewing the fleet, as the Secretary of State said a moment ago.

I am aware that Nexus has identified a number of opportunities to expand the Metro network. It is up to Nexus to build a business case and to seek funding accordingly, but I support the hon. Lady’s basic argument, which is that transport investment is a driver of economic growth and environmental improvement. That is why we are investing so much in our networks across the country.

[Chris Elmore (Ogmore) (Lab)]

10. What plans he has to increase funding for the Welsh railway network.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

Network Rail’s proposed investment in the rail network in Wales during control period 6—between now and 2024—is £1.34 billion. That builds on the £900 million invested throughout control period 5 since 2014. That constitutes an increase of just under 50%. That investment will build a bigger, better railway for Wales.

[Chris Elmore]

Wales contains 11% of the UK railway network, but since 2010 it has received only 2% of the overall funding. Last year it received £177 million, while north-west London alone received £669 million. That is not acceptable. When will the Minister start investing in the Welsh railway network and end this chronic underfunding?

[Andrew Jones]

I am keen to see investment in the rail network throughout the United Kingdom. The budget for control period 6 is a record £48 billion, and, as I said a moment ago, the Wales budget for the next five years is £1.34 billion. That is just to tackle the infrastructure; we are also investing in tackling the new franchise—which is run by the Welsh Government—and in rolling stock.

[Martin Vickers (Cleethorpes) (Con)]

rose—

--- Later in debate ---

[Mr Speaker]

That is truly a trainspotter’s contribution.

[Andrew Jones]

I can see, Mr Speaker, why you referred to my hon. Friend as a parliamentary celebrity; that was properly ingenious. I will of course do all I can to help with the Suggitts Lane level crossing issue, and I much enjoyed my recent visit to his constituency and thank him for arranging the roundtable with local businesses.

[Christian Matheson (City of Chester) (Lab)]

Whether it is the line down to Wrexham or indeed the north Wales coast line, railways in Chester are hampered by the blockage that is the Hoole bridge in my constituency, which the Secretary of State knows about because he visited it during the 2017 general election. During the next control period, will Ministers make money available to improve and rebuild Hoole bridge?

[Andrew Jones]

I am not quite as familiar with the geography of the hon. Gentleman’s constituency as he is, so I will have to do some investigation work and then report back to him.

[David Hanson (Delyn) (Lab)]

The welcome investment in the Halton curve has meant that train services from Liverpool to Wrexham will very shortly recommence for the first time on a direct service, but will the Minister investigate with the Welsh Assembly Government and the local authorities the possibility of extending that service up the north Wales coast to Flint and other stations in north Wales for tourism and business purposes?

[Andrew Jones]

I will certainly investigate the question raised by the right hon. Gentleman. The £16 million investment in the Halton curve has enabled that new hourly direct service between Lime Street and Chester, therefore making it easier for constituents he serves and others across north Wales to travel, so I will see what we can do to make that easier.

[Nigel Huddleston (Mid Worcestershire) (Con)]

11. What steps his Department is taking to improve road connectivity in the Midlands.

--- Later in debate ---

[Mr Stephen Hepburn (Jarrow) (Lab)]

12. What steps he is taking to reduce rail fares.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The Government have frozen regulated rail fares in line with inflation for the sixth year in a row. In addition we announced the launch of a new 16 to 17-year-old railcard, with up to 1.2 million young people eligible for a 50% discount on rail travel to coincide with the new academic year. Fares revenue is crucial to funding day-to-day railway operations and the massive upgrade programme we are delivering, all of which benefit passengers.

[Mr Hepburn]

The Office of Rail and Road says that the train operating companies have paid out £1.3 billion in dividends since 2014. Would it not be better to use this money to cut fares, rather than paying fat cats in the private sector?

[Andrew Jones]

I should point out that 98p in every £1 paid in fares goes back into investment in the industry. The argument about nationalising the railways is one that we have had here before, and I think it is the wrong approach. The approach that we have taken for the past 25 years has led to a record growth in passenger numbers, a record number of services on our network and a record level of safety across our network. The hon. Gentleman’s suggestion would simply move us back to the 1970s and to a model that failed.

[Kevin Foster (Torbay) (Con)]

13. What plans he has to improve the resilience of the rail network in (a) Devon, (b) Cornwall and (c) Somerset.

--- Later in debate ---

[Tom Brake (Carshalton and Wallington) (LD)]

15. What powers he has to sanction train operating companies for poor performance.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The Department monitors operator performance closely through the franchise agreement. If performance falls below a predetermined level, we can require the operator to incur expenditure to improve performance for passengers. If an operator delivers consistently poor performance, the Department can intervene to act in passengers’ best interests, and this can include removing the franchise and acting as the operator of last resort.

[Tom Brake]

The Minister will be aware, as will anyone here who is a Southern commuter, that for the past three years Southern has been let off the hook again and again. He will also know that, from next month, train operators will switch to “on time” as a target. Southern is currently hitting that target only 72% of the time. At what point will he call for the company to be sacked?

[Andrew Jones]

The right hon. Gentleman is not correct to say that action is not being taken. We have held Govia Thameslink Railway, which is part of the bigger franchise, to account for its role in the disruption last year. I recognise that the quality of service that he expects for his constituents has not been delivered over the past few years, but GTR will not make a profit in this financial year and we have capped the profit that it can make for the remaining years of its franchise. GTR is also paying £15 million into a fund for tangible improvements, in addition to the £15 million that it contributed towards the special compensation scheme.

