Railways: East Coast Main Line

Debate between Baroness Sugg and Lord Beith

Tuesday 30th October 2018 Lords Chamber

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

My Lords, passengers across the east coast main line, including in Newcastle and Edinburgh, will benefit from the introduction of new trains by London North Eastern Railway, delivered through the Government-led intercity express programme. These new trains will transform passenger journeys, providing more seats, more frequent services and faster journeys. LNER is working closely with Hitachi Rail Europe, Network Rail and other industry partners to bring these trains into service as soon as possible, with a full rollout scheduled to be complete by 2020.

[Lord Beith (LD)]

My Lords, the noble Baroness did not say very much about when these particular sections of the line will have the service. Because these new trains apparently interfere with the outdated signalling and points system on the east coast main line—and also, bizarrely, because the regulator thinks people might use the interconnecting things to climb on top of the trains—the introduction north of York has been delayed. In what year will each of these sections of the line get new trains, and for how long will the service depend on worn-out HST trains which are 40 years old?

[Baroness Sugg]

My Lords, I am happy to give some more information on the timings. The first trains were due to enter service in December this year, but LNER has recently announced that these will not be introduced until early next year. There remain challenges relating to electromagnetic capability, ORR approvals and train design. Of course, this is disappointing for all involved, but when introduced the trains will provide more seats and faster journeys. As I said, the full rollout of the east coast fleet is still scheduled for completion in 2020.

Railways: CrossCountry

Debate between Baroness Sugg and Lord Beith

Wednesday 18th July 2018 Lords Chamber

[Lord Beith]

To ask Her Majesty’s Government what steps they are taking to ensure that the Cross Country rail franchise, when re-let, continues to provide regular services to stations north of Newcastle.

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

My Lords, the Department for Transport launched a public consultation on 7 June to seek views on the CrossCountry rail franchise and to identify options for improvement. We will consider the responses fully before making any decisions on that route but, as stated in the consultation, there will be at least one CrossCountry train per hour north of Newcastle, to Edinburgh or beyond. The options for intermediate stops to stations north of Newcastle form part of the consultation.

[Lord Beith (LD)]

Does the noble Baroness realise that CrossCountry is a key provider of train services from Berwick, Alnmouth and Morpeth, leading to 475,000 passenger journeys a year? Does she recognise that there are worrying suggestions in the consultation document to which she referred of,

“fewer calls at some stations”,

and fewer trains between York and Edinburgh? In his foreword, the Secretary of State states that his priority is to reduce crowding. Will he do that with longer trains, or by telling people in Northumberland to get into their cars while the trains whizz through the stations without stopping?

[Baroness Sugg]

My Lords, the consultation does indeed ask for passenger views around the stops that the noble Lord mentioned, as for other intermediate stops across the country. We want to address overcrowding, which will be done through additional rolling stock but there are other ways to look at that too. Of course passengers have conflicting demands: some will want quick express services and others will want a stopping service to get around locally. The point of the consultation is for passengers to tell us what they want from that service. I certainly do not want to alarm the noble Lord or the people of the north-east. I know how much the services are valued, and of course passenger views will be properly reflected before setting the minimum requirements for the new operator.

Railways: East Coast Main Line

Debate between Baroness Sugg and Lord Beith

Wednesday 23rd May 2018 Lords Chamber

[Baroness Sugg]

My Lords, I am afraid that I do not know the exact size of the trains on the new local railway. On capacity, moving towards the east coast partnership, as we are planning to do in 2020, will enable both Network Rail and the train operator to work closely together to ensure that we have enough capacity on all lines.

[Lord Beith (LD)]

My Lords, who will employ the staff under this arrangement, and what assurances have been given to them about their future?

[Baroness Sugg]

My Lords, that is a key question. As the noble Baroness pointed out, they have delivered an incredibly high passenger service and we should absolutely pay tribute to them for doing so. They have seen a number of changes in the train operating companies over the years. We can reassure staff that changes will not impact on their continued employment; it will be no different from a normal franchise change. Staff will be transferred and their existing terms and conditions of employment will be protected.

Railways: East Coast Main Line

Debate between Baroness Sugg and Lord Beith

Tuesday 13th March 2018 Lords Chamber

[Lord Beith]

To ask Her Majesty’s Government what arrangements they propose for the continuation of train services on the East Coast mainline.

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

My Lords, the Government are currently reviewing two options for the continuation of services on the east coast. Our priority is the continued running of the line for passengers. The first option is to allow Stagecoach to continue operating the service under a very strictly designed short-term contract. The second is for the franchise to be directly operated by the Department for Transport through an operator of last resort. We will choose the best option that protects the interests of passengers and offers value for money.

[Lord Beith (LD)]

My Lords, the fact that we are on the third failed franchise is down to incompetent franchising, fanciful overbidding by operating companies and a failure of the publicly owned Network Rail to deliver the track and overhead improvements on which the bids were based. What is the plan now? Are there only two options or more than that—a rerun franchise competition, a new type of franchise combining track and train operation, a nationalised operator or a sweetheart deal for Stagecoach/Virgin to run the trains without taking the risks? When will we know?

[Baroness Sugg]

My Lords, we expect to make an announcement on the two options in the coming months. From 2020 there will be a new east coast partnership as part of our reform of track and train to ensure that they work together better to deliver the services that passengers need.

Rail Update

Debate between Baroness Sugg and Lord Beith

Monday 5th February 2018 Lords Chamber

[Baroness Sugg]

My Lords, I agree that there is no simple reason why the franchise has failed; there are a number of reasons. The east coast has not performed as expected. It can be attributed to external factors which were not predicted. For example, the decrease in petrol prices resulted in increased competition. On the enhancements, from the start of this franchise to date all the infrastructure upgrades planned for the east coast have been delivered. Further upgrades for the route are planned but were not due to be completed by this stage. It is clear that Network Rail’s overall performance has not been satisfactory in recent years and we need a change within the business to deliver a more customer-focused policy. Network Rail has committed to transformation and an efficiency programme of change. That will see it judged on the performance it delivers for passengers in partnership with train operators. We continue to push Network Rail to devolve to ensure that there is one route managing director directly accountable to passengers.

[Lord Beith (LD)]

My Lords, the noble Baroness says that on a franchising system such as this operators will sometimes fail; I think those were her words. This is three times on the same route. I fancy that if GNER had been allowed to exit its contract on a basis as favourable as Stagecoach has been allowed to, with the possibility of rebidding, it might not have left the line in the first place, which would have been helpful as it was probably the best of the operators that we have had. But each time we are told, “Oh, the department is refining its system. It is all going to be better next time”. Given the three failures, is there really a system in place which can judge bids at all?

[Baroness Sugg]

My Lords, on the failure of franchises, the Statement quoted the Brown review, which identified that it is neither sensible nor realistic to design franchise structures that seek to completely eliminate the risk of default. At the time, the department carried out an assessment to ensure that the bid was realistic and in the best interests of taxpayers and passengers. However, Stagecoach rightly took a degree of risk with its assumptions. I do not recognise the noble Lord’s view that this has been a favourable exit for Stagecoach. As I said, we are holding it to its obligations, and this has cost it dearly. It has lost almost £200 million running the service—a big sum for a company which is worth less than £1 billion.