Govia Thameslink Rail Service

Debate between Andy McDonald and Claire Perry

Wednesday 13th July 2016 Westminster Hall

[Claire Perry]

It was not nearly good enough, but that was 10 percentage points up over the last six months. There was every view that performance was returning to the place where we needed it to be.

Since then—I will come to the issue of the industrial action—all bets are off. When people simply do not know how many staff are rostering in a particular depot, particularly the Brighton depot, where so many trains start and finish, it is impossible to run a reliable service. I have been to London Bridge and Victoria stations many times and travelled on the trains and I have been ashamed to be the rail Minister. I suggest that successive rail Ministers over many years in many Governments should share that sense of shame.

There seem to have been four fundamental failures in the industry that mean that when things go wrong, it is really hard to recover. It is the customers—the passengers who rely on the train services—who suffer. First, I submit to the House that there has been a disdain for people—for passengers—at the heart of the railway for decades. I have shared this anecdote with the House previously: a former very senior member of Network Rail said to me that the problem with the timetable is that the customers mess it up. Think about what that implies about what that person’s view of their job was: to run a system, not to move people.

Crowding is not really costed in any of the economic measures that successive Governments have used. There has just been an assumption that people will continue to cram on. It is more valuable to put a train on a long-distance service, where there is a discretionary choice of travel, than to relieve crowding on an overground service around London. That seems to me to be perverse.

Investment has been entirely focused on engineering improvements and almost never on reduction in delay. Why do we still have this “leaves on the line” problem every year? By the way, no one has ever calculated the economic consequences of leaves on the line. Surely it is not beyond the wit of our finest metallurgists to solve that problem, yet we just accept it. We plough on and look to shave five minutes off long-distance journeys.

Thameslink will deliver some significant benefits for people travelling through London. There are brand new trains and wonderful new stations such as Blackfriars, which nobody ever talks about. It is a wonderful station delivered without a trace. Nevertheless, the human cost of the Thameslink work on the travelling public was almost forgotten. I was not the Minister at the time and I do not even know under which Government it was planned, but a man came up to me at London Bridge station in tears and said, “You’re doing this so people can get from Cambridge to Brighton without disruption. That’s great, but I just want to get home to see my kids.” There is something flawed with the industry, because it does not value those people’s experiences.

The second failure is that, as Members know, the industry has a highly complicated structure. We have Network Rail, which is in a much better place now, post the Hendy review and Shaw changes. It has made some amazing hires. We have a franchising system that in some cases delivers huge benefits but in other cases does not. The problem with franchising is that if it is a very short-term franchise, nobody has an incentive to invest in industrial or passenger relations. Why would the staff care when the name on the nameplate changes every seven years?

[Andy McDonald]

They do care.

[Claire Perry]

They do care, but why would they feel an allegiance to a company the name of which changes every few years? The staff on the frontline care in extreme amounts, and we are all very grateful for that.

[Andy McDonald]

Will the Minister give way?

[Claire Perry]

No, I am going to continue.

Thirdly, we have an investment structure that is broken. The Government step in over and over again to fill the gaps and to buy rolling stock. By the way, the profits in the rail industry mostly accrue to the rolling stock leasing companies—the ROSCOs. If Members look at the shareholder structures to see where the profits are, they will see that they are with the rolling stock companies, not the franchise operators. GTR’s margin this year is going to be around 1.5% on this franchise. There is something structurally wrong with the financial structure of the industry.

The fourth and final problem is that the contractual levers are really poor. I have been asked repeatedly, “Why don’t you just take the franchise back?” The reason is that I cannot. GTR is not in breach of its franchise contract right now.

Oral Answers to Questions

Debate between Andy McDonald and Claire Perry

Thursday 30th June 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

As my hon. Friend the Member for Hove (Peter Kyle) said, Southern rail passengers are suffering the worst delays in the country and its staff are locked into an increasingly bitter industrial dispute. All those who work or rely on this failing service deserve much better. Does the Minister not think that by ruling out the cancellation of the franchise and by winding down the operator of last resort, Directly Operated Railways, the Department has no plan B and has effectively forfeited the chance to place any meaningful pressure on the company to improve performance?

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

The hon. Gentleman only needs to look at the share price performance of the owning group to see that considerable pressure is being put on the company by the markets, by customers and by my Department. In my view, changing the franchise would do nothing. Everybody has to work together. There is a highly experienced management team already in place. We have an investment programme that is coming to an end. The first major part of London Bridge will open this summer. I urge everyone involved, including the union bosses who are taking out their members on completely unjustified action, to sort this out for the benefit of the hard-pressed commuters, who just want to get to work and get home to their families.

