Bus Funding

Lord Liddle Excerpts

Tuesday 19th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I thank the right reverend Prelate for his question. The question of cross-border bus services is not altered, at least by this settlement, compared with previous settlements. But it is a question that the Government intend to address through the wider buses Bill, which will come before this House shortly. To some extent, you rely on local transport authorities to collaborate with each other, because the movement of passengers is quite often across local authority boundaries. We will have something more to say about that in due course.

The congestion caused by children travelling to school is a very common phenomenon in towns and cities throughout Great Britain. It is open to local transport authorities with the revenue element of this funding to devise schemes for cheaper bus fares for children and the Government will, of course, encourage them to do so, providing it is the right thing for their local area.

[Lord Liddle (Lab)]

My Lords, on this side of the House I am sure there is a very warm welcome for these proposals. Under the previous Government, when Boris Johnson was Prime Minister, a White Paper was produced which, if I remember correctly, was called Bus Back Better. At the time, I was a Cumbria county councillor and we had to put forward plans to see whether the Department for Transport would give us the money. We did not get any money, despite the problems of rural bus services in such a widespread geographical area as Cumbria. Frankly, the reason we did not get any money was that Cumbria was run by a Labour and Liberal Democrat joint administration. It was politics that decided it, not any attempt at objectivity. Does the Minister agree that a far better system is one where there is some rough and ready objectivity for some years ahead, which gives transport authorities an opportunity to plan?

[Lord Hendy of Richmond Hill (Lab)]

I very much agree with my noble friend that a serviceable formula for the allocation of this money is a better thing to do, and to allocate some money to every local transport authority in England. The most damaging feature of all to bus services—which is a feature of the previous methodology of funding—is to have some money one year and no money the next. What happens in those circumstances is that supported services are withdrawn, the passengers disappear—either they cannot travel or they find some other method of travel—and it becomes much harder to re-establish those services. I will not bore the House with details, but I can find many examples across England of perfectly good services forced to be withdrawn because of the inadequate distribution of the previous funding. They are far more difficult to re-establish when funding turns up. The best thing you can have with a bus service is certainty of service over a long time.

Passenger Railway Services (Public Ownership) Bill

Lord Liddle Excerpts

Report stage
Wednesday 6th November 2024 Lords Chamber

[Baroness Randerson (LD)]

My Lords, I will speak to Amendment 2, and to Amendment 10 in my name and that of my noble friend Lady Scott. Amendment 2 was the Liberal Democrats’ Amendment 1 in Committee, requiring the Secretary of State to terminate franchises for default and to nationalise the worst-performing operators first, while allowing train operating companies that are currently working well to continue.

The Minister explained to us, both in this Chamber in response to our amendment and in private discussions, that this cannot be done without major costs to the taxpayer. The existing contracts have been written and signed by the previous Government so as to make it difficult to penalise defaulters. We accept what the Minister says and we are not prepared to cause the taxpayer greater costs than necessary in this process. So, having listened and learned, we turned our amendment around and wrote Amendment 10, which simply proposes giving the Secretary of State the freedom to enable services that are working well to have an extension to their franchise and to continue for a period of time suitable to the Government. Can the Minister explain to us the Government’s approach to this and whether existing contracts could be extended, as our amendment suggests?

Our view is that the Government are going to be hard pressed in dealing with the numerous parts of the rail systems that are failing, and they need to allow themselves a bit of space by letting the bits that are working well continue until they get around to the overall process of nationalisation. The Government’s whole approach has been nationalisation gradually rather than one big effort, and I hope this amendment works with the grain of their intentions.

[Lord Liddle (Lab)]

My Lords, from listening to the noble Baroness, Lady Randerson, I think there is a misunderstanding about what the Government are trying to do. As I understand it as a humble Back-Bencher, we are trying to get rid of the franchising system because, as it is, it does not help us to run a railway in the way we want to. In his opening remarks the noble Lord, Lord Hendy, said that one of the points is to have a simplified fare system that will greatly raise the prospects of increasing passenger revenue and passenger use of the railway, because the fare system is an obstacle to that. We cannot do that while we have the franchise system, so we have to get rid of the franchise system.

If there is any fault in what is happening at the moment, it lies on the opposite side of the Chamber and with the Transport Ministers who gave operators such as Avanti the very loose targets that they have to meet. I advocate that we should be tougher with Avanti, have it in every month, and if things have not improved, we should take the risk of taking the franchise off it and saying, “See you in court”. That would be my approach, but the problem is what the Conservatives have left us with, and that is very difficult to solve. I do not support this amendment, which would result just in extending the existing system.

[Lord Young of Cookham (Con)]

My Lords, I am glad I let the noble Lord, Lord Liddle, speak before me, because I listened very carefully to what he said at Second Reading, when he made a powerful speech in favour of pragmatism. I think that was an expression that he used; I see him nodding in assent. Pragmatism is the reason behind Amendment 10. It is a question of whether we let ideology trump pragmatism. The amendment is very similar to one I proposed in Committee. It is less ambitious—the one I proposed in Committee would have allowed the franchise to be renewed for a longer period than 12 months—and therefore one that is it easier for the Minister to accept.

