Oral Answers to Questions

Ian Mearns Excerpts

Thursday 2nd May 2019 Commons Chamber

[Ian Mearns (Gateshead) (Lab)]

Ministers will have seen the National Audit Office report on the sale of railway arches by Network Rail, which includes some criticism. It is of some concern that the impact on tenants was not an explicit sale objective and was considered only late in the sale process. Ministers were aware—we had meetings with the Minister responsible before the sale took place—but they seemed indifferent to the significant potential for massive rent rises for the businesses in the railway arches across the country. Given this NAO report and its criticism, what will Ministers now do to safeguard the interests of those businesses and to make sure that they are not subjected to massive rent rises by the new leaseholder management company?

[Chris Grayling]

When I took on this sale, I ensured—in the work we did to prepare for the sale and with potential buyers—that additional safeguards were put in place for those tenants. Whether the arches had remained in the public sector or been sold, it would always have been right to ensure that a market rent was charged. There is no expectation of rent increases out of line with market rents. In the public sector, it would not have been proper use of public money to provide subsidised rents for businesses.

Chester-le-Street: Rail Services

Ian Mearns Excerpts

Tuesday 15th January 2019 Commons Chamber

[Mr Jones]

It is. The hon. Gentleman makes an interesting point. This should be a way of getting people out of their cars and off other forms of transport into Tyneside, Durham and Teesside. I accept that longer trains are an option, but if the trains do not turn up in the first place, that is a problem.

Delays and cancellations are causing real hardship to many of my constituents. I even had one resident contact me a few weeks ago to say that he had turned down a promotion at work because he could not guarantee to his employer that he was able to get in on time. These are real-life situations that are causing my constituents a lot of hardship.

[Ian Mearns (Gateshead) (Lab)]

My right hon. Friend and near constituency neighbour is outlining the fact that the Northern franchise has failed. The service that it provides to the people of the north-east, the north-west, Yorkshire and Humberside is disastrous. Everyone knows that, yet the franchise is allowed to get away with this nonsense and put the jobs of the constituents of my right hon. Friend and many others in jeopardy due to its shoddy service.

[Mr Jones]

I do not disagree with my hon. Friend. This is the economic case. People are losing the ability to access the jobs in Tyneside, Teesside and Durham. Many constituents feel hopeless because what can Government do about it? He raises an interesting point about the franchise and how it is operating. Whatever we do about the franchise, the penalties need to be tightened.

The other issue facing my constituents is that, when trains are cancelled, the trains that do turn up are overcrowded. It is only a short-distance commute, but we have had situations where people have been unable to get on later trains. One of my constituents was travelling further afield for a day out in York and had booked his seat some three months in advance because he was suffering from a bad back and was travelling with a friend with cancer, and they had to stand all the way from Chester-le-Street to York, which cannot be acceptable.

Some of the issues affecting the regularity of services to Chester-le-Street are directly related to the timetable. There has rightly been a lot of publicity on the issues in Manchester and Leeds, but a lot of that congestion has been having a knock-on effect further north, because the companies are then cancelling trains. The trains might go to York but they go no further north and other services are cancelled altogether.

The chaos in the Manchester and Leeds areas has been well publicised, but I remind the Minister, and certainly the operators, that the north is further north than Leeds and Manchester. The people who rely on this service in my constituency should not be sacrificed to ensure that the operators get their times right in Manchester and Leeds.

My constituents’ other frustration has been with the appalling way in which TransPennine Express deals with customers. No information is given to stranded commuters when trains travelling south from Newcastle to Chester-le-Street are cancelled in the evening, and no alternatives are offered for getting them home. People are just left to make their own way or make alternative provision. When that happens regularly to people with childcare responsibilities, it is not acceptable, and I know of one constituent in particular who has to care for her elderly mother. When a person is expected home at quarter past 5, it is not acceptable for them to arrive after 7 o’clock. I have raised the lack of information with TransPennine Express. There are not even staff at Newcastle to give information or to provide alternative forms of transport, be it replacement buses or alternative train options.

There is a compensation scheme but, again, TransPennine Express is not good at advertising the fact that people are entitled to compensation. As a one-off goodwill gesture, I think TransPennine Express should offer all regular travellers a month’s free travel, because people have had to put up with this for far too long. I would be interested to know whether the Minister has any powers to intercede in making sure that TransPennine Express pays reasonable compensation to people.

I come back to the point raised by my hon. Friend the Member for Gateshead (Ian Mearns) about the franchise. It is clearly not working. Either TransPennine Express needs to up its game and start acting like an organisation that cares about its customers, or the franchise should be taken off it. If we are going to refranchise, we should look in detail at how appallingly it has operated it so far.

Given the location of Chester-le-Street, travel by train should be an ideal opportunity for people to access jobs around our region, but an inconsistent service is not going to endear train travel to people. It certainly will not attract people to live in Chester-le-Street. It is not a selling point if people cannot rely on what should be an easy commute.

I have been raising for many years now the issue of why later in the day the service goes to a two-hourly service. In any future franchise, we should be looking at a more regular service. There is the capacity to grow the usage of Chester-le-Street station and—to reinforce the point made by the hon. Member for Strangford (Jim Shannon)—to take people off the roads and on to the railways.

