Confidence in the Secretary of State for Transport

Andy McDonald Excerpts

Tuesday 19th June 2018 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

I beg to move,

That this House has no confidence in the Secretary of State for Transport, the Rt Hon Member for Epsom and Ewell; notes the failed implementation of the May rail timetables which has left thousands of commuters without services and has drastically affected their everyday lives; believes Northern and Govia Thameslink Railway should have their franchises terminated; and regrets that the Secretary of State for Transport has failed to strategically manage and oversee the UK railway and take responsibility for his role in the crisis on England’s railways, whilst officials at other organisations have resigned and forgone bonuses.

Before I come to the topic of today’s debate, I would like to express my condolences to the families and friends of those who so sadly died as a result of being struck by a train at Loughborough Junction in south London yesterday. I also pay tribute to all the railway staff who attended in response, in particular the British Transport police. Despite the challenges we face, we can never forget the outstanding public service that tens of thousands of men and women provide every day. We owe it to them to do our very best for the industry.

I regret having to table the motion, but given the totally unacceptable state of the railway I felt that I had a duty to passengers. The latest chaos follows meltdown on the east coast, resulting in a £2 billion bail-out and huge cuts to promised electrification in Wales, the north of England and the midlands. This is not shaping up to be a distinguished legacy. In his resignation letter to staff, Charles Horton, the outgoing chief executive of Govia Thameslink Railway, said:

“In my view, this was an industry-wide failure of the timetabling process. But with leadership comes responsibility and so I feel it is only right that I step down”.

Why is it that the chief executive of a train company who is responsible only for the travel disruption on one part of the railway is able to recognise the responsibility that comes with his leadership role and resign, yet the person who is truly responsible, the Transport Secretary, remains in post?

[Maria Eagle (Garston and Halewood) (Lab)]

Does my hon. Friend agree that, ever since the collapse of the west coast main line franchising competition under a predecessor of the Secretary of State, the entire franchising system has become increasingly ridiculous and unworkable, and that the way in which we run our railways needs to be changed entirely?

[Andy McDonald]

I could not agree more. We are seeing instance after instance. It is evidence, if any more were needed, that the system has completely and utterly failed and needs to be completely revised. Why are train companies allowed to retain their franchise despite repeated failures? Northern and GTR should be stripped of their contracts. Labour said very clearly that franchise failure should mean forfeit. It is clear that the Department for Transport has failed to ensure that train companies fulfil the terms of their contracts.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Does the hon. Gentleman agree that it is not only GTR that should lose its franchise? The Secretary of State should have his office removed as well because this is a façade of a franchise. We know that Ministers are behind it, and it is Ministers who should be held accountable for the fact that passengers in places such as Preston Park in Brighton are losing their jobs, cannot spend time with their kids in hospital and are having their lives wrecked.

[Andy McDonald]

I agree entirely. The Government seem to want to have control and intervene, but they do not want to take responsibility. GTR should have been stripped of its contract years ago for running the worst rail service in modern times. The company has repeatedly been found in breach of its contract as well as overseeing toxic industrial relations and poor customer service. Had the Government heeded Labour’s call to strip the company of its franchise, the recent disruption could have been avoided.

[Huw Merriman (Bexhill and Battle) (Con)]

rose—

[Andy McDonald]

I will give way to the hon. Gentleman.

[Huw Merriman]

I thank the hon. Gentleman—he is always kind and courteous with his time. A month ago, I believe that he said at the Dispatch Box that the rail professionals should be allowed to get on and run the industry, but in this instance he is being critical of the Secretary of State for not intervening and stopping that very eventuality occurring. I would like some clarification.

[Andy McDonald]

I will come on to that. As an excellent member of the Select Committee on Transport, the hon. Gentleman knows that the DFT sits on those bodies—it has a presence—yet it did nothing when it was given those alarms or warnings that he knows all about.

[Several hon. Members rose—]

[Andy McDonald]

I shall give way briefly, as I want to make progress.

[Mr Jim Cunningham (Coventry South) (Lab)]

It is not many months since we had a problem with Southern, as has been mentioned by the hon. Member for Brighton, Pavilion (Caroline Lucas). From time to time there are problems on the west coast main line, yet the Secretary of State sits there like Pontius Pilate and abdicates responsibility.

[Andy McDonald]

My hon. Friend make the point wisely and accurately.