There is an additional reason that has not been mentioned so far, which is that there will be pressure within the Minister’s own department to absorb the franchises as they fall due. I think his department would welcome the flexibility under Amendment 10 to enable an existing franchise to be extended for a further 12 months, but no longer. The Minister will get his way: all the train operating companies will be nationalised and all the franchises will come to an end. What we are arguing about is some flexibility. If a franchise is being run perfectly competently, if the existing company would be happy to run on for another 12 months, and if the department is having to recruit more civil servants to absorb the existing ones, I honestly cannot see why the Minister has set his face against Amendment 10. If there is the word “resist” in his brief, perhaps he will reflect on whether a little bit of flexibility would be in order.

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[Baroness Randerson (LD)]

My Lords, this group raises some interesting questions about the various shapes that the ownership of rail services can take. Our interest on these Benches, which we raised in Committee, is specifically the interface between the Government’s picture for national rail services run by the Government and those run by devolved authorities. We are interested in seeing that nothing in this Bill attacks devolution as it currently exists or stops the further development of devolution when it is properly and fully thought through. We are interested in ensuring that nothing in this Bill would prevent current devolution models continuing and new ones from being established. Those devolution models include aspects of private sector involvement.

In addition, in Committee, the noble Lord, Lord Liddle, raised some interesting questions about alternative public/private models and not-for-profit models. I hope that he will speak about those again in this debate.

I will be listening very carefully to the Minister’s response. If I understood him earlier in our discussions about this, he has reassured us about devolution, but I need an additional public response on that issue. With that, I take note of a very interesting aspect of this debate.

[Lord Liddle (Lab)]

My Lords, I will speak briefly, as the noble Baroness, Lady Randerson, mentioned what I said in Committee.

It is right to raise these questions here, but they are questions for the future and for the big Bill that we will get next year. Personally, I do not want to see the re-creation of British Rail. My dad used to work for it, and to my mind it did not have great success as a monopoly nationalised industry. Therefore, it is right that, in the debate about the Bill setting up GBR when it comes around, we should explore the models of ownership that might work on these concessions. I would not rule out co-operative models, or heritage railways, running part of the national network.

My main concern is that we do not get stuck on the idea that this has to be a public sector monopoly. After all, the main thrust of Labour policy, the manifesto on which we won the election and the Budget put forward by Rachel Reeves is that we should use public investment to generate private investment, which will multiply the effects on economic growth. I do not see why the railways should somehow be different from that general principle. I discussed this with the Minister, and he explained how one thing being looked at is using the private development of Network Rail-owned land to improve investment in services. That strikes me as a very good idea and something that we should look at. Noble Lords are right to raise this question, but I hope we are going to have an open-minded debate about it in the coming year.

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lords, Lord Lansley and Lord Moylan, for their amendments in this group. I will speak first to Amendment 4. Following enactment of the Bill, there would be just two routes by which the Secretary of State could secure the operation of passenger services. The first option, and this is the option we plan to use, would be to make a direct award to a public sector company under the amended Section 30 of the Railways Act 1993 and in accordance with the Public Service Obligations in Transport Regulations 2023.

The second option, which is a very limited option, would be to use the power to continue an existing private sector franchise temporarily under new Section 30A. This power is deliberately limited only to circumstances where the Secretary of State is satisfied that a transfer to a public sector company is not reasonably practicable. This means the Government would expect to use it only as a last resort, for a short period, to avoid a transfer causing disruption to passengers or staff. Apart from this very limited power in new Section 30A, the Bill leaves no other route by which the Secretary of State could contract with a private sector operator to run either existing services or new ones. This is entirely consistent with the Government’s very clear policy in favour of public ownership of services that form part of the national railway network.

On the point from the noble Lord, Lord Lansley, about DfT OLR Holdings Ltd, I confirm that award to it is securing the provision. All services currently designated under Section 27 will be provided under Section 30 by a public sector operator as existing contracts expire. The noble Lord also asked about the Secretary of State’s power to secure the provision of new services through a public sector company if those services had never been provided under a franchise agreement. Regulation 21 of the Public Service Obligations in Transport Regulations 2023 allows the Secretary of State to vary the terms of a public service contract to include additional services, and so would provide the necessary statutory basis for her to secure the provision of new services from a public sector operator.

The noble Lord asked whether the Bill will leave an option for the Secretary of State to procure East West Rail services from a new private sector operator, and the simple answer is that it will not. The Government have no plans for long-term private sector operation of the new East West Rail services, which will commence operation next year, nor any other services that the Secretary of State is responsible for procuring.

