Railways

Debate between Jeremy Corbyn and Lilian Greenwood

Thursday 25th April 2013 Commons Chamber

[Lilian Greenwood]

I will make a little progress.

Countries should be free to choose the models that best suit national and local needs. We had just such a need in 2009, after two franchisees walked away from the east coast main line. As a not-for-dividend operator, East Coast has gone from strength to strength. Overall passenger satisfaction has risen and the operator has won a national award for how it manages disruptions to services, with a 12% improvement in satisfaction ratings in the past year. It has provided a public sector comparator at a time when the Government’s franchising policy has collapsed, at a cost to the taxpayer of more than £55 million. By the end of this year, it will have returned £800 million to the taxpayer and invested profits in the service.

The not-for-dividend east coast main line is working, and with a five-year business plan in place the operator could deliver more, if it had the Government’s backing. However, by prioritising the privatisation of the east coast main line, the Government seem to be saying that the service works in practice, but not in theory. We need to proceed on the basis of the best evidence available and build on success stories such as the east coast main line, Merseyrail and London Overground.

I am sure that the Minister will have listened closely to Transport for London’s concerns about the fourth railway package, particularly the definition of a competent authority. Interpreted literally, the definition of an authority that serves

“the transport needs of an urban agglomeration or a rural district”

could force TfL to divest itself of some services at a time when it is looking to take on additional responsibilities. Perhaps the Minister could offer reassurances on this issue, which may impact on other bodies, including the proposed rail in the north executive. The devolution agenda must not be put at risk by these proposals.

[Jeremy Corbyn]

My hon. Friend will be aware of the current consultation on changing the rail network in London by extending the London Overground network to take in some of the suburban services run by other agencies. I am unclear about the effect that this European proposal will have on that. London Overground, after all, is one of the most popular and successful rail networks in the country and its expansion would certainly be welcomed by many people in London.

[Lilian Greenwood]

I thank my hon. Friend, and that is the precise concern that I am raising on behalf of TfL. As he says, London Overground is a successful operation and we would not want to see this package stand in the way of TfL continuing to develop services for the benefit of passengers and taxpayers.

There are a number of concerns, therefore, about a number of points in the fourth railway package. We need to reach a deal that works for the British railway industry—a deal that removes the uncertainty over safety and devolution, while allowing us the option of replicating the success of the east coast main line, which should not be re-privatised, as the Government plan. The fourth railway package is not there yet, and that is why we cannot support this motion.