[Tim Loughton (East Worthing and Shoreham) (Con)]

Further to the question from the right hon. Member for Carshalton and Wallington (Tom Brake), not only should GTR not be making a profit; it should be making a whopping loss for the appalling pig’s ear it has made of our service. After all those sanctions and penalties, how on earth can the Minister justify GTR still having that franchise?

[Andrew Jones]

I recognise the frustration that people have experienced in parts of our network, but just bringing the franchise to an end could cause further and unnecessary disruption for passengers and therefore be an inappropriate course of action. The question should be how we can improve our network, and that is the action that we are taking. We are seeing this coming through in performance improvements.

[Mr Clive Betts (Sheffield South East) (Lab)]

Poor performance is not just down to the operating companies. Peak-time trains between Sheffield and London are running slower than they were a year ago because of the botched timetable changes that the Department brought in. When is the Minister going to reverse those changes so that the journey times for peak-time trains between Sheffield and London can get back to being less than two hours, as they were a year ago?

[Andrew Jones]

The hon. Gentleman makes a point about Sheffield, so I will highlight the amount of work happening on the midland main line to improve journey times and passenger experiences up and down the network, including Sheffield.

[Jo Swinson (East Dunbartonshire) (LD)]

People in East Dunbartonshire experience an appalling rail service, particularly on the Milngavie line, where only 28% of trains arrive on time. Does the Minister know of any other train line on which performance is quite so poor, or could the Milngavie line be the worst in Britain?

[Andrew Jones]

The operation of the rail network north of the border is a matter for the Scottish Government, so I am not as sighted on the matter that the hon. Lady raises. If I start to become very excited about the issue, I may be treading into devolved territory, which may be inappropriate. However, I am aware of lines up and down the country on which performance has not been good enough, which is why we are investing at a record level to improve that performance.

[Mr Speaker]

Surplus excitement is undesirable. The Minister has an exciting enough life as it is, gadding about the country on a variety of different train services, and we are indebted to him.

--- Later in debate ---

[Andrew Griffiths (Burton) (Con)]

T8. On Saturday, some 15,000 people had a great day at the midlands grand national in Uttoxeter, bringing much-needed revenue and jobs into my constituency. However, had it taken place on Sunday, racegoers would not have been able to get to Uttoxeter until 2.53 pm. I am delighted that the Minister has listened to my long-running campaign and agreed to bring forward signalling on Sundays in 2021, but that is not soon enough. Will he agree to meet me, and perhaps bring along his cheque book, so we can sort this out for my constituents?

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I thank my hon. Friend for that question. Through the next east midlands franchise, passenger services on the Derby to Crewe corridor will benefit from increased capacity, which means that trains will operate with at least one extra carriage to help satisfy local demand. This will be supplemented by additional early and late services, and improved Sunday services. The bids for the next east midlands franchise are currently being considered. Ministers just do not see those bids during that stage of the process, but as soon as there is news, I will share it with him. Of course, we will be delighted to meet him, as I always am. I cannot promise to bring my cheque book just at the moment, but I look forward to discussing the issue further with him.

[Daniel Zeichner (Cambridge) (Lab)]

Dockless bike hire schemes could have been transformative, but too many of those schemes have crashed and burned, leaving a trail of destruction behind them. Despite repeated calls from across this House, the Government have not regulated. Will they soon act?

--- Later in debate ---

[Maggie Throup (Erewash) (Con)]

Recent vegetation management alongside the railway has destroyed huge swathes of the Erewash landscape. Will the Minister outline what further steps have been taken to ensure that Network Rail does vegetation management responsibly and does not take the drastic measures it has taken throughout my constituency? It is really affecting the wildlife, as well as my constituents’ wellbeing.

[Andrew Jones]

We have been reviewing Network Rail’s environmental performance, and the consequences of the recently published new environmental strategy should follow through all areas of Network Rail’s work. We obviously need to maintain a safe rail network, but we also want to see the embankments and all the Network Rail land deliver environmental benefits. The two are not incompatible. I do not know about the specific area around my hon. Friend’s constituency, but I am happy to look at it. As regards the overall picture, we have seen some real change and progress in this policy area, and it will be a priority for the future.

[Lilian Greenwood (Nottingham South) (Lab)]

Electrification is clearly the optimal solution for intensively used rail lines, and the Railway Industry Association has shown that it can be delivered at costs that are 33% to 50% lower than those for past projects, if it is part of a rolling programme. Why will the Secretary of State not electrify the midland main line and give Nottingham the cleaner, greener and cheaper services it deserves?

[Bob Blackman (Harrow East) (Con)]

Will my right hon. Friend the Secretary of State update the House on when he expects Crossrail to start running? What investigation has been carried out into the scandal of its finances and budget and the overspending that has taken place?

[Andrew Jones]

The new management team at Crossrail is working through the project and will be advising everybody next month, I think, as to when there will be a target opening date. I do not think that information will come soon enough—I know that Londoners, including those represented by my hon. Friend, are hungry for it—but the scheme will be fantastic for London and the rest of the country when it opens. On the financial performance, the budget is managed by Transport for London, and the London Assembly has done some investigation work. In terms of the Department’s role, TfL and the Mayor came to the Department seeking a loan to help with the delivery of the project, and we were happy to help them. A further £2.1 billion has been made available, and that should be enough to see the project through to completion.

[Clive Efford (Eltham) (Lab)]

My train home on Monday night was cancelled and the train that I was trying to get in on yesterday was advertised as 20 minutes late when I gave up on it. That is just two of the seven trains I have caught so far this week, and it is a regular experience for my constituents. I raise the issue in the Chamber regularly. Will someone just come to the Dispatch Box and tell me, “We hear your pain” and that Ministers are going to do something about the Southeastern rail franchise?