There are—and, after this Bill, there will remain—two ways in which other parties might operate or secure the provision of services on the rail network. One possibility is that a third party might operate them as an open access operator, as is the case with Hull Trains, for example. Another possibility is that a mayoral or combined authority or other local authority might secure the operation of services either by running them itself or by procuring a third party to do so. As I will explain in relation to the next group of amendments, the Secretary of State can facilitate this by granting an exemption under Section 24 of the 1993 Act, which takes the relevant services out of the scope of the surrounding provisions of that Act.

I noted with interest that my noble friend Lord Liddle remarked about involvement of developers, for example. I echo his sentiment that there will be ways of getting private capital in, particularly through development, that have not really been explored so far.

I hope that my explanation reassures the noble Lord, Lord Lansley, that the Government have carefully considered the implications of the Bill and the options it will and will not leave open, and I hope he will feel able to withdraw this amendment.

Amendments 5 and 6 from the noble Lord, Lord Moylan, deal with competed concession contracts. As I set out to the noble Lord in Committee, these amendments would remove the opportunity to deliver the benefits of public ownership, which a clear majority of the public support and which was a specific commitment in the manifesto on which this Government were elected. For the following reasons, I cannot agree to the amendments.

First, a concession model would mean the taxpayer continuing to fund substantial profits for private sector operators. A concession model along the lines of Transport for London’s contracts would expose operators to more financial risk than today’s contracts, where government bears virtually all the financial risk. Under such a model, train operators would price their bids to generate even more profit than the £110 million to £150 million per annum that they can earn under the current contracts. Our plans for public ownership will eliminate those fees and profits entirely—in the Government’s view, continuing to line the pockets of private shareholders is not a good use of taxpayers’ money.

Secondly, TfL concessions are a relatively inflexible form of contract which is not well suited to the needs of the national railway network. For a concession contract, the procuring authority has to define the service levels and standards at the start of the procurement process, and those levels and standards then endure for the life- time of the contract. Changes to the service specification can be achieved only through costly negotiation and agreement with the operator which already holds the contract.

That is very different from the London bus market, for example, which we discussed in Committee, where the concession model is much more suitable because there is a large number of small individual contracts. For the London Overground, much of which is heavily constrained by the geography of the railway network and the other services that run on it, it might be satisfactory, but the whole of the national railway network requires greater flexibility to adapt to changing patterns of demand. Finally, and most importantly, a concession model would not resolve the fragmentation of the current system, nor would it deliver on the Government’s commitment that rail services should be run by and for the public.

The noble Baroness, Lady Randerson, referred to devolved Administrations and local mayoral authorities. We will come to devolution further in the next amendments.

I urge noble Lords not to press their amendments.

Passenger Railway Services (Public Ownership) Bill

Lord Liddle Excerpts

Committee stage
Monday 21st October 2024 Lords Chamber

My noble friend Lord Gascoigne seeks in his amendment to make good the deficiency pointed out by the Department for Transport: that the Bill has no purpose other than the delivery of a government manifesto commitment and that no alternatives have been looked at to achieve that purpose. He has tried to clarify, and state on the face of the Bill, why we are doing this, and he has put this forward in words that the Government themselves have been using. When the Minister comes to reply, there really should be no problem at all on the part of the Government in stating, “Yes, this is our purpose and this should be on the face of the Bill, so that everyone who looks at this Bill”—I do not mean passengers but those involved in implementing it, from the Secretary of State down—“knows exactly what it is should be guiding them as a principle when they come to make their decisions about how to put it into effect”.

[Lord Liddle (Lab)]

Can I try to help the noble Lord? My understanding is that the Government are committed to a comprehensive package of rail reform, and that the Bill for the comprehensive package will be introduced next spring. The purpose of this Bill is a relatively minor reform, in my view, in the context of the much bigger reform, which is to make sure that the franchises can transition to public ownership at minimum cost to the Exchequer. If we are going to do it at minimum cost to the Exchequer, we have to do it quickly; that is why this is one of the earliest Bills that the Government have put forward.

[Lord Moylan (Con)]

The noble Lord puts the Government’s case very well. How much the House has lost in not seeing him on the Front Bench as the Minister, given that he was the shadow Minister up until the general election.

We are told by the noble Lord that the Government have a package of reforms. We all have a package of reforms. We know what the package of reforms looks like; it is in the Shapps-Williams review. Yet what we are seeing from the Government is a package of reforms that differs significantly from the Williams review; that is why it needs such careful scrutiny.

Given the passage of time, I will be brief on the remaining amendments. All the amendments in my name seek to test the effects of this measure on the performance of the industry in the light of the nationalisation that the Government are proposing.

Taken separately, the amendments deal with different types of performance. Some deal with the performance of the railways in so far as they engage with passengers; that is, on timeliness, efficiency, service quality and so forth. Some relate to the performance of the railways in relation to finances; we will come to finances in more detail later. The Government claim that this Bill has no financial consequences—there are those of us on this side of the House, including the noble Baroness, Lady Randerson, who treat that approach with great scepticism. Other amendments seek to examine the measure’s effect in relation to the performance of the network as a whole.