I would like to raise an issue about the CrossCountry service that stops at Chester-le-Street railway station. There is a consultation about reducing the number of stops that CrossCountry does, and one of the proposals is to remove the service stopping at Chester-le-Street to increase the connectivity between major cities and towns on the CrossCountry route. If that happens—I have made representations on this, as has the county council—it will be important that those lost stopping services be replaced. Will the Minister ensure that that is taken into account in the consultation? If those stopping services are taken away, it is important that we have a replacement service, especially in the evenings.

[Ian Mearns]

There is speculation in the industry that CrossCountry is proposing that some if not all the services from the south coast of England terminate at York, not serving Chester-le-Street, which is obviously between York and Newcastle.

[Mr Jones]

If that happened, it would be a detrimental step for the north-east. It reinforces my point that many people look at the north and perhaps think it goes as far as York, Manchester and Leeds and no further.

I want to raise the issue of investment in Chester-le-Street. I have raised this with Network Rail. The footbridge over the station is in an appalling state of repair, but I have been told it will not be painted until 2020. Anything the Minister can do to get Network Rail to address that would be very important because, again, if we are going to encourage more people to use the station, the facilities need to be improved. Network Rail leaving it until 2020 to paint a bridge is not acceptable.

My constituents have had an appalling experience and rail service through no fault of their own. The purpose of this debate is to raise their concerns and the terrible way they have been treated, but there is also an important point about the economy and future of my constituency and how viable it is to attract people to come and live in what is a pleasant part of County Durham.

--- Later in debate ---

[Andrew Jones]

The right hon. Gentleman has made a significant point. I have to say that that has not been my experience when I have been dealing with the train operating companies, but it is nevertheless clear that the communication to which he referred in his speech has not been good enough. I shall say more about that shortly.

As part of the wider drive to improve performance in the north, the Government commissioned Richard George, a respected industry figure, to review the performance of the region’s rail network. He will recommend operational improvements to increase reliability in the short and medium term. Richard will co-ordinate and lead the efforts of Network Rail and the operators. His remit is to help industry reach the right conclusions so that passenger impact is central to every planning decision; the passenger must be at the centre of all of our decisions. He has already helped highlight problem areas and will provide his conclusions later this year.

In addition, since the May timetabling issues Network Rail has established a programme management office. This will also help to ensure future timetable changes can be better planned and managed. There will be no repeat of the processes that led to the failure of May 2018 and that timetable change.

I thank the right hon. Member for North Durham for raising the issue of communication and poor information about cancellations and delays. I hear it in other parts of our network too, and it is simply not good enough. There are customer information screens at Chester-le-Street station, and both TPE and Northern publish updated information on their websites and social media channels, but we continue to stress to these operators and the whole industry the absolute importance of giving passengers the information they need when things go wrong. I have raised this with the train operating companies and will continue to do so. It has not been good enough. Obviously I want to get to a place where we do not have to make these comments, but until then a focus on communication is important.

[Ian Mearns]

In my experience trains that serve Chester-le-Street moving both north and south can suffer from cancellations, because if a train is coming from the south to the north and is late it is the habit of the operator to terminate the train at Darlington, and therefore not to allow it to travel on through to Durham, Chester-le-Street and Newcastle and then make the return journey. Can we ask the franchises to stop that practice, please?

[Andrew Jones]

The hon. Gentleman’s point is important, but there is also a point that the operators must consider in the operation of a timetable: how do they recover? If something goes wrong, how is that timetable recovered?

[Ian Mearns]

Additional rolling stock, Minister.

[Andrew Jones]

That is exactly what is happening, and I will come on to rolling stock in a moment. I understand the hon. Gentleman’s point and also where train operating companies are coming from, but regularly disadvantaging the same customers is not acceptable. I want to get to the place where we do not have to have these questions in the first place.

If things do go wrong, I also want to make sure we have compensation schemes. There have been delay-repay schemes and after May the Government asked Northern and TPE to implement special compensation schemes that quickly and fairly reimburse those passengers most adversely affected, and that included regular service users from Chester-le-Street. To date, over £1 million has been paid in compensation for the summer disruption.

Passengers will see the benefit of the new huge investment in rail in the north of England when the new rolling stock enters service this year. As part of the investment in TPE three new fleets of Nova trains will be introduced, starting from May this year until the end of 2020. For Chester-le-Street longer brand new trains will be in service, while on Northern the outdated and unpopular Pacers will be removed by the franchise by the end of this year. Passengers using the Northern services in County Durham will see refurbished trains offering increased capacity.

What does that actually mean? Nova trains are faster and have more capacity, and we are moving from three to five carriage trains; that means over 150 extra seats. The Pacers will in some cases be replaced by refurbished stock cascaded down from Scotland. These are class 170 trains which are longer than those they replace; they are increasing in size from 18 metres to 23 metres per carriage, again increasing capacity. The vast majority of the 500 brand new carriages from Northern and TransPennine will be delivered in less than a year from now, and every other train that is not brand new will be refurbished to be as-new.

