Govia Thameslink Rail Service

Debate between Lord Soames of Fletching and Tim Loughton

Wednesday 13th July 2016 Westminster Hall

[Tim Loughton]

Well, the franchise has not been going for that many years and of course we had all the problems supposedly attributable to London Bridge at the beginning of the year, when the situation was bad enough, but it has got hugely worse since then. I will come on to that in a moment—I know that many other hon. Members want to speak.

On Monday, to deal with the crisis, GTR introduced its emergency timetable. That came on the back of the increasing number of planned cancellations, presumably because it reduces the penalties that the company has to pay. It came on top of the loosening of the franchise agreement, which I read about in the newspaper. Hon. Members were given no notice by the Department for Transport or, indeed, the company itself. Given all the interest that had been shown by colleagues here today, one would at least have expected to have been forewarned about that by the Minister. That was, frankly, discourteous and disgraceful and has only compounded our anger with the way the whole dispute has been handled.

When the new emergency timetable came in, what was the result? Last night, I got the figures for the public performance measure for 12 July. With the emergency timetable and 341 planned cancellations—341 fewer trains running—the PPM was 77%; it was barely three quarters on the second day of the emergency timetable. The position was that 2,800 trains ran, 2,172 were more or less on time, 620 were late and 122 were cancelled or very late. The result of the emergency timetable is that there is less choice for customers and more overcrowding, but presumably fewer fines. Extraordinarily, Charles Horton, the chief executive, in his appearance before the Select Committee on Transport the other day, said:

“We expect to see crowding levels evening out because of more regular intervals between trains”

as a result of the emergency timetable.

What sort of weird logic is that? There will be the same number of passengers battling to get a train to or from work, but more inconvenience because of the timings and surely more overcrowding because there are fewer trains to convey them. The extraordinary complacency of that attitude is absolutely baffling.

Specific problems have been caused by the change in the timetable. I am sure that my hon. Friend the Member for Lewes (Maria Caulfield) will mention the suspension of the Lewes to Seaford line in other than peak times—there is a replacement bus service—which includes the cross-channel port of Newhaven, which does not now have a regular daytime train service. It includes one of my local schools. We actually had the platform extended because, with the number of girls from Davison High School in Worthing using that station to go to and from school, it had become dangerous. Now, the only train in the morning arrives at East Worthing station at 5.35 or 7.16, with no further trains getting there until 18:24, and there is a similar lack of trains going home. Therefore, a station that Southern rail expanded to cater for the increasing number of pupils using it cannot be used as a stop for those girls to go to and from school. The crisis that this is causing is absolutely crazy.

The company cancelled 341 trains as part of the emergency timetable. We are told in the briefing note from GTR:

“The number of trains cancelled in the revised timetable is 341 which is broadly similar to the number”

that were cancelled on an ad hoc basis to date.

That is fine: the company is just making it official that it is rubbish—that now it is part of the official timetable that it is officially very rubbish. It is extraordinary logic, and apparently the company has done that without even having to get the permission of the Department for Transport, or so the chief executive claimed at the Select Committee the other day. We would like to know from the Minister how this works. How is it allowed to do this and get away with it, and still have its franchise as the largest passenger conveyer in the country? What are we going to have next? Why does it not reduce the timetable to zero trains and then it would have 100% competence in completing its timetable? That is the logic of where this is going, such is the ridiculousness of the situation.

This is at the heart of the problem. I do not believe that there is sufficient deterrent or incentive on either side, for the management or the unions who are party to these problems, to find a resolution with any sense of urgency. All this time, it is the passengers—our constituents —who are suffering and losing out. We listened to Mick Cash from the RMT in front of the Select Committee going on about how, “We couldn’t possibly, for safety reasons, have driver-only operated trains,” despite the fact those already operate on 60% of Govia Thameslink services and 30% of trains on the whole of the network, and have done since 1985. It is not prepared to sit down and discuss that, and it is not prepared to acknowledge independent studies that have shown that there is not a major safety consideration.

Then we had the management of GTR saying, “We have tried to sit down with them but they are being unreasonable and they are all going off sick deliberately.” There may be some truth in that; they may be cancelling trains deliberately in order to worsen the situation. Frankly, my constituents do not care whose fault it is; they just wanted it sorted. There is, “He said this”, “She said that”, “He did this”, “They did that”—it is absolutely ridiculous. Somebody—frankly, it should be the Government—should get the two parties together and metaphorically if not physically bang some heads together and tell them to sort it or else.

[Sir Nicholas Soames (Mid Sussex) (Con)]

I congratulate my hon. Friend on the way that he is dealing with this debate. It is clear from the statistics, which he will have seen, that the company is suffering from a very high level of real sickness. Clearly, there is something very wrong, or else it has a very sickly workforce. Does he agree that there are ways that sophisticated companies manage things like sickness? Would it not be better if the management of GTR took a great deal more trouble and were more proactive in dealing with the sickness problem?

