(2 months ago)
Lords ChamberI thank my noble friend Lord Berkeley for his Amendment 11, regarding rest-day working. Rest-day working provides resilience in response to spikes in leave, sickness and training, and it rewards the workforce when extra hours and days are worked. It can offer benefits to rail employees, as well as to passengers. It is likely that it will always be necessary, to some extent, to effectively deliver the timetable. However, rest-day working should be used where there is an operational benefit and employees are willing to volunteer, rather than trying to mandate in legislation how and where it is used. Our focus is instead on ensuring, as soon as possible, that the railway industry has enough staff to operate services reliably for the benefit of passengers and employees, without excessive rest-day working.
My noble friend Lord Berkeley referenced the new trains on South Western Railway. I say to him that they are now entering service and, further, that Network Rail in fact substantially changed terms and conditions two years ago for greater flexibility and in agreement with the workforce, and that is now reflected in greater efficiency. That deal demonstrates what can be achieved in the public sector.
The noble Baroness, Lady Pidgeon, referred to uncertainty. There can be no greater uncertainty than has existed for the last 30 years on the railway, in which anybody of long service has changed their employer at least once, sometimes several times, while doing the same job. The people whom I meet going around the railway talk about it as “the railway”, many of them because their employer has changed so often that they cannot even remember the name of the company that they used to work for. Some stability in respect of the employers of staff on the railway, many of whom are deeply committed and have had long service, is overdue, and this Bill will move towards it.
Will there be a workforce plan? Yes. Is there one at the moment? No. As the train operating companies come into public ownership, they will have to have a workforce plan. Personally, I am absolutely committed to the maximum recruitment of drivers as early as possible, to the benefit of the drivers themselves and the service that the railway operates.
I also very much thank the noble Lord, Lord Young of Cookham, for Amendment 18, which suggests that an independent body should be established to advise the Government on the pay and terms and conditions for railway staff under public ownership. We are committed to delivering the biggest overhaul of our railways in a generation. It is right that, as part of that process, these matters are considered. Employment conditions are an important issue and one that we are determined to get right.
My officials are at the early stages of exploring a number of options, including a pay review body, so that we can consider the most appropriate approach to meet the needs of a transformed industry. A number of different approaches exist across the public sector, including pay review bodies and wider guidance, and, as my noble friend Lord Snape said, the use of the Advisory, Conciliation and Arbitration Service. We need more time to reach an informed conclusion on the best approach for the rail sector. It would be inappropriate to commit to the introduction of an independent body before that work is completed. In particular, we do not need to do this now in relation to this Bill.
Amendment 49 is in the name of the noble Lord, Lord Moylan. It seeks to require the Secretary of State to produce a report on how public ownership will impact the implementation of the Strikes (Minimum Service Levels) Act 2023. The noble Lord must surely be aware, however, that the Government have already committed to repealing the Strikes (Minimum Service Levels) Act 2023. That is because this Government are committed to strengthening the rights of working people by empowering workers to organise collectively through trade unions.
No relevant employer, under the Strikes (Minimum Service Levels: Passenger Railway Services) Regulations, has chosen to implement minimum service levels under this legislation and, in fact, they will not work. Instead, we will work in partnership with trade unions, as we have done in recent weeks to bring an end to two years of disputes that have meant needless disruption and misery for passengers. So I must say to the noble Lord that the Strikes (Minimum Service Levels) Act will not be implemented for publicly owned services, or indeed at all under this Government—as, in fact, it was not under the last one. The suggested report, therefore, would be redundant.
Finally, I will respond to the points made by the noble Lord, Lord Young, on the classification of the costs of rolling stock for publicly owned train operating companies when I respond to Amendment 19 in group 10 in the resumed Committee stage on Wednesday. I note for now that, whatever the position is, it must already apply to the four publicly owned train companies. I urge the noble Lord to withdraw his amendment.
Before the noble Lord sits down, can I ask a question in reference to the fact that the Minister mentioned that there was no need to sort out terms and conditions now? What timeframe do the Government assume that they must follow in order to ensure that the first train operating companies to be taken into public ownership do so in an organised way so that new staff are recruited with modern terms and conditions of employment.
I thank the noble Baroness, Lady Randerson, for her intervention. In fact, I did not say that there was no need to sort out the terms and conditions now; I said there was no need to sort out the particular matter of how the overall pay and conditions might be dealt with, including with the pay review body. As a matter of fact, the employees would transfer under the transfer of undertakings regulations. At that stage, no change is possible on the transfer. That will need to be resolved and I am sure that changes are in fact needed, if only because, at least in my view, some of the existing train operating companies have failed to develop the terms and conditions in the way that they should have, both to operate a better service and to reward the staff more effectively.
(2 months ago)
Lords ChamberMy Lords, I rise along with the noble Lord, Lord Gascoigne, as someone who has worked closely with the new Minister. I congratulate him on his appointment. He knows more than almost anyone about our railway network—the problems, issues and challenges—and, while he may find himself on the other side of the political fence to me, he will be a great asset in trying to sort the challenges of our rail network.
He will know, very much more than anybody else, what the challenges are. He will also know, therefore, that sorting out our railways is not simply about changing the ownership structure. He knows full well, for example, that many of the issues that passengers have experienced in recent years have been laid at the foot of Network Rail—the company he chaired, although it was not his fault, of course—and rightly so. However, all of us involved bear the scars from the difficult times in 2018 with the timetable change. The noble Baroness, Lady Blake, knew well the challenges then, particularly in her role in the north. In the north, they were caused most immediately by Network Rail’s failure to deliver an electrification programme in the timetable that had been committed to, which had a dramatic knock-on effect on the rest of the railway.
Therefore, I am not clear, and it is why I have a lot of sympathy with the amendment from the noble Lord, Lord Gascoigne, why a move of ownership is going to deliver a transformation for the passenger. I hope that the Minister, with his experience, will be able to talk a bit about that as he responds to the debate. Fundamentally, on both sides of the House, we are all about improvement for the passenger, and simply transferring ownership from public to private and private to public does not solve the challenges. Ironically, I was reading at the weekend—and I am sure it is true—that the Government are looking at bringing the private sector in to run Euston station, at the same time it is planning to take the private sector out of the railway to run the trains that go into it.