[Andrew Jones]

I am acutely aware of the service levels of all our rail franchises throughout the country. I am also aware that 2018 was a difficult year and that some of the problems have continued. At the same time, it is fair to point out that we are seeing a service that is delivering more passengers and more services, at record levels of safety. In respect of the individual services that the hon. Gentleman tried to use, if he drops me a line I will look into them, take the matter up with the rail franchise and find out why the services were cancelled.

[Robert Courts (Witney) (Con)]

We must make the most of all the transport links that we already have. The Cotswold line is in urgent need of further upgrades, including further redoubling, to help with reliability and capacity. Will the Minister meet me so that I can make the case to him?

[Andrew Jones]

Yes.

[Mr Speaker]

Well done, Minister—very brief!

[Chris Elmore (Ogmore) (Lab)]

May I press the rail Minister again in relation to the Pencoed level crossing in my constituency? I have been asking for almost three years now for Transport Ministers to engage in getting the level crossing closed. The Labour-led local authority and the Welsh Labour Government have put forward funding for a transport plan. Wales Office officials are attending these meetings to close the level crossing. Will the Minister commit to sending officials to the next meeting to work towards closing one of the most dangerous crossings in Wales?

[Andrew Jones]

I will certainly make sure that officials are fully engaged on this issue.

[Andy McDonald (Middlesbrough) (Lab)]

On a point of order, Mr Speaker. It was said by the Minister, the hon. Member for Hereford and South Herefordshire (Jesse Norman), that I had made no mention of cycling in my speech to the Institute for Government yesterday. I made five mentions of it, and there were 300 words devoted to the subject. The Secretary of State then added that yesterday Labour announced hiking the cost of going on holiday. Mr Speaker, I do not want to stray into using unparliamentary language, but that is not true. I seek your guidance as to what we can do to ensure that Ministers come to the Dispatch Box to correct the record.

Draft Railway (Licensing of Railway Undertakings) (Amendment Etc.) (EU Exit) Regulations 2019 Draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019

Andrew Jones Excerpts

Tuesday 19th March 2019 General Committees

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I beg to move,

That the Committee has considered the draft Railway (Licensing of Railway Undertakings) (Amendment etc.) (EU Exit) Regulations 2019.

[The Chair]

With this it will be convenient to discuss the draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019.

[Andrew Jones]

It is always a pleasure to serve under your chairmanship, Mr Hosie. The regulations will be needed in the event of no deal. They are being made under the powers conferred by the European Union (Withdrawal) Act 2018 to fix deficiencies in two sets of domestic railway regulations, alongside EU implementing legislation. Those regulations are the Train Driving Licences and Certificates Regulations 2010 and the Railway (Licensing of Railway Undertakings) Regulations 2005.

It may be helpful if I provide a little background. As part of measures aimed at liberalising rail markets, the EU introduced standard documentation for train driving licences for train drivers and rail operator licences. Those documents are valid across the European economic area. The Office of Rail and Road is responsible for issuing train driving and operator licences in Great Britain. Subject to meeting certain criteria, such as medical and competence requirements, the ORR will issue a train driving licence valid for up to 10 years. Train drivers also need a certificate, issued by the operator, confirming that the driver is competent to drive a certain type of train on the infrastructure. Operator licences are issued subject to the operator meeting certain conditions, including financial fitness and having the necessary insurance cover.

The draft regulations have been developed in close co-operation with the regulator—the ORR—Network Rail, the devolved Administrations and the wider rail industry. Officials in my Department have consulted the industry, including by holding a number of workshops, and they continue regularly to meet train operators and their representatives to give them clarity on the technical amendments being made by these regulations. The industry will welcome the certainty that the regulations provide; they are an important part of their own no-deal planning.

Let me turn to what the regulations specifically do. The regulations will ensure that the train driving legislation continues to function after exit. The draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019 amend our domestic regulations and three pieces of EU implementing legislation by making a number of technical changes. The draft regulations remove requirements on reporting to the Commission, references to member states, and functions reserved for the EU Commission and the European Union Agency for Railways. The regulations also amend the definition of a train driving licence so that it refers only to ORR-issued train driving licences. In addition, changes are needed to ensure that licences issued in Northern Ireland are valid for use in Great Britain, and to make corrections to the EU implementing legislation that applies to both GB and NI.

The draft Railway (Licensing of Railway Undertakings) (Amendment etc.) (EU Exit) Regulations 2019 make similar corrections by removing references to member states and replacing references to EU legislation with references to domestic legislation. The most significant amendment is to rename the European licence a “railway undertaking licence”. I realise that not everyone will class that as significant, but it is the most significant part of this regulatory change.

The draft regulations also revoke EU implementing regulation 2015/171. The EU template introduced by that regulation will no longer be required when we leave the EU, as the ORR has included the administrative requirements in its own licensing procedures.

Both sets of draft regulations also make transitional provisions that recognise existing European documentation, issued in other member states, for a maximum of two years after exit day or until it expires, whichever is sooner. In short, existing train drivers and operators providing services in Great Britain will not have to take any immediate action if the UK leaves the EU without a deal, regardless of where their documents were issued. The two-year recognition of licences also supports the smooth continuation of cross-border services, such as Eurostar, by ensuring that EU-licensed train drivers engaged in cross-border services will continue to be able to operate in the UK. In Northern Ireland, the role of issuing these licences falls to the Department for Infrastructure. A separate instrument is being taken forward on behalf of Northern Ireland, and the House will have the opportunity to debate that legislation.