[Tim Loughton]

My right hon. Friend is right. As somebody who has been even angrier than me in the face of GTR on occasions, he knows that there are solutions to this problem that have not been properly pursued. We are told by GTR that before the dispute happened approximately 21 conductors were off sick at any one time. Overnight, when this dispute came in, that almost doubled to 40, with spikes at three particular depots. Something is clearly up but there are things that GTR could do, whether genuine sickness needs sorting out or it is a form of unofficial working to rule.

I have been trying to get to the bottom of the finances in this whole crisis. In the Select Committee last week, Charles Horton said that GTR’s turnover amounts to some £1.3 billion, with just over 90% of that coming from the fee, paid by the Department for Transport, for running the franchise. The amount of fine—it is really difficult to drill down into exactly how much fine it has paid—seems to be about £2 million. Less than 0.2% of its annual revenue is having to be paid in fines as a result of the incompetent way in which it has run this service. Is that a real disincentive or penalty? I just cannot see how it is.

This is an unconventional franchise. I have tried looking at the franchise: all 668 pages of it. It is the only one in the country where the rail company is paid a fee by the Department and where all the revenue from passengers’ tickets goes directly to the Government. It is difficult to see who loses out when it goes wrong. When the network fails, there is a points problem, a London Bridge problem or whatever, Network Rail pays a penalty to GTR as the operator. That penalty is only paid on to the customer if they actually get round to the complicated process of the compensation payments, so GTR makes a profit, potentially, from problems on the network.

We read in The Times a few months ago—as I said, we were not notified by the Department—that GTR had been in breach of its licence and could have lost its franchise, but instead the Department agreed simply to loosen the targets for GTR, allowing an additional 9,000 trains to be cancelled a year without it being in breach of the reconfigured franchise agreement. These are my questions to the Minister. Exactly how much is GTR losing and what is the financial impact on Government revenue? How much compensation is Network Rail paying to GTR that is not then paid out to customers? What is the impact of the planned cancellations on penalties payable? My understanding is that when there are planned cancellations it does not have to pay the ad hoc penalties when trains do not turn up, do not start or skip stations or whatever. Are there financial implications for the loosening of the franchise and the introduction of this emergency timetable? What this boils down to is how much GTR and the Government have to feel financially pained before they do something urgently to resolve this crisis—and this is a crisis of great magnitude.

The Minister has the power to intervene on behalf of passengers and has made various statements. In yesterday’s Evening Standard she was quoted as saying that

“the real solution is for the RMT to end this dispute and the high levels of sickness amongst its members…we are working with TfL and issued a prospectus earlier in the year for new ways to improve services in the capital.”

That comes after the Mayor asked for GTR to be stripped of its franchise. The Minister has also said:

“Historically the Government doesn’t intervene in industrial disputes.”

But we are now told that a letter has been sent by the Minister to the unions offering some sort of deal. Perhaps she will comment on that and whether it is true, whether she is going to intervene, whether she can intervene and whether she is prepared to intervene. She has said:

“The union is holding commuters to ransom. Again if there was a legitimate safety concern or genuine job losses I would understand but this is a growing industry…This is not about job losses. This is about politics...What do you want me to do, get them in for beer and sandwiches?”

Frankly, that is not good enough and those sorts of sloganising headlines do nothing to get this problem resolved for our constituents. She has really got to get a grip.

There are many other problems as well. Back in January we had a summit in Westminster Hall. It was a very useful meeting. My right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) was greatly aerated. We enjoyed his interventions at the expense of the GTR management greatly; they were heartfelt and passionate and we all agreed with him. At that summit we had GTR, Network Rail, Department for Transport officials, MPs, Transport Focus and others—there were about 22 or so hon. Members, many of whom are in this room at the moment. We made it clear at that stage that this could not go on. At that stage we were primarily looking at the fallout from the problems with London Bridge, well before these additional problems came along. We were promised a follow-up summit six months on in order to assess the situation. Where has that gone? We have one week to go before the recess and there is no follow-up summit to get everybody together and hold their feet to the fire—in my right hon. Friend’s favourite phrase.

What really struck everybody at that summit was that the head official from the Department for Transport, when asked about taking back the franchise, got up and said, “Well basically, if GTR were not running this franchise—a very large franchise, a complex franchise—I would be the one responsible for it in the Department for Transport, and you don’t want that.” In effect, GTR was told it faced little prospect of us taking back the franchise because we cannot really run it ourselves. What sort of incentive was that for GTR to get its act together if it knows it can get even worse and even then the Government will not intervene and do something about it? I am really angry about this on behalf of my constituents.