Confidence in the Secretary of State for Transport

Lord Grayling Excerpts

Tuesday 19th June 2018 Commons Chamber

[Andy McDonald]

I do not know where the hon. Gentleman gets that figure from. If the Government take franchises back when they run out it costs diddly squat to take them back—zero—so he is talking utter nonsense.

No one other than the Government hold responsibility for their dogmatic stance. This dogma causes them to stand by and defend the rail structure that is manifestly not fit for purpose. It then falls to the Department for Transport to get involved to try to run the railway properly. It cannot do this. Today’s railway cannot run itself effectively because it was decapitated by privatisation and chopped into bits to facilitate private profit taking. Because there is no guiding mind overseeing the railway, the Department has to wade into the railway much more deeply than it should. Having taken this approach, the Government assume a greater deal of responsibility, but they have not shown themselves capable of discharging that responsibility.

The Department for Transport’s oversight has failed in three major ways. First, it appears that, when there was a decision on whether to press ahead with the timetable changes affecting Northern, the Department stood against allowing a deferral. Why did the Department not believe the professional advice it was given? Secondly, the Transport Committee heard from Network Rail yesterday that Thameslink phasing was first raised by the GTR readiness board in June 2017. Mr Halsall, the route managing director for the south-east, said the Department stood by and did not make a decision until November 2017—an astonishing five-month delay. What did the Secretary of State know and when did he know it?

[The Secretary of State for Transport (Chris Grayling)]

I can confirm that the decision to proceed with a slimmed down timetable was taken by me in July 2017.

[Andy McDonald]

Well, I am saying to the Secretary of State quite clearly that a competent Secretary of State would have known this right at the outset and taken the appropriate steps. He did not. He allowed the situation to unwind.

Thirdly, the Thameslink industry readiness board—readiness board, there’s a laugh—formally requested that the GTR timetable changes should be scaled back, yet the Department dithered for two months. GTR boss Mr Horton said the board did not have an executive role, so he could not explain who was responsible for the meltdown—no one accountable and no one responsible.

I do not want to personalise the issue and I do not expect the Secretary of State to know every detail of what happens in his Department—[Interruption.] No, it is just everything he does and everything he stands for; it’s nothing personal. However, the three points I have described are all important failures of the Department for Transport at a high level. Stephen Glaister from the Office for Rail and Road is not an appropriate person to conduct a review into the timetable failings. The ORR itself has failed in its regulation of Network Rail, so it cannot be expected to conduct an independent investigation. This is yet another bad judgment by the Secretary of State for Transport. A new rail timetable is due to be implemented in December 2018. What funds, resources and support will the Secretary of State provide to ensure Network Rail’s planning capability can deliver the changes due in six months?

Today’s Financial Times reports the managing director of Trenitalia complaining about Network Rail and, in particular, the lack of integration between Network Rail and the train operating companies since privatisation. Did the Italians not do their homework on the reality of the UK’s railway? Recent events demonstrate more than ever that our railway is not integrated. I am afraid that the breach of faith and trust is so great that the Secretary of State’s credibility will never recover. There comes a point when the publicly accountable politician in charge of the railway should step up and shoulder the blame. It seems to me, and I suspect to many rail users, that we have more than reached that point.

[The Secretary of State for Transport (Chris Grayling)]

Before I respond to the points raised by the hon. Member for Middlesbrough (Andy McDonald), can I just say a couple of things? First, I saw the comments that he made yesterday, and I thought he was very brave on the whole issue of medicinal cannabis—I pay tribute to him for that. The other thing is that I echo his words about the tragic events at Loughborough Junction yesterday. Our hearts go out to the families of those concerned and, indeed, to all those who dealt with what was clearly a horrible incident on the ground. We owe a huge amount to the British Transport police in particular and to staff across the railway who deal with horrendous situations like this from time to time. I am very grateful to them for what they did.

For years, the Opposition have demanded that the railways be renationalised and run by the Government, and they have claimed that they would be run much better if they were. Now it appears that they think the railways are already run by the Government, and that if something goes wrong, it is down to us. Frankly, I am going to let their confusion speak for itself and concentrate today on what really matters: getting things back into shape for passengers.

