Great British Railway Plans

Lord Moylan Excerpts

Tuesday 22nd June 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

As it happens, I had a conversation yesterday with all the northern leaders when we met as the northern transport acceleration council. They raised this issue, which is of course one of capacity because there are more services, for example, between Newcastle and London. We have heard the pleas from various areas of the north on the timetabling. We are taking that away and doing what we can, but this is one of the reasons why we need Great British Railways. Timetabling is fiendishly complicated and we need to ensure that local areas are heard and get the services they deserve.

[Lord Moylan (Con)]

My Lords, will my noble friend take this opportunity to rebut the current rumours that Northern Powerhouse Rail is going to be scrapped?

[Baroness Vere of Norbiton (Con)]

My noble friend should not read too much into media reports on the front page of—I think it was—the Yorkshire Post. The Government continue to consider all options for Northern Powerhouse Rail as part of the integrated rail plan. Once that plan is published, we will work with Transport for the North to finalise a business case for Northern Powerhouse Rail. This will need to be consistent with the IRP’s policy and the funding framework.

Britain’s Railways

Lord Moylan Excerpts

Monday 24th May 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, there will not be two types of passenger service contract. There will be many types because the noble Lord is right. Some may incorporate revenue risk in due course to encourage innovation and get passengers back on to the railways.

[Lord Moylan (Con)]

My Lords, rail fare income is closely correlated with the economic cycle. The new arrangements involve a complete transfer of fare risk from the train operating companies to the taxpayer. This means that the Chancellor of the Exchequer is going to have to be very indulgent towards Great British Railways, especially in an economic downturn, if falling fare income is not to cannibalise the investment programme. Has my noble friend reached a specific agreement with Her Majesty’s Treasury on its approach to this aspect of funding Great British Railways? If so, will it be in the public domain?

[Baroness Vere of Norbiton (Con)]

The five-year business plan that will be developed by Great British Railways will be in the public domain and it will set out the capital and revenue funding over that period. I agree with my noble friend that passenger demand is challenging to predict as we move out of the pandemic. Evidently there will be risks for the Government as the holder of the revenue risk. The Government have supported the railways to the tune of £8.5 billion in the last financial year. However, on a positive note for the Treasury, we expect that the reform package will deliver savings of around £1.5 billion per year after about five years. That is 15% of pre-pandemic income.

Transport for London: Financial Settlement

Lord Moylan Excerpts

Tuesday 2nd March 2021 Lords Chamber

Asked by

[Lord Moylan]

To ask Her Majesty’s Government what progress they have made in discussions with Transport for London on a financial settlement (1) for 2021/22, and (2) beyond.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, the Government are committed to providing Transport for London with a financial deal that is sustainable, supports London’s recovery and keeps the capital moving. Any deal must be fair to the UK tax- payer. On 11 January, TfL provided us with a financial sustainability plan, which sets out its plans to achieve financial sustainability by April 2023. The Government hope to announce further Covid-related financial support for TfL shortly.

[Lord Moylan (Con)]

My Lords, TfL has suffered a double blow to its income from the pandemic and from years of irresponsible fare setting by the Mayor of London. While my noble friend grapples with that temporary challenge, will she also bear in mind that a railway needs steady capital investment too, and that there are parts of London Underground operating with signalling and rolling stock that is over 50 years old and is creaking at the seams. Will she, in support of the Government’s infrastructure objectives, seek to ensure that TfL is allowed a medium-term investment programme—however modest—to address these problems?

[Baroness Vere of Norbiton (Con)]

My noble friend is quite right: there have been some quite interesting fare increases—or not—from the mayor over recent years. We estimate that over the past four years his fares freeze has cost £640 million, which could otherwise have been spent on capital expenditure. But, as my noble friend knows, transport in London is devolved and it is up to the mayor and TfL to assess the merits of capital projects that they might want to invest in. However, it is absolutely clear that the Mayor of London must set a robust budget, demonstrate that TfL is on a clear path to achieving financial sustainability, and prioritise his capital expenditure. He will have to make difficult choices.

Rail Fares: Flexi-season Tickets

Lord Moylan Excerpts

Thursday 4th February 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The noble Baroness is quite right; the one thing we are going to have to do to get people back on to the railways—indeed, the public transport system as a whole—is to improve passenger confidence in the system. One way to do that is to be at the forefront of being able to provide the most up-to-date air filtration systems and secure the best enhanced cleaning contracts.

[Lord Moylan (Con)]

My Lords, noble Lords may have wonderful, imaginative ideas for playing around with fares, and there may indeed be a commercial case for flexible season tickets, but does my noble friend agree that the future of the railways is best secured if they maximise their own revenues and that the fundamental purpose of commuter fares and season tickets must therefore always be, as with airlines, to increase yields to the railways, thus saving expense for the taxpayer?

[Baroness Vere of Norbiton (Con)]

I somewhat agree with my noble friend in that, if this were being done in purely commercial terms, that would be the case, and we certainly want to minimise the amount of subsidy from the taxpayer where appropriate. However, the state might also want to intervene for other reasons and use pricing levers; for example, to encourage modal shift and get people out of their cars and on to the rail, particularly for certain types of journeys, and that might include commuting.

Heathrow Airport Expansion

Lord Moylan Excerpts

Thursday 17th December 2020 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The noble Lord is quite right that the Supreme Court did not give the go-ahead to anything; it simply ruled that the ANPS is lawful. What is the case is that expansion, if Heathrow Airport Ltd decides to do it, would move to the next step, which is the development consent order—that is, the planning approval that would need to happen, which itself is a fairly lengthy process.

[Lord Moylan (Con)]

My Lords, even with two fully operating runways, Heathrow imposes an intolerable noise burden on local communities, well in excess of safe WHO standards. With a third runway, this will only get worse. In the light of that, may I tease my noble friend into saying what thought the Government might have given recently to the prospect of a new hub airport, located well away from human habitation to the east of the capital?

[Baroness Vere of Norbiton (Con)]

My Lords, it is Christmas, but I will not be teased. The noble Lord raises the question of noise and it is a good point. I have already noted that aircraft are quieter than they used to be, but this is an appropriate time to mention airspace modernisation. This programme, which will happen over the next few years, will make sure that aircraft can land and take off on a steeper trajectory, which should have noise benefits around airports.

Railways: Fare Structures

Lord Moylan Excerpts

Tuesday 17th November 2020 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I am sure that the noble Baroness will understand that I could not possibly comment on rumours, but I refer her to the answer that I just gave to the noble Lord, Lord Snape, about the Government’s plans for any increase in regulated rail fares.

[Lord Moylan (Con)]

My Lords, public transport must provide sufficient capacity to meet demand in peak periods and so has excess capacity at other times of the day. If public transport is to maximise its own fares revenue and avoid dependency on the taxpayer, does my noble friend the Minister agree that operators should be allowed to offer a broad and flexible range of non-regulated fares so as to recognise variations in demand, and that a move to a rigid and simple fares regime is likely to force unnecessary increases in many fares?

[Baroness Vere of Norbiton (Con)]

My Lords, fares revenue remains a core component of funding for the railways, and I agree that it is important that train operators manage their businesses in line with taxpayers’ interests. Any proposals for changes to fare structures will, of course, be discussed with train-operating companies to ensure that they deliver for both passengers and taxpayers.