Chris Gibb Report: Improvements to Southern Railway

Lord Grayling Excerpts

Tuesday 4th July 2017 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

I beg to move,

That this House has considered the Chris Gibb Report: Improvements to Southern Railway.

When I became Transport Secretary last summer, the Southern rail network was already bedevilled by a deep-rooted dispute causing massive disruption to the lives of thousands of people and damaging the economy across the region, but it was not the only problem that Southern rail faced. Those problems included too many infrastructure failures and a lack of joined-up government between track and train, as well as the problems that most of our commuter rail networks face after attracting ever more passengers each year, and far more than in the days of British Rail—a massive capacity challenge. That was the background to my decision to ask one of the railways’ most experienced leaders, Chris Gibb, to produce detailed advice for my Department on what we should do to get things back to normal for passengers: what was behind the poor performance on the route, and how could we solve it?

I asked Chris for his advice, because he has more than 30 years’ experience in the rail industry. It is not just me who acknowledges his experience; when the RMT was demanding the publication of this report, it described him as an experienced figure in the industry, and that was absolutely right. I should like to thank Chris for his contribution. His recommendations have been assessed, and 34 of his 38 suggestions are already in train and being worked on by my Department, by the rail industry and by Govia Thameslink Railway—GTR—which operates Southern. His findings make it clear that industrial action was the main cause of disruption for Southern passengers last year, when things were at their worst.

Southern passengers know full well how much their train service has improved since that industrial action largely ceased in January. Performance has been consistently better since the new year. The public performance measure is up by more than 20 percentage points from its low of 62% last December. That is much better, but it is not the best. There is still a long way to go, but the situation is clearly much better than it was.

Things are getting better for passengers, and the railways have been working much better. That is why it is tragic that the unions’ leaderships now want to carry on a battle that is meaningless and unnecessary. The performance of this railway will carry on improving only if the industrial action by those unions stops, but they seem unwilling to come to the party. ASLEF, the drivers’ union, started its overtime ban again last week, with the result that Southern passengers had 25% of their trains cancelled each day. And just when passengers thought that the services had stabilised, the RMT has called yet more strike action this month. Those passengers are at the mercy of the unions. I have asked the unions numerous times to walk in their passengers’ shoes and to call off the disruption of people’s daily lives that results from this ongoing action.

[Sir Nicholas Soames (Mid Sussex) (Con)]

My right hon. Friend is well aware of the terrible inconvenience suffered by my constituents in Mid Sussex and by many others along the line because of this and earlier strikes. Is he aware of the unions, working together, being encouraged by the Labour party? Or does he see this as a straight inter-union rivalry?

[Chris Grayling]

Let me stress again that I know how difficult this has been for my right hon. Friend’s constituents and for others. Their lives have been disrupted and turned upside down in a whole variety of ways. It is certainly the case that, in the early stages, the unions looked as though they were working together on this, but I do not think that relations between the two rail unions are now quite as warm as they once were. I am clear now that I think there is a direct link between the actions of the Labour party leadership, in trying to cause disruption for the Government this summer, and the decision to reprise industrial action. It is absolutely unacceptable that senior figures in the Labour party are being reported as encouraging trade unions to take action this summer. The public are the ones who will suffer.

[Chris Philp (Croydon South) (Con)]

In support of the point that the Secretary of State is making, is he aware that Sean Hoyle, the president of the RMT union, has described his objective as being to bring down the Government? Will the Secretary of State join me in saying that that is an absolutely appalling motive for ruining the lives of our constituents?

[Chris Grayling]

My hon. Friend is absolutely right. This is a shocking state of affairs. The reality is that there are some thoroughly good people working on our railways—people who do not agree with the current action and who just want to do the right job for their passengers. However, their leadership is now leading them up a path that they do not want to go up, and that is not in the interests of the staff or the passengers.

