Passenger Railway Services (Public Ownership) Bill

Nadia Whittome Excerpts

Committee of the whole House
Tuesday 3rd September 2024 Commons Chamber

[Helen Whately]

It is good to see hon. Members so soon after the summer recess. I know that the Secretary of State for Transport, the right hon. Member for Sheffield Heeley (Louise Haigh), has been busy over the summer, but I hope that she managed—like the Deputy Prime Minister—to find some time to let her hair down.

When we last met, I set out why the Conservatives cannot support the Bill. I do not doubt that Government Members sincerely believe in their plan, in getting rid of privately run train operators, and in putting politicians in charge of running train services, but just because an ideological belief is deeply held, that does not make it right. It is certainly not the same as using evidence as a basis for decision making.

Our railways are vital to our economy: millions of people rely on trains, whether to get them to work or school, to make essential journeys, to see family and friends, or simply to visit other parts of the country. Our rail system is complex—a mix of public and private built up over many years. One thing it is not, though, is a toy train set to be played with, but I fear that is the approach this Government are taking. They are rushing through this ideological reworking of our rail system despite the absence of solid evidence to back up their approach, at a time when other countries are choosing to increase private sector involvement and competition in their rail systems.

There is no good reason for this Committee stage to be raced through in one day, rather than through a normal Bill Committee that would allow proper time for consideration and discussion, the time appropriate for such a substantial and significant change. Proper time would allow this legislation to be made better—indeed, fit for purpose—drawing on the strengths of our rail system as well as the weaknesses, and using the lessons of our experience and that of others, while still fulfilling the Government’s intention as set out in their manifesto. Instead, in their haste, this Bill simply takes a one-size-fits-all approach, pulling the plug on even the best train operating companies despite the mixed record of the Department for Transport when it comes to the performance of the franchises it runs already.

In the Government’s haste, the Bill lacks any controls or incentives to reduce the risk of increased costs to taxpayers and passengers. We can say the same for performance: where in this Bill are the incentives to improve that, or the protections for passengers should performance worsen when the right hon. Member for Sheffield Heeley is at the controls of our trains? In the Government’s haste, those things are missing too. In their haste, if they do what they said in their manifesto, they are going to bring thousands of rail workers into the public sector, all under a single Government employer. We will have unions reclining comfortably on ministerial sofas as they discuss pay for thousands of people, funded by the taxpayer, with no safeguards to speak of to make sure the taxpayer gets a good deal.

On Second Reading, I said that some more thought should go into the Bill over the summer. I asked a series of questions and made a number of suggestions. At the very least, I was expecting the Government to table some amendments, but I am sorry to report that, as far as I can see, they are going full steam ahead. There is no sign that any serious thought has been given to the long-term impact of Government-run train companies on growth, or on the efficiency of our railways. There is barely a word on the liabilities that this Bill would transfer on to the Government’s balance sheet, and crucially, no evidence has been shared about how passengers and their journeys will be affected.

Fundamentally, the Government are rushing ahead but travelling blind, pressing on irrespective of the impact on passengers or taxpayers, which they simply do not know. The right hon. Lady has made herself passenger-in-chief and then set off on a journey without knowing the destination. That is not a sensible way to govern. Passengers should always come first, above providers, unions and ideology. That is why our first amendment would require the Government to set out what impact they believe the Bill will have.

[Nadia Whittome (Nottingham East) (Lab)]

I find the hon. Member’s comments on public ownership a bit rich, given that privatisation of our railways has spelled 30 years of failure—30 years of delays and price increases for passengers, and eye-watering profits for private companies. Most people in the UK opposed privatisation at the time, and most people still oppose it today; in fact, a clear majority of her own party’s voters oppose the privatisation of the railways. Can she not see that the Secretary of State, in bringing forward this Bill, is serving the interests of our constituents?

[Helen Whately]

Unfortunately, the hon. Member is simply wrong in some of the statements she makes. I am not ideological about this—I know that there is a place for the public sector and a place for the private sector. In our reforms, we proposed a closer working together of track and train through Great British Railways, much of which this Government are planning to bring forward. However, there have also been benefits to this country from privatisation, including a significant growth in passenger numbers, which has not been seen in many other countries. That is one reason why several European countries are planning to follow our model and increase competition in their rail services, in order to drive up passenger numbers and provide greater efficiencies.

As I said a moment ago, amendment 18 would require the Government to set out what impact they believe the Bill will have. For instance, what impact will getting rid of private sector train companies—the good performers as well as the weaker ones—have on passengers, fares, reliability and the cost of the railway to taxpayers? The amendment proposes that the Government should set that information out clearly in a report within the next six months. I am sure that hon. Members do not consider that to be unreasonable; surely, it is the least that any of us would want to see, since we all represent both rail users and taxpayers. It would mean that we would all know what difference the Government expect the legislation to make. I would hope that the report would be set out in a way that stands up to scrutiny, that it draws on evidence and that it has a suitable level of rigour for something so significant. It would also give us all something to hold the Government to account against, as well as the managers who take over responsibility for train operators.

Passenger Railway Services (Public Ownership) Bill

Nadia Whittome Excerpts

2nd reading
Monday 29th July 2024 Commons Chamber

[Louise Haigh]

My hon. Friend is absolutely right to say that we have seen immediate improvements on bringing previously privately run operators into public ownership, but we can go further still, and that is the benefit of taking the two-pronged approach that I will set out later in my speech. She should be in no doubt that South Western will be brought into public ownership, as will all remaining contracts within the first term of this Government, and ideally within the first three years of this Bill receiving Royal Assent. We will act swiftly. I have no doubt that we will hear plenty of voices from the Opposition Benches labelling this an ideological move. Those accusations are way off the mark. There is nothing ideological about fixing what is broken and reforming what does not work.

[Nadia Whittome (Nottingham East) (Lab)]

I very much welcome this Bill and I congratulate my right hon. Friend on all her work in getting us to this point. Since our railways were taken out of public ownership, tens of billions of pounds have been lost to shareholder dividends and the inefficiency of a privatised system, all while ticket prices have soared. Does she agree that it is high time that we put passengers before profiteers?

[Louise Haigh]

My hon. Friend is exactly right, and that is what is at the heart of these proposals. This is an opportunity to genuinely reform our railways from top to bottom, to ensure that passengers and growing the railways are the only objectives that they should serve—not private operators, not shareholders, not the whims of the engineers that run Network Rail. This is a once in a generation opportunity to make sure that our public transport system serves the public, so it is not ideological. What was ideological was the previous Government sitting back and presiding over a broken system while passengers and the economy paid a heavy price. I know that the Tories have been trying to pretend that the last 14 years of failure have not happened, but they cannot deny that after 30 years of privatisation we find ourselves in a position where taxpayers are responsible for 50% of the rail industry’s income and underwrite almost every penny spent, while profits are siphoned off to shareholders.