Rail Infrastructure (Train Operating Companies)

Andy McDonald Excerpts

Tuesday 6th December 2016 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on the Government’s plans for train operating companies to take responsibility for track and infrastructure from Network Rail.

[The Secretary of State for Transport (Chris Grayling)]

The hon. Gentleman has clearly misunderstood our plans, so let me explain them to him.

This morning I laid a written statement in both Libraries of this House setting out my vision for reforming the railways in a way that puts passengers at the heart. This is about providing better and more reliable journeys for passengers.

Britain’s railways are crucial to our economic future, and we have seen very substantial growth in passenger numbers since privatisation, but this growth brings challenges and the impact of disruption can be immediate, significant and wide-ranging. So our railways need to adapt and change in order to be able to cope with this huge expansion in the number of passengers. We are spending very large amounts of money trying to tackle the challenge, with new and longer trains, more capacity being introduced across the country, and big projects like Crossrail and small projects that make a difference locally.

Earlier this year, Nicola Shaw recommended that Network Rail should devolve responsibility to the route level. I support the principles of the Shaw report, and I support Network Rail’s reform programme, but there is more to do.

I therefore intend to press ahead with Sir Roy McNulty’s recommendations on how to make the railways run better and more cost-effectively. I will do this initially at an operational level. In order for all those involved to be incentivised to deliver the best possible service for the passenger, I expect the new franchises, starting with Southeastern and East Midlands, to have integrated operating teams between train services and infrastructure, working together in the interests of the passenger. I will also be inviting Transport for London and Kent County Council to be more closely involved in developing the next Southeastern franchise by embedding their own representatives in the team that develops, designs and monitors that franchise.

We will continue to develop the model for greater alignment of track and train as further franchises are renewed, including the option of joint ventures. In the meantime, my Department is also publishing an update to the rail franchising schedule, which I am placing in the Libraries of this House.

I also want to bring new skills to the challenge of upgrading our railways. I will begin by looking at the reopening of the link from Oxford to Cambridge. I am going to establish East West Rail as a new and separate organisation, to accelerate the permissions needed to reopen the route, and to secure private sector involvement to design, build and operate the route as an integrated organisation. This East West Rail organisation will be established early in the new year and chaired by the former chief executive of Chiltern Railways, Rob Brighouse.

These reforms will set the railway on a firmer footing for the future. We can, and will, make sure our rail network plays its part in making this country a country that works for everyone. I will bring forward in due course a new strategy for our railways with more detail on what I am setting out today.

[Andy McDonald]

Private companies will only engage with the Secretary of State’s plans if they believe that they will be able to extract yet further value from Britain’s railways at the expense of taxpayers and commuters. Not only does this mean poor value for the public, but it also risks compromising safety. The last time the Tories privatised the rail tracks it resulted in a series of fatal accidents, which led to the creation of Network Rail in the first place. Now the Secretary of State wants to start us on a slippery slope back to the bad old days of Railtrack, with profit-chasing companies being entrusted with the safety-critical role of being responsible for our rail infrastructure. Has he not learned the lessons of Railtrack, or is he simply choosing to ignore them? Why does he expect things to be different this time?

Will the Secretary of State explain how his planned “integrated operating teams” will be different from the “deep alliances” between Network Rail and South West Trains, which were abandoned, and from the similar arrangement between Network Rail and ScotRail, which is performing abysmally? Will the same system of regulation apply in his new landscape? What discussions has he had with the Office of Rail Regulation about this? What costings have been done for this programme? Has a cost-benefit analysis been carried out? It is time for our railways to be run under public ownership, in the public interest, as an integrated national asset in public hands, with affordable fares for all and with long-term investment in the railway network. Sadly, today’s announcement will take us further away from that than ever before, but an incoming Labour Government will redress that as a matter of urgency.

[Chris Grayling]

Fortunately, there is not an imminent Labour Government. The trouble is that Labour Members want to turn the clock back to the days of British Rail and of the unions having beer and sandwiches at No. 10. We want to modernise the railways and make them work better. This is not about privatisation. I am not privatising Network Rail. I am creating teams on the ground with the same incentives to work together in the interests of the passenger. An essential part of that —the bit the hon. Gentleman has not spotted—is that the Shaw recommendations on route devolution, which will give real power to local teams to make decisions about their routes without always referring to the centre, will make it possible for those alliances to work much better than they have in the past. We know that where there have been alliances, they have made something of a difference, but they could do so much more.

This is not rocket science. If the trains are being run from over here and the tracks from over there, when things go wrong we get two separate teams waving contracts at each other rather than working together. Of course our railways do not maximise their potential. This is about forging teamwork on the ground to respond to challenges, to plan better and to deliver a better service to passengers. That is what we should all be aspiring to. Moving the deckchairs around, renationalising the railways and taking away hundreds of millions of pounds a year of investment in new trains from the private sector would take our railways backwards and make the travelling public worse off. This is a sign that, as always, the Labour party has not made it into the modern world.