Govia Thameslink Rail Service

Chuka Umunna Excerpts

Wednesday 13th July 2016 Westminster Hall

[Mr Chuka Umunna (Streatham) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Ryan. I congratulate the hon. Member for East Worthing and Shoreham (Tim Loughton) not only on securing the debate, but on a very powerful speech; I agree with almost every single word. The fact that we see hon. Members from both sides of the House talking on a cross-party basis, along the same lines, illustrates the strength of feeling among our constituents about the joke of a service that they have been getting from GTR on Southern and Thameslink lines. I also take this opportunity to thank the 10 hon. Members—I think most are here—who have signed my early-day motion 298 calling for GTR to be stripped of the franchise.

I have to say that I laughed yesterday, when at about 5 o’clock, GTR tweeted:

“Don’t forget to plan your journey home this evening as there may have been a change to your usual train”.

There is nothing usual about the services that GTR provides. It has the worst record on cancellation and significant lateness, by some margin, of any operator, and it performs worst on the public performance measure.

As the hon. Gentleman said, we have had meeting after meeting and several debates on this issue. We get excuse after excuse, and our constituents have all reached the end of the line in their patience with what is going on—[Laughter.] See what I did there? The bottom line is that the company has not trained enough drivers. It is true that Network Rail has contributed to the situation and that GTR has to operate on an ageing infrastructure, but frankly, so do all the other train-operating companies. The delay figures show that Network Rail has caused more delays for the other train operators than for GTR, but the other train operators outperform GTR. There has been poor planning on a gargantuan scale and frankly, the management of GTR are absolutely appalling. We still have problems with basic things like information being provided when there is lateness.

The impact on constituents is absolutely unbearable. People have lost their jobs, which is a disgrace, as a result of the company’s poor performance. People who are still in their jobs arrive at work stressed and do not have the right mindset to start work, which will of course have an impact on productivity. Students and pupils have told me about the impact of the stress of getting to school to do their exams recently, as a result of the performance of that train operator.

So what do we want? I will probably not take up my whole five minutes, because I want to ensure that everyone else can get in. This franchise needs to end, and it needs to end now, or as soon as possible. I do not see why we should have to wait until 2020 or 2021 when it is up for renewal. I just cannot understand—I say this as somebody who professionally, as a lawyer, worked on a franchise agreement—how the company is not in breach of this franchise, such that it can be taken away from it. I understand absolutely that this is a big franchise. It is probably too big and, ultimately, I would like to see the parts of this franchise that cover London suburban routes transferred to Transport for London, which I believe could do a much better job of providing services to my constituents.

Turning to the longer term, in Streatham, we have Streatham Hill, Streatham and Streatham Common stations, as well as Tulse Hill and Balham stations just outside, and our stations have been over capacity for some time. Our population is growing and we are not in any Government programme to upgrade our local transport to be fit for the future. That is why ultimately, what we would like to see—I think this may provide a long-term solution to our problems with GTR and this particular franchise—is Crossrail 2 routed through Streatham. That would alleviate congestion on the Northern and Victoria lines, which are nearby, because large numbers of people to the east and south of those lines would therefore not have to travel to Tooting Bec, Tooting Broadway, Balham and Brixton and could use a Streatham Crossrail station. It would relieve congestion at Streatham Common, which is the sixth busiest station in the Southern network, and at Streatham station. It would cut congestion on our roads, too. Also, Streatham Action, a local group, and our local council have been clear that it would also provide an opportunity for growth and regeneration in our area.

I want to come back to where the hon. Member for East Worthing and Shoreham finished. What we want from the Minister today is action. We do not want the warm words that say, “Yes, I agree with you about how awful they have been.” We want action, and we certainly do not want the Minister acting as an apologist for this company.

--- Later in debate ---

[Chris Philp]

That is rubbish.

[Mr Umunna]

It is still terrible.

[Claire Perry]

It was not nearly good enough, but that was 10 percentage points up over the last six months. There was every view that performance was returning to the place where we needed it to be.

Since then—I will come to the issue of the industrial action—all bets are off. When people simply do not know how many staff are rostering in a particular depot, particularly the Brighton depot, where so many trains start and finish, it is impossible to run a reliable service. I have been to London Bridge and Victoria stations many times and travelled on the trains and I have been ashamed to be the rail Minister. I suggest that successive rail Ministers over many years in many Governments should share that sense of shame.

There seem to have been four fundamental failures in the industry that mean that when things go wrong, it is really hard to recover. It is the customers—the passengers who rely on the train services—who suffer. First, I submit to the House that there has been a disdain for people—for passengers—at the heart of the railway for decades. I have shared this anecdote with the House previously: a former very senior member of Network Rail said to me that the problem with the timetable is that the customers mess it up. Think about what that implies about what that person’s view of their job was: to run a system, not to move people.

Crowding is not really costed in any of the economic measures that successive Governments have used. There has just been an assumption that people will continue to cram on. It is more valuable to put a train on a long-distance service, where there is a discretionary choice of travel, than to relieve crowding on an overground service around London. That seems to me to be perverse.

Investment has been entirely focused on engineering improvements and almost never on reduction in delay. Why do we still have this “leaves on the line” problem every year? By the way, no one has ever calculated the economic consequences of leaves on the line. Surely it is not beyond the wit of our finest metallurgists to solve that problem, yet we just accept it. We plough on and look to shave five minutes off long-distance journeys.

Thameslink will deliver some significant benefits for people travelling through London. There are brand new trains and wonderful new stations such as Blackfriars, which nobody ever talks about. It is a wonderful station delivered without a trace. Nevertheless, the human cost of the Thameslink work on the travelling public was almost forgotten. I was not the Minister at the time and I do not even know under which Government it was planned, but a man came up to me at London Bridge station in tears and said, “You’re doing this so people can get from Cambridge to Brighton without disruption. That’s great, but I just want to get home to see my kids.” There is something flawed with the industry, because it does not value those people’s experiences.

The second failure is that, as Members know, the industry has a highly complicated structure. We have Network Rail, which is in a much better place now, post the Hendy review and Shaw changes. It has made some amazing hires. We have a franchising system that in some cases delivers huge benefits but in other cases does not. The problem with franchising is that if it is a very short-term franchise, nobody has an incentive to invest in industrial or passenger relations. Why would the staff care when the name on the nameplate changes every seven years?

--- Later in debate ---

[Claire Perry]

No, I am going to continue.

Thirdly, we have an investment structure that is broken. The Government step in over and over again to fill the gaps and to buy rolling stock. By the way, the profits in the rail industry mostly accrue to the rolling stock leasing companies—the ROSCOs. If Members look at the shareholder structures to see where the profits are, they will see that they are with the rolling stock companies, not the franchise operators. GTR’s margin this year is going to be around 1.5% on this franchise. There is something structurally wrong with the financial structure of the industry.

The fourth and final problem is that the contractual levers are really poor. I have been asked repeatedly, “Why don’t you just take the franchise back?” The reason is that I cannot. GTR is not in breach of its franchise contract right now.

[Mr Umunna]

indicated dissent.