The CrossCountry consultation was a concern. It ended on 30 August and we are conducting a thorough review of its findings. No decisions have been made about the CrossCountry timetable. The east coast main line timetable will be rewritten for all operators in 2020-21 and that will be an opportunity to review the current train services at Chester-le-Street, alongside wider long-distance service changes. The only decision that has been taken so far is to cancel the franchise competition because of the rail review. The current franchise ends in October, with the option to extend by one year. We are looking at options for the franchise and we are aware of severe overcrowding on that network, so we are looking to bring in additional trains as soon as the appropriate carriages are available within the existing rolling stock market. But the importance of Chester-le-Street and the north-east to the CrossCountry franchise is noted. Colleagues here asked me to note it and I have done so, and I give them my assurance that it will be considered.

Let me turn to the services at Chester-le-Street station. It is managed by Northern, which is conducting improvements throughout the life of its franchise to ensure that the station is well maintained. I understand of course how inconvenient it has been for passengers in the interim, but the waiting room and toilets are due to be refurbished very soon. As for the bridge, we are painting a structure that spans the east coast main line, so it is not as simple as a regular painting job. It is one that needs to be planned such that it minimises disruption. However, the point made by the right hon. Member for North Durham has been heard and I will ensure that Network Rail is aware of his concerns.

Our railways have to be fit for the future. This requires investment, vision, innovation and ambitious thinking, so that our rail network meets the needs of the people who rely on it. That is the point of our rail review. The service that we have and the structures we have had have served us well, taking us from 700 million passenger journeys a year to 1.7 billion. But times are changing and we are seeing huge investment. We are on the cusp of experiencing the benefits of the billions of pounds of investment. Our railways are undergoing much- needed transformation that, as a country, we have never experienced before. That will improve rail services in the north of England for good and it will see rail play its part in driving economic growth right across the north.

Question put and agreed to.

Oral Answers to Questions

Ian Mearns Excerpts

Thursday 22nd November 2018 Commons Chamber

[Ms Ghani]

There has been good progress, but we are committed to doing more. Leading transport employers are committed to providing quality apprenticeships, and more than 5,000 apprenticeships have been created in road and rail since 2016. In 2017-18 alone, we have seen a 22% on-year increase. Employers have committed to 10,000 apprenticeships with Heathrow expansion and 8,000 in express delivery. Training places for maritime cadets will rise to 1,200 each year over the next seven years, and we have seen 1,300 apprenticeship starts in road freight, but we are committed to doing more.

[Ian Mearns (Gateshead) (Lab)]

We have known for five decades that there were 4,000 holes in Blackburn, Lancashire, but the number in Gateshead now far outstrips that—potholes I am talking about. When will we get some resources to the local authorities to mend the holes in our roads and to give drivers much-need alleviation from the problem?

[Jesse Norman]

I absolutely understand the hon. Gentleman’s concern. As I have already pointed out, the spike in potholes, to which he refers, originally occurred between 2005 and 2010. He asks when, and the answer is in the previous Budget where a specific £420 million in-year contribution was made. I do not have the numbers to hand, but if I did I have no doubt that I would find that multiple millions of pounds have been spent in his highway authority locally on potholes as a direct result of that funding announcement.

Oral Answers to Questions

Ian Mearns Excerpts

Thursday 5th July 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

I thank my hon. Friend for his question, especially as he is the ambassador for the Year of Engineering. We are working with 1,400 companies up and down the country to create 1 million interactions to encourage young people to take STEM subjects—science, technology, engineering and maths—and become engineers of the future.

[Ian Mearns (Gateshead) (Lab)]

There are some excellent new businesses housed in railway arches on the Gateshead side of the High Level bridge, such as Block and Bottle, Arch Sixteen Café and the Station East Public House, but Network Rail is about to sell off the leasehold for 5,500 arches around the country. Will the Secretary of State meet me and the representatives group, Guardians of the Arches, to discuss proposals that will not ramp up rents for these new businesses and businesses around the country?

[Joseph Johnson]

Network Rail is in the process of managing its estate to ensure it contributes towards housing and commercial development where that is sensible. I would be delighted to meet the hon. Gentleman and the campaign group he mentions.

Confidence in the Secretary of State for Transport

Ian Mearns Excerpts

Tuesday 19th June 2018 Commons Chamber

[Grahame Morris]

I am grateful for that thoughtful intervention, and my hon. Friend makes a good point. However, although there are national issues with the training of drivers and ensuring that they have the appropriate skillset, industry stakeholders pointed out to the Department and, presumably, the Secretary of State that it would normally take 40 weeks to prepare, identify training needs and ensure that drivers were in place, but in this case only 16 weeks were allocated and, if my memory of yesterday’s evidence serves me right, it was not until around two days before implementation, when they were drawing up the driver rosters, that they discovered that they had the wrong skill mix and that the drivers were in the wrong places to operate the new timetable. So although my hon. Friend makes a good point, Ministers and the Secretary of State must ultimately bear responsibility for the decisions that were made.

[Ian Mearns (Gateshead) (Lab)]

It is quite simple in the industry: although experienced, train drivers need training on new routes and on the use of different rolling stock. Without that training, they cannot go into service.

