Britain’s Railways

Baroness Altmann Excerpts

Monday 24th May 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, shortly is shortly. I, too, am optimistic about the railways and all forms of transport because they are the great connector. The noble Lord asks about branding. Branding is important because having a coherent, consistent and clearly branded rail network gives passengers greater confidence in using it. Great British Railways will use an updated version of the classic double arrow logo. We also have an updated version of the font, which I think will be widely recognised across the system. However, variants of the national brand will be developed to reflect the English regions and Scotland and Wales, while emphasising that the railway is one network serving the whole of Great Britain. It may well be that, as the noble Lord suggests, there will be slight variants depending on which part of the country the train operates in.

[Baroness Altmann (Con) [V]]

My Lords, are there any plans for environmental targets for Great British Railways, such as carbon emission reductions or progress towards net zero, and incentives for them?

[Baroness Vere of Norbiton (Con)]

The Government are committed to decarbonising the railway as part of our wider, legally binding target of reaching net zero emissions across the whole UK economy by 2050. Our forthcoming transport decarbonisation plan will set out the scale and pace of rail decarbonisation that is necessary for us to achieve that. The rail network enhancements pipeline—the RNEP—will be updated soon, and in that we will have various schemes which will lead to decarbonisation. Indeed, we are working very closely on research to look at how we can also decarbonise the vehicles themselves; for example, by looking at hydrogen trains. The new industry structure, including Great British Railways, will ensure a more co-ordinated approach to delivering our carbon emissions commitments.

Belfast International Airport

Baroness Altmann Excerpts

Wednesday 2nd December 2020 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, I am not able to provide any further details of the timing of the APD consultation. However, I recognise the noble Baroness’s point that aviation connectivity is important. That is why it will be an important part of the union connectivity review, which was announced on 30 June and will be led by Sir Peter Hendy. This will look at connectivity across all modes, including aviation, across the four parts of the United Kingdom.

[Baroness Altmann (Con) [V]]

My Lords, I congratulate the Government on the measures they have introduced, such as business rates relief and the other facilities that my noble friend mentioned, of which small airports can avail themselves. Will my noble friend tell the House what impact the Government expect on Belfast International Airport if we were to leave the EU without a deal at the end of December?

[Baroness Vere of Norbiton (Con)]

I am not aware that the Government have done any specific assessment of Belfast International Airport. It may be the case that the Northern Ireland Executive have, and perhaps I will ask them to be in touch if they have any further details.

Heavy Commercial Vehicles in Kent (No. 1) (Amendment) Order 2020

Baroness Altmann Excerpts

Thursday 26th November 2020 Lords Chamber

[Baroness Altmann (Con) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Snape, and I thank my noble friend the Minister for setting out the orders so clearly. I welcome these SIs, and the pragmatic decision to extend the time-limited regulations for a further nine months, especially because there is no clarity at all on our future EU trading relationship from next month onwards, and because of the disruption we have seen over the past few months due to the pandemic. It is inevitable that we must prepare for chaos at our ports from 1 January 2021.

My noble friend suggests that the orders may not, in fact, be needed—but I must confess that I cannot share her confidence. Whatever the outcome of the trade talks, customs declarations will be required for all British-EU trade. Even if we waive rules for the first six months, we cannot know whether the EU will do the same. If drivers do not have the correct import-export documents or customs declarations, they could be fined, and have their cargos seized or even destroyed. These SIs rightly aim to deal with the logistical consequences of the delays that this might cause at the ports and the Channel Tunnel when drivers are in Kent.

Following the traffic chaos that we have seen during 2020 as a result of hold-ups for various reasons at ports on the other side of the channel, these SIs will ensure that Operation Brock traffic controls will be extended. They also introduce some modifications. I welcome the introduction of special fast-track procedures for perishable goods, but I am more concerned about the Kent access permit for heavy commercial vehicles, to allow them to use the A2/M2 or the M20 to get to the Channel Tunnel terminal in Cheriton, or to the Port of Dover. The noble Lord, Lord Whitty, mentioned the threat of £300 fines for those who travel on local roads without a permit. I agree with him that the fine should surely be levied on the company rather than the individual driver.

All of this is certainly not what was promised when Brexit was proposed to the people of this country. Far worse than this, it is now four years since that referendum and a little over four weeks until the transition period ends, yet we are told that much of the detail that operators need for effective planning is not yet complete. I ask my noble friend what the reason for this is and how it is being considered in the current EU negotiations.