I hope that all these amendments will be accepted by the Government. If they are to make these changes, there needs to be transparency and the public need to be able to see metrics published, possibly by an independent body or possibly by the Department for Transport—we are open to persuasion on that—which show how the railway is performing.

Having come to power committed to transparency, I know the Government would not want to resile from that. So, if they are not able to support the detailed amendments as tabled, I expect that the Minister will have no difficulty in saying that the Government will put forward amendments on Report showing how this Bill will be monitored in its implementation.

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[Baroness Scott of Needham Market (LD)]

My Lords, I am sure that all of us want the same thing that the passengers want: a railway which is reliable, punctual and affordable. In too many parts of the country, they have been let down and this has not been delivered. Personally, I can understand why the Government have chosen this way of doing things and improving matters. But I do also think it is beholden on this House, particularly as we are now in Committee, to really focus on the way in which the Government intend to do this. It is in that spirit I move Amendment 1.

I am arguing what I argued in my Second Reading speech—that, in order to make the transition to public ownership a success, the Government should first take on those operators which are demonstrably failing passengers. They should turn those services around to deliver tangible improvements for the travelling public. It follows that the management of currently high-performing operators—as I shall show noble Lords, they do exist—should be retained for as long as possible to ensure that passengers continue to receive good service while minimising costs to taxpayers.

This amendment would require the Secretary of State to first nationalise the worst-performing operators to deliver immediate benefits to passengers and taxpayers, while enabling services that are currently working well to continue for the time being. Specifically, it places the Secretary of State under a duty to prioritise the termination of franchise agreements where the incumbent operator is in default of their agreements and gives them a duty not to terminate non-defaulting franchise agreements early unless there are no franchise agreements to be terminated due to default or because of their expiry. It would also require that terminating such an operator early would improve existing service provision.

I will say a word or two about the railway I use. I have travelled between Suffolk and London several times a week for more than 25 years now, and I can tell noble Lords that my service has never been better. Greater Anglia has spent £1.4 billion upgrading its rolling stock. It returned £65 million to the Treasury in the year ending in March and is predicted to return £100 million next year. It has a 94.8% public performance measure; I think Avanti is currently at 62.2%. Greater Anglia’s cancellations are at 1.4% and Avanti’s at 10.2%, but Greater Anglia’s full term expires in September 2026 and will therefore be one of the first to go.

It is genuinely difficult to see how that performance could be bettered. Indeed, with new management operating and a whole new set of structures it could conceivably get worse, initially at least. On the other hand, the poorly performing franchises have the potential for significant improvement—indeed, that is why the Government are doing this—so by using a strictly chronological approach they risk losing the confidence of the public right at the start of this process.

Current national rail contracts give the Secretary of State powers to act against failing train operators, both in general and where remedial measures are in place, and she has broad rights to information provision about possible contraventions, so could the Minister outline how the Secretary of State has used these rights in relation to CrossCountry and Avanti contracts? The grounds for default under the national rail conditions are passenger service performance, non-compliance with remedial agreements and contravention of other obligations, so has the Minister sought advice on CrossCountry’s and Avanti’s performance in relation to those provisions? Is either TOC in breach of any other provision? With Greater Anglia, West Midlands Trains and East Midlands Railway all performing well, can the Minister say whether they will be allowed to run their full course?

Regardless of where your Lordships stand on the question of renationalisation, in the end, as members of the travelling public, we all want it to work. By taking a strictly chronological approach, which leaves poor performers in place, the Government risk seriously undermining their own flagship policy. I beg to move.

[Lord Liddle (Lab)]

My Lords, I have an amendment in this group that is closely aligned with the noble Baroness’s, on which she has spoken very eloquently. It would reaffirm the Secretary of State’s powers to, if necessary, withdraw franchises from operators.

I tabled my amendment because I am a strong supporter of the Government’s policies and it would be tragic if we could not complete the transfer of companies to public ownership with remarkably quick speed. Yet, when we had the Second Reading debate, the noble Baroness, Lady Blake, pointed out to us that, unless there was a basis for withdrawing the Avanti franchise, it would run for another couple of years. It would be tragic if the worst-performing franchise, along with CrossCountry, was allowed to continue for this extended period and thereby to delay the Government’s ability to introduce the kind of rail reform that a unified railway under a guiding mind would make possible. To tell you the truth, on the basis of what I have heard, I think our Ministers are being a bit feeble. They could stand up to Avanti with much greater determination than they have.

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[Lord Hendy of Richmond Hill (Lab)]

The answer is that it is the Government’s policy to take train operations into public ownership. The words the noble Lord mentions in Clause 2 just emphasise that intention.

[Lord Liddle (Lab)]

I would like to raise another point about Avanti. As I understand the law, the Secretary of State has a clear right to withdraw contracts on the basis of passenger service performance. Is it the case that the present Secretary of State cannot make her own judgment of that and is bound by whatever was decided before the last election? Would a court really not accept that the present Secretary of State has the right to make that judgment and act on it?

