West Coast Rail Franchise

Alan Brown Excerpts

Tuesday 14th June 2016 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Brady. I congratulate the hon. Member for Carlisle (John Stevenson) on bringing forward this timely debate.

The hon. Gentleman spoke in his opening remarks about connecting the great cities of the country. In my opinion, it is about connecting the great cities of the countries of the UK, rather than a single country, but maybe that is me being parochial. I agree with everything the hon. Gentleman said about customer service and the importance of incorporating that into the new franchise and getting it right on car parks, luggage storage, toilets and wi-fi. I have to confess that I have been caught up in the “Euston sprint”, so I will try to remember the advice—it is a rather unedifying sight when the wee voice in the back of my head says, “Run! Run, get that table!”

The west coast main line is very important to Scotland, given that it is one of two cross-border lines that serve it. For me, it imperative that the Scottish Government are consulted and allowed to have an input on the new franchise. As to the other cross-border route, if the UK Government want to assist with the extension of the Borders railway to Carlisle, I am sure that the hon. Member for Carlisle would like that.

It was only recently that the importance of the west coast main line was demonstrated, indirectly, with the forced closure of the Lamington viaduct. Not only did that disrupt cross-border services; there was a considerable knock-on effect on local services north of Carlisle. Local commuter services in my constituency were affected because trains were rerouted from Carlisle to Glasgow via Kilmarnock.

To return to my point about the Scottish Government’s involvement, the 2012 franchise shambles confirms my view. The award process was scrapped at the 11th hour without the Scottish Government being notified; that had a knock-on effect on the Scottish Government’s tendering process for the ScotRail franchise. Also, scrapping the FirstGroup award and the direct award to Virgin cost the taxpayer about £50 million. That £50 million is equivalent to the cost of the free wi-fi that the Department for Transport pledged for some train services in 2015. A current issue, which I have raised in Parliament, is “talking buses” and the provision of audiovisual equipment on buses; the cost is estimated at £5 million a year, and we can see what that £50 million could have done, if it had not been wasted in that franchise process.

The direct award that resulted from the scrapping of the franchise limited the Government’s negotiating hand. It is much more difficult to deal with a sole bidder. I recognise that there was scrutiny of the direct award, to try to ensure best value for money. I note that the commitments made as part of that included the conversion of 21 first-class carriages to standard class; £2.5 million to improve the interior of the Pendolino fleet; £20 million to modernise and enhance stations; work with Network Rail to improve journey times from London to Scotland; and work to remodel the Carstairs junction in Scotland. I hope the Minister will update us on the progress of all those things that are part of the current direct award franchise, and see how they could be built on and improved in a future franchise. The shortest journey time to Glasgow at present is still four and half hours; it has certainly not decreased in recent years.

As for train carriage refurbishment, I will just make a wee plug for a company in my constituency. It is a train refurbishment company called Wabtec, and the work it does—the quality of the fit-out—is genuinely fantastic. The carriages look brand spanking new once they are refurbished, and the turnaround time is incredible. I make a wee plea to the Government and any of the train companies that are listening to bear Wabtec in mind.

When it comes to reducing journey times to Scotland, it is imperative that rail upgrades north of Crewe should tie in with the planned upgrades for HS2. At present, the planned high-speed classic compatible trains will actually run slower when they are in the existing train network north of Crewe, because they are designed fundamentally for the high-speed infrastructure. Previously, Ministers have told me that that would be addressed in the next investment phase for Network Rail. Will the Minister confirm that the improvements north of Crewe, which should clearly benefit the hon. Member for Carlisle and his constituents, will be taken on board in the Network Rail investment phase? Without that investment, the current journey time of four and a half hours will be really difficult to get down to the predicted three hours and 40 minutes—the stated post-phase 2 journey time to Glasgow. Otherwise, it seems to be a matter of the timetable that clearly exercises other hon. Members; and I can understand why they are fighting for their constituents, to make sure they do not lose out on services this year.