These regulations are certainly going to be required according to those directly involved. For example, the operations director of the Customs Clearance Consortium suggested that there was

“more than a 50% chance there will be delays”

on Kent roads as a result of the disruption at the ports. Earlier this month, the Commons Committee on the Future Relationship with the European Union was told by road haulage leaders that there is an 80% chance of “chaos in Kent”, as the necessary computer systems, lorry parks and customs agent needed to avoid delays were not yet in place.

I was struck by the observation that Ministers seemed to be relying on

“self-belief in their own rhetoric … that everything will be okay”.

Could my noble friend please comment on, for example, remarks by the chief executive of the Road Haulage Association that far fewer than the 50,000 customs agents needed to process the 200 million additional forms generated annually by Brexit are already in place? How many agents does her department estimate are, in fact, in place? If she does not have this, and the other, information I am asking for, please could she write to me? When will the full functionality of the IT systems needed for efficient post-Brexit operations be provided? Do the Government have information on the availability of the heat-treated pallets, which are apparently in short supply but are essential for exports to the EU from January?

I express particular concerns about smaller hauliers, which have limited resources for preparations of this magnitude. Like the noble Lord, Lord Whitty, I also tried to look up the Government’s guidance and found it difficult to identify precisely what is needed to ensure readiness. The officials preparing such documentation clearly have a much greater knowledge than those who have never had to deal with customs before because of our free movement rules within the single market and customs union. The Government have always faced significant challenges in communicating policy to the public, struggling to provide user-friendly information.

Once again, I echo the words of the noble Lord, Lord Snape, asking: when will this business handbook that was promised to help hauliers prepare for the radical new systems be in place? The idea that there will now potentially have to be passport-style checks just to get into Kent, and of then having to go through those checks and potentially still queue in giant lorry-holding facilities, is rather shocking. I echo the concerns of my noble friend Lord Bourne and others, and I ask my noble friend what restroom facilities will be available for drivers with delays of many hours. I know that we were told that Brexit would mean an end to free movement, but I do not think anyone ever imagined that that would mean ending free movement inside our own country as well.

Carriage of Dangerous Goods and Use of Transportable Pressure Equipment (Amendment) (EU Exit) Regulations 2020

Baroness Altmann Excerpts

Tuesday 29th September 2020 Lords Chamber

[Baroness Altmann (Con)]

My Lords, I welcome these regulations as an essential part of our preparation for the end of the transition period into 2021. The transport by road, rail or inland waterways of dangerous materials, such as hazardous chemicals, fuel, gases, explosives and pressure equipment, through or near populated areas must be as safe as possible, both for the public and those working with these materials. This is certainly not an area in which to take risks. For decades, we have ensured that international standards, and then even stronger EU standards were introduced to improve protection and enhance environmental protections. I am delighted that it has been confirmed that these regulations will maintain the pi marking system to ensure that current standards are met, and that the EU directives implementing our agreements with the UN prior to joining the EU will also be maintained, but who will oversee this in future?

I am delighted to see that the Northern Ireland protocol is being upheld and, for example, that the TPE in Northern Ireland will continue to comply with EU directives and recognise Northern Ireland inspection. My noble friend said that the Secretary of State can approve derogations

“where safety is not compromised”.

Who will judge this? What expertise and experience will the Secretary of State call on to exercise this discretion?

I understand that the optional new rho standard will potentially be used for our own GB equipment, manufactured here or imported, and will have conformity assessed by appointed inspection bodies. Can my noble friend give us a little more information on who will staff these bodies, what they will be, who will fund them and what safety checks or early warning systems they will have access to? Are we considering joining EU bodies that have already been established and continuing to benefit from the much broader reach that those 27 other countries can attain relative to the UK itself?

I welcome my noble friend’s introduction of this SI and congratulate her on her clear explanations and her words of reassurance that this merely maintains what we have now, but if she could answer the questions I have raised, I would be most grateful.

Health Protection (Coronavirus, Wearing of Face Coverings on Public Transport) (England) Regulations 2020

Baroness Altmann Excerpts

Wednesday 8th July 2020 Lords Chamber

[Baroness Altmann (Con) [V]]

My Lords, I accept the need for face coverings, but do the Government have plans to ensure that people know what type of face covering is most appropriate—what type of material and how it must be worn? Is there official guidance on approved standards? A face covering could be made of mesh, which presumably would not be appropriate, or a scarf that is porous—again, not acceptable. Would a full-face plastic visor be considered acceptable?