[Ms Nusrat Ghani (Wealden) (Con)]

Following on from that point, did my right hon. Friend hear the statement on Russia Today television from Mr Hedley, an activist in the RMT? He said:

“It’s very clear in our rule book, we’re in an antagonistic relationship with the managers and with the bosses. We want to overthrow capitalism and create a socialist form of society.”

How does that help our passengers?

[Chris Grayling]

My hon. Friend is absolutely right. The trouble is that this is all about politics rather than about the interests of the railways or of passengers getting on with their daily lives. It is a tragedy.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Will the Minister acknowledge that page 93 of the Gibb report shows a graph that demonstrates that Southern was the worst-performing company a very long time before there was any trade union industrial action? Will he also explain why he has not got round the table with the unions and GTR? This is an absolute nightmare for our constituents, but the Government cannot pretend that it has nothing to do with them, given that Gibb also says that the Secretary of State is

“already determining the strategic direction of this dispute”.

That is what Gibb says.

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[Chris Grayling]

I am slightly surprised that the hon. Lady has not declared an interest, given that she has received donations from the RMT union.

[Henry Smith (Crawley) (Con)]

On a point of order, Mr Deputy Speaker. I understand that the hon. Member for Brighton, Pavilion (Caroline Lucas) is sponsored by the RMT, so can you advise the House on whether she should declare an interest when speaking on this matter?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

It is up to each individual Member to note whether they have an interest or not. To be quite honest, I have no knowledge of whether any Member is sponsored by a trade union under the present legislation.

[Chris Grayling]

Since last year, we have worked to sort out some of the underlying problems with the management of this railway line, joining up the operations of the track and trains, spending more money on infrastructure, and helping to contribute to a better performing railway. Performance has been rising steadily since the start of the year. Chris Gibb rightly identified a range of problems—I have said to the House that we are working to try to solve those problems—but he was absolutely clear that the principal cause of the disruption experienced by the constituents of the hon. Member for Brighton, Pavilion (Caroline Lucas) and others was industrial action by the unions. He said that passengers would have experienced a relatively normal service had that action not taken place.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Secretary of State continues to argue that the principal reason for the delays is industrial action. Does that not mean that the £300 million pledged by the Government in January is a waste of money and that they should be sorting out the industrial dispute?

[Chris Grayling]

No, it does not. We have provided additional money for the infrastructure owned and operated by the public sector Network Rail—an additional £20 million last year and then a further £300 million that is being spent right now to stop regular signal failures, for example—but it is disappointing that all the unions and others can do is misrepresent the situation and claim that we are giving that money to the train operator. They know that that is not true. It is simply not the case. One part of solving the problem on this railway and ensuring that it is the good performing railway that it has not necessarily been in the past, even when the industrial action was happening, is to spend money on the infrastructure, so that we do not get points and signals failures—the things that frustrate people and cause problems day by day.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Part of the problem is that there are not enough drivers on the network, so the train operator is unable to operate its trains when drivers do not take voluntary overtime. Drivers not volunteering to take overtime is not the problem; the problem is that the operator has not trained up or employed enough drivers. I declare an interest in that I received donations from RMT, TSSA and ASLEF during the general election, because I know that we can get a better deal for our railways by working with the unions.

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[Chris Grayling]

The hon. Gentleman is actually quite right. At the start of this year, we launched an enormous recruitment programme and some 350 trainees are coming through the system at the moment. He will know that the system for training drivers is too tied up in red tape, union agreements and past working practices, so we cannot train drivers as quickly as I would like or bring in extra staff. It is a nonsense that we should depend on overtime to run any part of our rail system on normal working days. Our strategy is to end that situation, but it will be a blow to some of those who depend on overtime as part of their regular income. It is certainly not the case that Southern drivers are keen to see their overtime disappear in the run-up to the summer holidays.

