Rail Update

Baroness Neville-Rolfe Excerpts

Monday 5th February 2018 Lords Chamber

[Baroness Sugg]

My Lords, I apologise if I did not keep a straight face throughout the Statement. I was a little distracted by the noise from the Benches on the other side. On bidders for the west coast and east coast, the noble Lord is absolutely right that there was a direct award for the west coast and we are considering the options for the east coast. Those are both short-term plans and in 2020 we will be opening them up to further bids. We look forward to receiving them to deliver what the passengers need.

[Baroness Neville-Rolfe (Con)]

My Lords, it seems to me that there is the past and there is the future, and I know that there has been a lot of agonising in the department on the future of franchising. Will my noble friend summarise the improvements to the franchising process that the Government are planning, including Network Rail’s role, to avoid the kind of problems that have been identified in relation to National Express, Stagecoach and so on? Can we look forward?

[Baroness Sugg]

My Lords, I would absolutely love to look forward. As I set out, we are making improvements within the department. There was, obviously, a problem; the franchises failed and we are learning those lessons. We are introducing measures to deter overbidding and looking at our financial modelling and stress testing. We hope that, with this added testing, we will be able to forecast and exclude bids which are likely to default. We are continuously improving our risk-assessment process to reduce the likelihood of overbidding in the future. As I said, we are working with Network Rail to ensure that it devolves its services and performs better in future.