[Grahame Morris]

Absolutely; that is a key point. I am kind of long in the tooth now, but I remember the dreadful train accident at Ladbroke Grove, where 31 people were killed and 500 injured; a dear friend of mine was killed in the Southall train disaster, in which seven were killed and more than 140 were injured; and I remember another accident at Clapham Junction. What with the complexity of the new signalling systems at places like London Bridge, with large numbers of tracks, it is safety-critical that the drivers are fully aware of which signals actually apply to them. It is a mistake for the Secretary of State to imply that ASLEF, representing the train drivers, should somehow make a concession on the training to which its members are subjected. When I get on a train, I want to be absolutely certain that it is completely safe and that the drivers are familiar with the track and the signalling system. I also want to know that there is a guard on the train, so that if anything happens—if anyone is attacked or taken ill—or there is a disabled or blind person or a woman with children travelling, the guard will be able to assist. That is reasonable in such circumstances.

I agree with the hon. Member for Bexhill and Battle about the GTR chief executive, Charles Horton, who seemed like a thoroughly decent man. He said that he was deeply sorry for the timetable disruptions. It is a bit unfair that he seems to be carrying the can, when I suspect the blame should be apportioned further up the food chain. The witnesses yesterday were well schooled in collective responsibility, but ultimately the buck must stop with the Secretary of State. It is not good enough just to keep saying sorry.

--- Later in debate ---

[The Minister of State, Department for Transport (Joseph Johnson)]

The disruption faced by passengers over the past three weeks on parts of the GTR and Northern franchises is unacceptable. That was reflected in the powerful contributions we heard from my right hon. Friends the Members for Wokingham (John Redwood) and for Sevenoaks (Sir Michael Fallon), and my hon. Friends the Members for St Austell and Newquay (Steve Double), for Hitchin and Harpenden (Bim Afolami), and for Bexhill and Battle (Huw Merriman). It was also reflected by Opposition Members, including the hon. Members for Batley and Spen (Tracy Brabin), for Luton South (Mr Shuker) and for Bedford (Mohammad Yasin), who spoke powerfully about the difficult travelling conditions that their constituents have faced in recent weeks.

I want to reassure colleagues on both sides of the House that the Department’s overriding priority is to restore the reliability of service across the network. The Secretary of State has left the rail industry under no illusion that it must urgently improve its operational response including, if necessary, by changing top management, as is now happening at GTR. He has commissioned an independent inquiry by Stephen Glaister of the Office of Rail and Road, the independent regulator, to examine why we are in this situation and to reduce the chances of it ever happening again.

Turning to the performance on Northern, passengers continue to experience disruption on some parts of the network. There is a long way to go until performance is where it needs to be, but we are beginning to turn the corner. The introduction of a temporary timetable by Northern on 4 June will help to rebuild passengers’ trust. The first signs are promising, as industry figures show that over the first two weeks of the reduced timetable, 80% of trains arrived on time, and 4% of trains were cancelled or arrived significantly late. In the previous fortnight, 66% of trains arrived on time and an average of 12% of trains were cancelled or were significantly late. That improvement must continue over the coming weeks.

[Ian Mearns]

That all sounds very nice—a real improvement. However, according to the BBC this morning—this is certainly the evidence that we have all heard from our constituents—11,000 trains on the Northern rail network have been either cancelled or delayed for more than 30 minutes. That is tens of thousands of constituents who have been really badly put out, often left without a route to work, school, college or training.

[Joseph Johnson]

The cancellation of services is now progressively more and more planned by Northern as it seeks to stabilise the timetable and to ensure that the travelling public—the constituents of hon. Members on both sides of the House—can plan their journeys with greater assurance. This improvement, and the stabilisation and increased reliability, must continue over coming weeks. Northern plans to run the timetable until the end of July, when it will review progress and take stock. At that point, it will hope significantly to increase the number of timetabled services while ensuring continued improvements in stability.

The crux of the performance issues, as hon. Members have recognised, is the availability of drivers with the correct training. I am happy to say that, as a result of Northern’s hard work with ASLEF on rest day working, they were able to announce last week that they had reached an agreement for the immediate introduction of a new rest day working agreement. This will allow for more training and a better service for passengers sooner.

Let me turn to GTR’s performance. GTR is also working to increase the predictability and reliability of journeys on its network. It is working actively to reduce on-the-day cancellations, and is now updating its timetables on a Friday evening for the following week, enabling passengers to plan ahead more effectively. Alternative travel arrangements are in place. For example, passengers on the Brighton main line can have their Thameslink tickets accepted on Gatwick Express, and next month GTR will introduce a full temporary timetable across its network as the next step to improve reliability and performance for passengers.

It is worth noting that some parts of the GTR network, including all of Southern, are now experiencing more train services and better performance than ever before. However, I do not consider the service to be anywhere near approaching one that I or passengers would find acceptable and, as the Secretary of State said, we are examining why GTR is taking longer than Northern to improve services. The review that has been commissioned will look at whether GTR has met and is continuing to meet its contractual obligations in the planning and delivery of the May timetable.

