Rail Review: Terms of Reference

Alan Brown Excerpts

Thursday 11th October 2018 Commons Chamber

[Chris Grayling]

As I said a moment ago, we are working through the final stages of our assessment of the position with GTR. The decisions that we take will be designed to deliver the best outcome for my hon. Friend’s constituents and other passengers. I do not want to take a decision that works against their interest, and I am happy to talk to him about ensuring that we get this right.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for early sight of his statement. During a previous statement on 4 June—after yet another rail shambles—I asked the Secretary of State to admit that the rail franchise system is broken and to do something to fix it. In that regard, I kind of welcome this review, as long as it is actually thorough and the Government abide by any conclusions that the system is broken and needs to be completely remodelled.

How are we going to get oversight of the rail experts who are needed to sit on the panel? After hearing the statement, I think that we can safely say that the term “rail expert” does not apply to the Secretary of State. Yet again, he argues that the new investment that came in after privatisation was somehow magically due to privatisation, not a change in Government rules that allowed private companies to borrow. Yet again, he blames Network Rail—a body that he is responsible for—and continues to duck his own culpability in the timetable fiasco. And then, in this statement, he talks about the absence of clear lines of accountability; I think we know who has responsibility.

With regards to terms of reference, we need to look at the value for money of the subsidy in the current system—£2.3 billion in 2016-17—as well as the value of public sector bids, and how foreign state-owned companies can come to the UK and make money to reinvest in their own national railways. We also need to look at the devolution to Scotland, especially as Network Rail is too large as it is; the performance of the Department for Transport, especially with regards to the tendering process and the mismanagement of the east coast main line tender; the performance of direct awards and the cost to the taxpayer; and the HS2 and Crossrail delays.

Will the Secretary of State stand up and rule out the privatisation of Network Rail? He seems to keep saying that the nationalisation of Network Rail is the problem. We do not want a repeat of the Tory Railtrack failure by privatising the state infrastructure. Will he rule out privatisation today?

[Chris Grayling]

The hon. Gentleman continues to argue for the devolution of Network Rail, even though it was not recommended in the report on the powers that should be given to the Scottish Government. I will continue to say to that Scottish Government that when they actually run the rest of their responsibilities well, they will have a better case for arguing for additional responsibilities.

The review will look comprehensively at the structure of the industry. It is designed to deliver genuine change. I do not expect the industry to emerge from this review in the same shape that it is in today. It is important that we find a structure that works for the public and passengers, but I do not intend to transfer the ownership of Network Rail to the private sector.