So I would be grateful if the Minister could set out why he thinks this change will deliver improvement for passengers and why, therefore, the amendment being proposed by my noble friend is wrong.
My Lords, I am in the slightly unusual position of speaking to Conservative amendments that have not been spoken to already. However, I am sure the noble Lord, Lord Moylan, will correct me if I interpret them wrongly.
The noble Lord, Lord Gascoigne, set out the failures of the current system. Prior to the laying of the noble Lord’s amendment, I had taken the theme of this group of Conservative amendments as displaying a welcome, if overdue, conversion on the road to Damascus. After more than a decade of increasing confusion on railway services, declining levels of passenger satisfaction and rocketing fare prices, the Conservatives are actually looking at improving public train services.
Amendment 2 touches upon something with which I definitely agree: the inevitable winding-down effect of a four to five-year transition period. As I said at Second Reading, there is bound to be an impact on staff morale and the inevitable likelihood is that the best staff will move to other industries when faced with an uncertain future. There will also, of course, be cost pressures. For example, there is bound to be a tendency to level up across very different terms and conditions from one employer to another within the train operating companies. Last week, I was speaking to some train operating companies, all of which recognised the problems that will be faced as the Government try to bring together and harmonise terms and conditions without exposing the taxpayer and the passenger to higher costs. Of course, the most obvious problem is how to deal with rest day working. I know the Minister is fully aware of the problems to which I am referring, so I will be interested in his response.
Amendment 26 refers to costs. At Second Reading, I asked questions about several issues, such as station ownership and operation, which were not really answered. I also asked about British Transport Police, which is encompassed in Amendment 40, put down by the Liberal Democrats. The Labour manifesto contained a supposedly cunning plan for low-cost nationalisation, but there are still bound to be significant costs for such obvious things as new livery and uniforms. We all look forward to an integrated fare structure; that, of course, will come with upfront costs.
Amendment 22 refers to the establishment of an independent public body to assess performance, while Amendment 21 refers to an annual report from the Secretary of State. I hope that the noble Lord, Lord Moylan, will explain exactly what he is aiming at in these amendments. One of them asks for the sort of close supervision by the Department for Transport that we have had since Covid, which clearly has not worked terribly well; the other refers to a more arms-length approach. Which of those approaches does the Conservative Party in this House believe will be better?
Liberal Democrats would establish a railway agency —a nationwide public body to act as a guiding mind for the railways, putting commuters first, implementing wholesale reform of the fares system and holding train companies to account. We do not believe that the renationalisation of passenger rail will automatically deliver cheaper fares or better services. From speaking to members of the public, we have concluded that they really do not care who runs the railways; they just want cheap, efficient and reliable services.
I do not doubt the Government’s good will or their wish to make this huge change, which we all want to happen. However, as a signal of their intent and an upfront signal to the public, I hope the Minister will speak with the Chancellor of the Exchequer to ensure that in next week’s Budget, we have a fare freeze and the public see from the start that there will be a difference under this Government.
My Lords, the amendments in this group are all designed to try to get some information from the Government about the effect of the changes in this Bill. Will it help the passenger—as well as, I hope, the rail freight customer—and will it help with the costs? Several noble Lords have referred to the issue of costs on the railway, which is very serious; I shall probably come back to that later.
My Lords, as a Great Western passenger, I wish I could speak as glowingly as my noble friend Lady Scott has done about Greater Anglia. GWR is known fondly to its passengers as “Great Western Roulette”. Will it or will it not turn up? How late will it be? Will it have five, eight, nine or 10 carriages? I can see people for whom that rings a bell.
The Liberal Democrat Amendment 1 turns on its head the Government’s proposed time-served system, which noble Lords have been discussing. In some ways, Amendment 48, in the name of the noble Lord, Lord Liddle, addresses the same issues. This is really about natural justice. Why should a poorly performing franchise be allowed to continue while an excellent one is terminated? Bear in mind that we are not bothered about the franchise owners; we are bothered about the passengers who have to suffer the service it provides. Why should passengers be denied reliable services?
There are two serious problems with the Government’s scheme. By chance, as has been said by several noble Lords, Greater Anglia, a profitable and very good operator, will have its contract terminated at the start of the process, while Avanti, whose performance is poor, will outlast almost all other train operators. That is topsy-turvy logic. The rail industry will lose the example set by Greater Anglia at a time when it, as a company, could be setting the new standards we all hope will be achieved by the new integrated public sector railway.
By imposing this rigorous approach to nationalisation at all costs, and nationalising even those train operators that are performing very well, the Government’s attitude is really inconsistent. They are not applying the same logic to roscos or freight services, or even to open-access operators. It is simply illogical to insist on the upheaval and dismantling of Greater Anglia, for instance, while regarding an open-access operator such as Grand Central as quite acceptable.
On my noble friend Lord Liddle’s comment, I am sure the Secretary of State would like to make her own decision, but I am pretty confident that the work done in the department to assess whether Avanti is meeting its performance standards has taken into account what latitude there is. I suspect there is very little because of the contract terms.
I will write to my noble friend Lord Berkeley, and make the letter available, about the causes of delay on the west coast main line and to Avanti’s services. It is, of course, as he knows, undoubtedly true that every set of delays on the railway is due to a combination of the train operator and the infrastructure, and the way in which those parties manage their interaction with each other. When the Secretary of State and I have seen train companies about their performance, we have insisted that they are always accompanied by the relevant route directors of Network Rail. One of the issues is the root cause of the delays; another is how well those parties interact to resolve them. One of the issues on the west coast main line is that Network Rail’s control point, not unreasonably, is at Rugby where the signalling system is, Avanti’s control is in Birmingham and its train crews are managed from Preston. I would not run a railway like that myself.
Going back to the contracts that are performing well, what is the Minister’s view on emergency situations, such as the recurrence of Covid and lockdowns? Would an existing contract, as currently written, enable an extension if the Government felt they needed it, or would they have to come to an end, so that we have to go through a fresh bidding process, come what may?
