Transport Secretary: East Coast Franchise

Debate between Andy McDonald and Jonathan Edwards

Wednesday 23rd May 2018 Commons Chamber

[Andy McDonald]

Absolutely. The private sector can organise financing, but the funding has to come from somewhere. It always comes from the same source: it is provided by taxpayers and by fare-paying passengers. It is paid for, so it is wrong for the Secretary of State to repeatedly credit companies with the investment made by taxpayers and passengers who are paying sky-high fares. Public ownership does not mean less investment. Under Labour, it will mean greater investment.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I am not sure whether this is bad timing, but the hon. Gentleman will be aware that today in Wales the Labour Government have awarded the Welsh franchise to a multinational French-Spanish company, KeolisAmey, in a £5 billion 15-year deal, despite a manifesto promise to award it on a not-for-profit basis. Why are his Labour colleagues in Wales directly contradicting what he is proposing today?

[Andy McDonald]

That is entirely a matter for the Welsh Government.

The east coast saga is littered with incompetence and delusion, alongside a frankly cavalier regard for the public and passenger interest by a succession of Transport Ministers.

Rail Franchising

Debate between Andy McDonald and Jonathan Edwards

Wednesday 10th January 2018 Commons Chamber

[Andy McDonald]

My right hon. Friend makes a perfect point. I have no doubt that that will be a consistent theme throughout this debate.

The Government should have followed Labour’s example. When the operator defaulted in 2009, Labour took the contract back into the public sector. If a company defaults, it does not deserve a contract. Taking a contract back into the public sector would mean that there is no reward for failure, and other companies in the industry would not expect the same treatment. In the light of what happened with the east coast franchise, what plans does the Secretary of State have to renegotiate the TransPennine Express, Northern and Greater Anglia franchises?

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The hon. Gentleman makes a valid point. Is not the biggest danger of the Secretary of State’s decision that other franchisees might come looking for a handout?

[Andy McDonald]

Indeed. That point is entirely consistent with the issues I am putting before the House.

Labour would not have let Virgin-Stagecoach off the hook on the east coast franchise. To return to what my right hon. Friend the Member for Leeds Central (Hilary Benn) said, did the Secretary of State consider taking the east coast franchise into the public sector following the default—yes or no? Does the Secretary of State not worry that, because he refuses to use a public sector operator even as a last resort, struggling train companies now know he has no option but to bail them out in the event of a failure?

Such failures are not confined to the east coast franchise. Today’s National Audit Office report highlights a litany of errors in the Government’s planning and management of the Thameslink, Southern and Great Northern franchise. Those blunders have caused misery to millions of people, and it is the Government’s disastrous handling of the franchise that led to industrial action on the line.