Baggy Shanker
Main Page: Baggy Shanker (Labour (Co-op) - Derby South)Department Debates - View all Baggy Shanker's debates with the HM Treasury
(1 day, 9 hours ago)
Public Bill Committees
Andrew Ranger (Wrexham) (Lab)
As per my entry in the register of interests, I am a member of Unite the union.
Baggy Shanker (Derby South) (Lab/Co-op)
As per the register of interests, I am a member of Unite the union and vice-chair of the APPG on rail.
Laurence Turner (Birmingham Northfield) (Lab)
I am also a member of Unite the union.
Examination of Witnesses
Jeremy Westlake, John Larkinson and Alex Hynes gave evidence.
Q
Jeremy Westlake: First of all, I think it is well set out. When you look at how GBR will fulfil its functions, it will do that with regard to long-term strategies for rail, and I think those will set out various roles as well. Personally, I think the balance is about right; you actually want to have multiple consultations and checks and balances in the system, so I think it works.
Baggy Shanker
Q
Jeremy Westlake: On the first one, about being an effective system operator, in principle, yes. What the Bill intends GBR to have to do will also require it to grow its capabilities in these areas, particularly in how it does capacity allocation. So the Bill has the intent, but GBR will need to develop key capabilities to fulfil it.
Alex Hynes: It is probably worth saying that one of the benefits of the system envisaged by the Bill is that Great British Railways, the ORR and Ministers will work to a set of aligned duties. The creation of alignment across all industry parties is an important part of the Bill, and those duties are essentially the criteria that we will use to make decisions in the future. One of those key duties is to promote the interests of passengers, including disabled passengers, and of course the interests of passengers include affordability—the price paid by passengers. I therefore think that we will see a more coherent decision-making process for the railway. The key policy intent here is the creation of a directing mind—under public ownership—for the railway, and the Bill sets out how we will do that.
Baggy Shanker
Q
Alex Hynes: Not from my perspective. Obviously, the sooner it gets Royal Assent, the sooner we can start creating Great British Railways and delivering the benefits of having a directing mind for the railway.
Baggy Shanker
Q
Jeremy Westlake: First of all, we are very much looking forward to being headquartered in Derby. I have lived in Derby for 17 years and I think it is a wonderful place to have a centre for the rail industry; let me start with that. The work we are doing now is to define the internal organisation structure for Great British Railways, including its operating structures, divisions, integrated business units and network functions. That work needs to conclude before we can come back to you more clearly on the size of the HQ in Derby.
Rebecca Smith (South West Devon) (Con)
Q
I am interested in your views on how we, as parliamentarians, will hold Great British Railways to account, not only as constituency MPs when the services do not necessarily deliver your aims, but in our scrutiny function as Select Committees. What should we focus on with GBR? How you have described it sounds as complicated as the NHS, and for 20 years I have struggled to figure out how we actually hold that to account. Ultimately, if we are creating a new organisation that has a public benefit, how will politicians hold it to account if the public cannot trust us to be able do that? In the Transport Committee evidence, the implication was that it will be done through the Secretary of State, but if I were the Secretary of State, I would not necessarily want to take responsibility for anything that is not going right with GBR. I am interested in your comments on how we as MPs can hold GBR to account once it has been established.
John Larkinson: I could say something about the role of the ORR in holding it to account. There is a distinction between the role of the Secretary of State and our role. Ultimate accountability is with the Secretary of State. For example, it is the Secretary of State who signs off the GBR business plan, which is a fundamental component of the new system, in my mind. If there were a very strategic problem at Great British Railways—if it were not following its duties or if it were breaking the law—ultimate accountability would be with the Secretary of State.
Within that, some of the accountability comes through us. We have the role of enforcing the GBR licence. In terms of the provision of information coming out of the system, one of our big roles is monitoring everything that GBR does and all its functions. That will be done largely through the monitoring of the business plan. From my perspective, it is crucial that we have the ability to do that as we see fit and to publish information. A crucial role for the regulator is providing that information base and analysis to allow Parliament to scrutinise what GBR is doing more effectively.