[Peter Kyle (Hove) (Lab)]

Will the Secretary of State give way?

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Will the Secretary of State give way?

[Chris Grayling]

I will give way once or twice during my speech, but as you said, Madam Deputy Speaker, we need to make progress so that people get a chance to contribute. I am going to make some progress before I give way.

As I previously told the House, over the past weeks, passengers on parts of the GTR and Northern franchises have faced totally unsatisfactory levels of service, and I apologise to passengers that have experienced and are experiencing disruption. Since the timetable has been introduced, my Department and the industry have been working round the clock to restore the reliability of the service across the network. Hour by hour, my officials are in contact with GTR, Northern and Network Rail to work to improve the service to passengers.

As I told the House, I have commissioned an independent inquiry. This will be led by the independent rail regulator, Stephen Glaister, to examine why we are in this situation and to avoid it ever happening again. I have met the owners of the franchises and demanded that they improve their operational response, including, in the case of GTR, increasing its managerial capacity. Clearly, nobody wants us to be in the position we find ourselves in today, but let me be absolutely clear: everyone in my Department is as focused as we possibly can be on improving reliability for passengers.

[Several hon. Members rose—]

[Chris Grayling]

I will give way to the hon. Member for Westmorland and Lonsdale (Tim Farron).

[Tim Farron]

The Secretary of State will be aware that for two weeks in my constituency, there were no services at all along the Lake district—the service into Britain’s second biggest visitor destination. It took a heritage charter train to provide any service over the past few days, and I very much thank all those who were involved in making that happen. Does he agree that this is perhaps a sign that Northern, which is such a colossal franchise across the whole of the north of England, needs to be looked at in a more micro way? For example, we need to look at Cumbria and decide whether the Furness line, the coastal line and the Lakes line could instead be a separate franchise run by a provider that actually wants to run trains on a train line.

[Chris Grayling]

At the end of all this, I rule nothing out as regards the future structure of franchises. I obviously want to see the Lakes line recover to a normal service as quickly as possible. It has been a disappointment, actually, that the working practices between the employer and ASLEF have meant that it has not been possible to run a conventional service. That may seem extraordinary, but the employer agreements require that if one driver is taken off for training, all the drivers have to be. That is a strange situation. The Labour party talks about wanting to help passengers; it could put a bit of pressure on their union friends to relax some of those agreements now, so that we get the services back into shape as quickly as possible.

[Several hon. Members rose—]

[Chris Grayling]

I give way to my right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald).

[Sir Oliver Heald (North East Hertfordshire) (Con)]

My right hon. Friend will know of the misery—because I have told him—on my line, with five stations where people’s lives have been blighted over recent weeks, but does he agree that privatisation does have one merit, which is that we can get rid of the operator if there is a huge crisis, and if this is not sorted out very soon, will he take the necessary steps to attack the franchise?

--- Later in debate ---

[Chris Grayling]

I am absolutely clear that that is the case. Indeed, as I will say in a moment, I have started the process of review to make sure that all options are open.

[Several hon. Members rose—]

[Chris Grayling]

I will take two more interventions; then I will make some progress.

[Peter Kyle]

I am grateful to the Secretary of State for giving way. The network is incredibly complicated, with a whole range of different providers, both publicly and privately owned. Does he understand that passengers look to the Government in their role of overseeing all the different providers? We do not have an independent board, with a chair and non-executives who scrutinise, challenge and support the network; we look to him as Secretary of State and to the Department. He is entirely reactive and not entirely proactive, which is what passengers need. Does he not accept some responsibility for what has happened—for the lack of oversight, the lack of scrutiny and the lack of challenge while this was happening, rather than just reacting afterwards?

[Chris Grayling]

I say very simply that the Labour party argues that the railway should be run by the rail experts. When the rail experts advise, as they did in early May, that they are ready for the timetable change—the train companies and Network Rail—it behoves Ministers to take the advice of those rail professionals. Labour is now saying that we should overrule the very people that it said, a few weeks ago, should be running the railways.

[Several hon. Members rose—]

[Chris Grayling]

I will give way one more time, to my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon).

