Passenger Railway Services (Public Ownership) Bill

Catherine Atkinson Excerpts

Committee of the whole House
Tuesday 3rd September 2024 Commons Chamber

[Wera Hobhouse]

I am coming to the end of my remarks.

The Liberal Democrats want to work with the new Government to improve our railways and deliver a fair deal for passengers. I call on all colleagues to support our amendments.

[Catherine Atkinson (Derby North) (Lab)]

I will address my remarks to my amendment 7. It is a probing amendment, whose main purpose is to raise and discuss procurement reform.

I start with good news: 100 new jobs at Alstom Derby, refurbishing CrossCountry’s Voyager fleet, in an upgrade worth £60 million. Train manufacturing in Derby was at death’s door some months ago, and now it has a heartbeat, with 10 trains for the Elizabeth line in the pipeline. I thank the Transport Secretary and many other hon. Members for their extraordinary support in the dark days some months ago, when hundreds of jobs at Alstom—thousands when we consider the supply chain and agency workers—were being lost. The city came together to demand action. No one wants to see their city or their workplace go through that, so we need to see an end to boom and bust, replaced with consistency and certainty. We need crisis and sticking plasters to be replaced with long-term funding and stable projects.

We saw a failure to act in that way when privatisation happened. When British Rail was split up, there was real concern that the upheaval would crush the world-renowned expertise in the supply chain in Derbyshire. According to Hansard on 20 December 1994, in that year alone, 5,000 jobs were lost nationally. That was one of the first unnecessary tragedies of privatisation. In spite of that setback, more than 10,000 workers are employed today in Europe’s largest and most diverse rail cluster, centred around Derby. It covers every aspect of the railway supply chain.

Since the Bill’s Second Reading, I have been pleased to visit and meet with rail forum members, including Hübner, Serco, DB ESG, Resonate and Millennium Site Services, which are all enthusiastic about working with this Government to deliver improvements to rail. The Transport Secretary said on Second Reading:

“As private operators are brought in, their contracts and supply chains will be considered, to ensure that they are delivering the best possible service for passengers.”—[Official Report, 29 July 2024; Vol. 752, c. 1074.]

My amendment seeks to establish what details publications related to that consideration should include. Specifically, the amendment suggests that details should include the approach towards

“technological development…the management of demand and supply…the supply chain…future sectoral planning.”

Through better procurement we can also speed up delivery, reduce costs and create social value. That point was made in the Maier rail and urban transport review, which was recently published—I commend the Transport Secretary on commissioning it. One of its valuable recommendations is that the Rail Minister should be given responsibility for working in partnership with business to support the establishment of local supply chain capability. It makes the point that as supply chain capability goes up, costs and skills shortages come down.

I started with the good news of 100 jobs at Alstom, but there is no complacency in Derby, because we are looking five and 10 years ahead, and I know there is no complacency from the Transport Secretary. On Second Reading, my hon. Friend the Member for Easington (Grahame Morris) reminded the House that to meet decarbonisation goals, the UK needs to upgrade up to 4,000 rolling stock units. With management of contracts and sectoral planning, there is enough domestic work to create a stable base for train builders and their suppliers, who can then top that up with exports. I therefore look forward to hearing from the Minister how we can get the structure right now for delivery in the future.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

I will not speak for a great deal of time, as this issue is largely devolved in Scotland. However, I welcome the Bill, and the Scottish Government have been keen to support it through a legislative consent motion. That supports the work that has already been done in Scotland. We have put the railway into public ownership as a last resort, but the Bill will provide stability going forward for the Government and the operator and enable them to do much better on medium and long-term planning, with certainty on what the future holds.

My amendment 6 brings into the debate the role of rolling stock leasing companies, or ROSCOs. Many Members on the Government Benches will agree that the ROSCOs are taking a huge profit out of the public sector. Rolling stock contracts in the past couple of years took more than £3 billion each year, and the amount of profit being taken from that is in the billions over the lifetime of the contracts. That money could be reinvested in the railways. I appreciate that it is not for this Bill, but I would like the Government to come forward with proposals on ROSCOs in the next Bill that will come forward later in the Session.

That is all I want to say at the moment. I do not intend to press my amendment to a Division, but I would like some assurance from those on the Government Front Bench that serious consideration will be given to how we deal with ROSCOs and the amount of profit being taken.