Can we perhaps help people access approved face coverings, to reassure them that they will be doing the right thing for protection? We could possibly even create opportunities for production of such face coverings in the UK, encouraging schools or prisons to manufacture the appropriate type of covering and avoiding the uncertainty about what is an approved type of mask or a standard design.

Railway (Licensing of Railway Undertakings) (Amendment etc.) (EU Exit) Regulations 2019

Baroness Altmann Excerpts

Thursday 21st March 2019 Lords Chamber

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I have sat through a number of transport statutory instruments which have been brought forward in the event that there is no deal—something that none of us wants or expects to happen. There have been dozens and dozens of them in Grand Committee and on the Floor of the House. The noble Baroness, Lady Sugg, has spent a lot of her valuable time on them, and we have five officials in the Box—excellent, qualified people—who have been working hard on them. This total waste of time and effort has been caused by the Prime Minister. One of my noble friends said to me earlier that it is not the men in grey suits that need to turn up to deal with what is happening in 10 Downing Street but the men in white coats. I am grateful to him for suggesting that to me. Can the Minister give us an estimate of the time and cost involved in dealing with all these unnecessary statutory instruments?

[Baroness Altmann (Con)]

My Lords, I would like to register the concern and disappointment that is also felt on these Benches at people having to apply to drive trains, cars, buses or whatever else across the EU when the UK has led the charge in unifying standards and bringing the countries together. Perhaps I may ask one question. My noble friend mentioned that a small number of drivers have not yet achieved the qualification to drive in the EU if we leave with no deal. Can she tell the House how many drivers are in that situation and what efforts are being made in that regard? She noted that some efforts are being made to inform them about what to do and what the implications might be for those who do not have those qualifications.

[Baroness Randerson (LD)]

My Lords, I will start with the licensing of railway undertakings regulations. This SI is slightly more like the type of arrangement that we were promised at the start of this gruelling marathon. It is intended to ensure the minimum change.

Currently, there are two sorts of licence in Britain. One is issued by the ORR to a small number of operators, such as Merseyrail, that are separate from the main network, and it is based on 1993 rules. The rest of the operators have a European licence based on 2005 regulations. If you hold one of those, you can provide services in any EEA member state. This is all part of the European programme to establish a single European railway area. That is a very sensible approach that will be a basis for equal access, competition and common rules on safety, which is very important.

This SI allows operators with a licence not issued by ORR to continue for two years after exit day, whenever that may be. Will the Minister clarify that this is a rolling feast—that it will be two years after an exit day on, for example, 22 June? That would be sensible, but I am concerned that the rules on continuity in these SIs are so haphazard: some things finish in September, some finish in December, some continue for two years from whenever we leave, and so on.

After two years, under this SI, operators will need to revert to an ORR licence. The Explanatory Memorandum helpfully notes that only one operator is currently caught by that rule. Importantly, the SI does not provide for long-term mutual recognition of operator licences issued by the EEA and held by cross-border service operators—that is, the Channel Tunnel. Mutual recognition will depend on future bilateral agreements. Can the Minister update us on negotiations on this aspect?

Eventually, after two years, the only type of licence that will be valid in Britain will be issued by ORR. Existing European licences will cease to be valid and operators will instead need railway undertakings licences. Once again, this is a long, tortuous, bureaucratic process to change the name of the licence.

Finally on this SI, I express my delight that there has been a full consultation, which has been reported back to this House in detail, as consultations should be. It was comprehensive in that it included passengers, freight operators, devolved Administrations and so on, and a draft instrument was produced. It is ironic that this SI will involve minor disruption for a relatively small number of large organisations which to some extent are equipped to cope with it. While we have had a full consultation for this SI, in the case of others that involve major changes for people who are not equipped to deal with them, we were told that they did not get a consultation because the changes were not considered significant or to pose a risk. The truth is that this Government are getting away with a massive distortion of the normal rules followed by Governments; ignoring the consultation process is one aspect of that.

I turn now to the train driving licences and certificates SI, which affects thousands of train drivers, as opposed to a handful of companies. While a full consultation has been done on the previous SI, this one apparently is not important enough to warrant one. In the Explanatory Memorandum there is a list of organisations that attended a workshop, but there is no mention of trade unions. Trade unions are very strong and active in the rail industry and a very important group of people. Were they consulted and, if so, what did they think about these changes? If they were not, do the Government have any intention of having discussions with them?