Transport Secretary: East Coast Franchise

Ian Mearns Excerpts

Wednesday 23rd May 2018 Commons Chamber

[Chris Grayling]

I do not intend that the arrangement will be permanent. What I am saying—I have said this all along—is that when we move ahead with the full future shape of the LNER, we will not do everything in exactly the same way. What has been done on this railway in the past has not worked, and I do not intend to do it again. We will do things differently. We will consider giving the staff a stake in the business, and we will look at a different kind of investment from the private sector. However, as I shall make clear, I believe—the Welsh Government clearly believe—that a partnership between the public sector and the private sector is beneficial to the country, and not something to be cast aside as an evil and sinister attempt to do down passengers.

[Ian Mearns (Gateshead) (Lab)]

Will the Secretary of State give way?

[Chris Grayling]

I will give way once more, and then I will make some progress.

[Ian Mearns]

I am very interested by the comments that are coming from behind the Secretary of State. It is clear that he is in favour of state ownership of UK railways; the only problem is that it is German, Italian and French state ownership.

[Chris Grayling]

It appears that the Welsh Government—the Welsh Labour Government—take the same view, because they have just awarded the contract for the Wales & Borders franchise to a French state business in partnership with a Spanish-owned private business. Again, the Labour party says one thing in one place and does something else in another.

What we have heard from Labour in the last few months has been a litany of misinformation, misunderstanding and inaccuracy. Let us take the bail-out point. Labour Members claim that there has been a £2 billion bail-out. That is just plain nonsense. It is wholly inaccurate to claim that there has been a bail-out now, when the railway will continue to make a healthy profit for the taxpayer. It would equally be inaccurate to claim that Labour had bailed out National Express when it did not push through nearly £1.5 billion of future premium payments after 2009. The railway carried on making a profit then, and it will carry on making a profit now.

--- Later in debate ---

[Alan Brown]

Funnily enough, Stagecoach’s share price increased when the Transport Secretary gave a statement from the Dispatch Box in February. Share prices go up and down, which is to do with the overall performance of these companies, and they are very big companies. The whole point of these big companies bidding and providing parent company guarantees is that it is supposed to offset the risk, rather than leaving the risk to the taxpayer.

On the question of state-owned companies or public sector organisations running franchises, the Transport Secretary’s logic completely falls apart when we consider that four foreign state-owned rail companies already operate franchises in the UK. Those companies are making a profit here for reinvestment in their domestic set-up, which is proof that state-run railways can work efficiently.

The previous east coast main line services are further proof that public ownership can work. When the previous franchise failed and was taken into public sector operation, it returned £1 billion in track fees to the Treasury and turned an operating profit of £42 million. So, as has been asked before, why move away from that successful model to one where VTEC can come in with inflated sums and then get to walk away? It is clearly not right.

The southern rail franchise shambles also happened on the Transport Secretary’s watch. The main conclusion of the NAO’s report is that it could not be demonstrated that the franchise has delivered value for money. At the time, the operator blamed Network Rail and the unions, and the Government blamed the unions, completely ignoring the Transport Secretary’s role in refusing to engage with them. The fact is that 60% of the cancellations were due to Govia Thameslink Railway and only 40% were caused by Network Rail. The UK Government set up the model supposedly to deal with the complex infrastructure upgrades, but the Government took all the revenue risks, so the strikes actually cost the taxpayer, because the loss of revenue is underwritten. The Government also awarded the franchise based on an even higher roll-out of driver-only operation, which is what caused some of the disputes.

[Ian Mearns]

This is not just a problem with southern. Southern is a failing franchise, but northern seems to be on the verge of failing, too, with complaints from passengers across the north of England about services regularly not being provided.

--- Later in debate ---

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I am pleased to be allowed to speak in this very important debate. I start by thanking the staff on east coast rail who, during the eight years I have been in the House, have been unfailingly helpful on my twice-weekly journeys to and from Newcastle. They have been unfailingly cheerful and unfailingly efficient despite the turmoil that successive Conservative-led Governments have put them through.

Speaking of the workers, I would not normally support singling out one worker—in this case, the Secretary of State for Transport—for criticism and in effect a fine for a collective failure of this Government, but if anyone is responsible for that failure, it has to be him. What is more, it is not only a failure of competence; more importantly, it is a failure driven by ideology—the Secretary of State’s extreme free market ideology. If he wants to play ideology at dinner parties around the country, that is his decision, but here he is playing ideology with the east coast main line, a critical piece of national railway infrastructure serving more than 20 million passengers per year and contributing more than £300 billion annually to the UK economy. Also, independent research shows that investment in it could generate more than £5 billion in additional GDP for our country and our region. The Secretary of State’s ideology is destroying jobs in my constituency, for which he must be held accountable.

Hon. Members may have heard me mention that before entering Parliament I spent 23 years as an engineer. My last job was for Ofcom, the communications regulator. As part of that, I spent a lot of time looking at the economics of networks and the benefit of competition, which is where I shall focus my remarks.

Free markets require competition. Without competition, markets become monopolies. I hope we can all agree that private sector monopolies are bad—there are no interventions, so we agree. On the other hand, public sector monopolies can be run in the interests of the many, not the few. Many believe that rail is a natural monopoly. I agree. Railways were born in my region. The Rocket—the first commercial locomotive—was built in Newcastle by the Stephensons, and will return to Newcastle for the Great Exhibition of the North this summer.