[Sir Michael Fallon (Sevenoaks) (Con)]

I am really grateful to my right hon. Friend. On the review, whatever the ownership, these are essential public services—in getting our constituents to work and getting their children to school—so will he consider taking stronger powers for himself in times of disruption that would allow him to direct the rail operators to work more closely together or to put in additional stops to help those who simply cannot get to work in the morning?

[Chris Grayling]

Absolutely; I agree with my right hon. Friend. This is something that we will have to look at very seriously indeed. There are many lessons to learn from all this, but most immediately, we need to get services back into place for passengers. I have been watching the issues at Eynsford and Shoreham in his constituency. It feels as though they are getting a better service than they were but there is still some way to go, and we need to make sure that that is covered.

[Debbie Abrahams]

Will the Secretary of State give way?

[Caroline Lucas]

Will the Secretary of State give way?

[Chris Grayling]

I will make some progress before I give way again.

I would like to update the House on how the industry is working to improve the reliability of services. On 4 June, Northern introduced a temporary timetable, including a targeted reduction in trains by around 6% to achieve a more deliverable service. Even with this reduction in service, there are still more trains running across the whole Northern network than before the timetable change in May. That does not mean that there are not individual areas that still have very significant problems, and I am very conscious that many passengers are still experiencing significant disruption, but there are signs that the service is stabilising. Over the first two weeks of the reduced timetable, 80% of trains arrived on time and 4% were cancelled or arrived significantly late, which is a significant improvement. This is not nearly good enough, but it is an improvement on what was happening before the introduction of that timetable. Northern is planning to run the timetable until the end of July, when it will review and, we hope, significantly increase the number of trains running, while ensuring continued stability. Stability is the most important thing for passengers so that they know what is expected, when trains are going to come and that they are going to come.

Officials from the Rail North Partnership—it is worth reminding Labour Members that this franchise is managed as a partnership between my Department and the leaders of local authorities in the north. Decisions about it are taken by the partnership board of Transport for the North, and it has been considering how to respond—[Interruption.] The shadow Secretary of State says it does not exist. This is the most devolved franchise in England. Responsibilities for managing and overseeing the franchise are shared through the board of Transport for the North—[Interruption.] Labour Members do not like it, but that is the truth.

GTR is also working to increase the predictability and reliability of journeys on its network. It is working actively to reduce the number of on-the-day cancellations and is now updating its timetables a week ahead. There is clearly still a lot more to do. In too many places, there is very significant disruption, but we have to move things in the right direction. Alternative travel arrangements are in place—for example, for passengers on the Brighton main line, who can have their Thameslink tickets accepted on Gatwick Express. Next month, GTR will introduce a full temporary timetable across its network as the next step to improve reliability and performance for passengers. This will allow GTR to slowly build up services to the new full timetable.

[Several hon. Members rose—]

[Chris Grayling]

I will take two more interventions, and then I will make progress to the end of my remarks so that I do not take up too much speaking time.

[Debbie Abrahams]

I am grateful to the Minister for giving way. He will remember that we met on 4 June, when I relayed some of the real issues that my constituents in Oldham and Saddleworth were facing. He said that we should be seeing improvements to the emergency timetable. I said that I would hold him to it, and he also said that he would look at contingency arrangements if there were not improvements. I went back to Greenfield station last Friday and spoke to constituents who use those trains. They said that they had seen only marginal differences, so will the Secretary of State now commit to bringing these franchises—Northern and TransPennine Express—in-house, and will he ensure that there is compensation for TPE passengers as well?

[Chris Grayling]

I will talk about compensation in a moment. I have been watching the performance carefully, and there have been some signs of stabilisation, as I say, but there is still a long way to go. [Interruption.] As I just set out, we have seen some stabilisation. I have been looking at the services day by day, and there is still a way to go, but the decline we saw after the timetable change has at least been arrested, and as the hon. Lady herself admits, there have been some improvements, although not nearly enough. I accept that, and I will take away her comments and look carefully at her line again, but there has been at least a stabilisation.

[Caroline Lucas]

rose—

[Mrs Maria Miller (Basingstoke) (Con)]

rose—

[Chris Grayling]

I give way to my right hon. Friend.