In 2010, the EU regulations established a standardised regime for the licensing and certification of train drivers, with a standardised layout of licences and certificates, which of course is important to avoid confusion about what documents can be accepted. It includes, for example, what rolling stock they are qualified to drive. I cannot stress enough how important it is that there is clarity on qualifications and certification. That is really important for safety. I have a good friend who is a train driver, and he has explained to me at some length the difference between the levels of qualification and how important those differences are for our safety. Standardised criteria for training and examinations are obviously as important as, if not more important than, in many other professions.

In 2015 the regulations created a new standard for language and eyesight tests. Everyone can realise the importance of that. Facility with the language is as important for train drivers as it is for the medical profession, for example, and eyesight is extremely important.

Sensibly, this SI includes a transitional provision for the recognition of European licences in Britain for up to two years. Can the Minister clarify why the phrase “up to two years” is repeatedly used in the Explanatory Memorandum? Is that because the two years is measured from the end of March and we may not leave then? Or is it because the Government have not fully decided what the end of this story is going to be? I am sure that the Minister will understand that knowing exactly how long your licence is going to last is pretty important for those engaged in the profession—and indeed for the people who employ them.

Paragraph 2.11 of the EM says that only,

“a small number of train drivers”,

use European licences. Perhaps the Minister could clarify how many “a small number” is.

I have a real concern about paragraph 2.13, on the removal of requirements to inform the EEA safety authorities if a driver is not meeting the conditions of a licence. There is a discretionary power included for passing information for a transitional two-year period, but there is no obligation. This is something that I have raised time and again: the transfer and sharing of information are at the core of safety procedures, and yet again this Government are playing politics with the safety of our transport system.

--- Later in debate ---

[Baroness Sugg]

As I said previously, it is absolutely our intention to continue to share information. It is important that we do so, not least because of safety. We will continue to have a very close relationship with our European neighbours, and we very much hope to share the information with them. Obviously, they will have to accept that information from us, but our long-term aspiration is to continue to share it.

[Baroness Altmann]

I know my noble friend is in a difficult position, but it is rather difficult for the House when the SI we are considering says that the exchange of information will cease altogether after the two-year period. I share the concerns expressed by my noble friend Lord Deben.

[Baroness Sugg]

I hope that I am able to provide further reassurance that we wish to continue to share information with our neighbours. Obviously, the exact format of that and how we do it will be subject to our future relationship.

On the number of licensed operators, there are 250 drivers in the UK. We are confident that they will relicense with the ORR within the next two years. We notified the industry of this requirement in 2017. Train operators would normally do this on behalf of their drivers in almost every case.

A small number of drivers are using ORR-issued licences in the EU. These will not be recognised in a no-deal scenario, but we have worked with the regulator and operators to ensure that those drivers are aware of the need to obtain an EU licence. I am sorry that the driver who the noble Lord, Lord Berkeley, spoke to was not aware of that. If I can get some more information on that, perhaps we can get in contact with them and make sure they are aware.

Following engagement with operators, we are confident that they are aware of everything that they need to do. The technical notices that we published back in October set out the position. We are confident that all relevant operators will have relicensed their train drivers before exit.

A number of noble Lords mentioned the Channel Tunnel. Under EU law, Eurotunnel, as an operator of the shuttle service, is not required to hold and operate a licence. It is a unique cross-border operation and is therefore unaffected by the operator licensing provisions. Eurotunnel engages both UK and French-licensed train drivers to operate its shuttle services. Its ORR-licensed train drivers will be unaffected by these regulations. The Government are working closely with European counterparts, including France, on bilateral arrangements for train drivers operating the freight service and the shuttle service through the Channel Tunnel. The intention is to ensure that the current licensing arrangements are maintained, meaning that Eurotunnel can continue to engage both UK and EU-licensed train drivers in its shuttle operation.

We are also supporting operators with contingency plans. We strongly support the EU’s proposed contingency measures on rail, which will help mitigate any disruption to Eurotunnel shuttle services regarding train driving licences and provide more time for the bilateral arrangements which we expect to be put in place.

The draft regulations from the EU cover UK-issued licences, certificates and authorisations, remaining valid for cross-border rail services for nine months from the date of exit. That will cover both Channel Tunnel services and cross-border services on the island of Ireland. COREPER endorsed this on 20 March. The proposal is expected to be adopted by written procedure tomorrow by the Council of Ministers, and we expect it to take effect early next week. We strongly support those contingency measures. Our future arrangements may well be bilateral, but that nine-month period gives us enough time to get them into place.

