Draft Welsh Ministers (Transfer Of Functions) (Railways) Order 2018
Debate between Rachael Maskell and Jonathan Edwards(6 years, 7 months ago)
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Rachael Maskell (York Central) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Davies. Today’s statutory instrument is an important step in the devolution plan for our railways, as we see powers and responsibilities shift from Westminster to Wales. The Welsh Labour Government are already undertaking plans to design and let the new Wales and Borders rail franchise from this October, as well as to develop ambitious plans for the metro. Although devolution will feature heavily in Labour’s future plans for our rail service, we are absolutely clear that we will also bring rail operations back under public ownership and integrate them with wider infrastructure, improving efficiencies and the effectiveness of our major transport network. We will ensure that rail is run co-operatively and collaboratively alongside devolution, to enable the best of localism, while ensuring a consistent approach across the rail network, and that all revenue returns to the state, not the bank accounts of shareholders.
This statutory instrument, therefore, paves the way for the Welsh Government to build a world-class transport system in Wales for the people of Wales—one that is focused on regrowing the Welsh economy and serving Welsh communities. With 32 million journeys undertaken currently, growth until 2030 is forecast to be 74%, so this next phase highlights how important it is that rail policy is designed in a fully integrated way, with spatial and economic planning, and is fully integrated into the wider transport system in Wales.
Wales will embed the values and ethos of public service in the next iteration of its rail system. It will ensure that high standards improve services to passengers, and it will focus on reinvestment into the service rather than private profit. However, there are issues that we want the Minister to address. It is of huge frustration that he, in Whitehall, will not provide the real powers that Wales has called for, but instead has hidden behind the Railways Act 1993 to disallow Wales from having a public sector provider to run its rail service and to restrict it to tendering the service to private operators.
Whitehall’s continual grip on decisions of this nature does not demonstrate a Government wanting to support the ambitions of the people of Wales, nor does it enable the Welsh Government to run their rail service in the most efficient and effective way. It binds them to the failed philosophy that results in private companies continuing to derive profit out of passengers, while passengers pay more for their services.
The Welsh Labour Government have lobbied the UK Government for greater devolution of transport powers—for instance, to deliver a change to legislation to allow public sector bodies to act as franchisees and to place us on a similar footing to Scotland. The UK Government have continued to oppose that and other legal restrictions, meaning that the Welsh Government cannot bar for-profit operators from coming forward to run some elements, at a time when Labour Wales wants to show more ambition for the people it represents.
The restraints are not stopping the Welsh Labour Government acting creatively. Transport for Wales has been created as a not-for-profit company initially tasked with supporting the Welsh Government to design and let the next franchise and metro. Once the franchise has been let, it is expected that Transport for Wales will oversee the management and joining up of services, including items such as marketing and integrated ticketing.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
One of the questions I am hoping to ask the Minister is whether he is confident that having only two franchise bidders will mean that there will be a competitive process. As the Member representing the Labour party in this Committee, is the hon. Lady confident that the Welsh Government can proceed with this franchise bidding process with only two bidders?
Rachael Maskell
The hon. Gentleman is right to be sceptical about the process. Not only has it been limited to the private sector to bid for these franchises, but, as he has highlighted, only two companies are in place. This Government have directly awarded so many contracts of late, and we are concerned about the way the market is continuing to fail the people who use the service.
Rachael Maskell
The point is irrelevant; not only is the NHS performing incredibly well in Wales—of course, it was founded by Bevan, who was from Wales, and we are incredibly proud of that—but the Welsh Government want to realise the ambition of the people of Wales and to have the opportunity to move the railway system forward as an integrated form of transport. We really look forward to the progress that a Labour Government will make—if this Government do not provide the powers necessary to do so.
I will return to the main issue. Labour would ensure that Transport for Wales is at the heart of rail operations, not just to lead in Wales but to secure its voice at the table when it comes to integration of the rest of the rail network across the UK.
The Welsh Government have already made it clear that those services that can be run directly through a not-for-profit model will be run that way, with many more services, such as ticketing, marketing, station management and car parking, operating in new and innovative ways under that new approach.