[Daniel Zeichner (Cambridge) (Lab)]

My hon. Friend is making a good speech. Yesterday, members of the Transport Committee sat for many hours interrogating leaders of the industry, both train operating companies and Network Rail, trying to find out who runs the railways. After all those hours, answer came there none. Does my hon. Friend agree that there are two scenarios? First, the Secretary of State is in charge, in which case he should take responsibility; or even worse, he is not, in which case he should be sacked?

[Andy McDonald]

My hon. Friend makes the point very well. We are talking about a dysfunctional railway that is completely and utterly fractured, and that has to be resolved.

[Several hon. Members rose—]

[Andy McDonald]

I will make progress, as I have taken several interventions and I know that many speakers wish to contribute. It is not acceptable to allow companies to continue to run and profit from rail services following failures on this scale. Services should return to public ownership to be run as part of an integrated railway under public ownership.

I turn to the distressing situation that confronts us more broadly on the railway as a result of the calamitous introduction of new timetables across more than half the UK rail network. The changes were intended to be improvements to introduce much-needed rail capacity following public expenditure on new rail infrastructure, but instead of improvements passengers on Northern and GTR have experienced a nightmare of disruption, and there seems to be little prospect of their trials and tribulations ending quickly. Last week, the Manchester Evening News carried a number of personal testimonies about the impact of the chaos. Leigh Burke, 55, is a team leader at Royal Bolton Hospital. He commutes from Didsbury to Bolton and said:

“I’m late to work all the time, it’s affecting my job. It’s an utter shambles.”

Louise Kirby, who commutes daily from Bromley Cross to Victoria, added:

“It’s horrific. I keep having panic attacks because it’s been so crowded. I saw a man pass out.”

Tom Moss, 24, a PR manager who lives in Glossop and works in Altrincham, pays £104 a month for his pass and said:

“I just want the trains to be on time. I just feel angry. I can’t take much more of it.”

There are thousands more personal stories that I could describe: personal difficulties and struggles that have a significant social and economic impact. Businesses and individuals who rely on rail transport suffer consequences from this disruption that carry very real costs.

This is not just a one-off. Disruption of this scale and severity, particularly when passengers experience it endlessly over an extended period, destroys faith and trust in the railway and drives people away from rail into their cars. Last week, figures showed that rail passenger usage has fallen yet again—this time, the fall was the biggest in 25 years. Not only does that mean more congestion, worse air pollution and an increased contribution to climate change, but it threatens the very sustainability of the railway.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Does my hon. Friend agree that, as well as appalling oversight by the Government, one of the main challenges facing the rail network is ageing and unreliable infrastructure? That is a particular problem for the east coast main line, which has not had any real investment since electrification in 1991, 27 years ago, despite its being one of the major national rail routes.

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[Andy McDonald]

Indeed. The east coast main line is in need of investment, and my hon. Friend makes her point incredibly well.

[Tim Farron (Westmorland and Lonsdale) (LD)]

rose—

[Andy McDonald]

I will give way once more, then I must make progress.

[Tim Farron]

That is very decent of the hon. Gentleman, and I am grateful to him. He is making an important speech. Does he agree that there is something of the red herring about conversations suggesting the new timetable is the source of the current calamity? Does he also agree that strategic decisions by the Government have led to the problem, which predates timetabling, not least the decision to postpone or, in the case of the Lakes line, cancel electrification, and to award to Northern certain franchises that it should never have been given, including the Lakes and Furness lines in my constituency?

[Andy McDonald]

I agree with those comments, and I will come on to that in a little while.

Franchise agreements assume ever-growing fare revenues, so the downturn in rail use increases the likelihood of more failed franchises and further taxpayer bail-outs. Fares have soared at three times the rate of wages since 2010, pricing passengers off the railway, while disruption encourages more people to revert to driving. That is exactly the wrong modal shift that we need our transport policy to achieve if it is to fulfil our environmental obligations and remove traffic and fumes from our towns and cities. Polling conducted by Which? found that three in five respondents affected by the timetable changes said that those changes had a negative impact on both their work and family life, with four in 10 saying that they had a negative impact on their health.