It varies in accordance with the particular train company. Some of them are coming to a natural conclusion, others have break clauses that enable termination and, in a limited number of cases, there are some choices that could be made. To that extent, we will have to make them.
My Lords, I will follow on from the interesting contributions from the noble Lords, Lord Lansley and Lord Young. I understood that Ministers had accepted that open access operators will be able to continue, or new ones may be able to come. So I have two questions. As the noble Baroness, Lady Scott, said in her introduction to her amendment, Greater Anglia is contributing quite a lot of money each year to the Treasury. Presumably it could ask to convert that service into an open access service and keep the money, and that would presumably be all right and the Treasury would lose out. I would be interested to hear my noble friend’s view on that.
If there is a new service, as one of the noble Lords said, that an operator of some description thought would be a useful one to introduce but which the new GBR thought was not appropriate, presumably there would be no reason why the new operator could not submit an application for open access, as happens at the moment. It does not have to be a long distance one from London to Blackpool; it could be a short distance one. How would that be seen by the Government. Would they welcome it?
My Lords, this has been a very interesting group of amendments to debate so far, and I am very taken by the latest thoughts from the noble Lord, Lord Berkeley, on playing around with the definition of open access operators and what will be accepted. I was interested, too, in Amendments 28 and 29 and the thoughts of the noble Lord, Lord Young, who is always very thought-provoking. His amendment, as he said, is very much the obverse of the ones put down from these Benches. I urge the Government to look at this and allow themselves the flexibility to change the order of nationalisation in order to allow good franchises to flourish and to give themselves time to unravel privatisation more slowly and more logically. It has to be more than just, “This was in the manifesto and therefore it will happen whether or not it is logical”.
I am really sorry that the noble Lord, Lord Liddle, is not in his place, because Amendment 35 is fascinating. It refers to a broader definition of what a public sector company should be, so that it includes public/private partnerships and co-operative ventures. I do not need to remind noble Lords opposite that some of them have been, or may still be, members of the Co-operative Party. As Liberal Democrats, we share an enthusiasm for co-operatives as a form of company and operation. I can envisage that a smaller rail line, perhaps in a rural area, would work very well on a co-operative or a public/private partnership basis. After all, it would bring in fresh investment without, in any way, undermining the Government’s commitment to a nationalised structure overall for the railways.
Finally, I urge the Government to look again at their plans and the precise terms of the Bill through a post-Covid lens. Covid caused the collapse of the railway system, necessitating a whole new approach to franchising for the train operators. It could happen again, either for similar reasons or as a result of a financial crisis, and I urge the Government to look again at the terms of the Bill. Have they allowed themselves sufficient flexibility to cope with the unexpected, to allow rail services to continue to operate even if there is a series of unlikely events that have upset the market for those services?
My Lords, my noble friend Lord Young of Cookham said that he thought that the Government’s determination to trammel itself in the way that Clause 2 does was ideologically driven—a commitment to a certain vision of the railways based essentially on a political ideology. I would not be so bold as to disagree—he may well be right—but there is another way of looking at this, which I referred to at Second Reading. What is really driving the Government’s approach to this is that they have absolutely convinced themselves that the only way in which the railways can operate is if there is a single controlling brain, so that every train run in this country for passenger service purposes is run by Great British Railways, and that this body will be the sole provider of railway services.
This is a truly ideological obsession. It is almost a psychological fixation that appears to have gripped the Government, and it needs to be tested. Questions are being asked from every side of the House about its practical effects, and we are getting no answer except, “It’s in the manifesto”, which really is no answer to a passenger standing on a platform waiting for a train that was operating perfectly satisfactorily under private ownership and is now simply not arriving.
I turn first to Amendments 4, 10, 14 and 15 in this group standing in my name. If I had written the explanatory statements rather better, Members would understand—perhaps they do—that these four operate as one. They are consequential on each other and have a single effect, which is to say that the Secretary of State in awarding new services must put them out to tender but on a “concession” basis. Amendment 14 defines a “concession” as
“a contract under which the franchising authority specifies rail services to be provided by a private sector entity and retains the risk of fluctuations in the receipt of fares”.
In other words, this amendment does something that Transport for London has done with great success in relation to buses, London Overground rail services, the Wimbledon tram and the Docklands Light Railway. They are all operated on this basis and although there might be complaints from customers about this, that or the other, there are no complaints about the basis on which the services are operated contractually. Of course, TfL has chosen to brand them all under its own branding, so members of the public and passengers are often not even aware that they are operated on this basis. We have a system that works and that we should consider very seriously by contrast to the determination of the Government that all these services are to be taken in-house and run by a single employer with a great, single, controlling brain.
Amendment 14 does something else: it is in conformity with the Williams review, which I thought was the plan that there was, generally speaking, consensus that we should operate to. There is no other plan or document of any weight or substance that has been produced as a result of an independent review for the future of the railways. When I drew attention in our last debate to what is said on page 55 of the Williams review about the concession model being the pattern taken from TfL that should be used nationally, there was a slightly astonishing intervention from the Minister in which he said that Mr Williams no longer thought that, because he had rung him up and said that we need to have it nationalised. How much else in the Williams review has been vitiated by random phone calls made by the Minister to its author? How much is left of the Williams review, if it is capable of being rewritten by the Minister on the basis of claimed phone calls with Mr Williams?
It happens that Mr Williams and I served together on the board of Transport for London when the Minister was its commissioner. I have to tell him that if I were to look into the contacts in my telephone I think I would find that Mr Williams’s telephone number was in my telephone as well. It is perfectly possible that we could pursue this debate on the basis of various individual and private phone calls that we had had with Mr Williams about what he actually meant, what he thinks now, and whether his view has changed —and then what will be left of this report? Without this report, there is no plan. The Government are, it turns out, now inviting us to take a step completely into the dark. It is not just an act of faith, as I said on an earlier group, that they can run the trains better. It is a belief that they are going to give us a better plan for the future, but that they cannot tell us what the plan is, whereas at least previously they had some basis for saying what it would be. The whole thing really is turning into the most dreadful shambles.
