Open Access Rail Services

Lord Tunnicliffe Excerpts

Wednesday 22nd October 2025 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

The noble Baroness has a good point. The regulator necessarily needs to give a successful open access application sufficient time to recover the significant costs of rolling stock. Many of these arrangements run for at least 10 years, and it would not be right to curtail those activities. Serious investment has been carried out to allow them. What happens in the future we can debate during the passage of the railways Bill, but for the moment those open access operations that have 10-year or similar periodicity will continue.

[Lord Tunnicliffe (Lab)]

My Lords, I spent 32 years of my career working in the public sector and came to understand that the objective was the needs of the customer, value for the taxpayer, protection of the environment and having regard for society in general. Open access, on the other hand, tends to create conflict, encourages gaming the regulator and inhibits evolutionary change. Will the Minister exercise extreme caution when considering open access bids?

[Lord Hendy of Richmond Hill (Lab)]

I listened to my noble friend with care and respect because he has significant prior experience in running railways. He is right that we should be careful, because we are dealing with only 1% of the passengers and the rest of the network has 99%. We should be careful to allow people to innovate where innovation is a good thing and where there is space for it. We should not allow innovation where it is not a good thing, costs taxpayers money and cannot be accommodated on a very constrained network.

Great British Railways

Lord Tunnicliffe Excerpts

Thursday 13th March 2025 Grand Committee

[Lord Tunnicliffe (Lab)]

My Lords, I thank the noble Lord, Lord Young, for tabling this debate. Much of his involvement took place in the mid-1990s. At that time, he was my ultimate boss, and I became the ultimate student of this operation, in which, on the basis of the somewhat bizarre writing of an excellent letter, we could have been involved as well.

My simple answer to the Question is that open access should be phased out as quickly as reasonably practical. It is a bit of a shock to be informed that I am agreeing with the RMT on that matter. Rail privatisation was a product of the political doctrine of the day: that private ownership and competition would solve all our problems. My personal view is that privatisation as a generality has failed. Rail privatisation has failed, at best, bizarrely, and, at worst, disastrously. The bizarre part of it comes from the track being given to Railtrack, which is a sort of private sector company which went broke and then turned into Network Rail, which is a pretend independent company that was nationalised not by the Government of the day but by the ONS, which said that so much of it was tied-up with the Government that it was really a nationalised company. It dumped £34 billion on the national debt, which virtually nobody seemed to notice.

There was little pure competition in the railway throughout this process; open access was the closest, and was therefore pursued. There was some slack in the system and some open access operations emerged. It is my view that they undoubtedly cost the taxpayer money and that there was not much benefit. In future, they will inhibit total system optimisation.

Any operator of open access will need long-term stability of their rights, whereas the great thing about Great British Railways is that it will eliminate all the conflict in optimising the railway. There will be a single guiding mind. The only disputes in future are likely to involve open access operators, since they will be the sole source of external commercial pressure. This will absorb a disproportionate amount of management effort. The only case for open access is doctrine, and it is a doctrine I do not share.