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[Lord Hendy of Richmond Hill (Lab)]

I will first say that I am delighted to see the noble Baroness, Lady Pidgeon, in her place. I hope that her questions will be easier than the ones she has asked me for the last 16 years.

I thank noble Lords for explaining their amendments in this group, which consider the impacts of public ownership on the freight sector and the British Transport Police. I shall speak first to Amendment 6, in the names of my noble friend Lord Berkeley and the noble Lord, Lord Moylan, and Amendment 41 in the names of the noble Baroness, Lady Randerson, and the noble Lords, Lord Bradshaw and Lord Moylan.

These amendments highlight the importance of the rail freight sector, which has a crucial role to play in supporting a productive economy and in helping to decarbonise transport on the way to net zero. The Bill in front of the House sets out with two very specific purposes: to enable franchised passenger services to be brought into public ownership as existing contracts expire, and then to enable the Government to keep them there in accordance with their manifesto commitment. As such, the Bill has no direct impact on freight operators or on the availability of network capacity to accommodate freight services. Indirectly, though, freight operators should benefit from public ownership of passenger services, for reasons I am happy to explain.

In the old franchising model before the pandemic, a franchise operator’s commercial motivation was to maximise its own profit—evidently, the difference between its revenues and its costs. If that meant running additional services, it would seek to do so through the usual industry processes of bidding for access rights and then for a timetable that included the extra services. It would not matter, and has not mattered, to the franchise operators that this might deprive freight operators of the opportunity to serve new markets in the future. There are various examples of franchise bidders seeking to win contracts on the back of proposed service enhancements that risked crowding out, or actually have crowded out, potential future freight growth.

Under public ownership, that unfortunate incentive will no longer exist. Publicly owned operators will instead be remitted to act in the interests of all users of the railway, including freight customers. We have made it clear that the forthcoming railways Bill will require Great British Railways to enable the growth of rail freight and that the Secretary of State will set an overall freight growth target to ensure that it remains a key priority. I am sure that we will debate these points further once the railways Bill is before your Lordships’ House.

The noble Lords, Lord Bradshaw and Lord Young, my noble friend Lord Berkeley and others asked how capacity will be allocated. I can certainly tell them how it is done now, because we have had an immense struggle to obtain a timetable on the east coast main line which seeks to justify the £4 billion-worth of public investment to speed up services and provide more passenger capacity. One reason we have had that struggle is that, although there is an appeal mechanism to the Office of Rail and Road, there is in fact no current decision-making process to allow a timetable to be completed, except by agreement. I believe and hope that it is currently in its last stages, but I am not certain.

One of the things that the Government have in mind is that Great British Railways ought to be the body that decides. The noble Lord, Lord Bradshaw, will recall what was the case on the old railway: somebody had to decide which services were of greatest priority and which ones had to be fitted round them. Under the current Bill, however, there is no change to the existing role of the ORR in access decisions for passenger and freight services. Under the future railways Bill—and we will consult on this—there will be appropriate safeguards for both freight and open access operators. We will set out details on that in due course, before any changes to the current approach are made. There is no need to require the publication of a report on this matter. Commissioning a report after this Bill, when in fact there will be no change at this point, will not add benefit to the debate.

I turn next to Amendment 40, in the names of the noble Baronesses, Lady Pidgeon and Lady Randerson, and the noble Lord, Lord Moylan.

[Lord Liddle (Lab)]

Before we move on to the British Transport Police and while we are still considering freight paths, the noble Lord, Lord Bradshaw, for whom I have enormous respect because of his experience on the railway, made the point that investment decisions are very important to getting more freight on to the railway. Is not the real question about freight the priority it is given in the investment decision-making process? I know the Bill is not about that, but, since there is concern about this in the Committee, can the Minister give us any guidance as to how investment will be prioritised?

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend Lord Liddle for that intervention. All I can say at this point is that I would hope the rail network enhancement programme is published more frequently, and with more success in what it contains, than it has been for some years. We will have to wait and see what the fiscal situation allows.

[Lord Liddle (Lab)]

Would that be a decision for the Secretary of State or for Great British Railways?

[Lord Hendy of Richmond Hill (Lab)]

I think in due course we will have to come back in the substantive Bill with a proposition on how those decisions are made, who makes them, and for what period of time the plan is valid.

High-speed Rail Services: West Coast Main Line

Lord Liddle Excerpts

Wednesday 4th September 2024 Lords Chamber

Asked by

[Lord Liddle]

To ask His Majesty’s Government what plans they have to facilitate improved high-speed rail services between (1) London Euston and Manchester, and (2) on the West Coast Mainline north of Crewe.

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

This Government are currently reviewing the position that they have inherited on rail infrastructure and will consider how we address capacity needs while maintaining financial discipline. We will set out our plans in due course. We need a long-term approach to infrastructure and investment, taking account of local transport priorities, which is what we will provide.

