Cost of Public Transport

Drew Hendry Excerpts

Tuesday 19th January 2016 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I echo the sentiments of the Secretary of State regarding the staff who worked in the floods and the inclement weather over the Christmas and new year period on all networks to keep us moving and to help passengers as they travelled.

A debate on public transport is welcome. People need effective, regular and affordable public transport. In a debate such as this, they would expect the issue to be moved forward, although I am not sure they would have had that impression from the opening exchanges. Public transport is close to my heart and that of many of my hon. Friends. My constituency, in common with many of theirs, is mostly a rural community. Scotland has diverse public transport needs. Some places in Scotland and in other nations of the UK have no public transport—people can only use their cars, so it is not just the cost of public transport that matters to them, but the cost to the public of transport.

The motion could have benefited from the inclusion of other forms of transport that people need—and, indeed, rely on—in Scotland. For example, we do not see aviation as anything other than public transport. That is what it is. Marine transport is very important to us, and ferries are public transport too. As the Secretary of State said, the motion could have included public cycling schemes and public costs in relation to roads—tolls, for example. The need for major UK infrastructure projects to give proper consideration to Scotland could be debated. The debate could have been more inclusive and served a common purpose. It could have been more positive, seeking to benefit people.

Many local bus services in Scotland receive subsidies to ensure that uncommercial services can continue to operate as a public service. Figures from the House of Commons Library show that from 1995 to 2015, Scottish bus fares went from being 10% higher than those in England to being lower. Since 2007, bus fares in Scotland have risen by 5% less than in England. Since 2010, bus fares in Scotland have risen by 4.6%; in England over the same period, they have risen by 7.0%. The Scottish Government have invested a quarter of a million pounds every year through the bus service operators grant and concessionary travel scheme. That has helped 1.3 million older and disabled people to live more connected, healthier lives.

In aviation, there are direct flights to over 32 countries, and we have the successful ongoing work to improve long-haul connections to Scotland and connectivity through world hubs. We plan to use changes to air passenger duty to improve the situation for the travelling public by reducing their costs, and to help businesses, including in tourism and food and drink, by growing key sectors of our economy and giving better choice to our people. This is all for the people of Scotland. We are working to achieve guaranteed levels of access between Scotland and London. The Scottish Government acquired Glasgow Prestwick airport to safeguard 3,200 jobs and to secure vital infrastructure as an asset that contributes more than £61 million annually to the Scottish economy.

We have invested in roads to ensure that Scotland has a modern transport infrastructure for the 21st century. The SNP Scottish Government have a clear policy against the use of road pricing and tolls, now and at any time in future, and we have abolished all road tolls on bridges in Scotland. We are delivering the £1.4 billion new Forth crossing at Queensferry, which is on track to be completed by the end of 2016—again, with no tolls for the public.

In marine transport, Ministers in the Scottish Government have invested more than £145 million in piers and harbours, with £8.6 million going to Stornoway harbour to accommodate the new Ullapool-Stornoway vessel, MV Loch Seaforth. Since 2007, we have invested almost £1 billion in ferry services, including the road equivalent tariff and six new ferries. That is investment of over £100 million. We have introduced into the network of services operated by CalMac a third hybrid—MV Catriona, which was launched at Ferguson marine shipyard in Port Glasgow in December 2015. On 16 October 2015, Ferguson Marine Engineering Ltd was awarded contracts worth £97 million to build two £100 million ferries with a delivery date in 2017-18. The First Minister of Scotland confirmed just yesterday that Dundee’s central waterfront infrastructure would be the latest Scottish Government project to be delivered on budget and ahead of schedule. This includes a re-rationalised road layout and is part of the £1 billion, 8 km Dundee waterfront project, which will create 7,000 new jobs.

Let me come to the interesting one: rail franchising. On this important issue—the public outside this Chamber will not understand this—Labour Members have chosen to attack the Scottish Government, not the UK Government whom they are supposed to be opposing. Every time they take a wee excursion up the branch line, they end up embarrassing themselves and the branch office in Scotland. Frankly, they are embarrassing everyone. The purpose of opposition, surely, is to build alliances to hold the Government to account. What a missed opportunity! The SNP is the effective Opposition in this Chamber. The Government realise that, which is why they are going at us day after day, every day—they spend more time on us now. Labour Members have deliberately inserted a line in this motion—a complete falsehood, by the way—that makes it impossible for us to support them in the Lobby tonight. Imagine that! People are looking on, and they see this shambles for what it is. They are switched on like never before, and they are continuing to lose respect for Labour, given stunts like these.

Let me tell the House about the Scottish Government and rail policy. The UK Government oversee a perverse system that forbids publicly owned UK bodies to bid on rail franchises while having overseas nationalised services such as Deutsche Bahn or France’s SNCF running franchises in the UK. We believe that public sector organisations should be able to bid to operate rail services, as allowed in EU law but currently prevented by UK legislation. That is a lesson for Labour Members. That approach would enable us to ensure the delivery of all rail services in Scotland and to deliver maximum economic and social benefit for our people.

Labour has used this motion to attack the SNP Government for awarding the ScotRail franchise from 2015 to 2025 to Abellio. Labour knows very well that the Railways Act 1993, enacted by John Major’s Government, specifically forbids UK publicly owned companies from bidding. It is a matter of rhetoric versus record.