I would like to know why concessions do not work, why something so successful in London will not be allowed, and why what was recommended by Williams is not allowed. I do not, I am sad to say, expect to hear the detailed explanation from the Minister that those questions deserve. The other amendments in this group have similar effect.
My noble friend Lord Lansley would like the Government to have the power, where they choose to, to go out to tender and allow some of these wicked private entities to submit tenders. I may myself be wicked when I say that many of these private entities are not very private—some are the subsidiaries of our great European railway friends. They are state-owned bodies from Europe. Who knows whether the Prime Minister, as he creeps towards a great reset and love-in with the European Union, would not find it quite useful to be able to say that the Italian railways, Deutsche Bahn and Renfe could bid for services running on our railways—just as they can at the moment—and that they are not going to be kicked out of Britain? “Mrs von der Leyen, we are going to let them back in.” Would not that little bit of flexibility that my noble friend Lord Lansley would like to be able to give to the Government possibly be rather welcome in the future?
My noble friend Lord Young of Cookham made a good case for his amendments. I echo the comments of the noble Baroness, Lady Randerson, who said that it is a great pity that the noble Lord, Lord Liddle, is not here to speak to his very intriguing amendment. To a large extent, the argument for it was made very well by my noble friend Lord Young of Cookham.
The possibilities of collaboration with the private sector—indeed, with community groups and, when we come to later amendments relating to devolution, local authorities and local government—are all worth exploring if we are going to reform our railway. All of these are being shut off and closed down now by the word “only”, which the noble Lord, Lord Lansley, and others are effectively suggesting be deleted.
My Lords, I support the point made by the noble Lord, Lord Berkeley, about the potential conflict of interest under the new scenario: we will have Great British Railways, with a single operating mind, carrying all the revenue risk for passenger train operations, while at the same time there will be open-access operators and freight operators bidding for a limited path on the railways.
The former Secretary of State said:
“I shouldn’t need to approve whether a passenger train ought to be removed from the timetable to allow a freight train to run instead, as I was doing earlier today”.
The question is: who is going to make that decision in the future? If it is going to be GBR, as the noble Lord, Lord Berkeley, said, there is a clear conflict of interest; the company would have an interest in the passenger train operator having precedence in order to secure the revenue. That may be in conflict with government policy, which is to promote the transfer of freight from road to rail. Surely it is important that at the moment, the train operator cannot insist that he has a particular path for his train: he has to bid either to Network Rail or to the ORR. Who is going to make that decision in the future? Will it be a domestic one within GBR? In which case, how will the conflict of interest raised by the noble Lord, Lord Berkeley, be resolved in a way that is satisfactory for both the open-access operator and the freight train operator, which may find that they do not have the paths they wanted?
My Lords, this small group of amendments addresses a number of issues that inevitably raise questions, because this very tightly drawn Bill provides no hint of how they are to be dealt with. I participate in this debate with some temerity following contributions by the noble Lord, Lord Berkeley, and my noble friend Lord Bradshaw, who know so much detail about the freight industry.
Liberal Democrat Amendments 40 and 41, to which I have added my name, are therefore probing amendments looking for details of government plans, which I hope the Minister can supply today. There are thousands of jobs and potentially billions of pounds of investment riding on the Government’s answers to these questions.
Amendment 40 is about a very specific issue but, as my noble friend Lady Pidgeon has emphasised, the role of the British Transport Police is vital, providing the rule of law on our trains. It is important to remember that the rule of law provides consumer and passenger confidence. Those of us who are older, younger or weaker are particularly dependent on the good offices of the BTP because they provide the assurance that people need before they are prepared to travel on our trains.
I emphasise that, as my noble friend said, British Transport Police funding has been provided virtually unseen from within the industry for a very long time. The total amount of money, at nearly £500 million a year, is not inconsiderable. It is therefore important that we have a clear answer now from the Government about they intend to deal with BTP in the future. In particular, how will it be overseen? Will that be with independence and at arm’s length from the Government? Which body will do that supervision?
Amendment 41, on freight, deals with a much more substantial and complex issue, because the freight industry is so complex. As the noble Lord, Lord Berkeley, said, it is essential that the new system be set up to encourage rail freight to improve its efficiency. That will be difficult, as he emphasised, because a centralised, nationalised Great British Railways will be bound to feel pressure to prioritise passenger services. We have crowded tracks running at capacity. We have vocal passengers who want trains at a time and a frequency convenient to them. We have a Government who have sponsored a nationalisation project, and their reputation will be damaged if passengers’ interests suffer. We also have a Government who emphasise that they are facing a financial black hole. Will they be willing to invest in track and signal modernisation of the sort outlined by my noble friend Lord Bradshaw, to benefit freight rather than passengers?
I fear that freight could rapidly become a poor relation, so I am keen to hear details and reassurance from the Minister. I thank him for his letter, but I point out that it says that next year’s railways Bill will “enable” the growth of freight. I emphasise that I would much prefer a duty to promote the growth of freight, rather than simply enabling it.
My Lords, I shall speak first to Amendment 40, concerning the British Transport Police, in the name of the noble Baroness, Lady Pidgeon. I associate myself with everything she has said about the importance of the British Transport Police in maintaining safety and law on the railway network and indeed in promoting a sense of safety, which is almost as important. That is particularly true, if I may say this, for women travelling on the railways, perhaps on their own. If they do not feel safe, they will not travel on the railways, it is as simple as that, and the British Transport Police have an important role to play in that regard. Fortunately, there is generally a good record of personal safety on the railways, but we want to see how the Bill will enhance that.
My figures may be terribly out of date, but when I was last involved, half the funding that the British Transport Police received came from Transport for London for services in London, and the rest was spread throughout the rest of the country. I will not say that the railway companies were not procuring enough British Transport Police to do the job—the test of that, of course, is whether there is criminality on the system—but they were not procuring at the same rate of coverage that Transport for London was procuring at. This is an opportunity for the Government to say, as they take control of the companies, how they are going to ramp that up and what investment they are going to make in it. I hope to hear from the Minister on that point.
