Railways: Open Access Applications

Lord Bradshaw Excerpts

Wednesday 4th May 2016 Lords Chamber

Asked by

[Lord Bradshaw]

To ask Her Majesty’s Government whether they plan to amend the Railways Act 1993 in order to oblige the Office of Rail and Road, when deciding an open access application, to take into account the interests of passengers, of the public purse and of subsequent franchise competitions.

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, the Office of Rail and Road has to take account of passenger interests and the public purse, including the impact on subsequent franchise competitions.

[Lord Bradshaw (LD)]

I thank the Minister for that reply, but he will be aware that two franchises have failed on the east coast main line, at great expense, and a third is now in operation by Virgin Trains, which won the competitive tender. However, the duties of the ORR, stated in statute, are to promote competition. There are no parentheses in the law stating that it has to take account of the effect on the public purse, the benefits that arise to passengers, and the vitiating of the franchising process itself. I wonder whether the Minister will comment at more length on those things.

[Lord Ahmad of Wimbledon]

I agree with the noble Lord; he is quite right to raise the issues that have arisen. Equally, on the issue of open access, I share his concerns and that is why my right honourable friend the Secretary of State has written directly to the ORR to underline that any changes and reforms put the customer at their heart and, indeed, that we ensure equity of access and, most importantly, taxpayer return on the investment made.