Rail Services

Baroness Randerson Excerpts

Wednesday 17th May 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, it would be churlish not to welcome a sensible, if very belated, decision from the Government to remove the TransPennine Express route from FirstGroup. The appalling service suffered by people and businesses in the north, at the hands of TransPennine Express and other rail networks, has finally been acknowledged by the Government, and their decision indicates that they can no longer go on defending the indefensible, at least in the case of this railway.

TransPennine’s appalling record of cancellations—almost one in five trains cancelled and fewer than half the services on time—begs the question just why it took so long for the Government to provide at last some light at the end the tunnel for passengers and take the service back into public ownership. East coast services, Northern Trains, London and Southeastern, and now TPE, have all had to be nationalised since the Tories came into office. Will the Minister now admit that the rigid model of privatisation so keenly promoted by her Government has comprehensively failed? We now need to reassure passengers and businesses that services will improve. What steps are the Government taking to bring about the rapid improvement in service on TPE that we all want to see?

When I challenged the Minister recently about the profits of rail operators—profits which seem quite extraordinary to passengers in the face of such failure—she said that they related to a time before the delays and cancellations were a problem. In fact, the issues with TransPennine go back at least seven years. In August and December last year, shareholders cashed in a £15 million bonanza, paid out at the same time as passengers were facing more than half of trains running late. How can the Government continue to justify this profiteering when they now agree that this operator has behaved so poorly that its contract must be removed?

What is being done under the operator of last resort to address the issues of poor management which have led to this horrible failure of service to the travelling public? Will the Government now do their job and get round the table to resolve the industrial relations issues which have exacerbated the problem?

What plans are there to ensure that the right levels of investment are made in TPE to ensure that it delivers the reliable, excellent service that the region deserves, and to ensure that passengers do not have to endure the dangerous overcrowding which has characterised TPE for so many years?

We all know that these problems are not limited to TPE. Surely it is time for the Government to legislate for reform of our whole railway system to create Great British Railways, which will also drive contractual and fare reform. This will deliver much-needed improvements to the railways for passengers and freight customers, and for the taxpayer, who will then be investing in the success of our railways—not picking up the tab for their failure.

[Baroness Randerson (LD)]

My Lords, I thank the Government for this Statement, and I welcome the decision. It really was the only one possible, because TransPennine Express not only was hopelessly failing to improve and to deliver an acceptable service but was guilty of wilfully attempting to deceive customers—and indeed the Government—by using P cancellations as routine. P cancellations are of fundamental inconvenience to passengers; they were going to bed in the evening thinking that they could get their early-morning train and waking up to find that it had been cancelled.

All areas of the country suffered from Covid, but not all train operating companies made such a hash of staff relations. I have said in this House before that I travel every week on Great Western Railway, and its recovery has been much smoother. It has relatively few cancellations, and the staff are pleasant, helpful and very well trained. Every week, I am very pleased that I am travelling on Great Western and not TransPennine. This Statement is long on anti-union rhetoric, but it fails to recognise or to say with any grace that good management in the rail industry is fundamental. It is important that good management in those train operators that have managed the situation well is recognised.

I am very pleased to see recognition in the Statement of the potential positive role of regional transport authorities. I was delighted to see that, and I hope it is fully followed through. However, the Statement says

“we are building unstoppable momentum towards rail reform”,—[Official Report, Commons, 11/5/23; col. 488.]

but there is no sign of the Great British Railways legislation which is fundamentally needed to sustain and boost that process. The Government will say that it is possible to create a lot of that structure without the actual legislation. However, in reality, you need the controlled, guiding mind to drive through all the other changes beyond those that can be done without the legislation. The uncertainty that currently exists has a crippling effect.

In practice, since Covid, we have, in effect, a nationalised rail industry, because the Government in the shape of the Department for Transport takes day-by-day, detailed decisions and does day-by-day, detailed funding. Therefore, despite the anti-nationalisation rhetoric in the Statement, without the legal creation of the mixed public-private vision of GBR as a concept—with which I agree—this Tory Government will bequeath a nationalised rail industry to their successor at the general election. We need a refreshed, cleaned-up service based on a contractual system that replaces the current failed train operating company franchise system, and we need a simplified, cheaper fare system. I would be very grateful if the Minister could address in her response what government plans there are for GBR legislation, whether that is definitely now kicked into the long grass beyond the general election, and, specifically, what, if any, government plans there are to introduce a wholesale, simplified fare system.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

I am grateful to both noble Baronesses for their contributions and I will endeavour to answer as many questions as possible. I will start with the noble Baroness, Lady Taylor, who asked, “Why now?” Of course, it is very simple: it is because the contract is coming to an end. It is coming to an end on 28 May, so that is why we made the announcement on 11 May that the contract would come to an end and indeed it would then be handed over to OLR. Obviously, the decision was taken after much consideration. It was important to work in accordance with the policy statement that we had already published. We considered carefully whether to extend or award a new contract, and, after very careful consideration and with regret, we decided not to do so.

However, the Government are clear that we want to hold train operating companies accountable for those things that are within their control, and it is also clear that at TPE there were many things that were not in the management’s control and which will have impacted the services that were delivered to passengers. That included a very high level of absence, obviously the complete lack of rest-day working, and some very interesting shenanigans from the noble Baroness’s friends at ASLEF. In April 2023 they were offered literally the same deal for rest-day working that they had in December 2021 but they managed to say that that was not good enough. I do not know—I do not understand it any more. Clearly, we are in a situation where nothing is ever going to be enough, but of course it is the passengers who are suffering at the hands of the Labour Party’s friends.

Other issues have impacted TPE. It has had a much higher level of driver departures than would normally happen: 56 versus 25 in a normal year, and each one takes 18 months to replace. It is with regret that we felt that, despite an encouraging recovery plan, it was not going to reach a good conclusion. The reason why we felt that OLR was the right course of action is because it is an opportunity to reset and review. I say “reset” because there certainly needs to be a resetting of the relationship between TPE and all its stakeholders, whether that be government, the trade unions or indeed, quite frankly, their very poorly served passengers. Everybody within the industry wants TPE to succeed—except, potentially, the trade unions, which are not behaving as they should. I encourage all stakeholders involved in this, which includes the northern mayors and lots of council leaders, to work together to try to reach a good solution.

The Secretary of State has asked for an official review of services across the north to look at their effectiveness and delivery. It is worth recalling, and it seems rarely to get mentioned, that the TPE contract is the joint responsibility of the Department for Transport and Transport for the North, on which many Labour politicians sit. It is important to understand that chucking blame around about how ghastly the department is, is not really very helpful. We all have to work together to improve TPE’s services, and I hope we will be working closely, hand in hand, with Transport for the North to do that.

The noble Baroness once again brought up the issue of profits and dividends. I cannot give her a finance 101 class, because it would be wrong and potentially a bit rude. However, dividends are of course not the same as profits, as I am sure the noble Baroness understands. I cannot address that any further: I have tried before and it probably did not work, so I will just have to leave it.

As the noble Baroness will know, there are a number of reforms that we can do now. The key to that is work- force reform. The transition team is doing the long-term strategic plan. Workforce reform is key, but that has stalled. Why has it stalled? I think the noble Baroness knows the answer without me telling her.

Turning to the comments of the noble Baroness, Lady Randerson—