[Mrs Miller]

My right hon. Friend and I share a railway line, the Wessex route, which is under the stewardship of South Western Railway. It will be introducing a new timetable later this year. How will he ensure that the learnings from his independent inquiry are used to inform the implementation of the new timetable to avoid a replication of these sorts of problems in the future?

[Chris Grayling]

My right hon. Friend makes an important point—indeed, the shadow Secretary of State said the same. We will not go through with a timetable change in December that is not deliverable. A lot of working is being done right now to see what can and cannot be done. These problems cannot and will not be allowed to happen again. We also have new leadership at Network Rail. Andrew Haines, its new chief executive, stewarded the last major timetable change on the south-western network a decade ago, which went very smoothly. Andrew will be personally responsible for ensuring that any timetable change is deliverable.

I turn now to what happens next. We have seen some stabilisation on the Northern franchise, but I have yet to see any sign that GTR is getting to grips with the issue, so I have commissioned a formal review of the franchise to establish whether it has met and continues to meet its contractual obligations in the planning and delivery of the May timetable, including by ensuring sufficient capability and competence inside the group, and—importantly—to ensure that the owning groups invest sufficiently to minimise further disruption.

My main objective is to ensure there is a plan that I can have confidence in going forward. The review will inform my decisions about how to best use my enforcement powers and the next steps I can take with the owners of the franchise if they are found to be in breach of their obligations. Northern is a matter of ongoing discussion at the Transport for the North board. It has made progress, but not enough, and that is being closely monitored indeed.

The one thing on which I agree with the shadow Secretary of State is the need to put passengers first, and there are two areas where we have to work on that. I encourage all sections of the industry, including the trade unions, to put passengers first. Railway workers across the country are dedicated to providing a high level of service for their passengers and have been on the frontline facing the anger of passengers affected by the timetable disruption, and I am sorry they have had to experience that. I encourage trade union leaders to support their efforts and those of this industry to sort things out for passengers. It is a matter of great disappointment to me that the RMT has again today gone on strike on Northern at a time when the whole industry needs to work together to get the timetable back into shape.

The union makes spurious claims about safety, but trains have operated like this in the UK for more than 30 years. The London underground uses this system, as do trains around the network, and no one at Northern is losing their job or any pay. These changes will modernise the railway in the north and deliver better services for passengers and were signed up to by all the members of the partnership managing that franchise in the north. It is worth adding that on the Southern network, ASLEF, the train drivers union, reached a perfectly sensible agreement that should point the way forward. It is particularly disappointing, therefore, to see the Opposition acting effectively as a mouthpiece for a trade union that regards a Labour party led by the right hon. Member for Islington North (Jeremy Corbyn) as too right wing to affiliate to. I urge him and his colleagues to urge his union supporters to back down from this dispute, stop calling strikes at a time of disruption on Northern and work together to sort out these problems.

I am clear that passengers on these lines have been severely affected by these issues and need to receive additional compensation. My Department is working closely with the TfN board, Network Rail, train operators and stakeholders to introduce the right compensation scheme as soon as possible. It will be funded by the industry. The Rail Minister has already recommended to the board that passengers who buy weekly, monthly or annual tickets on affected Northern and TPE routes will be eligible to claim up to four weeks’ compensation. As part of the scheme, the industry will provide financial support to TfN to deal with other costs that have arisen from the disruption, including on the Lakes line. There will also be a marketing campaign to encourage people to travel by train in the affected areas. I expect the TfN board to confirm the final details of the compensation scheme come its next meeting on 28 June and payments to begin in early July. I will confirm the full details of the compensation package for Thameslink and Great Northern customers on the affected routes at the same time. This will follow approximately the same approach as that on the Southern network. Because of the numbers of people involved, it will take a little longer to begin compensation payments, but I have told GTR that these need to begin before the end of July. Finally, we are considering options to further support the northern economy, and we expect Northern to fund a marketing campaign encouraging travel to affected areas by train when it resumes full operations, particularly on the Lakes line.

Political point scoring does not help passengers. We have seen that today. We need to work to deliver the best outcome for passengers and to improve services urgently. That is what I am focused on, what my Department is focused on and what the Government are focused on.

[Several hon. Members rose—]