Railways Bill

Debate between Lord Lansley and Lord Beith

Committee stage
Tuesday 8th September 2026 Grand Committee

[Lord Beith (LD)]

My Lords, I did not add my name, but there is a limit to the number of names you can add. Many of us feel very supportive of the recommendations from my noble friend Lady Leaman in those two amendments.

I simply want to give some context to the reasons for the amendments such as those from the noble Lord, Lord Young, to be considered for the Bill, or something based on them being considered, to secure a genuinely fair and free market in the retail sales of train tickets. It is worth remembering how much difference the private operators made to the price you had to pay for many kinds of journey. We have been discussing it in theoretical terms, but there was a time when, if you wanted to travel from Edinburgh to Penzance on the cross-country train which made that journey, the cost was enormous. What changed it? It was split ticket operators demonstrating that they could get four or five different tickets—including, when I did it on one occasion, a West Yorkshire rover ticket that carried me one small piece of the journey—and that this accumulation of a handful of tickets would give you a price less than half the cost that you would have been quoted originally for that journey.

Not only did that cheapen tickets for a lot of people making difficult journeys, but it also changed the attitude of many of the operating companies. Certainly when I go to the station to buy a ticket, I am now always asked whether I want a cheaper ticket by getting the next train or the one before it. There is an alertness to the customer’s need to know what the options are for a reasonably priced ticket, which has been brought into the system by the private operators. I do not advocate these amendments because competition is a good Liberal value, but because experience has proved that to be the case.

All this has to exist in a world in which very rapid change will take place. At the moment, operators issue their own tickets. The result is that there is an invisible interaction between the person selling the ticket, the retailer, and the revenue protection officer on the train whose decision it is whether that ticket will be valid on that train. If you have missed one and are getting the next one, it may well not be; if you have chosen to change your journey pattern, it may well not be. The Minister may fondly believe—we have talked about this in a very helpful discussion—that all this will fall away, because when GBR is the only one providing the trains, there will not be these difficulties. I am not convinced of that; I think that old habits will die hard. If we are not very careful, we will still have a situation where the retailer gives you the impression that he is retailing a piece of paper or an email that will enable you to travel on one of several trains, when you are actually buying something limited by the policies and practice of the operator. It may be one operator in principle, but there will still be different regions under different regional management, so we need to have methods of ensuring that. I hope to return to that second point later in Committee, but we should understand the context and value of what we are discussing.

[Lord Lansley (Con)]

My Lords, I do not have my name on these amendments, but I thoroughly agree with pretty much everything that has been said. I especially support what my noble friend Lady Harding said in introducing this group and am entirely in agreement with my noble friend Lord Young of Cookham. I do not want to get into the question of appeals, because we will come on to how the appeal process should be structured later.

Amendment 47 in the name of my noble friend about the approved document is particularly important. I assume that the code of practice that we are promised, which the noble Baroness, Lady Alexander, was talking about, is the equivalent of the approved document or some part of it. At the moment, we have this ticketing and settlement agreement. We have to know how this is going to work in future. If we do not, we should expect—indeed, we should call for—the Competition and Markets Authority to step in. As things stand, the relevant aspects of the ticketing and settlement agreement constitute part of a block exemption against a Chapter 1 prohibition under the Competition Act. It is, on the face of it, potentially an anti-competitive agreement, but the block exemption exists. The question is whether the agreement satisfies the requirements of the block exemption. We have to look at the agreement to know whether that is the case, which is why Amendment 47 is right. We have to ask the Competition and Markets Authority whether the code of practice or the approved document under the Bill satisfies the requirements of the block exemption.

The fact is that GBR will be in a dominant position. Under the Competition Act, in addition to the prohibition on anti-competitive agreements there is a prohibition on abuse of a dominant position. Much of this debate is saying that, given that we know that GBR will be in a dominant position, we should be actively looking for the Office of Rail and Road, by way of market investigations in this area if necessary, or the Competition and Markets Authority to step in, as the current jurisdiction enables it to do, to counter any abuse. We know from Clause 2(1) that Great British Railways has no Crown immunity. Under Section 73 of the Competition Act, there is a Crown immunity from the constraints, remedies and directions of the Competition and Markets Authority, so GBR does not want to be in a position where the Competition and Markets Authority comes after it to prevent its abuse of a dominant position. For all those reasons, the Government would be well advised to put into the legislation measures that will prevent GBR being tempted to abuse its dominant position and to ensure that the approved document will satisfy the CMA’s requirements for a block exemption.