[Crispin Blunt (Reigate) (Con)]

I suppose I should thank Southern for taking me to and from the hospital at East Grinstead for an operation this morning. I have come back for this debate, and I want to ask the Secretary of State about the future and the investment that he is making. The situation in the Reigate and Redhill area needs serious investment in changes to the track layout at Croydon, and Reigate needs a 12-car platform so that it can have proper services into London. Will the Secretary of State provide the resources for Network Rail simply to produce a potential design of a proper station at Reigate? My constituents are hit by fares and by overcrowding on a service that has all the faults identified in the Gibb report by the various parties.

[Chris Grayling]

I assure my hon. Friend that I am currently working on what we need to do to ensure that the Brighton mainline, which has not had investment over the years, is capable of meeting the challenges of the future. We are spending far more money on our rail network today than has been spent for decades. The Brighton mainline has been neglected, which is one reason why performance has been so poor, and that is something that we have to change and will.

[Stephen Lloyd (Eastbourne) (LD)]

It is interesting that the Secretary of State criticises the fact that there are not enough drivers and explains how more drivers are being recruited. Chris Gibb said in his report:

“I understand that at least one losing bidder…had too many drivers in their bid…but it may have been the case that the bidder with the fewest drivers won.”

It is complete nonsense for the Secretary of State to indicate that he did not realise the company won the contract with fewer drivers. Surely he must recognise that.

[Chris Grayling]

Actually, I was not Secretary of State at the time. The hon. Gentleman says that I should have known, but what I am trying to do is to sort out the problems we have now. I have made it absolutely clear that we do not have enough drivers on this railway—there is no dispute about that—which is why we have launched a big recruitment drive. I wish those drivers were coming on stream now but, as those with union links know, it takes 14 or 15 months to train a driver. I do not think that is sensible, and it should not take that long. That is something we have to address for the future, but we are bringing new drivers on stream as rapidly as we can, within the confines of union agreements.

On Chris’s recommendations, we are doing a variety of things to deal with the problems on this railway, but we should not forget the core issue. Chris Gibb’s main finding—and, yes, there are things for the Department, the train company, Network Rail and others to learn from the report—is that the principal cause of the disruption last year, which caused misery to so many people, was the action of the trade unions. Let us make no mistake, it is the union executives who call strike action and call disputes, and they are the ones who can call it off.

[Peter Kyle (Hove) (Lab)]

It is worth reiterating that the one thing Chris Gibb was excluded from investigating in his report was industrial relations. He was not allowed to go into it, but he did say that in recent times it had been the single greatest cause of short-term inconvenience. In the section titled “How did the system get to this point?” he clearly says:

“However I do not believe any single party have been the cause.”

On behalf of passengers, I beg that we get beyond the finger-pointing, the “he said, she said” of this debate. Let us all act with a degree of humility. Every single party bears a responsibility for where we are today, from the unions to the franchises and the Government. Can the Secretary of State please accept his own responsibility, act with humility and say what he—

[Mr Deputy Speaker]

Order. You all want to speak, and I am not getting at anybody in particular, but all I will say is that if we have short interventions, everybody will get to speak. We have a very long list to get through.

[Chris Grayling]

The point is simple. We are talking about where we are now. Two weeks ago we had a railway that was performing much better and a service that most users said was much better than it was last year. We had a joined-up management structure for track and trains operating out of a centre at Three Bridges. We had a programme of ongoing spending to try to remove the perennial breakdowns, signal failures and points failures that cause frustration. All that was moving in the right direction, and then, lo and behold, unnecessary strike action is threatened and work to rule is taking place against things that the unions have already been doing for the past six months, that have been working well and that have been delivering improvements. That is where we are now. We had something that was getting better, after a lot of work by a lot of people. It is a tragedy that we now seem to be taking a step backwards. It is not necessary.

If the hon. Member for Hove (Peter Kyle) wants this railway line to get better, he should please say to his friends in the union movement, “You do not need to do this. It is not necessary, it is the wrong thing to do and it must stop.”