From the very start, it has been impossible to run railways competitively in the private sector. The Office of Fair Trading states:

“Competition is a process of rivalry between firms seeking to win customers’ business over time by offering them a better deal.”

What better deal was there under Virgin? Were there more trains? No. Were there better trains? No. Were there better services? No. People could argue that the uniforms and the advertising slightly improved, but does that justify the huge costs involved in bailing out the private sector three times in 10 years? Does that justify the huge costs involved in regulating private sector companies to stop them exploiting their monopoly positions? Private sector companies always abuse monopoly positions. They cannot help it. Did it give us the investment in transport in the north-east that we need for our economic development? Transport for the North estimates that we need £27 billion invested in our transport infrastructure. Did it justify the huge costs involved in designing multiple tenders and the exposure to legal challenges? Did it justify the uncertainty that has been so bad for staff and passengers? Absolutely not. The Conservatives are ideologically constipated on free markets to the extent that they cannot see the reality of our rail network and its needs.

[Ian Mearns]

I am grateful to my hon. Friend and neighbour for giving way. The Government are ideologically wedded to the privatisation model, but they must accept that, once the regular public subsidy for the railways is netted off, the amount of private sector investment is rather small.

[Chi Onwurah]

My hon. Friend and neighbour is absolutely right, which shows why this idea that this is a competitive market is a travesty. There is really no investment. More importantly, what little investment does take place is not at these companies’ own risk, because they are bailed out. Yet so infatuated are this Government with private sector monopolies that they do not seem to see that. We see the same thing when they deal with the tech giants: this Government are happy for private sector monopolies to walk all over UK citizens and yet the Government continue to stuff these companies’ mouths with gold.

We need a Government who recognise the role that the private sector can play in many industries and many businesses, but also recognise the importance of delivering natural monopolies through the public sector in such a way that citizens, consumers and passengers benefit. We need a Government who are not in hock to the private sector. As this Government are clearly incapable of understanding the very basics of network economics, I hope they will give way for a Labour Government who will do.

--- Later in debate ---

[Alec Shelbrooke]

I am delighted that the hon. Gentleman has made that point. Indeed, that is the problem with a nationalised company. Many people have said, “Oh, it’s the Secretary of State’s responsibility in a nationalised company, ” but that is not how it works—it is not how it has ever worked. On the one hand, people are saying that the Secretary of State should take complete control of the railways, and on the other that he should get out. People who are running a nationalised operation do not share the sense of urgency of those in the private sector. There are litanies of delayed or missing projects under Network Rail.

[Ian Mearns]

The hon. Gentleman should just remember that Railtrack was privatised. It failed, and the Government had to take it back in-house to save the railway network.

[Alec Shelbrooke]

Railtrack failed due to the vandalism of John Prescott when he was Transport Secretary. He took advantage of the opportunity when British Rail’s failure to keep its system upgraded and safe culminated just three years into privatisation under Railtrack. The track that broke, which caused Railtrack to fail and to be transformed into Network Rail, did not degrade in the three years of privatisation. It broke as a result of a catalogue of rail mismanagement that led up to that point. It is one of the biggest disgraces—

Oral Answers to Questions

Ian Mearns Excerpts

Thursday 1st March 2018 Commons Chamber

[Jesse Norman]

I am always grateful for invitations to support proposals. I think I will leave that proposal to the specific Ministers concerned, but my hon. Friend will be aware it is a manifesto commitment.

[Ian Mearns (Gateshead) (Lab)]

4. What assessment he has made of the potential merits of the early termination of the Virgin Trains East Coast franchise.

--- Later in debate ---

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

I am not sure I see any merit in the early termination of the Virgin Trains East Coast franchise. That is not something I would wish to happen, but we have to deal with the world as it is, rather than as how we would like it to be.

My priority is to ensure the continued smooth running of the east coast franchise for its passengers and employees, and to make sure that the trains run and deliver the service that people need. As I told the House on 5 February 2018, a new arrangement to operate the railway prior to the new east coast partnership in 2020 needs to be put in place. We are currently conducting a full appraisal of the options, and I will return to the House in due course.

[Ian Mearns]

I am afraid to say that service standards have deteriorated on the east coast line since Virgin-Stagecoach took the franchise—I am a regular customer on that line—despite the best efforts of the excellent staff on board trains and at stations. Those staff face having their sixth employer in a decade and a half. Will the Secretary of State meet me and some of those staff, so that they can express their concerns about the way in which the franchise has been conducted? Will he give the House an undertaking that there is a genuine public sector operator ready to take over should that be required—or has Directly Operated Railways been outsourced already?

[Chris Grayling]

On the last point, I can give an absolute guarantee that that is the case; we have been making preparations for different eventualities for some time and there is a genuine alternative, if that is deemed to be best for the passenger and best value for the taxpayer. My ministerial colleagues and I are happy to talk to staff, but I would correct the hon. Gentleman on one point: the reality is that the independent assessments have shown a higher level of passenger satisfaction on that route since the change of franchise, not a lower one.

