East Midlands Rail Franchise

Clive Betts Excerpts

Thursday 11th April 2019 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab)]

(Urgent Question): To ask the Parliamentary Under-Secretary of State for Transport if he will make a statement on why Stagecoach has been disqualified from bidding for the east midlands rail franchise.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

On Wednesday 10 April, it was announced that Abellio is the successful bidder to operate the east midlands rail franchise and will be responsible for delivering new trains, smart ticketing and more frequent services for passengers. Passengers in the east midlands are to get new trains, more peak-time services, reduced journey times and over £17 million of station improvements as Abellio takes over the franchise from August 2019.

Abellio will invest £600 million in trains and stations between August 2019 and 2027, while the Government continue with their £1.5 billion upgrade to the midland main line—the biggest upgrade to the line since it was completed in 1870. This is part of the Government’s £48 billion investment to modernise our railways over the next five years.

As we informed the House in yesterday’s written statement, Abellio was awarded the contract “following rigorous competition.” It was a fair, open competition and Abellio provided the best bid, in which it demonstrated that it will not only meet but exceed the Department’s specifications.

Stagecoach chose to put in a non-compliant bid, which resulted in its disqualification, in line with the terms of the published invitation to tender. That said, Stagecoach has played an important role in our railways, and we hope it will continue to do so after the conclusion of the rail review. However, it is entirely for Stagecoach and its bidding partners to explain why it decided to ignore established rules by rejecting the commercial terms on offer.

[Mr Betts]

Thank you, Mr Speaker, for allowing this urgent question.

The Minister did not really answer the question. Abellio has been awarded the contract as the best bidder, but the bid of the existing franchisee was not even allowed. Generally, Stagecoach has performed reasonably well on the contract, so will he explain when the requirement was first introduced that a bidder has to cover pension costs? Is this the first franchise for which the requirement has been introduced? Why was it applied?

How much, in total, are the Government trying to cover in costs through the franchising process? When were the bidders notified of the requirement—was it at the beginning of the process?—and why was no one else told about it? Are any other companies refusing to cover such costs? Are any other franchises affected? If they are, what will be the effect on competition within the franchising system? What would happen to future competitions and to the costs that the Government seek to cover if all companies refused to cover those costs?

Finally, on the bid that has been accepted, do these hybrid trains actually exist now? When will they be introduced? What will the Government do if existing rolling stock is not disability-compliant in 2020? The Government have promised improvements to the timetable, but can we be assured that, at the beginning of the new franchise, journey times will be at least as good, and at least as short, as they were before the botched timetable changes of last year?

[Andrew Jones]

There are a lot of questions there. First, Stagecoach has acknowledged to the Department that it had bid non-compliantly. We have received offers from other bidders in all competitions that are fully compliant in providing the required pension arrangements for railway workers so, to answer the hon. Gentleman’s question on whether this means the bid process is failing and others are refusing, clearly they are not because we have a compliant bid that won in good form.

Stagecoach is an experienced bidder and fully aware of the franchise competition rules, so it is regrettable that it submitted a non-compliant bid that breached the established rules. In doing so, Stagecoach is responsible for its own disqualification. Bidders were invited to bid on the basis of a pension deficit recovery mechanism. They knew that at the very start of the process[Official Report, 25 April 2019, Vol. 658, c. 8MC.]. Stagecoach did not accept it and made some amendments as it submitted the bid. On what would happen if all companies refuse, clearly, by definition, they are not all refusing, so the question does not apply.

We will see an entirely new fleet of trains—a full replacement fleet—come into service. Inter-city services will receive new bi-mode trains, and regional services will receive new diesel trains. The express fleet, which is the Corby-Bedford-London service, will receive new electric trains that offer significantly enhanced environmental improvements.

What is interesting in this franchise is that we will see the first trial of a hydrogen-powered train. [Hon. Members: “When?”] In terms of timing, we will see the new trains coming into service in a phased way. We hope to see the first trains coming in next year, and so on over the next three years.

The bidding process was conducted in a fair and consistent way, applying the rules of engagement equally to all bidders. We have provided feedback to those who have not been successful. The reasons are always commercially confidential. Losing bidders may publicise them if they wish, but we will not do that because they are commercially confidential. The key thing that we are seeing here is a franchise awarded in the typical way that franchises are awarded in our rail industry, delivering passenger benefits.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 21st March 2019 Commons Chamber

[Andrew Jones]

I recognise the frustration that people have experienced in parts of our network, but just bringing the franchise to an end could cause further and unnecessary disruption for passengers and therefore be an inappropriate course of action. The question should be how we can improve our network, and that is the action that we are taking. We are seeing this coming through in performance improvements.