Railways (Interoperability) (Amendment) (EU Exit) Regulations 2019

Baroness Altmann Excerpts

Thursday 21st March 2019 Lords Chamber

[Lord Liddle]

As always, my noble friend Lord Berkeley makes an excellent point. I think that the Government have to come up with a better explanation for why we should be leaving these arrangements than the simple, “Why should we bother to be part of some European agency when we have left the European Union?”

[Baroness Altmann (Con)]

My Lords, I rise to speak with some trepidation. I am not as expert in these matters as the noble Lords, Lord Berkeley, Lord Snape and Lord Liddle. However, I share their concerns about what the Government are doing by extricating us from years of integration in Europe in important areas of our national life. This is a perfect example of the dangers of the obsessive ideology which seems to believe that we must leave the European agencies which we helped to establish. Leaving them will impose much greater costs on our country, much more regulation rather than less, and indeed doing so will probably take us back around 10 years in the progress we have made across Europe in these vital areas of our national life.

I support fully the call by the noble Lord, Lord Berkeley, for us to remain at least an associate member of the European rail agency as well as the signalling agency. The transfer of responsibility from these agencies, which have enormous expertise and experience, to the Secretary of State fills one with some trepidation, to put it mildly. It may be that my noble friend the Minister, who I am sure shares some of my concerns even though she is in a difficult position, can provide some assurances that the Government will consider alternative plans that allow us to remain part of these agencies whether or not we leave the EU with a deal. Obviously, I hope that we have no chance of leaving with no deal, but so far the Government have refused to consider the idea of revocation if that is the only way to avoid it.

We need to continue the important activities of compliance and information sharing that are a part of these agencies. Just because there is some link to the ECJ, for example, is not a good enough reason to leave agencies that are so important to many areas of our national way of life, prosperity, security and safety. I urge my noble friend to respond positively with some of the assurances that the noble Lord is seeking.

[Baroness Randerson (LD)]

My Lords, I start by thanking the noble Lord, Lord Berkeley, for bringing forward this Motion, and state that had he had chosen to table a fatal Motion, I would have supported him all the way. It is a supreme irony that Britain, the country that brought the railways to the world, is now insulating itself from world progress on the technology.

As we work through these SIs, they produce a range of solutions to the problems that the transport sector faces. Some of the solutions are relatively neat, while others are pretty clumsy. Then there is this one, which is simply downright stupid. That stupidity has been recognised by all the key railway industry organisations, which are seriously worried about the future. I also draw attention to the fact that the SLSC sub-committee which looked at this SI has expressed its view that an important policy issue is being raised here.

Interoperability means the application of EU-wide technical and operational standards. That applies to the rail infrastructure, the vehicles and the component parts. It is based on technical specifications, known as TSIs, devised by the European rail agency. It is important to note that the UK is very well represented at that agency by its technical experts. We have been a leading member and we have a vote, which of course we are going to give up. TSIs automatically apply to the UK, so we have not had to create our own regulations, but that does not stop us creating our own additional standards. These are proposed by the Rail Industry Safety and Standards Board.

There are a number of key issues about this SI. It is made under powers in the Transport Act 2000, and so would normally be done by the negative procedure. As all of this is very controversial, as I shall set out later, I am concerned that future SIs on this subject should be passed by the affirmative procedure. Can the Minister give us that reassurance today?

This SI cuts us off from the European rail agency, as the noble Lord has explained, and transfers powers to the Secretary of State. I am with the noble Baroness in saying that this does not fill me with confidence, because the European rail agency was set up to harmonise standards to enable the rail industry to better compete with other forms of transport. It effectively shadowed the systems in place for aviation and the maritime industry, and the Government have decided to remain members of those international organisations.

At the heart of the European rail agency is the sharing of data. As I have said many times, data is the key to safety. By leaving the agency we are cutting ourselves off from that data. As I have pointed out, even if you continue to share the data on a good will basis, you tend to get out of step, because standardised methods of collection of that data are a key aspect in it being robust. Once you are on the outside of the system, you can no longer rely on that data. It does not have to be like this. As the noble Lord, Lord Berkeley, pointed out, the Swiss are an associate member. Although they do not have a vote, they participate fully in other ways.

