Passenger Railway Services (Public Ownership) Bill

Debate between Lord Hendy of Richmond Hill and Lord Snape

Consideration of Commons amendments
Wednesday 20th November 2024 Lords Chamber

[Lord Snape (Lab)]

And perhaps learned; that is another point.

The fact is that these are delaying tactics by the party opposite. I am amazed that the Liberal Party should want to be associated with this amendment. It is contrary to custom and practice in this place—not that I am a great one for adhering to the rules, necessarily.

This is a meaningless amendment, putting a duty on the Secretary of State which he already has. What Secretary of State wants to do anything other than improve the railway system? I mean, he did not always succeed, though it might have been well-meant during the time of the party opposite, but certainly the Secretary of State’s intention at that time—at any time—would be to improve the railway system. It really is not necessary to add such a clause to this Bill. I would be grateful if my noble friend treated it with the contempt it deserved.

[Lord Hendy of Richmond Hill (Lab)]

I thank all noble Lords who have taken part in this debate. I will address just a few points.

I very much agree with the noble Lord, Lord Moylan, and his description of the previous Government as being dilatory. It is six and half years since the timetable went wrong in the north-west of England and on Thameslink, in May 2018, and nothing really has been done. The railway is suffering and its passengers are suffering, and something needs to be done about it. I have referred to this before but, at some speed, we will be consulting shortly about the content of the wider Bill to reform the railway. I think that differentiates this Government and the speed at which they choose to operate.

On Motion A, I want there to be no doubt that this Government will undertake reform with a clear purpose and direction. As published in Getting Britain Moving, our objectives are set and are more ambitious and wide-ranging than the proposed purpose clause. We want to see reliability, affordability, efficiency, quality, accessibility and safe travel as the DNA of our railways—the foundational values that drive reform and deliver on what passengers expect. Public ownership will be the first step in ensuring better services, by placing the passenger front and centre as we rebuild public confidence, trust and pride in our railway.

I listened carefully to the noble Baroness, Lady Randerson, on the commitment that passengers should be at the core of the future of the railway. In that respect, the wider railways Bill is a different matter. It will establish Great British Railways as a new body at arm’s length from government, which will not be directly accountable to the electorate in the same way as the Government are. In that context, it is essential that the railways Bill should clearly set out two things.

The first of those is the functions of Great British Railways—what it is actually going to do. The second is what Great British Railways is supposed to achieve by exercising those functions—in other words, its purpose. I can absolutely confirm to your Lordships’ House today that the forthcoming railways Bill will set out both of those things, and that delivering improvements for passengers and maintaining high standards of performance will be a crucial part of its purpose. I will be more than happy to engage with the noble Baroness on how we express that in the Bill.

I urge your Lordships’ House to support the Government’s Motion A and to reject the amendment in Motion A1, tabled by the noble Lord, Lord Gascoigne, for two reasons. First, it is unnecessary, because the Government have already set out our objectives for the railway, we are already acting to achieve those objectives, and we are ready to be held to account on whether we deliver against them as we transfer the services to public ownership under this Bill. Secondly, as I have just assured the House, we will ensure that the railways Bill sets out a clear purpose for Great British Railways.

With regard to Motion B, the Government simply cannot accept an amendment that would delay reform, therefore going against the wishes of the electorate, and which would place additional cost on the taxpayer. We will use every tool at our disposal to resolve poor performance, including contractual termination rights, where they are triggered.

On the Bill itself, public ownership is not only the will of the voters but the right step towards bringing an end to years of fragmentation. Tens of millions of pounds in fees will be saved each year due to public ownership and, with the new direction and focus that this Government are now providing, current in-house operations are already seeing a reduction in cancellations. The evidence that public ownership is the way forward is clear.

On top of this, poorly performing train operators are being held to account, as I described earlier, and with Great British Railways coming further down the line, this Government have shown that we are serious about reform. None the less, improvements are needed now, and the Bill starts that process.

Passenger Railway Services (Public Ownership) Bill

Debate between Lord Hendy of Richmond Hill and Lord Snape

Committee stage
Monday 21st October 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

The answer to the noble Lord is: not yet. He will recognise that those costs materialise only when the franchise transfers, so the department will never have had that total number in the past, and I do not expect it to have it now. As the franchises transfer, the number will become obvious.

[Lord Snape (Lab)]

Before my noble friend leaves that point, I will ask him about the question of performance that has been raised on both sides of the House. The public performance measure national average is 88.7%, but the Avanti West Coast performance measure is only 62.2%—some 25% less. What has to be done to remove a franchisee which has performed so badly, as in the case of Avanti, other than knocking down the buffers at Euston and heading a Pendolino down Eversholt Street?

[Lord Hendy of Richmond Hill (Lab)]

In answer to my noble friend, and in recognition of some of what I have done in the past, it is sometimes a surprise when you read the performance requirements for contracts that you inherit. This is clearly one of those cases. I cannot defend the statistics that my noble friend cited, and I cannot defend a contract that allows that to happen without remedy.