A very interesting constitutional point was raised by the noble Baroness, Lady Pidgeon, which I had not heard expressed in any way before: how is the British Transport Police Authority to be constituted? At the moment it is constituted in large measure through representatives of the train operating companies. If there is effectively only one train operating company, which is the Government, how is it going to be constituted? As the noble Baroness says, it operates out of the Department for Transport. Is it going to become the first government department in this country—I think this is correct—to have its own police force? Even the Home Office, out of which ordinary policing operates, does not have its own police force; they are all accountable to police authorities or, now, to elected police and crime commissioners in appropriate areas, or to the Mayor of London in his capacity in London, and so forth. Could we end up in a constitutional nightmare here, a car crash that the Government have not properly thought through, as a result of this proposal to nationalise all these railways? Again, I would be interested to hear what the Minister has to say.
Turning to freight, I share the concern of the noble Baroness, Lady Randerson, about expressing too definite opinions on this topic, especially in the presence of the noble Lords, Lord Berkeley and Lord Bradshaw, who have such considerable and long-term prior knowledge of it. I have some slight sympathy with the Government on the point because, while I may be wrong about this, I understand that there are freight companies that have rights to paths which they do not use but will not relinquish because they may be useful in the future—and why should they relinquish them?—while, at the same time, they might want to have access to other paths which they cannot get hold of. This is slightly a mess, so perhaps there is some work for the Government to do here to sort it out.
The previous Government also had, as I understand it, a rail freight growth target: to increase rail freight by 75% by 2050. So far, that has not been mentioned and we have not heard yet whether the new Government wish to commit themselves to that target. Again, there is an opportunity for the Minister to say that that is his target when he gets to his feet. We would like to hear more about that.
The Minister may want to say that some of those points can be addressed in the future Bill—the Bill we are promised that is further down the road—but he cannot say that of the points raised by my noble friend Lord Young of Cookham and the noble Lord, Lord Berkeley, both of whom made the point that the way in which this is now proceeding, by contrast with the Williams report, creates a fundamental and ineradicable conflict of interest in the role of Great British Railways. When it was the body—the great controlling brain, as I referred to it—that was going to establish who could run what railway services where and, where appropriate, award franchises or concessions for passenger railway services, while also allowing open access and allowing freight services to take place, it could do that from a disinterested position. It would be allocating resource presumably according to some sort of rational principle that could be explained and interrogated by interested members of the public and other parties with a stake in the matter.
Now, of course, it is always going to be the case that Great British Railways will also be the operator of the passenger services—so what about the other services? What about open access and, most particularly as far as this group of amendments is concerned, where does freight get a look in? How does it make its case and to whom does it appeal if it feels it is unjustly done by? Is it to be allowed to appeal only to the courts or could there be a truly independent body outside Great British Railways—perhaps the Office of Rail and Road; I do not know—to which appeals could be made and which would decide and allocate these paths, where they are constrained, on a rational basis?
We have no idea about this because the Bill, as I said earlier, is being rushed through for manifesto and publicity reasons—for headline reasons, fundamentally—without these crucial questions that it throws up being answered. They are not my questions; I did not table these amendments. They come from Benches on all sides of the House. These questions are being thrown up and the Government have no answer, except the tune we are getting accustomed to, which has as its first verse, “It’s in the manifesto” and as its second verse, “We’ll tell you when we get to it some time next year”. I hope we can do better than that when the Minister gets to his feet.
(3 months, 1 week ago)
Lords ChamberMy Lords, I thank the Minister for the Statement. The Official Opposition share the Government’s desire for high-quality public transport and we will hold the Government to account on this.
In government, the Conservatives prioritised buses, protecting our network during the pandemic and introducing the “Get Around for £2” scheme, saving millions of people money on their commute and, most importantly, incentivising them to travel by bus again quickly after the impact that the pandemic had on travel. We know that our public transport sector desperately needs increasing passenger numbers to make routes viable and this is an especially acute problem in rural areas. The previous Government’s policy, driven by the “Get Around for £2” scheme, was successful in driving up the number of passenger journeys in the year to March 2023 by almost 20%. While this is not yet at pre-pandemic levels, our scheme is supporting the return of passengers and boosting the bus sector. So, before addressing the specific issue of bus franchising, can the Minister say what the Government’s intention is for the “Get Around for £2” scheme and whether it is also at risk of means testing? Will the Minister rule that out?
I turn now to the subject of the Statement: the statutory instrument. It seeks to give to all local authorities the powers on bus franchising that are currently exercised in major conurbations such as London and Manchester. Broadly and generally, the Official Opposition welcome the granting and devolution of more powers to local authorities, but this statutory instrument, like a number of announcements from the Government to date, is fundamentally bogus, for two reasons. First, it is often argued that cities and towns outside London should have the sorts of public transport services that London has and the sort of system that provides those transport services. As noble Lords will no doubt be aware, the bus service in London is provided by private companies that operate under concessions that have been granted to them, competitively, by Transport for London in a way that ensures a degree of coherence and system in the operation of the bus service across the conurbation.
The fares risk, which is the crucial question in all this, is borne by Transport for London. The bus companies themselves simply supply the service for a fee. The truth is that this is not something that just happened overnight. TfL did not suddenly find a way to do something that nobody else had ever done. Transport for London, in various guises, has been operating transport services in London for over 150 years, and bus services going back at least to the foundation of the General Omnibus Company—a French company, actually—in the 1850s in London. It is the historical core of what we now call London Buses. The capacity of most local authorities to deliver these services is extremely limited. They do not have those roots or those abilities. Where, out of nowhere, are they to conjure the ability to set up a bus concession management system?
The second reason that this is a fundamentally bogus statutory instrument is the cost of doing it. Running bus services, on the sort of basis that local authorities wish to provide them, is very expensive and requires large subsidies. My figures might be slightly out of date, but when the last Mayor of London, Boris Johnson, left office, the subsidy to London Buses was of the order of £450 million a year. The last I heard, and it may not be totally up to date, was that under his successor the cost of London Buses is of the order of £700 million a year. That is in a very large city, of course, but £700 million a year is a huge amount to have to find to subsidise bus services.
