Passenger Railway Services (Public Ownership) Bill Debate

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Department: Department for Transport
Lord Ranger of Northwood Portrait Lord Ranger of Northwood (Con)
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Yes, there was the noble Baroness, Lady Jones, my noble friend Lord Moylan and myself, in the role of adviser to the Mayor of London on transport. Although we have spoken much about how London’s model has improved and can be looked at, I have to highlight that I support my noble friend Lord Moylan’s amendments, and particularly Amendment 34 in the name of my noble friend Lord Young with regard to the Secretary of State’s power to award—and potentially their power only to do so.

I recall that in the almost four years that I was the mayoral adviser for London, between 2008 and 2011, there were at least five and a half Secretaries of State for Transport. Sometimes the rotation of Secretaries of State through that important office can be quite hasty. If we are looking to award such authority, power and control to that office, the speed in the potential change of roles can lead to a certain amount of confusion and hesitation, and not even the progress that we would want to see. For that reason, as many others have probably mentioned, I support Amendment 34.

I also support my noble friend Lord Lansley’s Amendment 36 on planning. This was a point that I wanted to make. One of the major changes that we made when we came into City Hall in 2008 was to look at developing the London Plan and the Mayor’s transport strategy in conjunction, so that we could understand the potential for investment in transport infrastructure and where we would look for housing and the development that would generate jobs and growth. That is obviously critical to where investment in transport is then made, and there can be an issue if we do not align that strategy with planning; therefore, we have the amendment that my noble friend Lord Lansley mentioned.

There are a number of challenges when we start to centralise thinking about transport planning. It worked better when we worked very closely at a city and regional level, and closely with boroughs as well. Local authorities know very well their requirements and demands. That feeds into the overall stitching together of planning for what transport is required. During my career, I was fortunate to work in organisations such as Transport for London, Network Rail, the Rail Safety and Standards Board and even the Department for Transport. That approach, though it felt fragmented, brought together the complex requirements for transport. Yet whenever the Government—not the previous Government but the one before them—tried to centralise through organisations such as Railtrack, the Strategic Rail Authority and Network Rail, as it seems they will do now with Great British Railways, there seemed to be a disconnect between what was required and what the large, centralised bureaucracy was trying to deliver. On that basis, I also support the amendments tabled by my noble friend Lord Moylan around ensuring that there is enough authority and devolution in the Bill.

Baroness Randerson Portrait Baroness Randerson (LD)
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My Lords, I support the intention of the amendments in this group. There is one amendment in the name of my noble friend Lady Pidgeon, Amendment 16, which the noble Lord, Lord Moylan, has signed, as I have signed his Amendment 12. Unlike him, I want to talk about devolution in Wales and Scotland, because that issue is very important. Railways cross borders; that point is addressed by the noble Lord’s amendment. I agree with his idea that there should be proper formal consultation with the devolved Governments—by the way, I can assure him that the new Council of the Nations and Regions should have a crowded agenda, because many devolved issues have been building up over a long period.

Let us look at the case of Wales. If, for example, you travel from Cardiff to Wrexham, you find yourself crossing between Wales and England; your start and end points are in Wales, but the middle of the journey is in England. That complexity needs to be built in. Devolution of rail powers to Scotland is pretty clear, but in Wales it is—I hope—a work in progress. I will explain to noble Lords why I say, “I hope”. The Welsh Government do not have powers over rail infrastructure. The operation of the railway in Wales is the responsibility of the Welsh Government, but infrastructure planning and funding remain with Network Rail. This is a cause of considerable frustration; the Minister answered a question about it earlier today.

This frustration is largely because Wales gets under 2% of total infrastructure spend in the UK, while having 5% of the population and more than 5% of the land mass. Our rail systems in Wales are in such a poor state, so there is a good argument that we should be getting more than 5%. The failure to allow Wales the Barnett consequentials of HS2 just rubs salt into the wound, and it is a lot of salt—£4 billion of it. I urge the Government to rethink the situation and the tendency set out in the Minister’s letter, because surely there is no hard and fast rule on this. Back in 2007, the Labour Government of the UK made noises which suggested they were willing to offer Wales control of infrastructure. Unfortunately, at that point, the Welsh Government were not keen to take it on, but I think they would be very keen now.

I am keen that this Bill does not in any way prevent further devolution. Transport for Wales, which is owned by the Welsh Government, is investing widely. Despite problems in mid-Wales, services are improving, and passenger numbers were up 27% in the last three months alone. That is a sign of progress. Can the Minister explain why the Welsh Government might not be considered capable of doing the rest of the job?

As my noble friend Lady Pidgeon has said, Transport for Greater Manchester, which I recently met representatives of as well, is enthusiastic about its success and devolution plans. They spoke to me about the Bee Network, which has lower costs than what went before, higher levels of punctuality and higher numbers of passengers. It is a real success story. They have firm plans to devolve eight rail lines within the next four years. I gather that they may be looking at some form of public/private partnership. That is the sort of thing referred to in the amendment tabled by the noble Lord, Lord Liddle, in Monday’s debate.

Can the Minister specifically reassure us that the aims of the declaration of intent that Greater Manchester signed with the previous Government still hold good? Can he specifically reassure us that there is nothing in this Bill that will prevent Greater Manchester’s ambitions being implemented? We on these Benches want to go further. Where Greater Manchester leads, why should not Birmingham, Liverpool or several other places follow? Shutting off the devolution of rail is at odds with the Government’s plans to give local authorities more powers over buses, for instance. It does not sit comfortably together.