In answer to the noble Baroness, Lady Randerson, we will come to devolution later in Committee.

Bus Franchising

Debate between Lord Hendy of Richmond Hill and Lord Snape

Thursday 12th September 2024 Lords Chamber

[Lord Snape (Lab)]

My Lords, I apologise for leaving the depot prematurely a few moments ago.

I rarely agree with anything that the main Opposition spokesperson on transport has to say, and I notice that he glossed over the fact that hundreds of bus routes and thousands of bus miles disappeared under the previous Government’s policies. However, he does have a point as far as the financing of franchising is concerned. Does my noble friend accept from me, the former chairman of a major bus operator, that franchising outside our major cities in particular will be an expensive business, and that if franchising is to succeed, as most of us on these Benches would hope, it must be properly funded? What discussions have been held between his department and His Majesty’s Treasury to ensure that proper funding is in place?

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend for his contribution. I should have said in my previous remarks that this is all preliminary to a buses Bill, which will be introduced to the House in due course and cover a wider range of subjects.

This is offering a choice to local authorities. It gives them the opportunity of franchising, if they believe that it is the right thing to do. Of course, all funding is being considered in the round as part of the spending review. I cannot share details about the discussions with His Majesty’s Treasury at this stage, but, in the meantime, the department is building its capacity to provide tangible, on-the-ground support to local transport authorities that wish to take back public control of bus services. We are also working with all stakeholders to determine how the buses Bill will make franchising easier and cheaper to deliver and further reduce the barriers to its introduction.

Road Investment Strategy

Debate between Lord Hendy of Richmond Hill and Lord Snape

Wednesday 11th September 2024 Lords Chamber

[Lord Snape]

To ask His Majesty’s Government whether they intend to continue with the Road Investment Strategy 2: 2020–2025; and what are their plans for the road network.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, the second road investment strategy is being delivered by National Highways and runs until 31 March 2025. The strategy covers the day-to-day running of the network, continuing operations, maintenance and renewals and the delivery of schemes and construction. Our plans for the future of the road network will be informed by the spending review and by the review of the department’s capital spend portfolio commissioned by my right honourable friend the Secretary of State for Transport.

[Lord Snape (Lab)]

My Lords, I am grateful to the Minister for that reply. Does he accept that a substantial chunk of this budget ought to be spent on repairing the roads we already have, rather than building new ones? Will he consider allocating more funds from this budget to public transport, particularly to our bus network, in view of his recent welcome announcements about bus franchising? Finally, if there is anything left over, could he put it towards the enormous deficit left by the party opposite when in government?

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend. In the current circumstances, he is a bit optimistic about having any money left. Of course, a substantial amount of the road investment strategy 2 money is, in fact, spent on the operation, maintenance and renewal of the national highways network. The review of the capital spend portfolio embraces all the modes of transport the department is responsible for, so there will be the opportunity to choose the best schemes that deliver the most for growth, jobs and housing.

Mail Carriage by Rail

Debate between Lord Hendy of Richmond Hill and Lord Snape

Monday 22nd July 2024 Lords Chamber

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

We are fully committed to supporting rail freight growth, recognising significant economic and environmental potential. Following our plans to overhaul the railways, Great British Railways will have a duty and targets to grow rail freight. I have discussed the decision regarding its trains with Royal Mail. As it is now a private company not owned or controlled by the Government, the mode used to move mail is a commercial decision for the business.

[Lord Snape (Lab)]

My Lords, at the risk of appearing in the Government Chief Whip’s black book, I congratulate my noble friend on his appointment in the Department for Transport and want to say how much it is welcomed by those of us who take an interest in these matters. Could he perhaps read the Riot Act to Royal Mail Ltd? Despite the fact that it is a semi-privatised organisation and he has no real control over it, does he agree that it is deplorable that a century and a half of traditional and dedicated rail carriage of mail is to be cast aside to carry mail on a fleet of heavy goods vehicles, so adding to the congestion and pollution on our roads and motorways? Further, is there not something wrong with a licensing system that makes it cheaper for companies to behave in this way rather than, as my noble friend has suggested, transferring freight from road to rail?

[Lord Hendy of Richmond Hill (Lab)]

The mode of transport chosen by Royal Mail is an operational decision, over which Ministers and the regulator have no role under postal regulation. It has emphasised the low-carbon credentials of its road fleet, using electric vans and biofuel in HGVs to reduce emissions. However, I have already encouraged Royal Mail, and will continue to encourage it, to take an ambitious approach to the wider use of rail freight as part of its commitments to net zero and to reducing congestion our roads, including exploring the innovative and growing express rail freight sector. I assure your Lordships’ House that, in my new role as rail Minister, I will be championing the role of freight on our railways.