Shadow Great British Railways: Chair Appointment

Lord McLoughlin Excerpts

Tuesday 12th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

Fares on the railway are so complicated that even the people who sell them do not understand them. Some of them look absurdly expensive; some are very cheap. It is very possible to sit in a carriage where nearly everybody has paid a different fare for the same journey. The passengers wholeheartedly dislike it. One of the reasons for public ownership of the railways is to get commercial sense back into a sensible fares and ticketing system, which will attract passengers to the network.

[Lord McLoughlin (Con)]

But, my Lords, does the Minister accept that, on some occasions, it is necessary for the Government to appoint people without a competitive process—as I did in the Minister’s case when I appointed him as the chairman of Network Rail? I expected him to be solely the success that he was and to bring a political neutrality, which we see today and which he carries well in his present role.

[Lord Hendy of Richmond Hill (Lab)]

Of course, I congratulate the noble Lord on his previous appointment, which seemed to last nine years, so you might judge it successful. I think that the present appointment will be equally successful—somebody with an excellent transport background who understands the politics and economics of large conurbations and will make a real difference, improving the railway in the short term before we get the substantive Bill in the longer term.

Newly Qualified Young Drivers

Lord McLoughlin Excerpts

Monday 11th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend. I am afraid I am already one of those people who is subject to the more rigorous requirements; as a vocational licence holder over the age of 70, I have to have a medical every year. The current driving licence arrangements take into account the risks that an individual poses to road safety. They are designed to be fair and proportionate to all drivers who remain fit and competent to drive, regardless of age.

[Lord McLoughlin (Con)]

Will the Government, while acknowledging that there may be a case for a graduated driving licence, also look at the issues which cause most of the accidents on our roads and perhaps look again at the penalties that are there for using the phone while driving?

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord for that thought, and of course he has great experience in this matter. The Government are very conscious of the principal reasons for fatalities and serious injuries, and I will certainly take away the thought that we should look further at driving while using a mobile phone, but the existing penalties for this and their enforcement are very stringent.

Railway 200

Lord McLoughlin Excerpts

Thursday 31st October 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

The Leamside line is one of many projects—I have already had a question about the Midlands Rail Hub—that are part of the review commissioned by the Secretary of State for Transport. We need to allocate the funding we have for railways in the best possible way. The comprehensive review she has commissioned will seek to do just that.

[Lord McLoughlin (Con)]

My Lords, I welcome the department’s contribution to the 200-year anniversary. Will the Minister acknowledge that we have seen massive growth on the railways over the past 20 years, with passenger journeys going up from 700 million to 1.8 billion before the Covid pandemic? What is the Government’s plan to see them continue to grow? That growth has been brought about by bringing in the private sector.

[Lord Hendy of Richmond Hill (Lab)]

We all recognise the growth in passenger traffic on the railways in the past 20 years. There are many reasons for it. Sadly, post Covid, the railway has less patronage than it did and certainly less income than it did, so the Government’s proposals for a reformed railway have to address the issues on the railway as they are now, not what happened in the past.

HS2: Purchased Land

Lord McLoughlin Excerpts

Wednesday 23rd October 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend for his supplementary question. As reported by the National Audit Office, by March 2024 £2.3 billion had been spent on phase 2 which, as he says, was cancelled by the previous Government. No property on the hastily cancelled phase 2a has yet been disposed of. The Government are carefully considering what to do. He will know as I do that railway infrastructure lasts 150 or more years, so the right thing is to have a considered long-term plan for the benefit of the economic growth, jobs and housing in this country.

[Lord McLoughlin (Con)]

My Lords, nobody knows better than the Minister the importance of capacity as far as that rail line is concerned—particularly the capacity from Handsacre to Crewe, the legislation for which has already gone through this House. Is there a time limit on that legislation, as there sometimes is on planning permissions, or does that legislation stand good for a Government who wish to concern themselves seriously with a capacity that is so vital on our railways, if we are to shift freight from road to rail?

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord for his question, and I recognise, as he does, the capacity limitations of the west coast main line north of Handsacre. There is a time limit; I cannot offhand say what it is, but I can certainly write to the noble Lord. The Government intend to work out what to do and to say what they will do before any expiry of those powers.

HS2

Lord McLoughlin Excerpts

Tuesday 23rd July 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

We will review the National Audit Office’s report, which is a report on the status of the project as it was left under the previous Government. We will have to do that before setting out more detailed plans. Personally, I am aware of the disparity in seats created by the present planned service pattern on HS2 following the cancellation of phase 2a. We will have more to say about that in the future.

