Southern Rail

Lord Rosser Excerpts

Tuesday 10th January 2017 Lords Chamber

[Lord Ahmad of Wimbledon]

While lessons of history in your Lordships’ House are always valued—I particularly value them—the situation with the railways was markedly different at that time. Here, as I have said before, the dispute is between the train operator and the unions. However, the Secretary of State and the Rail Minister—indeed, the whole Government—have ensured that they are doing all they can in terms of helping passengers and compensation. As I said—I have contextualised the dispute now—there is no basis for this dispute to continue. The Secretary of State has asked both unions to come in and meet him and call this dispute off. It is about time that they complied.

[Lord Rosser (Lab)]

My Lords, it is clear that, as a result of poor performance and days of industrial action, passengers, staff and—because of the nature of the franchise contract—the taxpayer are incurring financial costs. What is not clear, in the light of the nature of the franchise contract in which the operator is paid for running the service but does not retain the fare income, is what financial penalties have been incurred by Govia, the train operator of Southern, as a result of poor performance over a lengthy period of time and days of industrial action. What financial penalties have so far been incurred by the train operator Govia as a result of, first, poor performance and, secondly, days of industrial action? If no financial penalties have been incurred by the operator, what is the incentive, first, for the train operator to address issues of poor performance and, secondly, to resolve the current industrial relations issues if neither matter is affecting it financially?

[Lord Ahmad of Wimbledon]

As the noble Lord is acutely aware, he is quite right that train operators are paid a fee, with the remaining revenue coming to the Government. But the basis of the dispute, which is what we are focused on today, is very much a matter for the train operator. I note that the noble Lord refrained from commenting on the two pertinent issues that I outlined. As far as the issue of the company itself is concerned, as I said, the Government have stood behind it in ensuring that it can provide compensation when necessary. We have called upon and implored both the franchisee and the unions to come together to resolve this dispute.