East Coast Main Line Franchise

Debate between Lord Jackson of Peterborough and Hugh Bayley

Thursday 20th June 2013 Commons Chamber

[Mr Stewart Jackson (Peterborough) (Con)]

I speak not only as the representative of the fine railway town of Peterborough, but as a member of the Public Accounts Committee, which has looked at different aspects of rail travel in recent years, including most recently the west coast main line franchising process, and as a commuter. Like the hon. Member for Edinburgh East (Sheila Gilmore), I travel frequently, although I am not always as familiar with the timetables as I should be. One Wednesday a few weeks ago I was running very fast through the brand spanking new, recently refurbished King’s Cross station in order to catch the 8 o’clock train. I clambered on board only to find after it departed that it was a fast service to York. I passed various Labour MPs in first class, while holding my standard ticket in hand, and then saw my hon. Friend the Member for York Outer (Julian Sturdy). He asked what I was going to do, and I said I would have to get off at York and go back to Peterborough. With typical sympathy and pithy Yorkshire wit, he said, “I hope you’ve written to me to say you’re going to be in my constituency”—although I think it was probably the constituency of the hon. Member for York Central (Hugh Bayley) that I was visiting.

This debate gives us an opportunity to look specifically at the major infrastructure challenges facing the east coast main line. I will focus not on a sterile argument about private being bad and public being good, but on the challenges and opportunities we face in looking at public policy on that line. In the past 10 years we have seen a 43% rise in passenger demand. By 2031 there will be a capacity gap of 1,500 seats in the busiest morning hour on suburban services into King’s Cross. Indeed, journeys from Peterborough and Cambridge are expected to rise by as much as 20% by 2016. I think it is fair to say that, irrespective of our party or our views on the debate about rail privatisation, we all have a common interest, on behalf of our constituents who commute, whether from Scotland, Yorkshire or Cambridgeshire, in safer, cleaner and more punctual trains and in value for money.

It would be unfair and churlish not to concede the progress we have seen in Peterborough. New work has begun and is due to be completed next year. We have three new platforms and platform extensions for the new Thameslink trains and the new inter-city trains. We have a new island platform and a new freight loop. The station has been remodelled over the past few years, and we have 150 new, safe and secure cycle racks to help to develop Peterborough as a local transport infrastructure hub.

It is vital that I make the point that Peterborough is dependent on the railway. Indeed, it is integral to the financial and economic viability of my constituency, given that it is 47 minutes away from central London and King’s Cross. I was delighted to welcome the Minister to Peterborough station last autumn to open, with Network Rail, the reconfigured, remodelled station.

We have to concentrate on value for money, which is a very important issue in the private-public debate. An East Coast train season ticket costs my constituents £6,888 a year—£7,472 with a travel card—which is about 25% of the average annual salary in Peterborough. A First Capital Connect season ticket costs £5,800 a year and £7,000 with a travel card.

Putting partisanship aside, the current provider of the service has done a good job, and I think that the Minister and the Secretary of State have conceded as much. It would be unfair not to concede that it has returned £640 million to the Exchequer by way of premiums since 2009—£187 million in the last financial year. The staff on East Coast trains at Peterborough do a superb job and I know many of them. They are hard-working, decent people with a public sector ethos and a commitment to doing a very good job. I am very proud that we have people who do that, even when the things that go wrong are not their fault, but that of Network Rail. They always smile and try to explain what has happened.

Nevertheless, the situation is not perfect. It is only fair to say that East Coast is the worst performing train company in terms of punctuality. [Hon. Members: “No!] It is true. Only 82.8% of East Coast services arrived on time in the period up to 31 March 2013, compared with 97% of services provided by c2c, which is owned by National Express and is the best performing train operating company. Hon. Members may groan, but those are the facts and we have to agree on them in order to improve the service.

[Hugh Bayley]

The hon. Gentleman will know that the Government’s official timing period does not pick one month or two months as he has done, but considers the situation over one year, and over one year East Coast has performed substantially better than the operator on the west coast, which is the best comparator.

[Mr Jackson]

I think that is semantics. I made it clear that I was talking about the 12 months to 31 March 2013. If the hon. Gentleman wants to write to me to take issue with me, that is fine.

--- Later in debate ---

[Hugh Bayley (York Central) (Lab)]

Let me start by saying something that I think everybody in the Chamber will agree with. The east coast main line is an absolutely vital economic artery, pumping the lifeblood of our economy—jobs, investment and growth—through all the regions and cities that it serves from London to Edinburgh. That is why this debate is so important. It is not a technical or ideological debate about how the service should be run; it is a debate about how the railways can assist economic recovery in our regions. That is the question we need to debate today.

We had a similar debate in Westminster Hall two weeks ago, in which many hon. Members spoke. I have some sympathy for the Minister: he was left with absolutely no time to respond to the many questions that were asked. However, we have more time today. To recap briefly, I would like to pose two questions that I posed a fortnight ago to which the Minister was unable to respond.

First, if the Government go ahead with refranchising, will the headquarters of the new service be based in York? The headquarters currently provide over 200 jobs, but they act as a sheet anchor for thousands of other jobs with railway engineering companies, suppliers and for Network Rail’s operation of the east coast main line, which employs more people than the train operating company. The Government are legally able to make that a condition of the franchise and there is a precedent. When the train operating company last changed hands, I asked my right hon. Friend the Member for Tooting (Sadiq Khan), the then Minister, whether he would give a commitment to ensure stability by keeping the headquarters in York. He said:

“The headquarters to which my hon. Friend referred are in York. I can reassure him that when the holding company”—

that is, East Coast—

“takes over the running of the contract later on this year, the headquarters will stay in York.”—[Official Report, 1 July 2009; Vol. 495, c. 431.]

For the sake of stability for the business now at a time of economic fragility, will the current Minister make a similar commitment?

Secondly, I asked the Minister whether the Government will do what they say they will do and consult users of the service about what they want. It was reported in Modern Railways in May that the Department for Transport would take into account passengers’ views in relation to the train operating companies. Will the Department therefore commission an independent body to conduct a survey to see whether passengers want the service to be taken away from East Coast? A number of Members on both sides of the House have talked about the performance of East Coast, praising the company. We know that it has returned more money to the Government in premium payments—more than £540 million so far—than any other franchise holder on the line. We also know that it is more efficient than its predecessor and is providing value for money for the Government and the taxpayer.

The hon. Member for Peterborough (Mr Jackson) is a fair-minded man. He and I should sit down together and look at the statistics. However, to quote Alan Whitehouse, a former BBC transport correspondent, on the official measure of punctuality—the percentage of trains that reach their destination less than 10 minutes late over the period of a year—the east coast main line under East Coast’s management did better than the west coast main line under Virgin’s management. If we compare the two in terms of trains that actually arrive on time—that is to say, less than 60 seconds late—East Coast scores 61% for punctuality, whereas Virgin on the west coast main line scores 49%.

[Mr Stewart Jackson]

I had no wish to cast aspersions on the current operators, but the hon. Gentleman knows that Passenger Focus, for instance, said in response to the Brown review of franchising last year that the determinants of punctuality were too loose and should be tightened up anyway. However, I concede that there are extraneous circumstances under the auspices of Network Rail that affect performance—such as the gentleman on a bridge at Walton in Peterborough last night who detained me by half an hour.

[Hugh Bayley]

It is useful that the hon. Gentleman says that we should listen to Passenger Focus, because it currently gives the East Coast service the highest level of satisfaction that it has received since Passenger Focus starting doing its surveys in 1999.