Throughout the country, local authorities will have to subsidise buses if they are to provide the sorts of services that this statutory instrument and this Government are holding out as being possible. Where is the money going to come from? Without massive investment in capacity and the subsidisation of operations, this statutory instrument is fundamentally meaningless.
So do the Government intend to publish a full assessment of the expected impact of this policy on the quality, frequency and accessibility of bus services? Will the Minister commit to assessing the relative impact of this policy on rural communities in particular, as opposed to urban communities?
Finally, the Official Opposition, as I say, support the desire for improved public transport and we generally support the increase of powers to local authorities. But this policy appears to put showmanship ahead of practical improvements. The Government have yet again got their priorities wrong, focusing on who runs local bus services rather than on delivering the people’s priorities, which are the quality, frequency and reliability of our public transport network.
My Lords, the Liberal Democrats welcome this Statement. As it has emphasised, it is clear that buses are crucial to our economy and society. They provide services for many of the poorest groups—the young, the old, more women than men—and are crucial for access to education, jobs, health services and other aspects.
We welcome rapid action to deal with our rapidly declining bus network outside London and we are fundamentally in favour of devolution, believing that decisions made locally are generally more effective and efficient. If the Minister looks back to Hansard in 2017, he will see that I put down during debates on the Bus Services Bill amendments that did roughly what the Government’s proposed measures will do—allow all local authorities to franchise and set up their own bus services. The response from the then Minister was that it was all about issues of capacity. To be fair, that is still an issue. On its own, this will not be enough, so what are the Government going to do? Will they provide additional funding and funding changes in the Budget in order to ensure that franchising is enabled in those local authorities that are not generally as big as, for example, Manchester.
As with the rail Bill, our concern is that the key issues are not necessarily included in the Government’s proposals in order to be broad enough to solve the problems. I have a couple of associated questions. Reference has been made to government subsidies to support the £2 fare cap. That will run out in December, and another funding stream that is designed to support improved services will run out in April. Can the Minister give us a commitment that we will see the end of temporary funding and that it will be replaced with a multiyear, more encompassing set of funding that is less divided up? There are four sets of funding that go to local authorities. They need, as the bus industry needs, certainty and a long-term approach, so I hope the Government will do that.
Finally, can we have an assurance that the Government will look at badly needed incentives and assistance to encourage young people on to our buses? For years and years, we have had free fares for elderly people. Young people need a nationwide scheme of at least reduced fares in order to get them on the buses and encourage them to become the bus users of the future. Many rural areas in particular need additional bus services, and young people using the buses would be a great incentive to the establishment of new bus services in those areas.
My Lords, I do not normally agree with anything that the Front-Bench spokesperson says—
(3 months, 1 week ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Hogan-Howe, for bringing this debate to us today. I found myself in agreement with very much of what he said. It has certainly been a very interesting debate. We heard from the noble Lords, Lord Berkeley and Lord Young, who are keen cyclists, and we heard from many noble Lords who cycle, but who accept that there are problems that need dealing with.
I welcome this debate, particularly because, although we often discuss cycling in this House, the previous Government showed little interest in grappling with any of the major issues posed by cycling today. I hope the fact that the Minister is no longer in his place is not a sign of his lack of interest. I am sure he will reply fully to us, and I hope we will get a detailed approach from the new Government.
Many noble Lords have spoken of their concern as pedestrians. It is a particularly strong problem for those who have disabilities. I was delighted that the noble Lord, Lord Shinkwin, was able to participate today. Several noble Lords have talked of cyclists as vulnerable road users, and indeed they are, because cars are heavier than bikes. I would point out, however, that the most vulnerable road users of all are, of course, pedestrians. We must recognise the vulnerability of cyclists, and that means we need a culture to encourage the cyclists that we have been talking about this morning to protect themselves better. In order to do that, they need to take a number of measures, one of which would be obeying the rules of the road.
Some parts of the UK have developed quite an aggressive cycling culture, and London is one of them. It is undoubtedly a result of the traffic intensity in London. I cross the road outside this building several times a day in order to get to my office in Old Palace Yard, and it is not the cars or buses that I worry about at all, because they always stop—or I hope they do. I worry about the cyclists, because in general they do not stop. The noble Lord, Lord Shinkwin, mentioned the coverage recently of a survey taken outside St Thomas’ Hospital, of all places, which illustrated the point that a very high percentage of cyclists cycle through red lights.
The issue about the crossings outside this House are intensified by the fact that all the cyclists are surrounded by police. That underlines the point made by the noble Lord, Lord Russell, that the police are not in a position to enforce the law.
It is possible for cycling to thrive without disobeying the rules of the road. I frequently visit Belgium and I have visited the Netherlands, and the rules of the road are much more frequently obeyed in those countries, where cycling is very popular.
The reason for the urgent need for legislation to deal with cycling safety is the rapidly increasing number of e-bikes, which the noble Viscount referred to. There are several categories of e-bikes, some of which assist you with pedalling and others that have a throttle and are akin to motorbikes. Legally, they are in different categories, but the public are blissfully unaware of that to a large extent, and so, I think, are the cyclists using them. The speeds can be up to 40 miles an hour, and they all look the same to you as they come towards you on the pavement. Often the riders of the more powerful bikes use them as delivery vehicles but nevertheless treat them as bikes, riding them on the pavements and in the fastest possible manner in order to achieve their task.
There is an urgent need for action to deal with this new technology. Many of these bikes are ridden by very young people with no formal training, no licence, no helmets, no registration number, and apparently no interest on the part of the police in dealing with the infringements of the rules that follow as a result. The results can be horrendous for the young people concerned. I come from Cardiff, where two young people died a year or so ago.
We need to think about future policy on cycling in two parts. The first is traditional pedal cycling, sometimes electrically assisted, which requires fitness, and the second is the technological challenge of electric bikes. The larger ones are not creating a fitter society per se, although of course they take cars off the road and reduce congestion and so are welcome for that reason.
Just before the election the previous Government were consulting on allowing even more powerful e-bikes, presumably in response to lobbying from the delivery industry. I would welcome an assurance from the Minister that the current Government are not going to pursue that.