Alex Hynes: It is probably worth saying that there are three key mechanisms by which GBR will be held to account. First, it will have to balance its duties in law. Secondly, the business plan will need to be signed off by the Secretary of State and its delivery will be monitored by the ORR. Thirdly, there is the licence.
One thing I would say is that the railways are slightly different from the national health service in so far as we have a revenue line of more than £10 billion per annum. We want Great British Railways to be a commercial organisation that can respond to the market with operational independence at arm’s length from Ministers. However, it is the duties, the business plan and the licence by which GBR will be held to account.
Baggy Shanker
Q
Keith Williams: I think it absolutely does. That was at the heart of the review. Customers’ main complaints were about punctuality and cancellation. Bringing track and train together ought to solve that issue.
Baggy Shanker
Q
Richard Brown: I did not actually say that franchising was broken; I said that it needed to be substantially improved. Frankly, having reread my review before this session, I think the complexity of the review proved too difficult for the Department to manage effectively, and I think it is past its time, so I do not think it is not relevant to the current discussion.
The Chair
Order. We have reached the end of our allocated time. I thank the witnesses for their time today.
Examination of Witnesses
Alex Robertson, Emma Vogelmann, Ben Plowden and Michael Roberts gave evidence.
Rebecca Smith
Q
Ben Plowden: I would make a slightly broader point, which is the number of other documents and processes that will need to be in place either in parallel with the Bill or subsequent to it being passed—I stopped counting at 19. There is a long-term rail strategy, the GBR business plan, the licence that you have just mentioned, the statement of funds available, and the list goes on.
One of the questions for the Committee is whether it sees some of those documents as part of its scrutiny, and understanding how all the different components of the system that GBR will operate within are going to work, when they are going to materialise and how they will interact with each other. Even though the Government’s intention is to simplify the system, it will still be quite a complex system of delivery, regulation, oversight, investment and so on. A broader understanding of the entire system that the GBR Bill will create is important. Not having had sight of some of those critical documents is part of that uncertainty.
Baggy Shanker
Q
Emma Vogelmann: From our perspective, having accessibility targets and so on that are not built into statutory instruments is not a guarantee of change in accessibility. We have seen accessibility requirements or targets being spread across all transport sectors, and particularly in rail, but the amount of change and enforceability is very low. As much as possible needs to sit in the primary legislation.
Alex Robertson: It is a difficult balancing act as to how much you put in legislation and how much comes later. It is absolutely critical that the GBR business plan properly sets targets for accessibility. One of the things that we touched on earlier is that the licence will give us the power to set the standards in relation to accessibility. We will do that in the way that I talked about, by co-creating them with disabled passengers. We will do it in a way that makes sure they are right.
There is a whole series of things that will need to happen. Ultimately, it is for you all to decide the extent to which you need to see that up front, as opposed to recognising that the direction, intent and duties are clear in legislation, and that the organisations that will be responsible for delivering it are in a position to do that.
Baggy Shanker
Q
Alex Robertson: Absolutely not. The ORR will have a role to play in highlighting progress against that. We would have a role in being consulted—we have to be consulted in the development of the business plan—and our duty to reflect the interests of disabled passengers would be at the forefront of our mind as that happens. Obviously, GBR will be accountable to the Secretary of State for how well that plan is delivered in practice. I have said before that a very important change that we will need to see through the creation of GBR is how GBR is held to account in public. Those targets will be public, and it will have to account for how well it is delivering against them.
Michael Roberts: I have a lot of sympathy with where Emma is coming from. When one thinks about the experiences of disabled travellers, which are regularly reported in the media, you can understand why there is a wish to have as much certainty and traction over whatever commitments are made. Having said that, I think that the arrangement that you have indicated could be made to work. I am mindful that in London, the mayor has a transport strategy. In that, he has set out targets that TfL are delivering against for improvements to the number of step-free tube stations. For example, the strategy includes a target to reduce the difference between the time a journey takes for somebody with reduced mobility and the time it takes for somebody who does not have those impairments.