West Coast Rail Franchise

Debate between Andy McDonald and Claire Perry

Tuesday 14th June 2016 Westminster Hall

[Claire Perry]

That is an important question. We can have as-good-as-we-can-get connections right now, but there are troughs and blind spots, and we are working with industry, on a TOC-by-TOC basis, to improve those connections, so there are no not spots along train routes.

HS2 will clearly have a major impact on this line. It will add much-needed capacity and will have a very positive impact for customers who are looking to travel quickly between cities. It is of course a vital programme. We will look to appoint franchisees, both in this competition and in the west midlands, that can work with the HS2 operators in the run-up to HS2 opening, and we want the competitions to procure franchisees that can work with HS2 and Network Rail during the construction works. I have to say that the lessons learned from London Bridge are scarred on my ministerial portfolio.

[Andy McDonald]

Where?

[Claire Perry]

They are well concealed. No one correctly estimated quite how tough it is to do major improvement works on a very crowded and highly operational railway. Lessons have absolutely been learned, and will be applied in the works at Waterloo this summer on the south west franchise, where we are bound and determined not to make mistakes. The prize will of course be a wonderful new station, I hope with a beautiful arch somehow reinstated, and many more services. That will be a prize worth having, but we are absolutely bound and determined to avoid the disruption that we saw at London Bridge.

I slightly disagree with the view of the hon. Member for Middlesbrough that residual value mechanisms are not really relevant, because if a public company or public authority wants to invest in something, it wants to ensure that it will get a return from it on behalf of taxpayers. That is only right and proper. My hon. Friend the Member for Carlisle is right that that has been a barrier to investment in franchising. We have developed a residual value mechanism in the Department, and it has been used in the latest competitions. I accept that it is not quite what he is looking for, and I am always happy to meet him and have that discussion, but we want to use that mechanism in the upcoming west coast franchise because we want to ensure that the stations along the route and other assets, such as smart ticketing, are supported.

I want to mention smart ticketing before I conclude. It is a passion of mine to get rid of the tangerine tickets, which look like something out of the 1970s, and move to something that far better suits what customers are using today: mobile technology. People will have seen that we have put those requirements into franchising, and we will do so in this case. The adoption of smart ticketing is moving very quickly in this country.

[Andy McDonald]

I do not think that the Minister has mentioned Sir Jeremy Heywood’s review of the potential use of Euston and Old Oak Common.

Oral Answers to Questions

Debate between Andy McDonald and Claire Perry

Thursday 28th April 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

Some 80% of passengers entitled to a refund when their train is cancelled or delayed make no claim, largely because train operating companies make claiming too difficult. To improve passenger compensation arrangements, the Office of Rail and Road recommended that the provisions of the Consumer Rights Act 2015 should apply to rail. This month, however, the Government have further delayed introducing that by another year. Why should train operating companies have such beneficial compensation arrangements, while the Government intervene to delay giving passengers their right to compensation?

[Claire Perry]

The question that comes to mind is: why did the hon. Gentleman’s Government do nothing about this for 13 years? It took a Conservative Government—[Interruption.] I encourage the hon. Gentleman to stay focused on the facts. Delay repay compensation levels have increased eightfold over the past five years, but there is far more to do. The actual amount of compensation available is more generous in this country than in almost any other country in Europe, but I want to reassure him about the CRA exemption. The industry had argued for a permanent exemption, which I found completely unacceptable. We have given the industry time to adjust to make sure it gets this right.

Govia Thameslink and Network Rail

Debate between Andy McDonald and Claire Perry

Wednesday 16th March 2016 Westminster Hall

[Andy McDonald]

My hon. Friend makes a good point. While that was an excellent turnaround from a pretty dire situation, if this particular franchise is, as Members have outlined, so poor that it demands intervention, my concern is that we should still retain the capacity to do that. Given the recent changes to the DOR—it is no longer in the same form—I am concerned that it would not assist at all. Will the Minister address that point?

Will the Minister also address the pertinent issue of electronic ticketing? Members have correctly identified and highlighted the benefits that could be secured from an intelligent roll-out of electronic ticketing. Those benefits relate to access not only to fair fares, but to refunds. I understand that although several tens of millions of pounds was spent trying to progress that agenda, it has come to a shuddering halt and has simply been handed over to the operators.

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

indicated dissent.

[Andy McDonald]

The Minister disagrees. I am enquiring, so perhaps she can enlighten and correct me. A number of Members have clearly made that reasonable demand on electronic ticketing, and it seems eminently sensible. We want to know what happened to that investment and how it will be progressed.