The replacement of the agency as the setter of standards by the Secretary of State is extremely worrying. There is a specific intention in this SI, unlike in others, to diverge over time from EU standards. In other circumstances, in other SIs, the Government have explained that they want to carry on shadowing what exists, but not so for railways. This is a clear politicisation of the railways issue, simply because the current Secretary of State has a bee in his bonnet and wants to diverge whenever possible from EU standards and organisations. We have a very important rail manufacturing industry, supplying a buoyant export market to the EU. It is certainly not in its interest to have to manufacture to two different sets of standards, which would obviously cost more.

The SI talks about consultation with the industry. In my view, that is an empty offer and completely meaningless; the industry has already been consulted and has made it clear that it does not want the divergence. The DfT is already under attack for failing to co-ordinate and lead the rail industry effectively, and here we are heaping more and more powers on the Secretary of State in a series of SIs. That will not improve matters. There is no transparency here, in contrast to the EU processes for the railway industry—there is not even a role for a statutory adviser. We have an inept Government, whose response to the chaos they face is simply to take more and more powers for themselves.

The noble Lord, Lord Liddle, referred to the visit by the Secretary of State to EU Sub-Committee B. We asked him about his wish to diverge from EU standards, because we had already heard evidence from the rail industry organisations that they did not want that. The only benefit he could come up with was that we could build our platforms to a different height, as the noble Lord, Lord Berkeley, has explained. There are two problems with this: first, we already have a derogation on this; and, secondly, it seems we already build platforms to a number of different heights. For example, as the noble Lord said, for Crossrail there will be step-free access in the tunnels from the platform to the train, but not on the existing Network Rail platforms. Someone has come up with the idea of actually building trains with lower floors, so you do not need to worry about the platform heights; I give the example of Merseyrail. Where there is divergence in standards, any new product will be assessed against the UK standard by a UK-approved body. As the secondary legislation sub-committee pointed out:

“As a result, there may be situations where new products already holding conformity assessment documents issued against”,


EU,

“TSIs will need to be reassessed”,

for the UK market. That is stupid. That bureaucracy will cost a lot of money for those purchasing in Britain.

Air Passenger Rights and Air Travel Organisers’ Licensing (Amendment) (EU Exit) Regulations 2018

Baroness Altmann Excerpts

Tuesday 12th February 2019 Lords Chamber

[Lord Adonis]

So it is not just Seaborne Freight that had to sign a non-disclosure agreement; it turns out that people who turned up to meetings in the department also had to. Perhaps the Minister would like to clarify whether non-disclosure agreements were involved. Indeed, I am told there was an attempt to try to get your Lordships to sign non-disclosure agreements on the ground that, if we debate these issues openly and start expressing our concerns, people might become alarmed—as the noble Lord, Lord Warner, said, there are some members of the public who observe our proceedings.

This is worse than deeply unsatisfactory and is no way to make legislation. It is totally unacceptable and should not be happening. There is nothing the noble Baroness can say that will meet the substantial points, but perhaps she can at least give us some basic information on how consultation has been conducted and what the results were.

[Baroness Altmann (Con)]

My Lords, I have a quick question for my noble friend. I echo the remarks of condolence that she is in this position—I am sure she does not wish to be. Can she clarify how these regulations might relate to passengers on flights that have a code share? Many transatlantic and international flights are code shares. Which of the airlines that are part of that codeshare would be considered the principal airline for the purposes of these regulations?

Railways: Fares

Baroness Altmann Excerpts

Tuesday 31st January 2017 Lords Chamber

[Lord Ahmad of Wimbledon]

My noble friend is right to raise this issue. The basis we currently use, as I have been clear, is RPI. It is important to provide certainty to the market not just for people using the services but, as he points out, for rail companies as well. As I have said, once we see the result of the consultation we will look at this.

[Baroness Altmann (Con)]

My Lords, can my noble friend explain why we are using the RPI rather than the CPI, as RPI is no longer an official statistic? Pensioner incomes are tied to the consumer prices index rather than the retail price index, yet hard-pressed consumers are having to pay an RPI increase.

[Lord Ahmad of Wimbledon]

My noble friend speaks from great expertise, particularly on pensions, and she is right to raise the concern expressed by the travelling public. But I say to her that RPI is consistent with the general indexation approach currently used across all aspects of the rail industry, including franchise payments, network grants and franchise financial models. As she will be aware, those are all indexed at RPI. I have already alluded to the study; let us await the outcome and we will then see how we progress on the way forward.