East Midlands Rail Franchise

Alan Brown Excerpts

Thursday 11th April 2019 Commons Chamber

[Andrew Jones]

I have looked at the measures in terms of performance data and customer satisfaction. I recognise that we have had frustrations across our rail network over a number of years and that we had very poor performance last May, but I do not accept that Abellio is a failing performer. It operates 6,000 trains in the UK each day. The service is improving in all areas—[Interruption.] My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) is doing an awful lot of chuntering using fairly robust language, as he normally does—or as he has taken to doing recently. The point remains that we are delivering a network that is operating at the best that it has operated for a significant number of years. It has turned around decades of under-investment and underperformance. We are now seeing a network carrying more people with a higher level of safety than at any point in British history and this franchise award takes that further.

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

Yet again, we have not had a statement from the Department for Transport. We have to rely on media announcements and urgent questions to hold the Department to account, but when the Minister comes to the Dispatch Box, he says, “Oh, that’s a lot of questions.” That is because we are not getting information. Virgin Trains East Coast walked away from the east coast main line owing £2 billion. Many people called for Stagecoach not to be allowed to bid for other franchises, but the Department for Transport dug its heels in, saying that it could bid for franchises and then sat on the non-compliant bid for a long time. Why has the Department adopted such contradictory positions? Martin Griffiths, the Stagecoach chief executive, said:

“We are extremely concerned both at the DfT’s decision and its timing. The Department has had full knowledge of these bids for a lengthy period”.

Again, what discussions were held on pensions and how long has the Department sat on the non-compliant bid before making a decision?

What will happen with the west coast main line franchise, as we are told by the media that Virgin Trains will disappear in a year? Virgin previously won the 2012 franchise after a legal challenge, so what are the risks of further challenges from Virgin after this decision today, and will the Minister provide any legal advice that the Department has taken?

Abellio in Scotland pays the living wage. Is it part of this franchise award that all employees get the living wage? How robust are the pension protections in this Abellio franchise and how will pensions be protected in other franchises? Clearly, this is now a major issue.

Many of us have called for the Transport Secretary to resign. Now we have the irony of the Transport Secretary threatening the Prime Minister to resign over her position on Europe. Will he follow through on his threat, or will the Government take action and make the Secretary of State resign and shake up the Department?

[Andrew Jones]

Well, much of that was absolutely ridiculous—just complete nonsense. Let us turn back the page and remind ourselves about the idea that the Government have somehow been dragged to the Dispatch Box. I remind the hon. Gentleman that this was a contract that included a market sensitive element. There are strict procedures when a market-sensitive contract is awarded by any Government—and that includes the Scottish Government. The announcement is made first of all to the City. There was a written ministerial statement at 7 o’clock yesterday morning and by 9 o’clock there was a “Dear Colleague” letter sent out to all those Members who were affected, so what he says is simply wrong.

I have to say I cannot remember exactly the full range of questions the hon. Gentleman asked, but the key thing is that this contract has been awarded in a fair and consistent way. It is delivering significant passenger benefits, including a complete renewal of the fleet. I have already highlighted that the inter-city, regional and express services will all receive new rolling stock—new trains—and that there will be more services, more seats at peak and improved environmental performance. The benefits are clearly very significant. We should welcome them, not the opposite.

I think the hon. Gentleman got carried away with his own rhetoric when he asked whether the Secretary of State should resign. Of course not—what a load of complete nonsense. This franchise was awarded in a fair and consistent way, and it will deliver for passengers. We should celebrate that, not the opposite.