[Lord Liddle (Lab)]

I thank my noble friend for his reply. Of course we need a long-term plan for investment, but does he agree that there is a huge problem of congestion and capacity on the west coast main line, which is a key artery of our transport system? These problems have been made worse by the former Prime Minister’s impulsive and ill-thought-through cancellation of the second stage of HS2; the National Audit Office says that this will reduce capacity on the west coast main line by a further 17%. We need an investment solution to this. Will my noble friend also confirm that the Government have not ruled out use of the existing HS2 route to provide that extra capacity?

[Lord Hendy of Richmond Hill (Lab)]

Following the cancellation of HS2 phase 2, the Government are looking at all options to improve rail journeys to the north-west and Scotland, including managing the long-term issues that my noble friend describes, with capacity that HS2 phase 2 would have alleviated. In the meantime, Network Rail is progressing a programme to renew and modernise the west coast main line between Crewe and Scotland, and work on that will continue through the next three five-year control periods.

Public Bus Collisions

Lord Liddle Excerpts

Monday 13th May 2024 Lords Chamber

[Lord Davies of Gower (Con)]

I am not aware of that, but I take my noble friend’s point. It is a question of bus companies taking their own steps to ensure that people are safe while they travel, and that drivers are trained properly.

[Lord Liddle (Lab)]

Does the Minister agree that, for all the points that have been made in this short discussion, in the vast majority of cases, bus drivers, particularly in our cities, deserve our thanks and respect for safely and successfully navigating the multiple and increasing challenges they face on our roads? Since buses are the main means of transport for the elderly, the young, young mothers with children—the less well-off in our society—should they not be valued by society as a whole for the public service they offer us day in, day out?

[Lord Davies of Gower (Con)]

I could not possibly disagree with that. I am a regular bus user and I agree that they provide a tremendous service, whether it is in our cities, towns or, indeed, our rural areas.

Automated Vehicles Bill [HL]

Lord Liddle Excerpts

Consideration of Commons amendments
Wednesday 8th May 2024 Lords Chamber

[Baroness Bowles of Berkhamsted (LD)]

My Lords, this Bill is a technical framework, with the detail largely to follow in regulations. We on these Benches have been generally supportive throughout the passage of the Bill and will remain closely interested as the detail is fleshed out in secondary legislation. We welcome the Commons amendments as improvements—in particular to reflect the responsibilities of the devolved Administrations. In the case of Amendments 5 to 8, the Government have, on this occasion, listened to the representations from the Welsh Government to extend the powers in Clause 93 to Welsh Ministers. The Bill applies to the whole of the UK, parts of which will—indeed, already do—have slightly different approaches to traffic regulation. It is therefore important to ensure that the relevant Ministers have the right powers.

On other matters, we are disappointed that some of the issues raised when the Bill was passing through this House were not agreed in the Commons amendments either. A number of amendments were tabled to the Bill about the accessibility of public transport for disabled people, but none of these proposals was accepted by the Government. It is nevertheless still crucial that disabled people are involved in the developments from this legislation to make sure that it makes transport more accessible, not less.

Similarly, Wera Hobhouse MP continued to raise the concerns that we voiced around the protection of personal data but, sadly, those concerns were dismissed by the Minister in the other place. Thus we will be particularly keen to see how the legislation addresses all the concerns that we have raised throughout the passage of the Bill and how it ensures that the rollout of autonomous vehicles will be both inclusive and innovative. I will also watch with interest how the balance between open-source and IP rights plays out.

[Lord Liddle (Lab)]

My Lords, from our Benches we are very pleased that the Bill was returned to this House by the Commons in reasonably good shape. It is an important Bill, setting a framework for future innovation and enterprise in a key sector. We basically agreed in the House on this framework. We, for our part, would have preferred a more inclusive approach, with some kind of council that regularly brought together all concerned interests to create a consensus on how the technology should be developed. However, we were very pleased that the Minister listened to our concerns on the safety standard and, indeed, accepted them.

On the Commons amendments, I make two small points, neither of which affects our view that the Bill should now go ahead. First, it is obviously a good idea that there is a regulatory power for the requirement that incidents affecting autonomous vehicles are properly notified to the authorities. We support that. Secondly, if autonomous vehicles are to go on the whole of our road system in due course, it is clearly necessary to have a requirement for highway and traffic authorities to notify on a digital platform where repairs are being done—although I must say, with the present state of our roads and potholes, there will be an awful lot of notifications. It is clearly necessary that there are these regulations, but can the Minister say what timetable he envisages for use of the regulation-making powers that we are agreeing to in this measure?

I end by thanking the Minister and his officials for the courtesy that they showed in explaining to us very clearly what the Bill was about and in responding very promptly to any questions and comments. I thank the Minister for taking this Bill forward in a generally consensual way.

