Great British Railways

Lord Liddle Excerpts

Thursday 13th March 2025 Grand Committee

[Lord Liddle (Lab)]

My Lords, I feel a bit nervous speaking in this debate, alongside a former Secretary of State who was a major contributor to the railway we have; the noble Lord, Lord Tunnicliffe, who ran London Regional Transport; and the noble Lord, Lord Bradshaw, who is extremely wise and was one of the great modernising managers of the old British Rail. What am I going to say?

I am going to say that I do not want to see a return to a monopoly British Rail, but believe it is essential that the railways have a guiding mind and that decisions on access have to be taken in a single place if railway capacity is to be used most efficiently. At the same time, I think there should be a mechanism, as was in the Labour manifesto, whereby companies can make open access proposals that will be treated on a fair basis by the guiding mind.

It seems to me that the present system does not really work that well as an alternative to the monopoly. Open access operators pay marginal costs, not full costs, for use of the network. There is a risk that, if they are not adding to total passenger use on the route, public subsidy increases if the franchise operators are losing business as a result. That is a real problem. I do not think that the noble Lord, Lord Young, dismisses it. It is a real issue: it is not just the Treasury; it is a public issue as well. I would like to see something like what is proposed in the White Paper, possibly with strengthened rights of appeal. But there is a role for open access.

The key point about the guiding mind is that investment decisions have to be taken on the basis of what maximises use of the railway. There are many cases where open access proposals would make sense only if there is additional investment to provide additional capacity. I would like to see that. I agree that many provincial cities have benefited from a direct link to London, and that should not be taken away. I want to see an end to the Eurostar monopoly with more competition on services to the continent. I strongly support freight opportunities. There was a very good piece in the Financial Times yesterday about how parcel services are going to be operated from passenger stations. All that is to the good. We need a guiding mind, which we are getting through setting up Great British Railways, but we need the possibility of fair open access as well.