Rail Franchising

Anna Soubry Excerpts

Wednesday 10th January 2018 Commons Chamber

[Andy McDonald]

I like to think that the hon. Gentleman and I can disagree with one another without being disagreeable. He has a good memory and is going back rather a long way. The Conservative party has been in power since 2010—eight years—and we are concerned today with the record of the current Government. We are not going back through all our yesterdays.

[Anna Soubry (Broxtowe) (Con)]

The hon. Gentleman is two years younger than I am, so he will well remember the state in which the railways used to be. Does he not agree that we have seen a terrific improvement in the quality of the trains, the service and the attitude of the staff? An excellent service has been developing; would he agree that that is because of privatisation? Would he further agree that investment in our railways is at a record high?

[Andy McDonald]

I regret that many passengers’ experiences do not match the right hon. Lady’s experience. The evidence is that people are dissatisfied with the services they receive throughout the country. I respectfully suggest to her that going back over things in the way she is doing is not helpful. Had British Rail received public investment at the rate at which the Treasury has poured investment into the private operators, we would have had a gold-standard railway in this country.

[Anna Soubry]

rose—

[Andy McDonald]

I really want to make progress because a lot of people want to speak.

All the factors I have described undermine the growth forecasts that are so central to the Government’s model and the undeliverable bid assumptions of operators. FirstGroup won the TPE—TransPennine Express—franchise in December 2015 based on revenues increasing by 12% a year. In one of his first acts in office, the Secretary of State awarded the Greater Anglia franchise to the Dutch state-owned rail company Abellio in August 2016. The deal commits the company to paying the Government £3.7 billion to run the line for nine years. That is more than the east coast franchise. Reports suggest that Abellio’s bid was £600 million more than the next bidder. Like the TPE and east coast bids, Abellio’s bid was based on double-digit annual revenue growth. The company’s boss described the £3.7 billion price tag as “scary”. Does the Secretary of State guarantee that the Treasury will receive the full premium payment of £3.7 billion from Abellio Greater Anglia by 2025—yes or no?