The draft regulations are an important part of our no-deal preparations, because they provide clarity for business and certainty for drivers. They ensure that if the UK leaves the EU without a deal, this is done in an orderly and effective manner.

--- Later in debate ---

[Andrew Jones]

The hon. Member for York Central asked a number of questions. First, these regulations are being made in the event of no deal, so there is obviously an element of contingency. She asked whether they preclude further changes or whether we will have to revisit them. The regulations address the situation as it currently stands; they are about ensuring the smooth, continued operation of our rail network, including cross-border rail. The question about Northern Ireland will be dealt with by a separate statutory instrument.

The hon. Lady also asked whether these regulations will have an impact on anything that may came out of the Williams review. We do not know what that will be; I am obviously aware of the Labour party position, which is to renationalise the railways.

[Hon. Members]

Hear, hear!

[James Heappey (Wells) (Con)]

There is enthusiasm for that one!

[Andrew Jones]

Our country has had several decades of that, and it led to significant decline. That is not an area on which we are seeking agreement today.

[John Mann (Bassetlaw) (Lab)]

Can the Minister confirm that once we have left the European Union, renationalisation of the railways is a policy option that will be easy to deliver, unlike under EU public procurement rules? Will he confirm that if parliamentarians should choose to renationalise the railways—I would certainly vote in favour—that can be done once we have left the European Union?

[The Chair]

I call on the Minister to answer that briefly, because it is outwith the scope of these orders.

[Andrew Jones]

You are being quite tolerant, Mr Hosie. The hon. Member for Bassetlaw is correct to say that various opportunities will arise after we have left—I think we should be saying when, rather than if, we leave—the EU. It is fair to say that it would be easier to renationalise the railways when we have left, but the hon. Gentleman needs to reflect on his use of the word “easy”, because it would not be easy, and despite the last Labour manifesto saying that it would be free, there would be a giant cost to it. Renationalisation of the railways is not a matter for today, but these regulations would not impact on it, if a potential future, mistaken Government chose to make that mistake.

Regarding preparation, the key thing is that not many people will be affected by the two-year implementation period, during which we would seek to ensure that anyone with a train driving licence issued in the EEA had it relocated and issued here. The same goes for a rail operator. It may help the Committee if I highlight that on the rail operating side, we think just one operator is affected. It is a small freight operator in Norfolk that is not currently operational, and the regulator is already working with it to sort out the amendment to its licence.

Between 1% and 1.25% of train drivers in the UK have their licence issued in the EEA. To quantify that, it is about 250 people. Work between the operator and the regulator to correct the situation has been under way for about four or five months. We are not anticipating any problems whatever. It seems that two years is reasonable, considering that we are already well under way and the industry has welcomed the work in all our consultations.

[Rachael Maskell]

Can the Minister confirm that when the new regulator comes into force, the licence will have a simple transition and there will be no re-examination of train drivers?

[Andrew Jones]

It will, indeed, be a very simple matter. Our work is welcomed by the industry, as it brings clarity. We have taken a very pragmatic approach. It is not a question of seeking to cause problems; it is about ensuring that we have a regulatory framework for the smooth operation of our railways. Not precluding any future changes or packages, it is about now and having regulations in place should we leave without a deal. The industry has welcomed the proposed legislation, and that is the point I want to make. Only a very few people are involved.

The changes will make our rail sector regime more effective and provide certainty to train drivers and rail businesses. They will ensure a seamless transition of the existing licensing regime on exit day—not if there is an exit day. They will maintain the status quo and provide clarity, so I commend the statutory instruments to the Committee.

Question put and agreed to.

Draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019

Resolved,

That the Committee has considered the draft Train Driving Licences and Certificates (Amendment) (EU Exit) Regulations 2019.—(Andrew Jones.)

Garden Bridge: Funding

Andrew Jones Excerpts

Friday 15th March 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

I congratulate the hon. Member for Ealing Central and Acton (Dr Huq) on securing this debate. I have to say that I think she has seen a lavish amount of conspiracy in this issue. She made comparisons with Suez and various other things which were, frankly, a little overblown. I have written down terms such as “rigged processes” and “mates’ rates”. Those are quite strong accusations, and I will comment more on them later, but I think it is important that we do not lose perspective.

I recognise, as did the Secretary of State and my ministerial colleagues at the Department for Transport, that the garden bridge is a subject that has always divided public opinion. I also remember that debate of about three years ago where strongly held views were expressed, both for and against, by people sitting next to each other on the Opposition Benches. This is a disagreement between neighbours as much as anything else. I do not think we can regard it as a political matter. It was a project that could have added a significant extra dimension to our already magnificent capital city.

Let me start at the beginning by explaining why the Government decided to support this iconic and novel project. The previous Mayor of London was approached, some years ago, with an idea for a completely new type of bridge: a footbridge, but one that was also a park; a place where people could cross the river as part of their journey or stop and enjoy their surroundings and the magnificent river views that this city presents. The then Mayor and Ministers considered that it could be an innovative and iconic project, but they did not believe that it should be wholly taxpayer funded. However, they did agree to help with some funding to kickstart the project and stimulate private sector funding. The Chancellor therefore announced in the 2013 autumn statement that the Government would provide £30 million towards the project as long as the Mayor contributed a similar amount and as long as a satisfactory business case showed that it would deliver value for money for the taxpayer.