Labour has been planning to increase capacity, improve efficiency, upgrade rolling stock and integrate rail with other public transport modes, as well as to change the culture, improve access for disabled people, consider how rail can further the wider economy and invest in the workforce, not least in the area of skills.
In November 2016, bidders for the new franchise submitted their outline solutions, in accordance with criteria set by the Welsh Government. Since January 2017, detailed work has been undertaken with the two bidders to deliver for passengers, and that process continues.
In November 2014, agreement was reached between the Welsh and UK Governments to devolve executive franchising functions to Welsh Ministers, so that they could lead the procurement of the next Wales and Borders franchise, which is due to commence on 14 October 2018. Today’s order will achieve this, and through the affirmative resolution procedure in both Houses, it will result in changes to the Railways Act 1993 and the Railways Act 2005.
While mainly in line with those powers devolved to Scottish Ministers, there are some differences in the scope of cross-border rail operations into England and in the fact that responsibilities in respect of the rail network are not being devolved to Wales. Today’s statutory instrument will enable Welsh Ministers to be the sole designating and franchising authority in respect of Wales-only services, and enable Welsh Ministers to designate and franchise the Welsh component of Welsh services—those parts of cross-border services to and from England within Wales—that are contained within the same franchise as Wales-only services. This scope has been agreed in recognition of the extensive nature of cross-border services, and services wholly within England, provided by the Wales and Borders franchise, and the need for appropriate accountability for rail operators on each side of the border.
Since all the relevant references to the “National Assembly of Wales” are replaced by references to “Welsh Ministers”, on the basis of agency arrangements established under section 83 of the Government of Wales Act 2006, it is possible for Welsh Ministers to act as the agent of the Secretary of State. Thus, they can procure and manage the entirety of the Wales and Borders franchise, which includes services that continue to and from, and that operate within, England.
Given that this order makes it possible for the Welsh Government to lead the procurement and management of cross-border services, in the light of the Great Western, West Coast and Cross Country franchise processes, will the UK Government work with the Welsh Government to consider how they can lead the delivery of more cross-border services, so that they can work for the economy and people of Wales? I look forward to hearing the Minister’s response.
The Welsh Government’s ability to operate additional services to destinations already served by the Wales and Borders franchise, and to additional destinations in England, is being heavily constrained under these arrangements. These restrictions will suppress both the rail service offer and the financial potential of the franchise in Wales, not least by the allocation of rail paths. Will the UK Government work with the Welsh Government to address that issue?
The agency agreement setting out the arrangements under which Welsh Ministers can operate services in England is very restrictive. Scottish Ministers are able to operate services into England without such restrictions. Will the Minister therefore agree to review these arrangements, with a view to relaxing them, so that Welsh Ministers can act more freely as a franchising authority, not least in enabling rail operations to move into public hands?
We have been informed that a co-operation and collaboration agreement with Welsh Ministers is being developed. The agreement will need to set out arrangements for how Welsh Ministers will be actively involved in the procurement and management of the cross-border services that continue to be included in the Secretary of State’s franchise. Will the Minister provide an assurance that Welsh Ministers will be significantly and meaningfully involved?
The Commission on Devolution in Wales recommended devolution of funding for Network Rail, but in the four years that have passed since the publication of the part 2 report, the UK Government have not been prepared to open discussions with the Welsh Government. Will the Minister commit to open discussions, not least in the light of the Government’s ambition to join rail operations with infrastructure, as set out in “Connecting people: a strategic vision for rail”, which was published in November? Not to do so seems contrary to that paper.
Network Rail’s annual reports and accounts illustrate that, since its Wales route was established in 2011, just over 1% of spending on enhancement schemes across England and Wales has been directed to the area, yet the Wales route contains 11% of England and Wales’ rail network. A firm commitment to provide a fair level of investment is urgently needed to improve access to employment opportunities and to enable Wales to compete as a location for inward investment in a post-HS2 era. Will the Minister give a commitment to ensure that the options provided for by a new Crewe hub allow for full and unimpaired access to the north Wales main line?