[Mr Clive Betts (Sheffield South East) (Lab)]

Poor performance is not just down to the operating companies. Peak-time trains between Sheffield and London are running slower than they were a year ago because of the botched timetable changes that the Department brought in. When is the Minister going to reverse those changes so that the journey times for peak-time trains between Sheffield and London can get back to being less than two hours, as they were a year ago?

[Andrew Jones]

The hon. Gentleman makes a point about Sheffield, so I will highlight the amount of work happening on the midland main line to improve journey times and passenger experiences up and down the network, including Sheffield.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 14th February 2019 Commons Chamber

[Jesse Norman]

I am not sure that “relentless” begins to describe the energy and vigour with which my hon. Friend pursues his campaign. As he recognises, we have already provided £4 million to Essex County Council for the A120. I understand that the council is currently undertaking a series of phased improvements to both the A131 and the A130, to enhance network capacity, but we remain interested in whatever it does on those roads in future.

[Mr Clive Betts (Sheffield South East) (Lab)]

I am sure the Minister is aware that, because of other pressures, councils are increasingly unable to address priorities that they would have addressed many years ago. The National Audit Office has shown that spending on road safety and traffic management across the country has fallen by 60% since 2010. Will the Minister accept that one of the most important things he can do is argue for increased funding from the Treasury for local authorities in the next spending round?

[Jesse Norman]

I certainly accept that one of the most valuable things we can do is argue for increased funding for local roads in the next settlement, and as the hon. Gentleman will know, we plan to do so.

GWR and Network Performance

Clive Betts Excerpts

Tuesday 5th February 2019 Westminster Hall

[Several hon. Members rose—]

[Mr Clive Betts (in the Chair)]

Seven Back Benchers wish to speak, which gives about six minutes each. That is a guideline, rather than set a time limit.

--- Later in debate ---

[Several hon. Members rose—]

[Mr Clive Betts (in the Chair)]

All the advice I can give is for Members to stick to six minutes.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 10th January 2019 Commons Chamber

[Andrew Jones]

My hon. Friend is absolutely correct. Protecting the line at Dawlish is crucial and sends a broader signal that the south-west is open for business, with all the connectivity that implies. So this is a national priority. Essential work is under way now to repair four existing breakwaters in the area. We have committed £15 million for further development work. Ensuring that the line is resilient, and that the south-west is open for business, is a priority.

[Mr Clive Betts (Sheffield South East) (Lab)]

Before Christmas, I travelled between Leeds and Sheffield on a CrossCountry train and experienced what my constituents regularly experience—as many passengers standing as sitting. The simple fact is that the four-car trains on the busiest part of the route between Leeds and Birmingham are simply inadequate. When we get a new franchise, will the Minister ensure that those four-car trains are extended, so that there is the capacity for people to actually get a seat on them?

[Andrew Jones]

I recognise entirely the crowding issues that the hon. Gentleman describes and has experienced personally, and which I have also experienced personally, so we are certainly looking to add capacity in the next franchise. We are also looking to add capacity before that franchise comes into force, if we can find it.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 22nd November 2018 Commons Chamber

[Chris Grayling]

I will certainly have a look and the rail Minister will be happy to talk to my hon. Friend about that. We are supporting a programme of substantial investment in new rolling stock all around the country, which will benefit passengers. New coaches will be arriving on the LNWR franchise, but we could certainly have a discussion about where they are serving.

[Mr Clive Betts (Sheffield South East) (Lab)]

In the last timetable changes, on the midland main line, Stagecoach was forced to lengthen the journey times of peak time trains from Sheffield to London to accommodate more Thameslink commuter trains. Is it true that the Department for Transport has told Stagecoach it cannot revisit that in the next timetable changes because of the shambles last time and the nervousness that has created in the Department?

[Chris Grayling]

We would dispute that we have done anything to disadvantage Sheffield to help Govia Thameslink Railway. We are of course doing a massive upgrade programme on the midland main line. I pay tribute to all those involved in the recent Derby station remodelling. Many projects have gone badly wrong; that did not. It was handled very well. Further improvements are happening up and down that line, as part of the biggest modernisation programme on that route since Victorian times. That work will continue. We will do everything to make sure, if we can, that the timetable remains as intact as possible as those changes happen.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 11th October 2018 Commons Chamber

[Chris Grayling]

We are on the threshold of exciting developments in battery technology—I absolutely agree with my hon. Friend. We are working with National Grid to look at ways in which we can increase the capacity to key locations such as motorway service areas, but I say to him that battery technology is going to deliver some solutions we do not have at present. It is great to see businesses in the UK at the forefront of developing those technologies.