Finally, I was heartened to hear many Members from across the territory express, on behalf of their constituents, the need for proper staffing levels to be maintained in our railway stations. Many people spoke about difficulties in accessing ticket machines and computer systems. Often that was beyond their capabilities, whether because of information technology illiteracy, learning difficulties or other issues. That strong message came from Members’ contributions today. Will the Minister comment on how we can secure those reassurances that all members of the travelling public need? They need to see that human interface, and sadly it is clearly lacking in the operation of the franchise.

Oral Answers to Questions

Debate between Andy McDonald and Claire Perry

Thursday 10th March 2016 Commons Chamber

[Claire Perry]

Of course. The best way to deliver station improvements is to get together the local group, the local enterprise partnership, local businesses and local communities. The record Government investment in the railways is best spent when it is pulled through to support local needs.

[Andy McDonald (Middlesbrough) (Lab)]

What assurance can the Minister give that full accessibility for passengers with disabilities is made a priority in the refurbishment of railway stations? Will she ensure that the needs of passengers are central to the refurbishment or renovation of stations without any access provisions or stations that need upgrading? How can that be achieved, given the 40% cut to Access for All funding?

[Claire Perry]

I sometimes wonder whether we are reading the same papers. The Government are spending more on the railways—£38 billion—than has been spent at any time since the Victorian era. The hon. Gentleman is right to point out that disability access is hugely important. It is also important on the trains. All the train fleet will be disability compliant in the next few years. It is important, but we have a limited amount of money to spend on upgrading the railways, which were woefully neglected under his Government.

Crossrail: Elizabeth Line

Debate between Andy McDonald and Claire Perry

Tuesday 23rd February 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

I am grateful to the Minister for advance sight of her statement. On my behalf and that of Her Majesty’s Opposition, I am in the happy position of being able very much to welcome the announcement. Crossrail has had cross-party support over its lengthy gestation period, and we all look forward to the considerable benefits that the new line will bring in the years ahead.

The naming of the line as the Elizabeth line is very much welcomed by Opposition Members. We have become used to the title Crossrail in recent decades. The renaming is a significant improvement on Cross London Rail Links Ltd, and Elizabeth is undoubtedly a much more elegant and fitting title for such an innovative and important transport infrastructure development, which will bring the benefit of better transport to millions of passengers from Reading in the west to Shenfield in the east. Given the enormous public commitment that has gone into developing the Crossrail brand, will the Minister give us an assurance that the Crossrail brand and livery will continue to be used?

I pay tribute to the last Labour Government, who took the Crossrail project forward in their 10-year transport plan, “Transport 2010”, in which they reasserted that an east-west rail link should go ahead. Alistair Darling, the then Secretary of State for Transport, announced that the Labour Government supported the new east-west Crossrail link and committed to bringing forward legislation to enable Crossrail to proceed, which was critical in turning the aspiration and ambition of Crossrail into reality.

One of the first ideas of the previous coalition Government, after they came into power in 2010, was to consider cancelling the Crossrail project altogether. Labour Members are delighted that not only is the project back on track, so to speak, but the Government’s conversion to supporting Crossrail has been so all-embracing that they have not only given the project their full backing but decided to dedicate it to Her Majesty. In that, they have our support.

We all expect Crossrail or the Elizabeth line to change the face of transport in London and the south-east, whatever its name. I would like to draw the Minister’s focus to a few points. Crossrail is largely on time and on budget, so can the Minister confirm that it will indeed open on schedule? Will she inform the House of what lessons have been learned from the successes of Crossrail that can be applied to High Speed 2? The Crossrail service will share the Great Western main line to Reading, but sadly the electrification programme has slipped and will cost more than was first estimated. Will the Minister take the opportunity to confirm to the House that the rescheduled electrification of the Great Western main line to Reading will be completed in time for the opening of the Elizabeth line?

I was delighted by the fact that after some 35 years of planning and development, Crossrail finally broke ground on 15 May 2009, when the Mayor of London and the then Transport Secretary, the noble Lord Adonis, sank the first pile into the docklands at the new Canary Wharf station. As we approach the conclusion of this most magnificent engineering undertaking, we remember the name of Crossrail with much affection and admiration. Although Crossrail is not dead, I wish the Elizabeth line a long and successful life.

[Claire Perry]

It is a delight to share, as we often do, a cross-party view—total agreement—on transport infrastructure. I would like to answer some of the hon. Gentleman’s questions.