High Speed Rail (West Midlands - Crewe) Bill

Ian Mearns Excerpts

2nd reading: House of Commons & Allocation of time motion: House of Commons & Carry-over motion: House of Commons & Money resolution: House of Commons & 2nd reading & Allocation of time motion & Carry-over motion & Money resolution
Tuesday 30th January 2018 Commons Chamber

[Michael Fabricant (Lichfield) (Con)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House, while recognising the increasing need for additional north-south rail line capacity to relieve congestion on the West Coast Main Line south of the Midlands and to improve connectivity between major cities and with London, declines to give the High Speed Rail (West Midlands - Crewe) Bill a Second Reading because (1) there are better ways to address any rail capacity issues north of the Midlands, (2) the line set out in the Bill is routed through unspoiled countryside unnecessarily damaging the environment including wildlife habitats, ancient woodlands and waterways, fails to connect via HS2 Phase 1 with HS1, the Channel Tunnel and the European continent, fails to connect directly through HS2 Phase 1 with potential airport hubs for London and the south-east of England, and fails to connect directly to existing major mainline stations and the existing rail network, (3) the Bill provides inadequate compensation to those blighted by the route and those whose property is subject to compulsory purchase orders, (4) the Bill fails to provide for sufficient public transport to disperse HS2 passengers disembarking at London Euston, and (5) the Bill does not implement a more environmentally sympathetic, better integrated, and more cost-effective route, such as the route originally proposed by Arup which would have used existing transport corridors minimising environmental damage and reducing costs by around £10 billion, and which would have connected directly with HS1 and the continent, London Heathrow Airport, Birmingham International Airport, and major conurbations.”

First, may I say how much I welcomed the Secretary of State’s answer to my question about Lichfield? Many of my constituents will be reassured by what he said. If he is half as good as his predecessor, my right hon. Friend the Member for Derbyshire Dales (Sir Patrick McLoughlin), he will be very good indeed.

Having said that, I am afraid that I must now destroy the cosy consensus that seems to be prevailing on the Opposition and Government Benches. I shall explain why. When HS2 was first envisioned, people spoke about people in Manchester, Leeds and Birmingham being able to get on to a high-speed train and end up in Paris, Lille and, indeed, even Berlin, with Deutsche Bahn. But that is not to be. We heard from the shadow Minister that HS2 is an integrated railway, but it is not. It is nothing like that at all.

Let me present a hypothetical situation. One of my constituents from Lichfield, together with his wife, two children and all their luggage, decide that they are going to give up travelling by dirty aircraft and will instead travel by clean rail down to Paris. What is the reality going to be? Imagine my constituent, the wife, the children and the baggage. They get on the train at Lichfield City station—although this applies to stations up and down the country—and end up at Birmingham New Street. Then what happens? They have to leave Birmingham New Street with the two children and all their bags and walk for 22 minutes. At this point, I wish to praise Councillor Tony Thompson in Lichfield who has done the walk and timed it. Without the children and all the bags, it took him 22 minutes to tramp across Birmingham to get to Curzon Street to the proposed HS2 station.

After all that, can the family then relax, knowing that they will end up in Paris? No, they cannot—because, instead, the train arrives at Euston. My right hon. Friend the Foreign Secretary, when he was Mayor of London, pointed out, quite rightly, that Euston has a capacity problem—not with trains arriving, because Euston is to be extended, but with getting people away from Euston, because there is not the public transport. Even if there was sufficient capacity, the family then have to tramp, yet again, either down a series of escalators and back up again, with children and with all the bags, or they walk across London to get to St Pancras.

[Ian Mearns (Gateshead) (Lab)]

rose—

[Michael Fabricant]

I will give way in a moment.

Finally, when they get to St Pancras, they can settle on the train. So much for a quick and easy journey from the north-east down to Paris.

[Ian Mearns]

rose—

[Michael Fabricant]

I will give way to the hon. Gentleman who has been trying to get in.

[Ian Mearns]

For 15 months, I was a member of the HS2 Bill Committee, and I did that very walk myself. I did not get a friendly councillor to do it for me; I did it myself. It took about six to eight minutes top whack. I know that, in future, the route will be better than it was then because an awful lot of construction work was going on around New Street at the time. It was six to eight minutes top whack.

Rail Franchising

Ian Mearns Excerpts

Wednesday 10th January 2018 Commons Chamber

[Ian Mearns (Gateshead) (Lab)]

On my hon. Friend’s point about the east coast main line, because of the ideological decision by the Government, profits of £1 billion going back to the Treasury have been forgone. At the same time, we are allowing a private franchise not to pay £2.1 billion to retain its franchise. Does she agree that it is economic madness to retain that service in the private sector?

[Maria Eagle]

My hon. Friend is correct. Money is clearly no object in trying to avoid the embarrassment of yet another failure of the franchise in the hands of a private operator. Why did the coalition Government decide to re-privatise the operation? The date is a clue, as it happened just weeks ahead of the 2015 general election. The decision was cynical, ideologically motivated and costly to the public purse.

Our policy at that time was clear. We wanted to keep East Coast in public hands to act as a public sector comparator to the private franchises. We wanted to keep the operational expertise in Directly Operated Railways to enable us gradually to take the operation of the railways back into public ownership as franchises ended without having to pay enormous amounts to buy out contracts. Just changing the order of franchise competitions to enable that re-privatisation cost the public purse hundreds of millions of pounds. Indeed, the consequences of that lamentable decision are being seen today in the ongoing chaos and waste of money that the franchising system is inflicting on our railways—now spectacularly reinforced by the Transport Secretary’s capitulation to the financial interests of the private train operating companies on the east coast main line.