The Garden Bridge Trust and Transport for London produced a business case in early 2014, and the Department for Transport analysed it carefully in the same way that it does for any other transport project. While the project was highly unusual and had a wide range of potential cost-benefit ratios, our analysis showed that there was a reasonable chance that it would offer value for money for the taxpayer. The hon. Lady asked whether the process was followed, and it was, but it was tough to cost and quantify the potential benefits.

In the light of the analysis, the Department agreed to release the £30 million pledged by the Chancellor but, importantly, we attached a number of conditions to it, including a cap of around £8 million on the amount of Government money that could be spent on pre-construction activity. That condition was designed to limit taxpayer exposure in the event that the project did not proceed. We also included a requirement for TfL to draw up a detailed funding agreement with the trust to govern how the money would be used. Over time, and in response to requests from the trust, the cap on the Government’s exposure was increased in stages to £13.5 million as circumstances changed and it became clear that more money was needed to get the project to the point at which construction could start.

[Dr Huq]

Does the Minister think that the £3 million a year running costs being financed by events on the bridge was a good model? Does he agree that that would have been doing things the wrong way around?

[Andrew Jones]

This was a very individual project, and it could have been a captivating addition to London’s already captivating centre. I could immediately see why organisers would consider such a venue as location for events, so I could see how those income streams could be developed. However, it is a challenge to decide how to use the initiative and ideas that come from campaigners, architects and designers and the good will of the charitable sector, with Government support in a public-private partnership, to deliver significant public good.

I am sorry that the project has not materialised, but we cannot say that an approach that brings people together should never again be used, because I can foresee circumstances in which it could, and possibly should, happen again. The hon. Lady mentioned certain projects, and although I am not particularly familiar with the detail of the Crystal Palace proposal, I am absolutely certain that initiatives that come from the creativity of community involvement, by bringing people together and using the Government as a means of leverage, either financial other through ministerial engagement, are part of what the future can look like. We should not rule that out, but if public money is involved, we should make sure that we learn the lessons, to which I shall come later in my speech.

In 2016, the Garden Bridge Trust asked the Government to underwrite the project’s potential cancellation costs. Let me be clear: that was not a request for additional funding; instead, it was a request to be able to use some of the £30 million that we had already committed, to pay the project’s cancellation costs, should that be necessary. The trust said that without such an underwriting guarantee, the project could not continue. After careful consideration, in late May 2016, the Department agreed to provide a time-limited underwriting guarantee but, again, with various conditions attached, including a requirement for the trust to provide more regular reports to the Department on the status of the project and the steps the trust was taking to address risks.

Over the summer of that year, as a result of further delays to the construction timetable, the trust asked whether the underwriting guarantee could be extended beyond the end of September 2016. Again, after consideration, the Department agreed that it could, but in such a way that the risks would be more fairly shared between the Government and the bridge’s private sector backers. To be precise, the Government agreed to underwrite up to £9 million-worth of cancellation costs, and it was intended that the private sector would be required to underwrite any additional cancellation costs above that amount.

The Government continued their support for the project and wished it well, but they always made it clear to the trust that it should not just be public money at risk should the project fail. Unfortunately, the garden bridge trustees took the difficult decision in August 2017 that, without the necessary guarantees from the current Mayor of London, the project could not continue and the formal decision was taken to close the project. Since then, the trustees have been negotiating with their creditors to close down the trust in an orderly fashion.

Transport for London has been working with the trust to satisfy the Department and itself that every £1 of public money spent on cancellation costs is absolutely necessary to support the project’s claims. I understand there are many concerns about the project, and I will talk about some of them. The Garden Bridge Trust was set up in 2014 to manage the construction of the bridge, and the experienced group of trustees was wholly responsible for the development and fundraising. The Department for Transport and Transport for London spoke to the trust on a regular basis about progress and concerns.

I understand that the hon. Lady and other hon. Members have expressed concerns about how the trust was being run, how public money was being spent and how much transparency there was on the project, but it would be wrong to say that nobody has scrutinised the project. There have been several reports and investigations into the project. The London Assembly has reviewed the procurement process. The National Audit Office has reviewed the project and reported on the Department’s grant control measures in 2016. The Charity Commission has looked at how the trust was run as a charity and reported in 2017.

[Dr Huq]

The Minister is detailing all the different reports, but we need one now that we have the final winding-up costs and the final bill. Those reports are historical. This looks like another white elephant, and I did not mention the cable car, which is another one. This is a whitewash of a white elephant.

[Andrew Jones]

I have mentioned investigations by the London Assembly, the National Audit Office and the Charity Commission, which clearly were not whitewashes. These are independent bodies. The hon. Lady has mentioned mates’ rates and closed groups, but the head of the Garden Bridge Trust was a former Labour Minister, now Labour peer, who was dealing with a Conservative Mayor of London. I do not view this as some closed, chummy, “old school tie” thing, which is what the hon. Lady is suggesting. I do not think the facts are remotely like that.

There has never been any secret about the investigations, and the fact that they have taken place demonstrates the robust scrutiny that has applied to this project to ensure that it was run properly and that we got the best value for taxpayers’ money. It is because of those inquiries that I do not think it necessary to have a new inquiry.

