Cost of Public Transport

Debate between Callum McCaig and Lilian Greenwood

Tuesday 19th January 2016 Commons Chamber

[Lilian Greenwood]

No, I have already given way to the hon. Gentleman.

East Coast cut its fares in real terms in 2014 and reinvested all its profits in the service. As reported last week, it was delivering the best-ever service on the line in the weeks before it was sold. Instead of extending that successful model of public ownership to the other franchise services, the route was prioritised to be sold off. Worse, we now learn that Directly Operated Railways, East Coast’s parent company, has effectively been mothballed and its functions outsourced to companies with no experience of operating passenger services.

We are left in the absurd position of divesting our in-house railway expertise at precisely the moment that several franchises and contracting competitions appear to be in doubt. Now, on top of the damage already done, the Government are seriously considering privatising Network Rail. They have already tested the theory to destruction with Railtrack. A sell-off of Network Rail will put profit before passengers and risk dragging us back to the worst excesses of privatisation. I say to the Transport Secretary: do not go down this road. We know how it ends and we on the Labour Benches will oppose it all the way.

May I say how disappointing it was that the Scottish National party in government not only issued a conventional franchise for ScotRail, but passed up the opportunity to invite a public sector bidder for the contract? The franchise was awarded a full month after Gordon Brown, the former right hon. Member for Kirkcaldy and Cowdenbeath, made it clear that, on the forthcoming Smith agreement, enforced rail privatisation will be no more and the right to include a public sector option is currently before Parliament in the Scotland Bill. Labour urged the Scottish Government at the time to postpone the competition, but that call was rejected.

[Callum McCaig (Aberdeen South) (SNP)]

I thank the hon. Lady for so kindly giving way. I am pleased that she is addressing this part of the motion. I feel that the request is particularly ironic given that she talked about the powers that local government in England should have. The Scottish Parliament, and indeed the Scottish Government, do not have such powers. What she and her party are encouraging is the Scottish Government to break the law. Will she explain why that is the case?