Crossrail branding will apply for now, but the intention is that from December 2018 the Elizabeth line branding will come into force. The trains are currently under construction, as the hon. Gentleman knows, and it is not expensive to repaint and rebrand them, so I do not think that there are any costs associated with this welcome decision.

The hon. Gentleman asked about lessons that have been learned from Crossrail and that can be applied to Network Rail. I would argue that there are lessons that can be applied more broadly. One thing that has worked well is the fact that the project has stuck to its guns—stuck to its knitting. It has resisted demands for deviations from the route and proceeded with its original plan, which it has delivered very effectively. Crucially, it has blazed a trail in engagement with communities who are affected by the work. I have been surprised, when I have visited stations, by how little the people around the stations realise that the work is going on. That is a tribute to the care and consideration behind that engagement. Another enormously important factor has been the engagement of the supply chain. The majority of supply contracts are let to companies outside the south-east and, in many cases, to small and medium- sized enterprises. Those are two important lessons for the future.

The hon. Gentleman is right to talk about bringing the project in on time and on budget. I emphasise that that is part of the project’s careful planning.

On the question about the vital link between the Crossrail line and the Great Western main line to the west, I am happy to confirm that that work is on time and on budget, and it will absolutely be in place to ensure that the line runs. It is an enormous priority for all of us to ensure that the first trains can run from December 2018.

--- Later in debate ---

[Andy McDonald]

No.

[Claire Perry]

Well, the hon. Gentleman corrects me, but I am delighted to say that this is now happening. Lord Adonis now heads the Government’s National Infrastructure Commission, which has been tasked with looking at—this idea again has cross-party support and consensus—how we can best spend the ongoing investment in infrastructure for the benefit of the British economy.

Great Western Railway Routes

Debate between Andy McDonald and Claire Perry

Monday 8th February 2016 Commons Chamber

[Claire Perry]

We have not been asked to put in a penny. Great Western Railway has funded the study, as part of our negotiations with it. No Government money was ever being put into these studies. We stood by to make sure the studies happened—

[Andy McDonald]

Stood by!

[Claire Perry]

No, we were prepared to backstop any shortfall, but Great Western Railway agreed to fund this small part of the overall plan. We are talking about £200,000 to £300,000, as opposed to the £3.5 million Network Rail has already spent. I hope the right hon. Member for Exeter, just for once, is going to crack a smile and welcome something. Go on! Just welcome something the Government have done. No? I think we will move on.

The Government are committed to the region, and these studies will go ahead. This is a vital region of the country for transport investment and economic growth, and I am delighted, as both a south-west MP and the rail Minister, to confirm that those studies will go ahead.

Transport for London Bill [Lords]: Revival

Debate between Andy McDonald and Claire Perry

Monday 16th November 2015 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

I congratulate my hon. Friend the Member for Harrow East (Bob Blackman), who has been an assiduous campaigner for this Bill and made some very important points in seeking its revival on the Floor of the House today. I have listened with interest to the contributions and I hope to continue to do so. I have say, however, that we have meandered—nay, staggered—round a very circuitous path in talking about this Bill. We have talked about mafias, Moldova and the city of York, which the last time I looked was a little way away from the city of London. We have staggered around a special purpose vehicle, and for some reason the image of a white van is flashing before my eyes.

What I have also noticed is a revival of interest in transport matters on the Opposition Benches. Many Labour Members are frequent and assiduous campaigners on behalf of constituents in London, but there are also those I have neither heard nor seen in my time as the Minister—either at Transport questions or in any correspondence coming across my desk. I am therefore delighted that we are seeing that revival of interest in transport matters this evening.

Let us now return to reality, rather than remaining in the meandering world that we have been inhabiting. The Bill simply seeks to enable TfL to expand its financial freedoms, and to use practices and mechanisms that will allow it to release greater value from its financing arrangements. It is not some back-door attempt to—what was it?—allow members of the Russian mafia in to finance Londoners through special purpose vehicles.

[Andy McDonald]

The Minister says that the Bill is not a back-door deal to let in various nefarious characters, but how does she know that? How can she guarantee that someone will not come along and exploit this arrangement? Given the lack of transparency, we might never know who that person was.

[Claire Perry]

Like many Labour Members, the hon. Gentleman is displaying a complete disregard for the scrutiny role of London Assembly members, and, indeed, for the Independent Investment Programme Advisory Group, which provides the Mayor with independent insurance and expert advice in relation to TfL’s investment programme. Labour Members are displaying a blatant disregard for the devolved authority that we have given to the Mayor.