I have two pleas for the Government. First, as I said on Monday, I ask them please to leave their options open. Do not close off avenues in the Bill: allow for unexpected events in the future. Secondly, it is illogical to allow open access operators to pick off rail routes, and it is illogical to encourage local authorities to have more control over buses but not to encourage them to fully integrate their local transport services by having control over trains and railways as well.

Lord Hendy of Richmond Hill Portrait The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)
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My Lords, I remind noble Lords that the Bill is, in my view at least, narrowly focused on allowing the further public operation of existing franchised railway operations currently in the private sector. Many in this House will know that I was the commissioner of Transport for London when the original Overground was proposed and established. Some of the details of its success are extremely familiar to me and give me a glow of pride and satisfaction whenever anybody mentions them. I was also there when the Overground was expanded—in fact, some Members of this House could have allowed it to expand further but chose to oppose it on the grounds that, for a mayor of a different political colour, that might not suit the then-Government’s aims. I say all that because devolution is really important. I have no intention of closing it off, and neither does the Bill—but it has to be subject to the effective operation of the railway network as a whole. I will come back to that in a moment.

I will speak first to Amendments 31 to 33 and 37 of the noble Baroness, Lady Jones of Moulsecoomb, Amendment 34 of the noble Lords, Lord Young of Cookham and Lord Moylan, and Amendment 36 of the noble Lord, Lord Lansley. These amendments would empower the Secretary of State and the Scottish and Welsh Ministers to award contracts to companies owned by various local authorities. Amendment 16 of the noble Baronesses, Lady Pidgeon and Lady Randerson, and the noble Lord, Lord Moylan, aims to provide opportunities for local authorities to take responsibility for services in their areas before contracts are awarded to public sector operators.

Amendment 46 of the noble Lord, Lord Moylan, would require another report, this time on whether public ownership makes it more or less likely that further services will be devolved by means of exemptions granted under Section 24 of the Railways Act 1993.

Amendment 50, also of the noble Lord, Lord Moylan, is another attempt to delay transfers to public ownership, as it makes the establishment of new regional partnership boards the trigger for the provisions of the Bill to come into force. The noble Lord, Lord Moylan, mentioned shadow Great British Railways. This is not a statutory entity but a preparation for Great British Railways; it is not a mechanism to do its job in advance of the creation of the body itself.

In line with the spirit of all these amendments, the Government are absolutely committed to strengthening the role for local communities in shaping the design and delivery of passenger rail services in their areas. Our plans for reform will make this a great deal easier for them, because they will need to engage with only one organisation—Great British Railways—instead of having to deal separately with Network Rail and multiple train operating companies.

The noble Lord, Lord Moylan, reminded us of the manifesto. We have already made it clear that our railways Bill will include a statutory role for the devolved Governments and mayoral combined authorities in governing, managing, planning and developing the rail network, and there is absolutely no intention to enact rail reform without that statutory role. We are committed to a full and open discussion on that role, and how it will work, as we refine our plans for the railways Bill in the coming weeks, and that will be included in the published consultation.

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Lord Berkeley Portrait Lord Berkeley (Lab)
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My Lords, this has been a very depressing debate—listening to the terrible problems that many noble Lords have had in using the rail network. It is wonderful that they have been able to expose them so widely. We have heard about them before, but it is depressing that we are in 2024 and they have not been solved already. All this could have been done years ago, without legislation and without any change. It just needs somebody to do it and to take responsibility for it. So the list of the noble Baroness, Lady Randerson, is very good—all the lists are good. There are three things that I hope my noble friend will take forward.

There are three different elements to the GBR responsibility. One is the infrastructure—platforms. One is the trains—level boarding. The other is services—what people do or do not get at the stations. Most important is that the passenger standards authority, mentioned by the noble Baroness, Lady Scott, must be not only comprehensive, strong and fast but independent.

We have to think about how you can be independent of the Government and the railways, and still have credibility. I hope everybody can, but the Government will have to accept something that is independent, rather than something which takes backdoor instructions from Ministers who say, “Don’t get too strong on this, because it’s too expensive”.

We will have to watch this for a long time, but I congratulate other noble Lords who have spoken in this debate and exposed this, which should have been exposed a very long time ago.

Baroness Randerson Portrait Baroness Randerson (LD)
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My Lords, I believe this is the most important group of amendments today because it has passengers at the core. I have added my name to three amendments because I am so convinced that the comment made earlier about the lack of focus on passengers in the current fragmented rail system has done so much damage to the rail industry.

When things go wrong—and things go wrong all the time—the train operators spend their time deciding whether it is their fault or Network Rail’s fault, instead of concentrating on putting it right for the passengers. To my mind, this is the obvious way ahead. I remind noble Lords that we live in an ageing society and the railway has to operate for all.

Not all disabled people are in wheelchairs. When I get on trains, I watch people who are capable of walking being helped by staff, or by other passengers, to get on the train because it is difficult. It must be made easier. Once it is made easier, you give people confidence; once you give them confidence, they become train passengers much more willingly.

I broaden it even further. The noble Lord, Lord Moynihan, referred to people who have a visual impairment—quite rightly. I wish to raise the issue of people with hearing impairment. I have 30% hearing. I wear hearing aids, which improve that considerably, but they do not bring me anything like up to normal standard. Unfortunately, one recent Saturday evening I was at Paddington station for over four hours, while no trains ran. Announcements were constantly given only over the loudspeakers. Every time a loudspeaker announcement was made, I had to go up to someone and say, “Can you just tell me what he said?” Of course, people were basically in a panic and they were not doing it clearly. Eventually they gave up and said that no trains would run to Wales at all that evening. But the point I am making is that, over four hours, that situation took no account at all of people who could not hear clearly.