Jonathan Edwards
I thank the hon. Lady for making that important point, but she seems to be announcing a change in Labour party policy. She is right to say that the Silk commission noted that those powers should be devolved to Wales, but my recollection of events during the St David’s Day process—the hon. Member for Montgomeryshire might have something to say on this point—was that the then Secretary of State for Wales, the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), and the then shadow Secretary of State for Wales, the hon. Member for Pontypridd (Owen Smith), made an agreement to take those provisions from the Silk commission out of the Wales Bill.
Rachael Maskell
Labour is absolutely clear that we will do nothing to impede the Welsh economy from growing. That is the focus of our vision and that of Welsh Ministers in the Welsh Assembly and of those in this place.
The recent decision to cancel electrification to Swansea, especially in the light of the revelations in the National Audit Office report, highlights that the Secretary of State knew that bi-mode trains would not provide equivalence to electrification. In fact, no such trains exist that could deliver to the timetable. The Secretary of State acted against the advice that he was given on the matter. That has resulted in the poor execution of Network Rail’s electrification works in south Wales, and the Secretary of State has failed to apologise to the House in the light of those revelations. Perhaps the Minister will offer an apology today, which would be a start.
The decision has caused great disappointment and disruption across the region. Will the Minister commit to long-term investment in the south Wales main line and reinforce the importance of achieving all the remaining electrification ambition through to Cardiff, including on the relief lines? When can we expect to hear an update on that, not least about how electrification will be extended to Swansea?
In the Secretary of State’s written statement of 20 July 2017, which cancelled electrification to Swansea, it was proposed that a new pipeline process be established for rail enhancement schemes. However, further detail about that process, as well as the mechanisms for developing and delivering those schemes, is yet to emerge and no Welsh scheme has yet entered the pipeline. Given the recent cancellation of major investments in Wales, will the Government outline what they are doing to ensure that Welsh rail projects are given the priority and funding they need through the new process?
The Minister will be aware of the importance of the trans-European transport network in Wales. Under regulations, the routes to Milford Haven and to Holyhead need to be upgraded by 2030, which includes full electrification. Does the Minister agree that as we leave the EU, those arterial routes become more important, not least since important examples of TEN-T routes run through non-EU countries such as Switzerland? Will the Government publish a plan for how the upgrade to the TEN-T requirements will be delivered in that time framework?
In conclusion, Labour does not believe that the draft order goes anywhere near the ambition needed to enable Wales to take control of its own destiny. It is becoming increasingly clear to everyone that only a Labour Government can deliver the necessary controls to provide not only the rail service that the people of Wales demand, but the vital infrastructure needed to deliver an economy that works for everyone. Labour will not block the regulations before us, because we want to ensure that Welsh Ministers can increase their role in the running of the rail service at the earliest opportunity. However, we put on the record our concerns that the Government have seriously limited the opportunities for the Welsh Government and the people of Wales.
High Speed Rail (West Midlands - Crewe) Bill
Debate between Rachael Maskell and Jonathan EdwardsTuesday 30th January 2018
(6 years, 10 months ago)
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Rachael Maskell
We could spend a long time talking about the shenanigans that also took place in this House over the creation of the Victorian railways.
Future capacity is vital. Although longer trains, digital signalling and infrastructure upgrades connecting with new rolling stock may get us through the current period, we will need more lines if we are to look further ahead. If we are to develop more lines, it is right that we seriously consider where they go.
HS2 gives us a real opportunity to think about the future of our country and how we connect it to address the unacceptable levels of inequality across Britain. HS2 is not just about the route itself but about freeing up capacity on the west coast main line and on our roads. This will bring benefit to current road and rail users, as well as creating new opportunities for further development of passenger and, importantly, freight paths on the west coast, as my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman) highlighted and my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) asked for.