[Maria Caulfield (Lewes) (Con)]

Does the Secretary of State agree that, whatever the union’s concerns, whether it is rejecting the 24% pay rise or other issues, the only way to resolve its concerns is to get back round the table? Overtime bans and strike action will not resolve the situation; it just makes life worse for passengers.

[Chris Grayling]

I absolutely agree. On the pay deal, what I find particularly baffling is that ASLEF is now balloting for industrial action on a 24% pay rise, including productivity changes, that it has accepted on the Thameslink and Great Northern routes. If it is not a political intervention, why would it accept the deal in one part of the company and threaten strike action in the other? Most of us now look at the situation—with the railway line getting better, with things on the mend and with a deal that most people would say is generous and that the union has accepted in the other part of the company—and ask why on earth it is now returning to industrial action.

[Stephen Lloyd]

Why can the Secretary of State not publicly say to both unions and the trade operator, “Let’s meet together, with no preconditions, to negotiate this”? That is what happened with ScotRail, so why does the Secretary of State always want to meet the unions separately? Do it together and do it now!

[Chris Grayling]

We had very constructive talks earlier this year, and I want to pay tribute to the leadership of ASLEF for the way they conducted themselves back in the January and February negotiations. It is a disappointment to me now that they appear to have returned to militancy, when I thought a constructive dialogue was taking place. Those talks happened, and they were facilitated by the general secretary of the TUC and by a senior rail executive. An agreement was reached but, sadly, it did not pass the referendum. A further offer is on the table for staff. That offer of change combined with a substantial pay upgrade and productivity improvements has been acceptable to the union on Thameslink and Great Northern. It is a huge disappointment that that cannot deal with this issue once and for all.

[Tim Loughton (East Worthing and Shoreham) (Con)]

The Secretary of State will be aware that this morning several of us from across the House met representatives from the RMT. I have to say that at the end of that meeting we were perplexed as to why still no deal had been done, given the very small number of trains that have been leaving without that second person on board and the very narrow difference between GTR and the unions on how one breaches that. There seemed to be some union enmity prolonging this strike. Can we not just get all of them round the table, bang some heads together and at last get our constituents a train service that stops disrupting their lives?

[Chris Grayling]

There is no reason why talks cannot start again tomorrow. I say to the unions that they should call off the industrial action and come back round the table. They are trying to turn the clock back. Sensible arrangements have been in place for years that do not require a train to be cancelled if the previous member of staff has been delayed. Ultimately, this is about whether we are going to modernise our railways or not. We have a rail system that is bursting at the seams due to the successes it has enjoyed in the past few years. Our railways are packed, and we need to look for smart uses of technology and smart ways of working to deliver the capacity that we need for the future, and we need to invest in infrastructure to make sure it is reliable. Those are things we want to do and plan to do. The unions need to work with us, and the message from Chris Gibb’s report is that the unions should stop fighting change and modernisation. Nobody is losing their job and nobody is having their pay cut. I believe that we will need more customer service staff in the future rather than fewer on our railways. I am not in the business of removing staff from working with customers, but we need to have an industry that has the freedom to adapt, develop and equip itself to deal with the challenges of the future. This dispute is all about preventing that from happening; it is about retaining old-fashioned union power and the ability to halt the railways at the whim of union leaders. That is not acceptable. It has been a tragedy for the people on the Southern rail network that they have been on the raw end of this for the past 18 months. Just when we thought things were getting better and the services were getting back to normal, it has started all over again, and it is a tragedy. Opposition Members should say to their union friends, “Stop doing this. Call off your action,” and then we will talk to them again.

[Andy McDonald (Middlesbrough) (Lab)]

May I make it plain from the outset that I am a proud member of the Labour and trade union movement, and very happy to declare the support that I have received from all three trade unions in the rail industry? I am grateful for this opportunity to debate Southern rail and the Gibb report, but it should be noted that this debate should have taken place six months ago, when the report was finished and presented to the Secretary of State. Unfortunately, he decided to sit on the report for six months and wait until after the general election before publishing it, denying this place—and, most importantly, passengers—the opportunity to scrutinise this assessment of the Southern rail fiasco. The Secretary of State should not bury reports until after a general election, when passengers deserve the opportunity to see the findings immediately.