Lower Thames Crossing: Development Consent

Lord Liddle Excerpts

Monday 29th April 2024 Lords Chamber

[Lord Davies of Gower (Con)]

I recognise that this is a very important project. It will be of great advantage to many people, both north and south of the Thames.

[Lord Liddle (Lab)]

My Lords, is this not a classic case of how the planning system in Britain is fundamentally broken? It started in 2009 and we do not have a decision by 2024. How can it make sense to have spent hundreds of millions of pounds on a project when the Government have not actually given the final go-ahead?

In the 1930s, when Herbert Morrison faced opposition to the plans for Waterloo Bridge, he described the Conservatives as “Mr Dilly, Mr Dally and Mr Can’t”. Is that not the case with this Government—dilly, dally, can’t?

[Lord Davies of Gower (Con)]

That is a wonderful history lesson; I am most grateful to the noble Lord. The majority of decisions made by my department and applications for development consent orders have been issued within the three-month statutory deadline that starts from receipt of the recommendation report. That will hopefully be the case with this.

Transport System: Failings

Lord Liddle Excerpts

Thursday 25th April 2024 Lords Chamber

[Lord Liddle (Lab)]

I congratulate my noble friend Lord Snape on introducing this debate in his own informed and inimitable way, and join those who have paid tribute to him for his contribution over many decades to the transport debate in this country. I also thank former Secretaries of State for contributing to this debate and I particularly endorse the remarks made by the noble Lord, Lord McLaughlin, about my noble friend Lord Hendy, who unfortunately is not able to contribute to this debate; it would have been nice to hear from him. Those present also remind me of those absent, and one of those is, of course, Lord Rosser, who was a much-loved Member of this House and a very great, moderate and sensible trade union general secretary.

It would be nice to have a coherent plan for transport, but in the last 14 years we have not achieved that. We had the impact of austerity, which led to massive cuts in local government budgets. I saw it in Cumbria, where we had fewer professional highways staff and where planned maintenance on our roads was cut to the bone, so we inevitably ended up with a chronic problem of potholes. The Government have done a lot of announcing about special funds for potholes, in a sort of patchwork attempt to cover up the consequences of what they did 10 years ago. In fact, that will only cover about half of what is needed to have a proper system of planned maintenance for our highways.

Austerity also brought big cuts in bus subsidies. When I was a Cumbria county councillor, we were forced to abandon bus subsidies for commercial services altogether. As a result, bus travel outside London has collapsed. The annual number of journeys since 2009 has gone down from 2.4 billion to 1.6 billion—a third lost.

Boris Johnson realised, to be fair to him, that this was a big problem. His Bus Back Better White Paper was full of typically bold promise and ambition, but, as with so much else, delivery was another matter. This is a serious issue—it might be even more serious than the railways—because the bus crisis affects the young, the elderly and the poor most of all. For a social democrat like me, we must do better and find a better policy.

The solution stares us in the face. London has seen little of the decline experienced in other parts of England. Why? Because, instead of the philosophy of provision being driven by free market competition, bus services in London are a fine example of public/private partnership, with a franchising model that works. This eliminates competitive cherry picking on bus routes that are highly profitable and allows cross-subsidy of those routes where there is less revenue.

The difficulty with this problem that Boris Johnson recognised is that the Government have never found time to legislate on it. This year, to be frank, the Government judged the pedicabs Bill more important than doing something to remedy our bus service problems. I regret very much the way that government policy has tilted against public transport since the Uxbridge by-election. The Government have tried to pose as a defender of the motorist against sinister socialist plots—this is nonsense. I am a strong believer in the freedom that cars bring. I was brought up in a non-car owning household and realised, with great wonderment and affection, how a car enabled me to travel to parts of the Lake District near my home that I had never been to before. As a councillor for Wigton in the last decade, I also saw how, in certain places where public transport is rotten, people depend on their cars. The care worker who is on the minimum wage—if that—depends on a car to do her job. Let us have no more of this culture-war nonsense.

We need, of course, sensible policies in towns and cities. We realised in the 1970s that there was no financially affordable or environmentally acceptable way in which road building could solve congestion problems. We did not want to become like America. When I was a young Labour councillor in Oxford in the 1970s, we championed what we called a balanced transport policy. We brought in park and ride from the outskirts, and bus lanes to get buses into town quicker. I remember how much opposition there was. Traders thought this was the end of the world. Professionals objected to not being able to drive their car to work as easily as they had done. But, when people saw the benefits, the objections quickly subsided. We could do much more in cities to improve bus reliability and efficiency without vast increases in public spending.

The same opportunity exists on our railways. I was never a dogmatic opponent of all privatisation, but I thought that separating the natural monopoly of the infrastructure from competing services that use it, while it might work well in telecoms, was a much more difficult proposition with railways. That has proved to be the case. The growing problems with privatisation have been evident for two decades. We had the collapse of Railtrack in 2001. We had the problem of franchisees overbidding for contracts and hoping that a weak Government would let them off the hook. My noble friend Lord Adonis told them to get lost, and their franchises were taken into public ownership. In 2018, the railways were unable to produce a timetable that worked. Since Covid, there has been a vast increase in costs and a real decline in quality of service. As a frequent Avanti user, although not quite as frequent as the noble Lord, Lord Goddard, I still cannot understand why it has been allowed to keep its franchise.