In respect of the Barnett formula, heavy rail is reserved in Wales, so any heavy rail scheme that the department delivers should always be classified as England and Wales when applying the Barnett formula. That includes HS2. It is a different situation in Scotland and Northern Ireland. The Scottish Government and Northern Ireland Executive, under their devolved policy areas, do therefore receive Barnett-based funding. This is consistent with the funding arrangements for all other policy areas reserved in Wales but devolved in Scotland and Northern Ireland. That said, due to use of departmental comparability factors in the Barnett formula at spending reviews, the Welsh Government have received a significant uplift in their Barnett-based funding due to the UK Government’s spending on HS2.

[Lord McLoughlin (Con)]

The Government are committed to building HS2 up to Handsacre. Is the Minister satisfied that there is sufficient capacity beyond Handsacre up to Crewe, given what the new line will deliver to the country, and will he bear this in mind in his review?

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord, Lord McLoughlin, for his knowledge of the geography of the national railway network; I am aware of it myself. We will certainly have to bear that in mind with the review of the project as it now stands.

Mail Carriage by Rail

Lord McLoughlin Excerpts

Monday 22nd July 2024 Lords Chamber

[Lord McLoughlin (Con)]

In congratulating and welcoming the Minister to his place—a man who will probably be giving advice to his civil servants rather than the other way around—I would like to ask him about the long-term plans for freight on the railways. What extra measures does he envisage taking, bearing in mind the serious capacity issues that have just been referred to by the noble Lord, Lord Grocott?

[Lord Hendy of Richmond Hill (Lab)]

I welcome the comments from the noble Lord, Lord McLoughlin. It is important that rail freight increases, but the noble Lord is correct in referring to capacity problems on some parts of the network. There are two things to do. First, historically the freight companies have a number of paths that they do not use and never have done, which are getting in the way of running more passenger trains. Secondly, in return, the Government’s emphasis on the carriage of more freight by rail demands us to look carefully at the capacity of the railway and facilitate the paths that are needed for modern freight, particularly containers and bulk aggregates, in order that traffic can increase.

Lower Thames Crossing: Development Consent

Lord McLoughlin Excerpts

Monday 29th April 2024 Lords Chamber

[Lord Davies of Gower (Con)]

I know the crossing well and I am very conscious of the issues around it. It is a large infrastructure project, so we must get it right.

[Lord McLoughlin (Con)]

My Lords, the simple fact is that this is one of the largest planning applications that has been put before this country; I believe it runs to more than 359,000 pages of requirements. Perhaps my noble friend can reassure us that, following this project, there will be a review of the way in which planning applications are handled. It is very reassuring to hear people from Liberal and Labour Benches say that it should be facilitated much faster. I am not sure whether the local Liberal party has been as supportive of this project as the Liberal Benches in this House seem to be today.

[Lord Davies of Gower (Con)]

It is a huge project at £800 million, and the current most likely cost of the project is estimated to be £8.3 billion. I will take the noble Lord’s comments regarding planning back to the department.

Transport System: Failings

Lord McLoughlin Excerpts

Thursday 25th April 2024 Lords Chamber

[Lord McLoughlin (Con)]

My Lords, I congratulate the noble Lord, Lord Snape, on securing this debate and on managing to tee up his party to make its major announcement on rail today. It is a great achievement.

It is a privilege to see the noble Lord, Lord Hendy of Richmond Hill, in the Chamber today. He is somebody who has done a huge amount for rail and transport infrastructure in the United Kingdom. I was very pleased that he was appointed as chairman of Network Rail. In fact, it was my appointment, so I was delighted to be able to do that.

I declare my interest as chairman of Transport for the North and as someone who thinks that strategic transport bodies have importance. I do not have a lot of time to talk too much about that today.

This debate has fallen into the trap we so often fall into when we talk about transport, because transport is not about just the rail industry. Today’s debate has been dominated by speeches about railways from nearly all Peers, apart from my noble friend Lord Holmes, who mentioned Network Rail only in passing, right at the end of his speech—I congratulate him on that. Naturally, railways are very important to our transport system, but I am glad that certain people have made reference to buses, and I certainly hope to do so too.

There is no doubt that transport is the artery of any economy. It gets people to work, children to school and food to shops. Everyone depends on it every day. When transport slows, everything slows; when transport stops, everything stops. We saw an example of that during the pandemic, to which quite a few of the problems we face today relate. We almost forget that, just four years ago, the country was virtually at a standstill because of the pandemic. But lots of things are changing in the transport world.