Just last week, the Association of British Commuters went to the High Court seeking a judicial review of the Government’s handling of Southern, motivated by the Transport Secretary’s refusal to assess the force majeure claims of Southern, which is requesting that it not be found in breach of its contract for its abysmal performance—the worst in the country. Those claims were made in April 2016, more than a year ago. The High Court has now ordered the Secretary of State to produce a report on Southern rail within 14 days. Long-suffering passengers should not have to resort to crowdfunding for legal action to seek accountability, and the Secretary of State should not have to be dragged, kicking and screaming, by the High Court to do the job he was appointed to do.

[Chris Grayling]

Will the hon. Gentleman confirm that we won the case?

[Andy McDonald]

Perhaps the Secretary of State would like to confirm that he has been ordered by the High Court to produce the report within 14 days, and that he would not have done it otherwise. Who won that one?

Crucially, the section of the Gibb report that would have been the most informative—appendix 9, “Recommendations regarding the GTR franchise agreement”—has been redacted. Where is it? What is there to hide? The Secretary of State has prevented us from seeing the part of the report that would give us more details of the botched franchise design, for which his Department is responsible; the nature of the agreement with GTR, which has been cloaked in secrecy; and the changes that Gibb has recommended. That is to say that the Secretary of State has redacted the parts of the report that would present the greatest political difficulties for his Government if they were released.

It is highlighted that industrial relations are not the only issue. The Gibb report clearly identifies failures to assess accurately the number of available drivers, to train and recruit enough drivers, to anticipate turnover with any accuracy, to plan for the impact of infrastructure enhancements, to account for changes in Network Rail and for timetable expansion, to get the right trains in the right places, and to cater for growth in demand on overcrowded stations.

I do not recall the Transport Secretary doing anything but oppose every single piece of industrial action. It is wrong of him to attack the men and women who operate our railways while washing his hands entirely of the collapse in industrial relations.

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[Andy McDonald]

It demonstrates what can be achieved when we sit down and have an intelligent conversation with people.

Where there is a willingness to talk on all sides, it is clear that agreements can be reached that benefit passengers. To put it simply, the Secretary of State’s militant anti-worker, anti-trade union stance has significantly worsened industrial relations and had a devastating impact on passenger services. While I am at it, he must come up with evidence for his allegation that the leader of the Labour party conspired in the way that he said he did because it is a complete and utter fantasy. He knows it and he should not come to the Dispatch Box and just make things up that he knows are not right.

[Chris Grayling]

If the hon. Gentleman’s analysis of the industrial dispute is correct, can he explain why the Labour council and Mayor on Merseyside have taken exactly the same approach as the Government on this issue?

[Andy McDonald]

That is not accurate and I will tell the right hon. Gentleman why. If it were not for the stitch-up with Serco and Abellio taking £17 million out of the deal and £5 million that we could use to have a guard on every train, we would not have the problem. So, yet again, he just serves this up to his mates. He does his deals with these people, extracting the value from our railway system. [Interruption.] Absolutely not. It is important to point out that the Gibb report makes no assessment of the merits and de-merits of driver-only operation. However, despite a lack of assessment, Chris Gibb makes it clear that he supports DOO and thinks that any industrial action is wrong.

I would like the Secretary of State to reflect on the following passage from appendix 1 of the Gibb report. It says:

“We have undertaken this project for CLGR Limited, a consultancy company owned and operated by my family and I, and CLGR Limited has been contracted to Govia Thameslink Railway, as facilitated by the DfT. Discussions have been held under the terms of a confidentiality agreement between CLGR Limited and GTR.”

There we have it—Chris Gibb is contracted to Govia, the very company he is supposed to be reporting on. It is more than just “he who pays the piper”. Surely even this Secretary of State can see this latest blatant conflict of interest. Where is the independence in this report? It is just another stitch-up.