We also need greater regulation to deal with illegal adaptations, not just because of the issue of greater speed, but also because of the fire risk from batteries. That fire risk comes from cheap imports of battery adaptations, largely. My noble friend Lord Redesdale has a Private Member’s Bill on that issue.
On the issue of speed, I would like to raise an issue that a recent Sustrans report revealed, which is the gender gap. The noble Baroness, Lady Jones of Moulsecoomb, raised the gender gap. Far more men cycle than women, but proportionately more women are injured as cyclists than men. There are theories about this being connected with positioning at traffic lights and so on, and behaviour. However, that is contrary to women as drivers of cars, who are somewhat safer than men. But they are in a more vulnerable position as women cyclists. There are issues we need to tackle.
The cycling and walking index shows that a firm majority of the public support improving our roads for walking, cycling and public transport. I hope that the Government seize upon that. They will get strong support from these Benches if they take forward a programme of investment in cycling and walking.
My final point relates to the childhood years. We need an ongoing cycle training campaign in schools, firmly linked to teaching the rules of safety; that is so important. I would welcome assurances from the Minister that that will continue. Cyclists, as the noble Lord, Lord Birt, said, need to be made much more intensely aware of the dangers they pose—not just to pedestrians but to themselves—if they do not obey the rules of the road and do not wear helmets. I look forward to the noble Lord’s response.
(3 months, 1 week ago)
Lords ChamberThe way the road investment strategy works is that the Infrastructure Act 2015 requires a road investment strategy—known as RIS to the initiated—to be set. As I said, this strategy expires in March 2025. We might normally have expected to see the publication of a draft road investment strategy 3, for the five years beyond 2025, published by the previous Government, but in fact it was not. We are now required to do that and the Government will, in due course, do just that. It is stand- alone, but it must be recognised that the department, which is responsible for all modes of transport, including public transport, will have to consider how it spends both its capital and its revenue in the best way to achieve the targets of growth, jobs and housing.
My Lords, more than a fifth of the UK’s emissions come from surface transport, primarily from fossil fuel vehicles, so if this new Government value the future of our planet and the health of our nation, they will reconsider road-building plans. I am pleased to hear what the Minister said about that. Will he agree that the priority for government spending on roads should first be with the £20 billion backlog of road repairs, which makes our crumbling roads very dangerous at the moment, in order to put safety first? Will he commit to the completion of the ongoing programme to bring so-called smart motorways up to an acceptable safety standard?
The point about emissions and the environment will be covered by the capital spend portfolio review. I think potholes are a major part of what the noble Baroness referred to. The state of the roads is pretty disgraceful, and the Government are committed to doing far more on filling potholes and making roads safe than the previous Government. There will be no more smart motorways, and my understanding is that the programme to modify those already installed will be completed.
(3 months, 1 week ago)
Lords ChamberI thank the noble Baroness for her compliment. I hope the House will see it repaid in what I do. Concessionary bus fare funding will, without any doubt, follow the control of bus services, and that will be as important in North Yorkshire as it will be everywhere else in the country.
My Lords, the Minister will be fully aware from his extensive experience how much young people in London benefit from free bus travel. Unfortunately, in the rest of the country the picture is different—it is very patchy and uneven. Does the Minister agree that there is a strong argument for a standard system of highly reduced or free bus fares for young people across the country, to help them into jobs, apprenticeships and education, to create a fairer society and to create a new generation of bus travellers?
The noble Baroness will recognise the important ability of the Mayor of London to fund cheap and free fares for young people. The opportunity that the Government’s franchising proposals will give is that other local authority leaders and combined authority mayors will also have the ability to fund fare concessions for the purposes that she mentions.
(4 months, 4 weeks ago)
Lords ChamberTo ask His Majesty’s Government what plans they have for reviewing the impact of the decision to abandon plans to build further stages of HS2.
This Government are clear that transport is an essential part of our mission to rebuild Britain, and we are committed to delivering infrastructure that works for the whole country. We need a long-term approach to infrastructure and investment taking account of local transport priorities, which is what we will provide. We will review the position we have inherited thoroughly and at pace, and we will set out more detailed plans in due course.
I thank the Minister for his Answer, but he will be aware that today’s National Audit Office report confirms the expensive and disastrous impact of the cancellation of HS2 north of Crewe, with a reduction in the number of seats available on trains as a result of a decision that cost half a billion pounds wasted on land that was not going to be used for development. Does the Minister agree that a full and proper review of this decision is needed by the Government so that this never happens again, and so that the opportunities for the north of England are maximised? Will the Government also review the decision of the previous Government to allocate to Wales only £1 billion of Barnett consequential funding when Wales should, by right and by fairness, have £3 billion?
We will review the National Audit Office’s report, which is a report on the status of the project as it was left under the previous Government. We will have to do that before setting out more detailed plans. Personally, I am aware of the disparity in seats created by the present planned service pattern on HS2 following the cancellation of phase 2a. We will have more to say about that in the future.
In respect of the Barnett formula, heavy rail is reserved in Wales, so any heavy rail scheme that the department delivers should always be classified as England and Wales when applying the Barnett formula. That includes HS2. It is a different situation in Scotland and Northern Ireland. The Scottish Government and Northern Ireland Executive, under their devolved policy areas, do therefore receive Barnett-based funding. This is consistent with the funding arrangements for all other policy areas reserved in Wales but devolved in Scotland and Northern Ireland. That said, due to use of departmental comparability factors in the Barnett formula at spending reviews, the Welsh Government have received a significant uplift in their Barnett-based funding due to the UK Government’s spending on HS2.
(4 months, 4 weeks ago)
Lords ChamberI thank my noble friend for his question. Only 3% of Royal Mail’s letters and parcels are moved by rail. There are 600 freight services running on the network every day, of which the trains in question account for just six, so it is not thought that this will have a substantial impact on the overall amount of freight moved by rail. The matter of the taxation regime for rail and road is quite different.
I congratulate the Minister on his new appointment and thank him for his early comments, but point out that, while Royal Mail may be an independent company nowadays, it works within a legislative framework. Are the Government considering amendments to the legislative framework for both Royal Mail and other companies in similar settings to increase their environmental obligations and raise expectations that they will use environmentally sounds forms of transport?