The Department for Transport continues to scrutinise the use of public money in spending decisions robustly. Clear safeguards were included in the garden bridge project on how and when the money could be spent to limit expenditure should the project fail. The hon. Lady asks about lessons learned, which are important for anyone who has responsibility for public finances. It is quite a difficult question, because this is such an individual project, but there is the principle of control of money. The Department has, for example, changed the way it handles rail development projects by introducing the rail network enhancements pipeline—the RNEP process—to ensure that projects cannot proceed to the next level of development until it is clear what the funding implications are. There is always, then, this iterative process of review and of lessons being learned from experience and new developments. Of course we learn lessons.

There are also processes for sharing good practice. There is a transport efficiency project whereby different parts of the Department share best practice to see whether lessons can be learned in the development of rail that could be applied to road, and vice versa. I would caution the hon. Lady, therefore, about saying that no lessons have been learned. Learning lessons is an existing part of standard DFT procedure and—I would hope—of every other Department and public body.

As the hon. Lady may be aware, the sum spent on cancellation liabilities will be significantly less than the £9 million made available, meaning that more of the funding originally allocated can be returned to the Department to be spent on other transport projects.

In conclusion, I understand the concerns raised by the hon. Lady and others who have spoken today and previously and I recognise it is unfortunate that public money has been spent without the project coming to fruition, but despite people’s best efforts projects sometimes do not achieve their potential. The decision to support the project was taken with the view that it would be successful. It did not fail to capture the public imagination. It might have polarised it, but some clearly saw how it could enhance an already magnificent cityscape.

My Department will continue to scrutinise funding decisions and make sure we continue to deliver value for taxpayers. That is a regular part of all that we do. It has not been compromised by this project and will remain a part of all our future project management.

Question put and agreed to.

Rail Services: South-east London

Andrew Jones Excerpts

Wednesday 6th March 2019 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is always a pleasure to serve under your chairmanship, Sir Henry. I, too, congratulate my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) on securing this important debate. Many important issues have been raised, and I will be scampering through trying to answer all the comments from colleagues, including on the landslip that my right hon. Friend raised with me before the debate, as he is a vigorous champion for his constituency. I will also talk about the infrastructure works, Southeastern’s performance, Crossrail and Ebbsfleet.

I will start with the landslip at Barnehurst. Landslips cause significant delays and cancellations, as trains obviously have no real capacity to deal with any kind of small obstacle. If there is debris on the track after a landslip, Network Rail will often need to re-route services to enable the landslip to be cleared and the infrastructure to be checked to ensure that it is safe and operational. There are always concerns, even after a small landslip, that the slope may be permanently weakened. Some of the slopes, or cuttings, on the side of the tracks may need to be strengthened as a result. That may include improved drainage or adding stronger materials to the slope, such as steel rods or soil nails, and that work can take some time.

The landslip at Barnehurst took place on 11 February and the service was not fully reopened until the following week on Monday 18 February. That was a significant inconvenience for the travelling public in the area, but work has been done to mitigate future landslips. I know that it has been a regular problem in the area, and to help to prevent further landslips Network Rail has installed remote sensors and cameras that send its monitoring headquarters regular information, including visual information, about the condition of the cutting.

While removing the debris and the slope, Network Rail has taken the opportunity to put in place some further mitigation. It has taken away 300 tonnes of earth and trees, and built a 30-metre retaining wall with steel beams piled six metres into the ground to stop another landslip. Network Rail has also removed and replenished the contaminated ballast, and tested all the signalling. If any slips occur again in the area, the wall that has been erected should prevent any further disruption to the line.

I know that my right hon. Friend the Member for Bexleyheath and Crayford met representatives of Network Rail to discuss the issue, and that they have explained to him what is going on. That work includes geotechnical surveys to understand the cause, not just to deal with the symptoms. Network Rail also plans to carry out more intensive remediation work at the site over the next two years. That underpins the wider investment that is being put into the south-east through a Network Rail funding settlement for the next five years. That will allow for a significant increase in expenditure on maintenance and renewals, all of which is designed to reduce the frequency of serious incidents and to provide a more reliable service. That underpins the comments we heard from Members across the Chamber.

I note the clear concerns about Southeastern’s performance in the recent passenger survey. I fully understand, and strongly agree, that passengers want a timetable that they can rely on. Their days and working careers are built around predictable structures, and timetables matter. The May 2018 timetable changes caused some unacceptable disruption, but important lessons were learned and implemented. The December timetable change was introduced successfully. The industry has significantly reduced the timetable changes to minimise the risk of severe disruption, and has introduced a phased, more gradual approach to enhancements.

Many changes were focused on improving performance and reliability for passengers. It might be of interest that in the next control period, starting only next month, we will introduce a new “on time” performance measure to assess the reliability of every journey. That will provide greater transparency about performance at every station along the route, not just whether trains reach their final destination on time. It is part of a much wider commitment by the industry, and by Government, to provide a rail service on which passengers can rely.

If train operating companies are unreliable, we must hold them to account. We have worked closely with consumer groups and the industry to create an independent rail ombudsman. That scheme is free, easily accessible and simple to use. It is designed to be a one-stop shop for passengers on issues to do with complaints handling, customer service and compensation. Of course, we want to get to a place where we do not have to worry about compensation; we just want the trains to be on time, every time. That is the purpose of our investment.

[Matthew Pennycook]

As the right hon. Member for Bexleyheath and Crayford (Sir David Evennett) mentioned, rolling stock is key to reliability. The rolling stock on this line is, I think, 25 years old or more. Is the Department working with the operator to introduce new rolling stock in the near future?

--- Later in debate ---

[Andrew Jones]

I am coming on to the next franchise, but I should point out that we are seeing a fantastic change to the rolling stock right across our nation. We are going through a change that is equivalent to when we went from steam to diesel, with about 7,000 new vehicles entering service across our nation.