There have been a lot of attacks on privatisation today. It is worth bearing in mind that, before privatisation, there were 700 million journeys a year on our railways; the year before the pandemic, there were 1.8 billion journeys on our railways. We have seen a revolution in the rail industry: it does far more and serves far more people. That happened because private finance was brought into the rail industry, and we were no longer completely reliant on what the Treasury said and did not say. There have been a lot of attacks today on the Treasury, so I say: be careful what you wish for because, if you wholly nationalise, the people who will take back control will be not the Department for Transport but His Majesty’s Treasury. So one should be a little cautious about what one asks for. On the idea that open access will somehow be allowed to continue, with all the other operators being nationalised and operated from the centre, it will be interesting to see how that develops in the longer term.

I very much regret the Government’s decision on stopping HS2. Unfortunately, HS2 became a discussion about speed, but it was never about speed; it was about capacity on our network and freeing up a lot more room for other services on it. Two metro mayors, Andy Street and Andy Burnham, commissioned a report from David Higgins on what a future Government will do, and it will be interesting to see that, whatever happens after a general election. I slightly warn people: I remember that, when I was first elected to the House of Commons, I was told by the BBC that it had done an exit poll in my constituency and I had lost. The returning officer told me otherwise. From that day onwards, I have always believed that the returning officer is a bit more authoritative on election results. Given that, let us be careful about what we see as the future of the rail industry.

The other interesting growth and important change that has taken place is the growth of metro mayors and their importance as far as their impact on transport and transport policy is concerned. As I say, Andy Street and Andy Burnham commissioned work from Sir David Higgins about what should happen as a result of terminating HS2 at Handsacre, and it will be interesting to see exactly what happens with that under any future Government.

On some of the points made earlier about buses, I say that buses are incredibly important to our transport system. I congratulate the Government on the £2 fare cap that they brought in. It has seen patronage start to rise and more people using buses. It is due to end on 31 December this year. A few other things will take place between now and then that may preoccupy parties’ minds, but, if this does end, it will be a very retrograde step for the bus industry. I hope my noble friend on the Front Bench can relay the message to the Secretary of State that this should be extended at least to the end of the financial year, so that people are not starting to think now about what they might do if that £2 fare cap were removed.

There was an interesting story in the Times a few weeks ago about how much has already been spent before any decision on the lower Thames crossing has been made:

“National Highways, which manages the strategic road network, has spent more than £267 million on the application alone, while overall spending on the project has surpassed £800 million”


before a spade has been put in the ground. We need to look carefully at how we do long-term planning for these big infrastructure projects. I think we have got the system wrong.

I can see my time has come to an end, so I say to my noble friend on the Front Bench that transport is about not just the railways but a lot of other subjects that we have not had time to talk fully about today.

East Coast Main Line

Lord McLoughlin Excerpts

Wednesday 24th January 2024 Lords Chamber

[Lord McLoughlin (Con)]

My Lords, I declare my interest as chairman of Transport for the North. Some of the difficult decisions that have had to be taken have been partly because of the upgrading of the trans-Pennine route, which is a huge investment as far as the Government are concerned over the next few years. Will my noble friend assure us that the planned upgrade for York station, which will allow greater capacity eventually to serve areas such as Berwick-upon-Tweed, is in the Government’s future plans?

[Lord Davies of Gower (Con)]

A lot of these changes to the trans-Pennine route are part of the Making Journeys Better plan, outlining how TransPennine Express under DfT OLR Holdings will work to make things better. Having completed an in-depth review of the business, these services are expected to be restored from December 2024. I will have to come back to my noble friend on his question about the railway station.

Rail Fares

Lord McLoughlin Excerpts

Monday 27th November 2023 Lords Chamber

[Lord Davies of Gower (Con)]

Not on this occasion. My Lords, we are focusing on delivering for passengers and customers by integrating new opportunities, such as, as I said earlier, the recently announced £36 billion of funding for Network North, fares and ticketing reform and improving accessibility, as well as delivering the £44 billion settlement for Network Rail to support the safe and efficient running of the network for customers between 2024 and 2029. Securing a slot for pre-legislative scrutiny of the draft rail reform Bill demonstrates the Government’s real commitment to our railways.

[Lord McLoughlin (Con)]

My Lords, I welcome my noble friend to his post. I have some sympathy with him as far as rail ticketing is concerned, because everybody thinks it should be reformed if it means they get cheaper tickets. The simple fact is that as long as the Treasury has the control that it does over the rail companies, which is greater now than it has ever been, through the department, then we will not make much progress on this matter. When does he expect to see the results of LNER’s experiment? Does he think this can be rolled out more quickly than presently planned?

[Lord Davies of Gower (Con)]

I hope that this can be rolled out as quickly as it possibly can be, but again, I am afraid I cannot give a definitive answer at this point.