Considering the scale of the disruption, I am sure the whole House will agree that passengers must be adequately compensated. Yet at present 72% of those affected by the disruption said they had not been informed, either on the train or at the platform, about any compensation they may be entitled to receive. The Transport Secretary should have ensured passengers were made properly aware of the compensation they are owed. In addition, considering the scale of the disruption, a compensation package that goes above and beyond what is currently available must be delivered. The Transport Secretary has indicated some such package is being considered, but he has not provided detail. I ask him to do so today to ensure that the amount of compensation is commensurate with the scale of disruption and, importantly, that it is funded by the train companies, not taxpayers and passengers. They should pay voluntarily. If they refuse, he should make them.

It is important to step back and review the key steps in how we have come to this sorry state of affairs. This year’s timetable changes, introduced on 20 May, are the most extensive and ambitious undertaken in decades. More than 50% of the network schedules have been revamped. Four million trains have been retimed: about six times as many changes as is usual for a timetable change. It was clear before Christmas that there were going to be difficulties in implementing the new timetable. In February, the rail industry body, the Rail Delivery Group, confirmed it would not be able to complete timetables 12 weeks ahead of travel from 20 May for about six months. That should have set off alarm bells.

Since 20 May, 43% of Northern’s trains have been delayed or cancelled each day. From 4 June, the train operator cancelled 165 trains a day, including all services to the Lake district. In the first week of the new timetable, GTR delayed or cancelled a quarter of its trains and announced the schedule for the next day at 10 pm each night.

Today’s industrial action on Northern is a reminder of the utter despair felt by the rail industry’s workforce. Both Northern and GTR have waged war on their staff for three years and four years respectively. They have done so at the explicit behest of the Secretary of State for Transport and his senior officials.

[John Redwood (Wokingham) (Con)]

How does the hon. Gentleman explain that the Labour Mayor of London has been unable to run strike-free transport in London, although he promised to do so? Did he also anger staff in this way?

[Andy McDonald]

We can have that discussion, but today I am dealing with these services and I am going to concentrate on them.

Senior officials directly interfered. Let us not forget that the managing director of passenger services at the Department for Transport, Peter Wilkinson, said two years ago:

“we’re going to be having punch-ups and we will see industrial action”

and that he wanted to run people “out of my industry.”

The introduction of the May 2018 timetable required change on an unprecedented scale. The process of managing change requires co-operation, dialogue, engagement and good will. The Government and the management of Northern and GTR have destroyed their relationships with their employees. Millions of passengers in the UK are paying the price for the belligerence and the antagonistic approach of the Secretary of State.

[Bob Stewart (Beckenham) (Con)]

I know the Secretary of State and I know his Ministers. I bet a pound to a dollar that the Secretary of State and his Ministers pulled in the people responsible for the railway companies and got assurances from them that this would work well. I really feel it is quite unfair, because I am absolutely convinced that the Secretary of State, who I know well, would have checked this out. He has been let down very badly by the railway companies.

[Andy McDonald]

The hon. Gentleman makes an excellent point, but in support of my argument. He is demonstrating that that did not work. That was not a very good way of going about business, relying on people giving assurances rather than saying, “Show me. Where’s your evidence?” You do that before you go ahead with it. You do not rely on people telling you nonsense.

Ever since the timetable chaos arose, we have witnessed carefully crafted statements that try to ensure as little responsibility as possible can be attributed to the Department for Transport and the Secretary of State in charge of it. Let us consider the situation. This is a Government who refuse to recognise the accumulated evidence that their privatised structure of the railway is failing. Therefore, they refuse to accept a sensible and practical railway structure that can function properly.

[David Morris (Morecambe and Lunesdale) (Con)]

I thank the hon. Gentleman for being so generous with his time. He is a big supporter of privatisation—[Interruption.] He is a big supporter of nationalisation, but that would cost each and every household in this country £6,500. Does he not agree that the nationalised side of the railway caused this problem in the first place? How does he account for that?

[Andy McDonald]

I do not know where the hon. Gentleman gets that figure from. If the Government take franchises back when they run out it costs diddly squat to take them back—zero—so he is talking utter nonsense.

No one other than the Government hold responsibility for their dogmatic stance. This dogma causes them to stand by and defend the rail structure that is manifestly not fit for purpose. It then falls to the Department for Transport to get involved to try to run the railway properly. It cannot do this. Today’s railway cannot run itself effectively because it was decapitated by privatisation and chopped into bits to facilitate private profit taking. Because there is no guiding mind overseeing the railway, the Department has to wade into the railway much more deeply than it should. Having taken this approach, the Government assume a greater deal of responsibility, but they have not shown themselves capable of discharging that responsibility.