There were clear concerns about Southeastern’s performance. It has been improving recently and remains stable. Cancellations are reducing. A key change has been the improved collaboration between Southeastern and Network Rail. The latest statistics on the public performance measure indicate that 88.1% of services arrive at their final destination within five minutes of the planned arrival time. Today, it is 96%—I checked just before coming into the Chamber. However, we recognise that there is much to do, and we want the trains to be on time every time.

The issue of Lewisham signalling was raised, which is a significant piece of work. More than £130 million-worth of work will take place between now and Easter 2020. This Easter, £55 million will be invested in the Lewisham, Woolwich and Charlton area. In Easter 2020, £81 million will be invested in the Hither Green area. All of that will upgrade the signalling to provide a more robust service.

I cannot announce to the House when a decision will be made on the next franchise. The current franchise was extended in December, and the agreement will now expire, as was said, on 23 June. We are still in the process of evaluating the agreement for the next franchise. It has taken longer than anticipated because we want to ensure that passengers get the best possible deal. The invitation to tender is expected to bring some significant benefits in the new franchise, including longer trains, more space for passengers, increased availability of staff and improved communication with passengers, especially during periods of disruption. A comment regularly made whenever there is disruption is, “Just tell us what’s going on.” That is the voice of passengers, and it has not been as strong as it should have been.

[Gareth Johnson]

As the Minister will know, I was very pleased to have the Oyster card extended to Dartford. Does he agree that the provision of smart ticketing must be included within any new franchise agreement?

[Andrew Jones]

I strongly support smart ticketing, and it will be in the next south-eastern franchise. It is popular with customers, and helps them with the convenience of their journey, though it is tough to deliver. We have also had requests regarding Delay Repay compensation. The next south-eastern franchise will include Delay Repay compensation kicking in from 15 minutes of delay. Alongside that we will see new services on Sundays, and wi-fi and mobile connectivity. I am keen to bring that significant range of customer benefits to the constituents whom the Members present serve as soon as possible. I have heard what has been said about the urgency of delivering it, and I will update the House as soon as we can.

I share both the excitement about the scale of Crossrail and what it will deliver for the country and the frustration that it will not be delivered on time. The Crossrail board decided to delay the opening on 29 August last year, and informed the Government of that. We do not yet have a new date for the opening. I have met representatives of Crossrail to press the case. I want to see the scheme out there as fast as possible. It will increase capacity and rail transport in London by 10%, and bring an extra 1.5 million people within 45 commuting minutes of London’s key business districts.

On extending Crossrail or, as my hon. Friend the Member for Dartford (Gareth Johnson) said, completing it, I am instinctively sympathetic to the idea that transport investment is a driver of economic growth. It unlocks potential for commercial and residential opportunity. I fully understand the strategic importance—not just in the areas represented by the Members present, but nationally—of the potential of the Thames estuary. A strategic outline business case has been submitted to the Department, looking at options to extend Crossrail to Ebbsfleet. We are considering those proposals and will respond to the promoters in due course. I cannot give a date yet, but I recognise the urgency.

I will look at the points made by my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon) regarding fares. The Government want to help people to keep more of their own money. That is why we have increased the personal allowance, and why we are in our sixth year of freezing the regulated fares, or capping them so that they can increase only in line with inflation. However, I will look at the specific points mentioned. I will also look at the point about Maidstone. We are certainly committed to improving regular services between Maidstone and the City as soon as possible, and we are working very closely with the industry to finalise plans for the remaining stages of the Thameslink timetable. That work includes future services from Maidstone East.

I fully recognise the importance of rail to the constituents served by colleagues present. Work is taking place to strengthen the area around the Barnehurst landslip, and we are working to bring the matter of the franchise to a conclusion as quickly as possible, so that people know where they stand and the travelling public receive the benefits. I thank right hon. and hon. Members for their contributions. I hope to leave the travelling public watching the debate with the clear impression that we are working to give them the rail service that they deserve.

Question put and agreed to.

Aberystwyth to Carmarthen Railway Reopening

Andrew Jones Excerpts

Wednesday 20th February 2019 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is a pleasure to serve under your chairmanship, Mr Paisley. I congratulate the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on securing the debate.

I share the hon. Gentleman’s interest in ensuring that the corridor between Aberystwyth and Carmarthen in which this former rail line is located has the transport infrastructure that it needs to flourish and grow, and I agree that the potential role of reopening that line needs to be carefully considered by regional partners alongside potential improvements to existing transport links. He thinks that that area of Wales is one of the most beautiful in the world. I entirely agree. My name might be Jones, but I have to say that I am a Yorkshire Jones, rather than a Welsh Jones.

The hon. Gentleman says that the Government are not investing anywhere outside London and have ignored Wales. I do not accept that. The Government have committed to investing in Wales. We delivered the Wales Act 2017, which places the Welsh devolution settlement on a firm footing and builds further powers in areas such as transport, elections and energy. We are providing a boost of more than £550 million to the Welsh Government’s budget, including more than £25 million from a 5% uplift in the Barnett consequentials. By 2020, the Welsh Government’s block grant will have grown to more than £16 billion before tax devolution adjustments, which is a real-terms increase over the spending review period.

The Williams review is looking at the structure of our rail industry and includes a review of devolutionary arrangements. I hope that we will see more devolution in our services, but let us see where that goes. We do not yet know what Mr Williams will recommend.