[Mr Clive Betts (Sheffield South East) (Lab)]

Does the Secretary of State see any contradiction between the policy of trying to move motorists away from petrol and diesel vehicles to electric vehicles, and freezing fuel duty while cutting grants for electric vehicles?

[Chris Grayling]

We are focusing our support on electric vehicles, which are the part of the market we want to see grow the fastest. We provide substantial incentives to buyers of electric vehicles. It was great to see that, in August, 12% of the new car market was low-emission vehicles, which is a big step forward for this country.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 5th July 2018 Commons Chamber

[Jesse Norman]

This road is both dangerous and highly congested. Highways England has been carrying out a consultation on improving the missing link near the Air Balloon pub, as my hon. Friend will know, and I have recently met him and colleagues. Once the responses have been analysed there will be further consultation ahead of the preferred route announcement. We certainly hope there will be a PRA early in 2019.

[Mr Clive Betts (Sheffield South East) (Lab)]

I am sure the Minister is aware that road links between Sheffield and Manchester are as bad as between any two major cities in Europe, and I invite him to join me to demonstrate that fact, as one of his predecessors did. Will he confirm that even if construction work will not start in the next funding period, at least design work will start on the promised scheme to link the two cities together?

Oral Answers to Questions

Clive Betts Excerpts

Thursday 24th May 2018 Commons Chamber

[Joseph Johnson]

The May 2018 timetable change will see about 90% of our services change. It is perhaps the single biggest timetable change in the country’s history and it will bring an extra 1,300 train services across our network. This is a very significant operational challenge. We recognise the disruption that is temporarily occurring in various places, and we are working carefully with train operators to reduce it as rapidly as possible.

[Mr Clive Betts (Sheffield South East) (Lab)]

Let me follow up on that question from my hon. Friend the Member for Nottingham South (Lilian Greenwood). Last month, the Secretary of State promised quicker and better train services to Sheffield. As a result of these Thameslink changes, East Midlands Trains says that priority is being given to these new trains on Thameslink services over trains to Sheffield. As a result, peak-time trains to Sheffield are now six to eight minutes slower than they were under the previous timetable—they are slower than they were 10 years ago. Have the Secretary of State’s promises of a month ago already been ditched?

[Joseph Johnson]

The midlands main line changes and efficiency improvements take place in a rolling way up to 2020, which is when the significant benefits to the hon. Gentleman’s constituency will start to flow through.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 19th April 2018 Commons Chamber

[Joseph Johnson]

I obviously sympathise with the hon. Lady’s local residents. The Government are committed to getting freight off our roads and on to rail to realise the environmental and economic benefits of rail freight. However, the Department does not specify the level of freight services on the network, as that is a commercial matter for the freight operating companies and is a function of market demand. The Oxford area is essentially at capacity during the day, although the Oxford corridor capacity improvement scheme will deliver two additional freight train paths an hour in each direction. It is anticipated that rail will support the movement of construction materials for HS2, but it is not possible at this stage to determine where the freight services will operate. The maximum permissible speed that freight trains can travel at over sections of the network is a matter for Network Rail as the infrastructure manager.

[Mr Clive Betts (Sheffield South East) (Lab)]

rose—

[Mr Speaker]

It is very good indeed to see the hon. Member for Sheffield South East (Mr Betts) back in his place.

[Mr Betts]

Thank you very much, Mr Speaker.

[Mr Clive Betts (Sheffield South East) (Lab)]

10. What the timetable is for new rolling stock for midland main line to (a) be delivered and (b) enter service.

[The Minister of State, Department for Transport (Joseph Johnson)]

The Secretary of State’s ambition is for bi-modes to begin operating on the midland main line from 2021. No firm decision has yet been taken on rail services in the next east midlands franchise, which, as the hon. Gentleman will know, starts in August 2019.

[Mr Betts]

In the written statement that the Secretary of State made on 20 July, he promised, when cancelling electrification of the midland main line,

“a brand new fleet of bi-mode…trains from 2022”.—[Official Report, 20 July 2017; Vol. 627, c. 72WS.]

We seem to have gained a year somehow. The National Audit Office then said in a report from 29 March:

“In the case of Midland Main Line, bi-mode trains with the required speed and acceleration did not exist when the Secretary of State made his decision”,

and that the Department had informed him of that. I ask the Secretary of State or the Minister why the Secretary of State promised in his written statement to deliver bi-modal trains, which he knew not merely did not exist but had not even been developed. That is the situation. Why, at the time, did he not give the House the full facts instead of leading us to believe something that possibly was not true and was corrected only when the NAO produced its report?

[Joseph Johnson]

Bi-mode trains capable of running at more than 120 mph in diesel mode are now in use on the Great Western main line. Bi-modes will soon be delivering better journeys on the east coast main line and transpennine routes as well.