The department’s officials are working closely with officials from the Department for Business and Trade. I will take the noble Baroness’s comments back to both departments.
(4 months, 4 weeks ago)
Lords ChamberI can fully understand the national issues regarding congestion at the Dartford Tunnel and the M25, but it is important that the arguments both for and against such a large project are properly examined and that a decision about the project is properly made. We of course hope that we will be able to answer this within the extended timescale given.
My Lords, this is clearly a cautionary tale about the failures of the previous Government to manage large infrastructure projects. But is it not also a warning that, on our crowded island, our economy cannot operate effectively unless the new Government take firm and swift action in transforming our public transport infrastructure, including transferring freight from road to rail? Does the Minister agree that simply building more roads cannot solve infrastructure congestion?
Your Lordships’ House has already heard some strong arguments in favour of this particular project. The arguments for and against it need to be properly considered in order that, when my right honourable friend the Secretary of State for Transport takes the decision, it is taken on the best possible grounds and considering the arguments both for and against it.
(7 months, 3 weeks ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Snape, for giving us such a broad canvas for our debate today. It has left us free to roam over fertile territory, pointing out the failings of current policy and the daily transport crises that fail travellers. It is very easy pickings because there is so much to choose from.
Many noble Lords have used this debate to highlight important issues arising from their own experiences. I especially welcomed the contribution from the noble Lord, Lord Holmes, on issues that particularly affect people with disability. I note my sadness that I am the only woman speaking in this debate, because a good public transport system is an equality issue. Women and girls are more likely to use public transport than to have cars. My noble friend Lord Goddard referred to ticketing, as did many others. He spoke particularly about Avanti and praised its on-train staff for dealing with the pressure they face so expertly in their responses. I second that by referring to Great Western staff; the Minister, the noble Lord, Lord Murphy, and I suffer the vagaries of the Great Western service. Just to illustrate a point: while we have been sat here, four trains have been shortened from 10 to five carriages, making all the associated trains uncomfortable, too.
Transport is fundamental to the success of the economy, despite all the talk of working from home, using Zoom and so on. Failing transport networks stifle the economy, as the noble Lord, Lord Birt, said. Wherever we look, our transport infrastructure is failing. The Centre for Cities estimates that that costs our economy £23 billion a year. Our roads, both local and national highways, are seriously congested and in urgent need of repairs. Now, I am a Liberal Democrat and I like talking about potholes, but potholes have become a national topic of conversation because of local government underfunding. Our motorways are heavily congested. The Government therefore invented smart motorways, which are supposed to rely on sophisticated surveillance equipment to keep drivers safe. Just this week, however, we hear that this equipment is subject to frequent failures.
Bus services have declined dramatically, leaving rural areas as bus deserts. The youngest, oldest and poorest in our society in particular are left without any affordable means of getting to work, to education, to training, to doctors’ appointments and to see family and friends. Although the £2 fare is welcome, like so much that this Government do, it is short term, haphazard and certainly not strategic. Money to incentivise zero-emission buses is welcome but, outside London, there are many areas where this has hardly made any impression at all. Above all, there is the uncertainty of funding, with four separate funding streams for buses. What we need, for a start, is one integrated system and more transparency to make sure that the money gets spent properly.
Train services are a national tragedy. When we ask questions here, Ministers always recite how much taxpayers have subsidised rail services since the pandemic. They overlook the subsidy that taxpayers give to road building and maintenance, and that every train passenger benefits all those who do not or cannot take the train by taking themselves off the roads. The nation that invented the railways has proved itself incapable of building a modern high-speed line in an efficient and sensible manner. We have had years of government contortions and “will they, won’t they?”, when first one leg and then the other leg of HS2 north of Birmingham was cancelled. At a stroke, that cancellation added vast amounts of money to future contractors’ estimates, because they will factor in the financial risk of project cancellation. We are told that, unlike on the high-speed lines that we see across the world, HS2 trains will travel on standard rail lines north of Birmingham, but they will of course have to travel more slowly than classic trains because those trains will not tilt.
Recently, we discussed the crisis facing train manufacturers Alstom and Hitachi because of the stop-go approach to rail investment. Thousands of jobs are at risk, with the Government scrabbling around at the last minute to try to save them.
Instead of HS2, we have the hotchpotch of Network North. Individual projects are probably very sensible and worthy, but there has been a lack of consultation, no coherent overall strategic plan, no proper discussion with local mayors, and so on. Of the £36 billion allocated to HS2, £11.6 billion will go to Network North; that is a major cut in funding for rail. The Rail Industry Association complains that there has been no assessment of value for money and risk, and that many of these are simply reannouncements, with only five new projects.
Just look at the current problems that face LNER, for example, with its planned new timetable, which will reduce services to key towns such as Berwick. The plans are now being put on hold for the second time because, according to Network Rail, they are undeliverable. There has been a lack of coherent consultation. Across the whole sector, investors and professionals are crying out for certainty and an end to U-turns and the stop-start approach to funding.
The Government had some good ideas, but they have dropped most of them. Theresa May made a bold and laudable decision when she fixed 2030 as the date for phasing out new petrol and diesel vehicle sales, but a single parliamentary by-election changed government policy and the date for that decision. As a result, the whole of our valuable automotive industry was wrong-footed.
There is no proper leadership on a sustainable charging network for electric vehicles and there is a lack of incentive to attract those who are less well-off into EV ownership. It is no wonder we are far from the world-leading image produced by Boris Johnson on EV manufacture and take-up.
In 2021, we had the Williams-Shapps report for rail reform. In 2022, in the Queen’s Speech, we had a Transport Bill announced, but it was never introduced. We now have the draft Rail Reform Bill, which has only just started scrutiny in the House of Commons and will have no chance of becoming law before the general election. Now we have Labour talking about a five-year lead-up to nationalisation, which will be five years of uncertainty—the last thing the rail industry needs.
We have a long way to go now. We need certainty and dramatic change in our bus services, our EV charging, our automotive manufacturing, our railways and much more. We need heaps more awareness of the value of investment, rather than the cost of each individual minute aspect of it. We need less political interference; we need investment, vision and less short-term bean counting.