It comes down to making sure that there are the resources to back up the targetry in the plans, that there is an energetic passenger watchdog ensuring that GBR and the industry more generally are doing what they are expected to under the plans, and that the ORR is ready to enforce if and when necessary.
Q
The reality is that there will always be tensions between what is desired and what is affordable—that is in the nature of government. Building on what you have already said, how can those tensions be resolved to meet the duties envisaged in the Bill and the aspirations that all parties in this place have for improved accessibility, while recognising that there will always be a funding tension in anything the Government do?
I was a Health Minister and wrestled with such issues when deciding what to put in primary legislation, in secondary legislation and in statutory guidance. I would argue they have greater weight than, for example, a business plan, which is vaguer, less enforceable and less tangible than each of those other layers. You have to strike a balance of proportionality. Where do you think the specific obligations on accessibility would best sit in that hierarchy, from primary legislation in the Bill, which is right up at the top and cast in stone, to a business plan, which is much less enforceable, vaguer and can be changed?
Alex Robertson: That is a good question. You have set out the challenge and the dilemma that is true for this aspect of public services, as it is for many others. I will try to answer it in this way: wherever you put it, it must allow for the consideration of the ambition to significantly—it must be significantly—improve the service that disabled passengers receive, with decisions about funding. If you separate those two, you will get into a position where you have set a target, but it is not realistic and has no plan behind it.
You have to do that and, as I have said before, do it in a way that involves disabled passengers in the decision making. Whatever the scale of the ambition, it is perfectly possible to spend good public money inefficiently and ineffectively, and not on doing what is in the best interests of disabled passengers. It is about doing it right, as well as the amount you do.
Emma Vogelmann: From Transport for All’s perspective, as has been picked up by many others, unless accessibility is enforceable, it is treated as an optional and a nice to have: “We will get to it when we get to it, or when there is a surplus of money,” which of course there rarely is.
We have seen initiatives to make changes in the name of affordability; I am thinking particularly about the proposals to close ticket offices at stations in England a couple of years ago. That was very much an economic argument about staff not being confined to the ticket office, but in practice, for disabled people that meant that the network would become increasingly unusable and a completely unviable mode of transport for some.
I agree with what was said about needing a balance between ambition and the reality of how far those ambitions can go, but we need to be ambitious. We need to make sure that we are not accepting a slower rate of change because it is more economically secure.
Ben Plowden: Going back to a point I made before, I think the Bill should set the strategic intent that accessibility should increase over time, not just that it should be taken into consideration by GBR and the Secretary of State. The Bill should also set out how that increase is delivered. To Alex’s point, that could be done in a number of different ways, such as through service provision, infrastructure investment and so on, that would then be set out in the subordinate documents such as guidance, the licence and the business plan. The intent in the Bill would clearly be that, over time—in a way and at a rate to be determined by those other processes—accessibility would increase, not just be taken into consideration,
Michael Roberts: You have exposed exactly the difficulties in trying to navigate through all these challenges and priorities. At the risk of motherhood and apple pie, I think co-creation with the disabled community is extremely important in trying to find a way of managing these different priorities that carries the confidence that that is being done with the full consideration of the needs of the disabled travelling public.
I also think legislators ought to think, “What are the mistakes that we want to try to avoid next time around?” and then think about what levers can address those mistakes. It is extraordinary that the industry is spending over £1.5 billion building a new station at Old Oak Common, and there is no level boarding for the Elizabeth line, which is the busiest railway in the UK. I am not sure that legislation is going to fix that—that is as much about the quality of decision making within the industry—but thinking about what good looks like and then working back and thinking, “Right. What are the ways in which we can best promote that?” seems like a good way of trying to think around the problem.