The Transport Secretary is effectively institutionalising massive taxpayer bail-outs, which he has renamed “partnerships”, and I predict that this will not be the last such bail-out. He is effectively institutionalising giving in to the tendency that the private companies have shown over the years of gaming the franchising system to keep taxpayer subsidies while avoiding making the payments that they are contracted to make. Virgin-Stagecoach is not the first train operating company to do that and it will not be the last. The system delivers lucrative near-monopoly rail contracts on the basis of post-dated payment promises by private companies that can simply be abandoned when they become due, with no penalty attached for behaving badly.

The Government are now institutionalising the reality that the private companies take the profits but the taxpayer provides almost all the investment in trains, track and infrastructure and covers any losses. That is the very definition of a licence to print money. Private train bosses are simply laughing all the way to the bank, and this Secretary of State, for ideological reasons, is allowing them to do so. We cannot go on like this. It is time that this costly and failing system was ended. It has not worked, and it will not work in the future. We need to ensure that we do things better.

--- Later in debate ---

[Lee Rowley (North East Derbyshire) (Con)]

I am grateful for the opportunity to speak in this debate. I have only three minutes, so I will go as quickly as possible.

I am a new Member in the House, and regrettably I come to these debates and I hear the same stale and artificial arguments by Opposition Members. That has happened again today: we immediately reach a position where private is bad and public is good. That argument is totally stale and artificial, as the hon. Member for Liverpool, Walton (Dan Carden) has just demonstrated for the past three minutes or so.

The hon. Member for Huddersfield (Mr Sheerman), who is no longer in the Chamber, said that the discussion had become entirely partisan very early on. I think that the partisanship of the discussion was demonstrated when the motion was tabled, critiquing franchising in both concept and totality. That is the ultimate problem, because the Labour party seeks to take some examples, which I acknowledge and accept are not good, from around the country, and extrapolate from them to say that there is a systemic problem forever with rail, which means that it needs to be changed.

The evidence from the system is that more people are travelling than ever before. We have 60 years of post-war history on the rail network. For 40 of those years the network was in public ownership and for 20 it was in private sector ownership. Much of those 40 years was uneconomic—the railways lost an incredible amount of money and the number of passengers who travelled on them reduced by a third.

[Ian Mearns]

rose—

[Lee Rowley]

No, I will not give way to the hon. Gentleman.

In the past 20 years, 13 of which Opposition Members stood up to defend and were under a Labour Government, there has been an increase in the number of passengers using the railway, more trains than ever and greater customer satisfaction about many parts of the line.

I want to make two points in the time I have left. Given that today is an Opposition day, I looked at an Opposition day debate in 1994, in which the former right hon. Member for Holborn and St Pancras, who was shadow Secretary of State for Transport, spoke. He said that privatisation would not get the necessary investment, secure the safety of the railway network or upgrade the lines. In the past 20 years, that has been shown to be wrong.

The franchise that serves my constituency, East Midlands Trains, is an example of one that works well. It is not perfect by any means, but in the past few years, it has worked well. Transport Focus says that it is performing well, especially on punctuality and reliability. In surveys, customer satisfaction is nearly 90%.

Oral Answers to Questions

Ian Mearns Excerpts

Thursday 30th November 2017 Commons Chamber

[Mike Amesbury (Weaver Vale) (Lab)]

5. What recent assessment he has made of the effectiveness of the regional distribution of transport spending.

[Ian Mearns (Gateshead) (Lab)]

6. What recent assessment he has made of the effectiveness of the regional distribution of transport spending.

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

We recognise the importance of using infrastructure projects to support regional growth, which is why we are increasing Government infrastructure investment by 50% over the next four years. Such investment decisions are based on a fair and rigorous process that is designed to ensure that spending goes where it is most needed.

[Chris Grayling]

As somebody who used to live very close to the Mid Cheshire rail link—indeed, I used to go walking alongside it—I am well aware of its potential. I have asked Transport for the North, which is taking the lead on making recommendations about new projects, to do work on this for me, but I should say to the hon. Gentleman that I am extremely sympathetic to the idea of trains running again on that railway line.

[Ian Mearns]

Between 2011 and 2016, the average spending per head of the population on transport infrastructure in London was £725, but the similar figure for the north-east was £286. The investment in Tyne and Wear Metro, which is due in three or four years’ time, is very welcome, but we have a very long historical legacy of under-investment. Will the new formula do something about that historical legacy of under-investment?

[Chris Grayling]

To be honest, I am less concerned with formulae than with actually doing things. I am delighted that we are renewing the Metro trains, and I said yesterday that I am very keen to pursue the Blyth to Ashington extension to the Metro line. I am very keen to ensure that we continue to develop the road network in the north-east, which is why the opening of the first complete motorway link from London to Newcastle is so important, why we need to keep on improving the A1 north of Newcastle and why dualling the A66 is so important. This is about doing things, and that is what is actually happening right now.