Avanti Trains
Debate between Lord Davies of Gower and Lord Snape(9 months ago)
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Lord Snape
To ask His Majesty’s Government when they next expect to meet Avanti Trains to discuss payments made to the company under the service quality regime.
The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)
My Lords, officials regularly meet Avanti to discuss its performance against service quality regime targets and how it will make improvements for passengers and to the customer experience. To date, no payments have been made to Avanti under the service quality regime. The evaluation to determine the first service quality regime performance fee for April to October 2023 is currently under way.
Lord Snape (Lab)
My Lords, does the Minister accept that, at a recent internal meeting at Avanti trains, various slides were produced for its management? I have some of them with me at the moment and I shall quote from them. Managers joked about receiving “free money” from the Government and performance-related payments being
“too good to be true”.
The presentation went on to say that the Department for Transport supports the firm and added:
“And here’s the fantastic thing!—if we achieve those figures”—
that is, the Government’s punctuality figures—
“they pay us some more money—which is ours to keep—in the form of a performance-based fee!!”
Does the Minister accept that this is a situation where the Treasury takes the revenue, the passengers take the strain and the directors take a bonus for providing the worst train service in the UK? This is not a policy; it is lunacy.
Lord Davies of Gower (Con)
As I referred to in my opening response, no payments have been made to Avanti under the service quality regime thus far. The department considers the comments from the leak to be a very serious issue, and expects the highest standards of culture and leadership from Avanti’s operators and senior management. We are extremely disappointed by the tone expressed in the leaked presentation. Officials have met their counterparts at First Rail Holdings, Avanti’s parent company, and spoken to the managing director to convey the seriousness of this issue. The Rail Minister has also met the chief executive of FirstGroup.
East Coast Main Line
Debate between Lord Davies of Gower and Lord Snape(10 months ago)
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Lord Davies of Gower (Con)
A lot of these changes to the trans-Pennine route are part of the Making Journeys Better plan, outlining how TransPennine Express under DfT OLR Holdings will work to make things better. Having completed an in-depth review of the business, these services are expected to be restored from December 2024. I will have to come back to my noble friend on his question about the railway station.
Lord Snape (Lab)
My Lords, does the Minister accept that the problems of the east coast main line, important though they may be, pale into insignificance for those of us who have the misfortune to use the west coast main line? Given the fact that Avanti trains’ punctuality levels in the last six months of 2023 plumbed the depths of 43.5%—the worst in railway history, as far as I can ascertain—can he tell the House what those improvements outlined by the Secretary of State were before it was given another nine years of inflicting misery on the rest of us?
Lord Davies of Gower (Con)
As the noble Lord knows, the department awarded a new National Rail contract to First Trenitalia to continue operating the west coast partnership in September 2023. The decision to award the contract to it was contingent on the operator continuing to win back the confidence of passengers. The Rail Minister and officials have met regularly with First Group and Avanti’s senior management to understand the challenges and hold them to account for issues within their control. In fact, I understand that the Rail Minister met with them only this month.
Birmingham Highways Infrastructure Private Finance Initiative
Debate between Lord Davies of Gower and Lord Snape(12 months ago)
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Lord Snape
To ask His Majesty’s Government when they expect to conclude the review of the 2010 funding agreement for Birmingham City Council’s Highways Infrastructure Private Finance Initiative; and whether they intend to honour the agreement to continue funding the PFI until 2035.
The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)
My Lords, the Government are currently considering the business case for a revised contract for Birmingham highways maintenance following the failure of Birmingham’s original PFI deal. Highways maintenance is a critical and statutory function for all local authorities and the Government will continue to support them to fulfil this function. A decision is expected imminently.
Lord Snape (Lab)
My Lords, while I am grateful for the response and it reflects great credit on the Minister—I congratulate him on his new appointment—this matter has been dragging on for many years. The original contract was signed in 2010. The Department for Transport supported the city council in the removal of the contractor in 2019, but when will the Government approve the full business case and pay up the £50 million a year which they committed to do when the original contract was signed back in 2010?
Lord Davies of Gower (Con)
I thank the noble Lord for that supplementary. The Government recognise that the delay in reaching a decision is far from ideal and is causing challenges for the council. I am sure noble Lords will appreciate that this a big investment decision that needs to be looked at thoroughly. The Government want to make sure that they have looked at all options to support Birmingham City Council’s highways maintenance programme.
HS2: Delay
Debate between Lord Davies of Gower and Lord Snape
Lord Davies of Gower (Con)
I really do not know why Yorkshire has been excluded from it. I fully accept that it would be wonderful to have an advanced railway system throughout the country: living as I do in the west of Wales, I would love to see it down there as well. It is a matter of investment, a matter of money. I go back to the point that we are currently in a difficult situation in terms of the economy, and we will do the best we possibly can, where we can.
Lord Snape (Lab)
I express my sympathy with the noble Lord who has been lumbered with this job. It really is not fair, and it is a discourtesy to the House, to send a Whip—not untalented—to reply to a series of technical questions about a major construction project. Will the noble Lord tell us why the Minister who serves this House from the Department for Transport is not present this afternoon?
On the project itself, will he reply to his noble friend and tell us of any major construction project in the world that has benefited financially from a long-term delay in its completion? Does he accept that much of the tunnelling that is being done through the Chilterns was unnecessary and created entirely by the opposition of nimbys, who presumably did not want the M40 motorway, which does much more damage to the environment than a twin-track railway line? They did not insist on that project being in a tunnel.
Finally, can he see any benefit, seriously, in someone taking a supposedly high-speed train from the centre of Birmingham to Old Oak Common, leaving the train and getting on either the Elizabeth line or the Underground to come into the centre of London? Is he aware that this announcement this morning makes us the laughing stock of the railway world?
Lord Davies of Gower (Con)
First, I am sorry the noble Lord is disappointed that I am at the Dispatch Box today. Secondly, I am not a tunnelling expert and cannot give him an answer to that question. On his third point, on whether there has been any project in the world, I could not tell him: as I say, I am not a construction expert, but I am sure that somewhere along the line this must have occurred. As for this project, as I say, the Government are committed to delivering it. He mentioned the fact that delivery to Old Oak Common was perhaps unsatisfactory. Well, it is the first phase. The Government are completely committed to delivering that to Birmingham, and eventually, of course, we will have it to Euston.