Passenger Railway Services (Public Ownership) Bill

Andy McDonald Excerpts

2nd reading
Monday 29th July 2024 Commons Chamber

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

I congratulate you, Madam Deputy Speaker, on your elevation.

As I start my contribution, I wish to put on record how proud I am of my relationship with our trade union movement. I declare both the political and financial support that I have received, including from affiliated and non-affiliated railway trade unions, as reflected in my entry in the Register of Members’ Financial Interests.

It is an immense honour to speak on Second Reading of this most welcome of Bills. In the recent election, we set out in our manifesto how we will put passengers at the heart of the service by reforming the railways and bringing them into public ownership. With today’s Bill, that is what we are doing. The restoration of our railways to public ownership is something that I have spent much time working to achieve in this place, especially in the four years from 2016 as shadow Transport Secretary.

In that role, I produced a shadow White Paper entitled, “GB Rail: Labour’s plan for a nationally integrated, publicly owned railway”. It was nice to see that the then Transport Secretary tried to pinch the title, but I suppose that I should be flattered by that. In the document, I set out how the privatised UK railway has not delivered for passengers or taxpayers for a long time. I said, when we published our paper, that the railways must be run with the public interest as its primary objective, and I was looking at the sector more broadly, not just as passenger services. I am delighted that this Bill is before us today. I heartily congratulate the Secretary of State, my right hon. Friend the Member for Sheffield Heeley (Louise Haigh), on securing the first substantive debate and moving the first piece of legislation under this Labour Government.

The Bill is necessary because the privatisation model for Britain’s railways, introduced by the Major Government with the Railways Act 1993, has long been failing passengers. Even Margaret Thatcher was reluctant to privatise rail. The privatised rail system has put private profit-taking before the provision of public service. Far too many of Britain’s train franchises have been wholly or partly run by the subsidiaries of other countries’ publicly owned railway companies. Over the years, Deutsche Bahn, Nederlandse Spoorwegen and Trenitalia, to name just a few, have extracted value out of our railways to pump back into their own home railways, yet the only nation state that was precluded from running railways here was our own. Well, all that changes today.

I have previously said that the primary aim of Britain’s railway should be supporting the health of the economy and society, not other nation states and a small group of private franchise shareholders. The outgoing model has resulted in what is, and should function as, a public service, being subsumed to the commercial objectives to deliver for those shareholders and not the economy or the wider public good.

At the height of private franchising, it was estimated that more than £700 million a year in total was going to those companies’ shareholder dividend payments. That was unproductive, wasteful, and the opposite of value for money. This has been funded by the fleecing of farepayers. The Commons Library sets out that the cost of rail fares has increased by 20% in real terms over the past 20 years, while average real wages across the economy struggle to match 2008 levels. The additional revenue is not used to remunerate staff. Rail staff are incredibly hard-working public servants—employed by private companies since 1993—and RMT union members should not have needed 18 months of industrial action to get a pay deal on which they could settle. The position is similar with ASLEF union train drivers. It shames the Conservative party that these drivers, who had not had a pay rise in five years, were forced to wait for a general election and a Labour Transport Secretary to hold direct pay talks.

I pay tribute once again to the rail unions—the RMT, ASLEF and the TSSA—which keep our rail sector running, despite the problems of privatisation, and which deserve a better deal than they have had in recent years. The rising dividends, funded by rising fares, at the expense of employee pay, have been paid out regardless of performance.

In the most recent statistical release by the Office of Rail and Road, 8.5% of Avanti West Coast trains were cancelled in the last quarter and 10% were more than 15 minutes late. Similarly badly, 7% of CrossCountry trains were cancelled and 6% were more than 15 minutes late.

Under the Conservative’s rail network, the private sector took the profit, the public sector picked up the pieces when things went wrong. When the covid pandemic led to falling passenger numbers, the Government stepped in to prop up the railway with funding. During the recent rail pay disputes, the RMT has argued that rail companies were being indemnified against any losses to the tune of £1 billion, on the same day that there was a national strike on the railways.

Well, Madam Deputy Speaker, the public have had enough. They want change, and Labour is now delivering it. The public voted for it. We believed that they would do so, because polling has always shown that they support public ownership and that is right across the political spectrum. In a YouGov poll just after the King’s Speech, 76% said that they backed public ownership of rail, up from 60% at the 2017 election. That also reflects the increase in support for public ownership of energy: something else on which we are making a start.

Across the economy, it is clear that voters have had enough of rip-off privatisation and are embracing public ownership. There is much, much more that we will achieve, enabling all of us to travel much more easily and reliably, with simpler fares, connecting with other modes of increasingly decarbonised public transport, to give our economy and the quality of life a massive boost.

With this marvellous Bill, my right hon. Friend has the golden opportunity to make sure that our railways work for our people and our businesses, not for the private profit of train operators. I look forward to speaking with her about the much-discussed expansion of rail connections to our capital city and across the northern region, from my Middlesbrough and Thornaby East constituency. I commend her for the superb job that she has done thus far by bringing forward this Bill today. I wish her and the Bill every success.