The Department for Transport’s oversight has failed in three major ways. First, it appears that, when there was a decision on whether to press ahead with the timetable changes affecting Northern, the Department stood against allowing a deferral. Why did the Department not believe the professional advice it was given? Secondly, the Transport Committee heard from Network Rail yesterday that Thameslink phasing was first raised by the GTR readiness board in June 2017. Mr Halsall, the route managing director for the south-east, said the Department stood by and did not make a decision until November 2017—an astonishing five-month delay. What did the Secretary of State know and when did he know it?

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

I can confirm that the decision to proceed with a slimmed down timetable was taken by me in July 2017.

[Andy McDonald]

Well, I am saying to the Secretary of State quite clearly that a competent Secretary of State would have known this right at the outset and taken the appropriate steps. He did not. He allowed the situation to unwind.

Thirdly, the Thameslink industry readiness board—readiness board, there’s a laugh—formally requested that the GTR timetable changes should be scaled back, yet the Department dithered for two months. GTR boss Mr Horton said the board did not have an executive role, so he could not explain who was responsible for the meltdown—no one accountable and no one responsible.

I do not want to personalise the issue and I do not expect the Secretary of State to know every detail of what happens in his Department—[Interruption.] No, it is just everything he does and everything he stands for; it’s nothing personal. However, the three points I have described are all important failures of the Department for Transport at a high level. Stephen Glaister from the Office for Rail and Road is not an appropriate person to conduct a review into the timetable failings. The ORR itself has failed in its regulation of Network Rail, so it cannot be expected to conduct an independent investigation. This is yet another bad judgment by the Secretary of State for Transport. A new rail timetable is due to be implemented in December 2018. What funds, resources and support will the Secretary of State provide to ensure Network Rail’s planning capability can deliver the changes due in six months?

Today’s Financial Times reports the managing director of Trenitalia complaining about Network Rail and, in particular, the lack of integration between Network Rail and the train operating companies since privatisation. Did the Italians not do their homework on the reality of the UK’s railway? Recent events demonstrate more than ever that our railway is not integrated. I am afraid that the breach of faith and trust is so great that the Secretary of State’s credibility will never recover. There comes a point when the publicly accountable politician in charge of the railway should step up and shoulder the blame. It seems to me, and I suspect to many rail users, that we have more than reached that point.

--- Later in debate ---

[John Redwood (Wokingham) (Con)]

We have been invited by the Opposition to debate a general motion of no confidence in my right hon. Friend the Transport Secretary. I have full confidence in my right hon. Friend. He inherited a difficult task from the last Labour Government and the coalition Government. I think that he fully understands the magnitude of that task and that he is coming up with a number of creative proposals to try to improve the position.

[Andy McDonald]

It is a disaster.

[John Redwood]

I entirely agree with the hon. Gentleman that, for 13 years, Labour did not invest in our roads and railways to give us the capacity that we need. I fully accept that during its five years in government, the coalition was unable to invest on the necessary scale because of the financial disaster that it inherited from the outgoing Labour Government. We have had almost 20 years of totally inadequate investment in road and rail capacity. We now have a growing economy. Many more people have jobs and need to get to work, many more children need to get to school, and many more people want to go to the shops or need to go to hospital, so we are simply running out of road and rail capacity. My right hon. Friend is trying to use every method he can legally lay his hands on to address that chronic lack of capacity.

In my constituency, another 12,000 new homes are being built quite rapidly, and the pressures on our infrastructure are enormous. I witnessed some of the difficulties due to rail delays on Thursday and Friday when I was trying to use services in and out of Reading and there were disruptions. My right hon. Friend has asked the extremely well-paid leaders of the railway industry to get a grip on their services and ensure they deliver on the infrastructure available. But he has gone further than that: he has said to the railways that they will need much more capacity in the years ahead to deal with fast-growing places such as Wokingham, and he has therefore said that digital technology will make a big difference. I fully support his strong initiative. The very lengthy and expensive process of creating entirely new railway lines is not a feasible solution across the country, so the way to get more capacity out of our existing railways is to use digital signalling, meaning that instead of being able to run only 20 trains an hour on perfectly good track, we can run 25 or more trains an hour, giving a big boost to capacity for a relatively modest investment.

My right hon. Friend is also right to recognise that he will need private sector as well as public sector investment. I noted that the Scottish National party spokesperson, who clearly did not know the figures, was unable to respond to an intervention about how, in his party’s fully nationalised world, it would replace the large sums of capital and the considerable sums of revenue that the private sector tips into the railways as the partnership model develops.

