Govia Thameslink Rail Service

Baroness Harman Excerpts

Wednesday 13th July 2016 Westminster Hall

[Tim Loughton]

My right hon. Friend is right. As somebody who has been even angrier than me in the face of GTR on occasions, he knows that there are solutions to this problem that have not been properly pursued. We are told by GTR that before the dispute happened approximately 21 conductors were off sick at any one time. Overnight, when this dispute came in, that almost doubled to 40, with spikes at three particular depots. Something is clearly up but there are things that GTR could do, whether genuine sickness needs sorting out or it is a form of unofficial working to rule.

I have been trying to get to the bottom of the finances in this whole crisis. In the Select Committee last week, Charles Horton said that GTR’s turnover amounts to some £1.3 billion, with just over 90% of that coming from the fee, paid by the Department for Transport, for running the franchise. The amount of fine—it is really difficult to drill down into exactly how much fine it has paid—seems to be about £2 million. Less than 0.2% of its annual revenue is having to be paid in fines as a result of the incompetent way in which it has run this service. Is that a real disincentive or penalty? I just cannot see how it is.

This is an unconventional franchise. I have tried looking at the franchise: all 668 pages of it. It is the only one in the country where the rail company is paid a fee by the Department and where all the revenue from passengers’ tickets goes directly to the Government. It is difficult to see who loses out when it goes wrong. When the network fails, there is a points problem, a London Bridge problem or whatever, Network Rail pays a penalty to GTR as the operator. That penalty is only paid on to the customer if they actually get round to the complicated process of the compensation payments, so GTR makes a profit, potentially, from problems on the network.

We read in The Times a few months ago—as I said, we were not notified by the Department—that GTR had been in breach of its licence and could have lost its franchise, but instead the Department agreed simply to loosen the targets for GTR, allowing an additional 9,000 trains to be cancelled a year without it being in breach of the reconfigured franchise agreement. These are my questions to the Minister. Exactly how much is GTR losing and what is the financial impact on Government revenue? How much compensation is Network Rail paying to GTR that is not then paid out to customers? What is the impact of the planned cancellations on penalties payable? My understanding is that when there are planned cancellations it does not have to pay the ad hoc penalties when trains do not turn up, do not start or skip stations or whatever. Are there financial implications for the loosening of the franchise and the introduction of this emergency timetable? What this boils down to is how much GTR and the Government have to feel financially pained before they do something urgently to resolve this crisis—and this is a crisis of great magnitude.

The Minister has the power to intervene on behalf of passengers and has made various statements. In yesterday’s Evening Standard she was quoted as saying that

“the real solution is for the RMT to end this dispute and the high levels of sickness amongst its members…we are working with TfL and issued a prospectus earlier in the year for new ways to improve services in the capital.”

That comes after the Mayor asked for GTR to be stripped of its franchise. The Minister has also said:

“Historically the Government doesn’t intervene in industrial disputes.”

But we are now told that a letter has been sent by the Minister to the unions offering some sort of deal. Perhaps she will comment on that and whether it is true, whether she is going to intervene, whether she can intervene and whether she is prepared to intervene. She has said:

“The union is holding commuters to ransom. Again if there was a legitimate safety concern or genuine job losses I would understand but this is a growing industry…This is not about job losses. This is about politics...What do you want me to do, get them in for beer and sandwiches?”

Frankly, that is not good enough and those sorts of sloganising headlines do nothing to get this problem resolved for our constituents. She has really got to get a grip.

There are many other problems as well. Back in January we had a summit in Westminster Hall. It was a very useful meeting. My right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) was greatly aerated. We enjoyed his interventions at the expense of the GTR management greatly; they were heartfelt and passionate and we all agreed with him. At that summit we had GTR, Network Rail, Department for Transport officials, MPs, Transport Focus and others—there were about 22 or so hon. Members, many of whom are in this room at the moment. We made it clear at that stage that this could not go on. At that stage we were primarily looking at the fallout from the problems with London Bridge, well before these additional problems came along. We were promised a follow-up summit six months on in order to assess the situation. Where has that gone? We have one week to go before the recess and there is no follow-up summit to get everybody together and hold their feet to the fire—in my right hon. Friend’s favourite phrase.

What really struck everybody at that summit was that the head official from the Department for Transport, when asked about taking back the franchise, got up and said, “Well basically, if GTR were not running this franchise—a very large franchise, a complex franchise—I would be the one responsible for it in the Department for Transport, and you don’t want that.” In effect, GTR was told it faced little prospect of us taking back the franchise because we cannot really run it ourselves. What sort of incentive was that for GTR to get its act together if it knows it can get even worse and even then the Government will not intervene and do something about it? I am really angry about this on behalf of my constituents.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

I congratulate the hon. Gentleman on securing this debate and I absolutely 100% agree with him on behalf of my constituents that use East Dulwich, Peckham Rye and Queens Road. They will identify completely with the level of total exasperation and frustration. He has diligently gone through all this and has done all the right things, but his constituents’ situations are simply getting worse and are set to get worse still, with disruption to family and working life and downright safety issues. I simply lend him my support and say that my constituents are every bit as desperate as his. We have no tube and we have congested roads, so they cannot go by bus. People cannot lead their lives like this. I agree with him that GTR should be stripped of the franchise.

[Tim Loughton]

I am grateful to the right hon. and learned Lady for that short intervention. She echoes the words of so many of our other colleagues who could not be here, including my hon. Friend the Member for Worthing West (Sir Peter Bottomley), who texted me to tell me that he was stuck on a train somewhere, otherwise he would have joined our deliberations.

Many other problems affect this railway; it is not just the unreliability of when the trains actually run. There is overcrowding, safety is an issue and, at the same time, Southern is trying to close down all our ticket offices. It has only given a temporary moratorium on that—what a stupid thing to do. When the company cannot even run the service, it tries to threaten the easiest way of selling tickets for it. We have the antiquated rolling stock on the west coastway line—the class 313 rolling stock is 40 years old, and has no loos or any other basics. Female constituents have real problems when stranded late at night in stations far from home because a station has been skipped or the last train has been cancelled. It is not just inconvenient; there is danger attached as well.