What is it with the DFT? Its senior civil servant, who previously told the world he wanted unions out of his industry, has his own consultancy company—First Class Partnerships, I believe—to advise the parent company of Govia, the very company that was then handed the Thameslink, Southern and Great Northern concession on a £1.2 billion-a-year gold plate. This Government would refuse to recognise a conflict of interest if it got up and bit them on the gluteus maximus.

Labour, like the staff who understand and operate our rail network, the passenger groups who have been protesting and have been motivated to take legal action, and disability charities, simply do not agree with the assumption that destaffing and deskilling our railways is a positive step. Despite being first introduced more than 30 years ago, DOO is only in use on a third of the national rail network. It was originally introduced on three or four-car trains at a time of declining passenger numbers. Passenger numbers having increased hugely in recent years, it is now proposed to introduce DOO on trains with as many as 12 cars. In the past 15 years, passenger numbers on Southern have increased by 64%, from 116 million to 191 million a year. That enormous rise in numbers means that at the platform-train interface there are inevitably increased risks to passenger safety, as anyone who travels on Southern services can see.

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[Andy McDonald]

To put it quite simply, because they could not get in the door, as has quite rightly been pointed out, when the Government were holding talks at the TUC that were an attempt to divide and conquer—a typical Tory trick to keep the critically important trade union out of the discussion in the first place. Had the Secretary of State had any real intent in that regard, he would have got everyone around the table and got on with resolving the dispute—[Interruption.] He says from a sedentary position that it was the TUC that oversaw things. It did its level best to try to bring this to a conclusion, but not because of the assistance of the DFT or this Secretary of State, because he deliberately excluded the relevant parties.

Sadly, the inference that the Government apparently seek to draw from the ORR report—that all is well and that there is, in effect, no cause for concern over safety—does nothing to assist the process of resolution. Indeed, the Rail Safety and Standards Board has been reluctant to describe DOO as definitively safe, saying:

“DOO does not create additional undesired events but may increase the likelihood of an event occurring or increase the severity of its consequence.”

By the way, Mr Deputy Speaker, you can no longer find that entry on the website—I wonder why.

At a time when there are increased risks of terrorist attacks and a spike in hate crimes, it seems foolish in the extreme to prioritise removing trained staff from services. The safe management of a train when difficulties arise is also key: a case in point was the derailment—

[Chris Grayling]

rose—

[Andy McDonald]

Let me make this point; then the Secretary of State can have a pop.

A case in point was the derailment near Watford Junction on 16 September last year. After a train hit a landslip caused by torrential rain, the guard evacuated the train when the driver was injured in the incident, trapped in the cab and incapable of doing so. If such an accident were to occur on a DOO service, the safety of hundreds of passengers could be compromised. Why does it take a catastrophe to bring this Government to their senses in dealing with issues of safety, rather than wanting to compromise on safety at every turn?

[Chris Grayling]

Can the hon. Gentleman confirm that today on Southern rail there are more on-train staff than there were before the dispute started? Is he actually saying that it is Labour policy that if a member of staff is delayed, the previous arrangement, whereby the train could carry on running, should stop, that the train should be cancelled, and that passengers should be turfed out on to the platform?

[Andy McDonald]

I will tell the right hon. Gentleman what Labour party policy is: to ensure that there is a second safety-critical trained member of staff on that train. [Interruption.] It means that they have the appropriate training and are not outsourced or sold short on training, which is exactly what the Government want to do.

The changes proposed by the Secretary of State would be retrograde for disabled passengers, whose independence would be wound back. Without a guaranteed second member of staff on board, the ability of passengers with accessibility requirements to turn up and go is severely restricted, requiring passengers to make arrangements 24 hours in advance. Southern passengers have been left stranded on station platforms because, as there is no on-board supervisor on DOO services, there was no one to assist them so that they could get on the train.