What Labour has announced today is fundamentally right—that we intend to bring the major part of the railway under unified public control and ownership. I disagree with my noble friend Lord Berkeley: we must take legislative action on this quickly, in our first term of office. A unified railway will save hundreds of millions of pounds by getting all parts of the system working together. It will end the costly arguments about delay attribution, and I hope that it will release the railway from the micro-control of civil servants who are currently making decisions about services and spending. It will not be a return to British Rail. Open access will be retained; freight services will continue to be operated by the private sector; the lease-holding arrangements for rolling stock will remain in place. This is a pragmatic response to the failings of the existing system. I hope that it will allow the kind of long-term approach that the noble Lord, Lord Bourne, talked about.

Again, there is not much difference between the Williams-Shapps plan and Labour’s proposals, which is why Keith Williams has backed them today. This provides an opportunity to establish a new, lasting consensus about the way railways should be run, and I hope that the Conservatives will take that view if they lose the next election.

Another area where consensus needs to be struck is on the issue of high-speed rail. After the Prime Minister’s decision, we are left with a high-speed line with apparently no public funds to build its London terminus at Euston, and a connection of HS2 to the west coast main line which makes the problem of train congestion to the north worse, not better, than it is at present. What was envisaged as a revolutionary transformation has, in effect, morphed into a high-speed tube extension from Old Oak Common to Birmingham. It has destroyed the integrated rail plan. In its place, we got the shoddiest White Paper I have ever seen from a Government, on the Network North plan; a set of incoherent proposals cobbled together in Downing Street without any expert input from transport people. This is no way to run a country.

Labour is not going to go for headline-grabbing announcements, but we need a carefully considered decision based on detailed work about where we are. There we have it: we must have a coherent policy at long last, replacing 14 years of dither and delay interspersed with reckless decisions. The country deserves a lot better.

Rail Manufacturing: Job Losses

Lord Liddle Excerpts

Wednesday 17th April 2024 Lords Chamber

[Lord Liddle (Lab)]

My Lords, I would first like to pay tribute to my noble friend Lord Rosser, who, sadly, passed away last week. In the context of this Question, he was an exemplar of the very finest in railway trade unionism.

In the other place, the much-respected rail Minister Huw Merriman said that the Government were working on a short-term solution to bring forward orders at the Alstom plant in Derby. Can the Minister confirm that, as reported in today’s Telegraph, this involves new trains for the Elizabeth line? Before Covid there was considerable investment in new rolling stock, but does he accept that, as the Treasury’s grip on railway finances has strengthened, his department has displayed, in the last couple of years, what can only be described as powerless drift and delay? This is no way to treat workers’ lives, and no way to conduct policy in a vital industrial sector. Where is the plan? Where is the promised guiding mind that will end the railways’ chaotic fragmentation?

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, I too pay my respects and offer my condolences to Lord Rosser’s family.

Several train operators are in the market for new trains, which will provide significant commercial opportunities for UK rolling stock manufacturers. Alstom will have the opportunity to take part in competitions for future contracts. Rolling stock owners are also continuing to support the supply chain by investing heavily in their fleets. Several major upgrades are under way, including for Govia Thameslink Railway’s Porterbrook-owned Electrostar fleet, and for Avanti West Coast’s Angel Pendolino fleet refurbishment.

Train Operating Company Contracts

Lord Liddle Excerpts

Monday 25th March 2024 Lords Chamber

[Lord Liddle (Lab)]

My Lords, it is almost six years now since the chaotic introduction of changed rail timetables demonstrated that the present system of train operating contracts is completely broken. Since then, we have had the Williams Rail Review, the Williams-Shapps Plan for Rail, and a lecture by the Secretary of State last year backing fully the case for reform. But all there is to show for this is a rather sketchy framework rail reform Bill, which the Government have put out for legislative scrutiny, despite the fact that the legislative programme is so light that the House of Commons is rising at 4 pm. What explains this dither and delay? I suggest to the Minister that the Government introduce this rail reform Bill into this House, where it could have lots of detailed scrutiny from informed people and be improved.

[Lord Davies of Gower (Con)]

As the noble Lord knows, the rail reform Bill is being scrutinised by the Transport Committee. That was an agreement by the usual channels. From May 2021, national rail contracts were introduced to bridge the gap between Covid-19 emergency agreements and future competed contracts. The last two national rail contracts began in October 2023. Under the national rail contracts, the Government cover the operators’ reasonable costs, receive revenues and bear the financial risks. The national rail contracts are flexible by design, allowing service levels to be adjusted as passengers return to the railways.