Of course, Labour would, as always, be looking at the bigger picture, embedding HS2 at the heart of a wider rail and transport strategy. It would be absolutely nonsensical to make such significant investment in a new rail line if we were not properly upgrading the north-west to north-east routes—the HS3 routes. The Secretary of State is not in his place at the moment, but I hope that he will take heed of this. It is not too late to reverse his decision to de-electrify the plans and put power back into the northern powerhouse. The cities in the north demand it. We believe that HS2, integrated with a new, dynamic rail plan, must bring economic investment to the midlands and the north, creating good jobs for a secure future, not least with the new skills required in designing and constructing HS2 through the 30,000 jobs it will create.
My hon. Friend the Member for Crewe and Nantwich (Laura Smith) eloquently set out a strong economic case for proper connectivity through a regional rail hub at Crewe, this being at the centre of a network to feed Cheshire and the wider counties, and north Wales. That is vital for the future economy of Crewe. I can think of no better politician than my hon. Friend to speak up for her town and to make that case.
We must remember that HS2 is not an entirety in itself but a bridge to enable economic growth and industrial investment. My hon. Friend the Member for City of Chester (Christian Matheson) made a similar point, again focusing on how to build the economies of the north-west by ensuring connectivity. It is vital that HS2 talks to the region, and we must dissect this in Committee to ensure that it does. I note his calling for the line to north Wales through Chester. We should not dismiss this opportunity for some of the communities in the UK who most need this infrastructure stimulus. My hon. Friend the Member for Leigh (Jo Platt) also stressed the need to focus on connectivity. A clear call for integration has been made—one that Labour will support.
Phase 2a is set to deliver nearly £4 billion of benefits over the 60-year appraisal period, with a cost-benefit ratio of 1:9 and wider economic impacts. This indicates upper-end medium value for money, but accelerating this phase will represent very high value for money. Around Crewe, we will see 40,000 new jobs and 7,000 homes, opening up the life chances that have not been seen in the area before and starting to address the complete economic imbalance that we have in our country. Extending this to the Constellation Partnership will deliver 100,000 new homes and 120,000 jobs—20,000 in the Cheshire science corridor alone, putting the UK on the international stage in terms of science and technology.
I assure the House that Labour will never stand in the way of providing such opportunities to communities that have been crying out for investment—a point powerfully made by my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill).
Jonathan Edwards
I take the point that the hon. Lady is making. However, the KPMG report that looked into the impact of HS2 on various economies across the British state indicated that south Wales would be absolutely hammered. Is the Labour party not at all concerned about the economy of south Wales?
Rachael Maskell
Of course we are deeply concerned about the economy of south Wales. That is why we electrified the line to south Wales that helped to boost the economy in that region, and also ensured that HS2 fed into north Wales, helping the whole of the Welsh economy to grow.
We have some concerns, and it is absolutely right that there is tight scrutiny of every part of the project, as my right hon. Friend the Member for Rother Valley (Sir Kevin Barron) highlighted. At a time when the economy continues to fail, not least in the north, Labour understands why people are questioning the economic benefit of spending £55.7 billion on a rail route. This 36-mile section will cost £3.5 billion. At a time when our public services are crying out for investment, it is right that critical questions are asked about the project. However, the benefits are also clear, and it cannot be an either/or. This is about getting the Government’s economic strategy right. We will make sure that every decision brings maximum inward investment, as the economic opportunity is already estimated to be £92 billion across HS2.
We hear the concerns about the environment. It is vital that real consideration is given in Committee to the impact of construction and of the final network on the environment. That cannot just be about mitigation elsewhere, and I will push for us to maximise this opportunity. I will also want to ensure in Committee that modern, advanced engineering is able to find answers to the many questions raised about the environment and how the habitats directive, no matter which side of Brexit we are on, is seen in its fullest sense.
The hon. Member for Stafford (Jeremy Lefroy), who spoke particularly well on behalf of his constituents, highlighted how important it is to ensure that his constituents’ concerns are picked up. I assure him that in Committee, we will listen carefully to the points he has to make. The right hon. Member for Chesham and Amersham (Dame Cheryl Gillan) spoke of her vast experience in dealing with HS2. It is really important that lessons are learned and that there is good communication, and we must certainly end corridor deals.