The UK Government recognise that improving transport connections is an important part of helping people to access job opportunities, supporting business growth and access to education in Wales. Throughout control period 5, which covered the period from 2014 to now, Network Rail invested £900 million in the Welsh rail network. That includes a £50 million project to upgrade the north Wales railway, including new signalling on the north Wales coast mainline from Shotton to Colwyn Bay, which was completed only last year.

Network Rail’s proposed investment for the rail network during CP6, which starts in April and runs to 2024, is £1.34 billion. The Welsh Government now have responsibility for franchising rail services in Wales, and franchises bring investment. The new Transport for Wales franchise will recruit an additional 600 members of staff and invest £194 million in station improvements.

We have committed £125 million to the upgrade of the Valley lines as part of a wider contribution of £500 million to the Cardiff capital region investment fund, which will help to drive the growth and employment increase in the Cardiff region that we all want. Through our investment, Wales is benefiting directly from a range of projects.

HS2 was mentioned as a white elephant. I do not accept that. HS2 will deliver the capacity and connectivity that our United Kingdom needs. It will benefit the people of Wales, most obviously by bringing forward by six years the delivery of HS2 to Crewe to give access to north Wales. The idea that the Government are focused only on London is simply not correct.

In addition to the spending I mentioned earlier, Bow Street station near Aberystwyth was announced as one of the five successful new station fund 2 stations in July 2017. The scheme received close to £4 million from that fund in addition to £2.4 million from the Welsh Government. The station will increase accessibility to the rail network, improve transport integration and provide an alternative to car journeys. It is on schedule for completion by April next year.

The line from Aberystwyth to Carmarthen was closed to passenger traffic in 1965, although a section remained open to freight until 1973, as the hon. Gentleman said. I am aware of the local group, Traws Link Cymru, which campaigns to reopen the line. The group was established in 2013 and calls for the reinstatement of rail links across west Wales. I pay tribute to its work. It has raised the profile of the case for reinstating that 55-mile link. The scheme has been discussed here on several occasions, including a debate in November 2017.

Our rail strategy, “Connecting people”, includes exploring opportunities to restore capacity lost under Beeching where it unlocks growth for housing or commercial development, eases crowded routes or offers value for money. The strategy makes it clear that any potential line reopening would need to demonstrate a strong business case if Government funding were sought. If we are to invest in reopening routes, they have to unlock economic or housing opportunities, or break up a point of congestion.

The Government have, however, consistently explained throughout the years that local authorities and local leadership are best placed to decide on and take forward transport schemes that will most directly benefit their local areas. We work closely with individual authorities to help them to take forward schemes that they are interested in progressing.

The rail planning process is led by Network Rail with input from a wide range of stakeholders and funders. In March 2016, Network Rail published its Welsh route study, which sets out its strategic vision for the network in Wales over the next 10 to 30 years. That route strategy will inform decisions by funders for the period up to 2024, and the reopening of the route between Aberystwyth and Carmarthen is identified as a stakeholder aspiration. It has not, however, been identified as a potential priority for funders during that period.

As the hon. Gentleman said, the Welsh Government and local authorities have commissioned useful reports over the years. A scoping study commissioned by the Welsh Government, which reported in October 2015, set out all the issues to be considered in a full feasibility study into reopening the line. The report identified a large section of former track bed that remains in place, but there are other engineering challenges. It discussed the potential routes to obtaining consent, along with the operational and environmental considerations.

In November 2016 a strategic case jointly commissioned by Ceredigion/Cardigan County Council appraised potential options for improving strategic connections between Aberystwyth and Carmarthen. It recommended that road-based options were taken forward and a rail link not pursued further. That was followed by a Welsh Government-funded £300,000 feasibility study completed only last year that estimated the cost of reinstatement at £775 million.

The study identified numerous challenges, including the continued need to accommodate the Gwili Railway Preservation Society, which runs on part of the former track bed. It considered the environmental impact: ground conditions, property impacts and the need for environmental protection of peat bogs. Subject to the satisfactory resolution of the issues, the report states that initial operational assessments have determined that the reinstated route could provide a regular hourly train service between Aberystwyth, Llanilar, Tregaron, Lampeter, Llanybydder, Pencader and Carmarthen—I am not sure I got the pronunciations absolutely correct—with an end-to-end journey time of around 85 minutes. It really comes down to how we can best serve the transport connections in that area to deliver the connections that the hon. Member for Ceredigion (Ben Lake) articulated very clearly.

The route can include bus services as well. The hon. Gentleman mentioned there was a bus service. There is a road-based transport link in the TrawsCymru bus service, funded by the Welsh Government. It has operated since 2014, seven days a week, between Aberystwyth and Carmarthen. It has an hourly service on weekdays and Saturdays. I recognise the journey takes more than two hours, but it does connect Aberystwyth and Carmarthen rail stations and offers free weekend travel. TrawsCymru is an important part of the integrated transport network in Wales. The route between Aberystwyth and Carmarthen connects with Bwcabus and is a fully accessible bus service.

I will finish by congratulating the hon. Member for Carmarthen East and Dinefwr on the commitment that he and his local groups have shown to the issue. I recognise entirely the case he makes for broader devolution with transport budgets, but I also have to highlight that the Government look to local leaders, local authorities and the Welsh Government to determine their priorities for connectivity in his region and in Wales. On this particular proposal they think the transport need can be met through other solutions, but of course that may change over time. I look forward to seeing how the Welsh Government determine their transport priorities in the future.

[Ian Paisley (in the Chair)]

Congratulations on the pronunciations, Minister.

Question put and agreed to.