I want to comment briefly on the recent ScotRail franchise, which has been awarded by the Scottish Government. I suggest that it contains some of their asks for the forthcoming west coast main line franchise. The franchise, which was awarded to Abellio, confirmed that the living wage will be payable to all staff and contractors. There were no compulsory redundancies, and pensions and travel rights were protected. There is free wi-fi in all trains—wi-fi has already been mentioned in the debate—and upgraded rolling stock. Also, Abellio relocated its headquarters to Scotland. I am not saying that that would be an ask, but, again, if the winner of the west coast franchise wants to relocate its headquarters to Scotland, it will be very welcome.

In answer to an oral question I asked in the Chamber, the Secretary of State advised me that the Scottish Government could learn good practice from the UK Government, but I beg to differ, given that the ScotRail Abellio franchise was awarded in October 2014, with the bidding process starting just after the previous west coast main line shambles. At that time, the Labour party called on the Scottish Government to halt the ScotRail franchise process, on the basis that some unspecified powers might come to Scotland after the Smith commission.

Rather than proceeding with a bid that allowed new investment, new ticketing, new jobs and a possible profit share, the Scottish Government were asked to do nothing but extend existing arrangements—which would have prevented that investment. For a franchise to work, there must be some form of security as to duration, and that is why it was important to go ahead with it. Under Labour’s plans, we would have been left in limbo until at least the year 2018, and more likely 2019. Actually, by then we will be half way through the Abellio franchise, which is allowing continuing investment at the moment. Also, now that we have additional powers under the Scotland Act 2016 to allow a public sector bid, it is possible to plan for that process, for when the Abellio franchise comes to an end, which will be in 2022 or 2025.

To go back to the main thrust of the debate, the new west coast main line franchise must have Scotland at its heart, and accordingly it must have reduced journey times to Scotland. That means marrying the new franchise to the strategic rail investment programme. It also means involving the Scottish Government.

[Mr Graham Brady (in the Chair)]

We have about 40 minutes for the three Front-Bench winding-up speeches, and perhaps a brief comment from the hon. Gentleman who moved the debate. I trust the Front-Bench spokesmen to co-operate with each other to ensure that that happens.

--- Later in debate ---

[Claire Perry]

I am always happy to look at things that happen on ferries, because I represent one of the most landlocked constituencies in Britain, so it is always novel to do so. I will come on to smart ticketing, which the hon. Gentleman knows is a particular passion of mine.

[Alan Brown]

I thank the Minister for giving way, especially as she was moving on to another point. I asked earlier about the commitment on journey times in the existing franchise, which was supposed to look at improving journey times in Scotland. That is clearly a massive issue, and I remind her to give us an update on that.

[Nadine Dorries in the Chair]

[Claire Perry]

It is a pleasure to serve under your chairmanship, Ms Dorries.

Absolutely, and looking at how existing commitments to journey time improvements can be met is part of the current programme.

I wanted to say to my hon. Friend the Member for Carlisle that during the public consultation, we will go out and talk to as many people as possible. We will hold a meeting at Carlisle station tomorrow from 3.30 pm until 5 o’clock. Perhaps he will encourage his constituents to come along and see some of the proposals and have a conversation with officials.

I will deal briefly with fares and on-board service. Although this franchise has some of the most reasonable fares in the country, particularly for tickets bought in advance, it also has some expensive walk-up fares. The most important thing is that we have capped fares at inflation for the duration of this Parliament, at a cost to the public purse of £750 million, which will save the average season ticket holder around £425 over the Parliament. That is absolutely right. However, we will ask the next franchise holder how fare structures could help to ease the shoulders around the peak, when trains can be very crowded. The world is changing; people are not working nine to five, five days a week the whole time. I have been keen for bidders to be asked to propose options that allow people who work part time—perhaps two or three days a week—to buy more cost-effective tickets or multi-buy discount tickets. We have specifically asked for that in franchise competitions, and we plan to do so in this one as well.

Wi-fi has come up several times. I was delighted to be the Minister to announce that all trains, with the exception of those that are being phased out, will have free on-board wi-fi by the end of 2018, and this franchise will be no exception. It already has a good wi-fi service in certain classes, but it is not free on all services, and it absolutely should be. I take on board the comments that my hon. Friend the Member for Carlisle made about improved luggage and seating arrangements, which is another thing to feed in.