The Labour party is with the SNP on this. It always denies that any fault rests with the nationalised section of the railway, yet in the latest set of problems, particularly in Northern rail, big errors were made by the heavily subsidised nationalised part of the industry. I am very glad that my right hon. Friend says there will be new leadership there, because new leadership is desperately needed to supervise the expenditure of the very substantial sums that this Parliament has voted for that industry and to make sure they are well spent.

Another reason why I have confidence in my right hon. Friend is because he recognises that we need road as well as rail capacity, because the overwhelming majority of all our constituents’ journeys are still undertaken by car or van or bus, and they require road capacity. The most welcome thing he has done so far is to say we need not just to expand the strategic national highways network, which of course we do, but a strategic local network so that we can beef up the A roads. That would mean that we could have more through traffic, meaning that vehicles would be taken away from residential areas and town centres, where we do not want conflict between traffic, pedestrians and cyclists. It would also free some of the blocks on the existing highways and provide better journeys.

I hope that as my right hon. Friend goes about selecting that strategic local route network with councils, he will look favourably on the bids from West Berkshire and Wokingham in my area. We have put a lot of thought into them and wish to make progress, but we will need substantial investment to create better access routes to the main cities and centres of employment, because the existing network is already well over capacity in terms of congestion.

I hope my right hon. Friend will also consider the interface between the rail and road networks. One of the big issues in my area is that we cannot get over the railway line. We rely on level crossings, but their gates are down for a lot of the time at busy periods for the railways, meaning that we get massive onward congestion in the road system. We therefore need money for bridges.

I also hope that work on the strategic local road network will involve looking at junctions. A modest way in which we could get much more capacity out of the current road network would be to improve junctions. It is often a good idea to have roundabouts rather than traffic lights, and another good idea is the better phasing of traffic lights. Traffic lights can be fitted with sensors so that if there is no traffic on an approach road, that road does not get a green phase. Roads should get a green phase only when somebody needs that.

There are many things that can be done. I have every confidence that my right hon. Friend wants to do them, so will he please get on with that, and will Parliament allow him to do so?

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[Grahame Morris (Easington) (Lab)]

It is a pleasure to take part in this debate and to support the motion standing in the names of my Front-Bench colleagues. I also wish to thank members of the Transport Committee for their informed contributions to the debate, and I am delighted that the hon. Member for Bexhill and Battle (Huw Merriman) is a supporter of keeping the guards on the trains—well done on that. [Interruption.] Perhaps it is qualified support.

As a member of the Transport Committee and a regular rail user, I have been following the recent regression of the rail service, particularly in my region, with great concern. The catastrophic May timetable changes seem to have been completely avoidable. The Secretary of State ignored warnings and failed to delay or phase in the changes.

Yesterday, my Transport Committee colleagues and I spent three hours asking questions of and taking evidence from representatives from Northern, GTR and Network Rail. I was quite interested to hear the Secretary of State say in response to a comment made by the shadow Secretary of State, my hon. Friend the Member for Middlesbrough (Andy McDonald), that he made the decision to proceed with the changes in July 2017, because my understanding from what the witnesses said yesterday is that concerns were expressed at a meeting involving stakeholders and Network Rail in January, some six months before the ultimate decision was made. There was ample opportunity for the Secretary of State and his advisers in the Department to intervene and identify some mitigating actions, which could have included either delaying the implementation or phasing it in.

[Andy McDonald]

Given that GTR is a concession and is paid a management fee, could my hon. Friend cast some light on whether the revenue due to the DFT was a factor in the delay in the implementation of the decision?

[Grahame Morris]

My hon. Friend raises a good question. I asked the GTR witnesses yesterday whether revenue was a material factor, and their response was that all the revenue is collected directly. They intimated that there were no revenue implications, although I am rather sceptical that ultimately revenue may well have been a factor in the decision about whether to phase or to delay the implementation of the new timetable. Perhaps the Committee can pursue further whether that was the case.

We have heard from Opposition and Government Members about the impact of the terrible delays. In my area, at the worst times up to 43% of Northern trains have been cancelled or delayed each day. From 4 June, Northern cancelled 165 trains a day, including all services to the Lake district, as we have heard. Since 20 May, 11% of Northern trains have been delayed or cancelled each day.