[Mr McLoughlin]

The 1993 Act was indeed taken through by John Major, but will the hon. Gentleman also confirm that in 13 years the Labour party never changed the regulations?

[Drew Hendry]

The Labour party has put me in the position of having to agree with a member of the Cabinet. Imagine that—what an absolute shambles!

The Labour party spent 13 years in government without ever changing the situation, even though it heavily amended the 1993 Act with the Transport Act 2000 and the Railways Act 2005. Even though it had the power, it did absolutely nothing to repeal the 1993 Act.

This is not the first time we have heard such nonsense from the Labour party. Its leader is not so new to his position now, but not long after taking the leadership he told Marr:

“Listen I’ve been in Scotland a lot of times during the leadership campaign…I’m going to be in Scotland a great deal as leader of the party.”

We shall see whether that happens. He went on to say:

“Yes the SNP have a headline of being opposed to austerity—fine. The SNP are also privatising CalMac, also were behind the privatisation of ScotRail”.

What a pile of nonsense! Like successive Scottish Executives before them, the Scottish Government were simply following the tendering process that they are required to follow in EU law.

[Patrick Grady (Glasgow North) (SNP)]

Does my hon. Friend recall that, once upon a time, the Labour party was in power in Scotland as well as down here? At no point did it make any effort to allow the Scottish Parliament to take the railways into some kind of public ownership.

[Drew Hendry]

My hon. Friend is exactly right. Labour made no effort in government either here or in Scotland to do anything about that and, as I have said, it knows very well that the 1993 Act forbids the Scottish Government to do it.

As I have said, there was a fabrication by the Labour leader. He said that the SNP was behind the privatisation of ScotRail. Did he mean the 1993 Act introduced by John Major? There was not even a Scottish Parliament at that time, but let us not let the truth or the law get in the way of anything.

The Labour leader says that his party supports rail renationalisation, but where was that support when every single amendment that the SNP tabled to the Scotland Bill was voted down in this House? Clause 54 of the Bill will allow for the Scottish Government to consider bids from public operators. That was included in the SNP-Scottish Government submission to the Smith commission, but we tried to go further. We tabled a new clause to devolve rail services in Scotland, giving Scottish Ministers full powers and the flexibility to decide who would run such services. Like every other SNP amendment to the Scotland Bill, it was voted down by English MPs.

That new clause would also have disapplied the provisions of the 1993 Act and allowed for direct awards to be made for the operation of rail passenger services to the fullest extent permissible under the law. It would have allowed us to adjust the current ticketing system, which over-subsidises profits while having—to put it mildly—an arcane and unintuitive fare system.

An anytime single ticket from London to Edinburgh costs £140.50, while one from London to Newcastle— 100 miles south of Edinburgh—costs £138, £2.50 less. A similar ticket from London to Aberdeen, which is 100 miles north of Edinburgh, costs £157.50. That means that one journey of 100 miles costs £2.50, while another costs £9. It just does not make sense. Frequently, it is cheaper to split a ticket than to buy a direct one. A single from King’s Cross to Edinburgh costs £95, while often, but not always, a King’s Cross to York ticket and a York to Edinburgh ticket cost £66 in total. We could have done something to sort that out.

Let me just say that the Scottish Government and the SNP will take no lessons from the Labour leader when it comes to investing in Scotland. With such a lack of understanding, even of the basics, it is no wonder that, according to a recent Survation poll, his approval rating in Scotland is minus 17%, while that of the First Minister, Nicola Sturgeon, is plus 27%.

As we have already established, the issue of public ownership is out of the hands of the Scottish Government, so I want to finish by talking for a moment about the rail franchise in Scotland. The Scottish Government welcomed Abellio to the ScotRail franchise because it has moved its UK headquarters to Glasgow—creating 50 new jobs, in addition to securing another 150 jobs from First. As a result of the new deal, passengers and staff will enjoy a range of benefits: advance fares from £5 for journeys between Scottish cities; a commitment to earnings of at least the living wage—the living wage in Scotland, by the way—for all staff and contractors; at least 100 apprenticeships; a guarantee of no compulsory redundancies; protection for rail staff pensions and travel rights; free wi-fi on trains; a new approach to cycling, with more than 3,500 parking spaces, and bike hire at a number of stations, which should be compared with Southern; 80 new trains due to arrive at start of December 2017; and 23% more carriages across the network.

The Scottish Government’s record on rail consists of a commitment to a £5 billion programme of investing in Scotland’s railways over the five years to 2019, including £170 million on the Aberdeen to Inverness rail upgrade and £300 million to open the Airdrie-Bathgate rail link in 2010, which will provide a passenger service between north Lanarkshire and west Lothian for the first time in 54 years. Since privatisation, rail fares have been regulated by the Government to limit the size of increases on key tickets, but they have increased in real terms since the early years of this century. In January 2013, fares across all operators were 23% higher than they were in January 1995, with an average annual increase of 1.2%.

I will finish on this point. [Hon. Members: “Hooray!”] It is nice to be appreciated. This is the story of a Government who invest in public transport for their people. The Scottish Government’s budget has been cut by £12.5% since 2010—£1 in every £8 has gone—for unnecessary ideological austerity. Despite that, the SNP Scottish Government are still investing in infrastructure. Having already invested £15 billion in transport since 2007, they are committed to the largest transport investment programme that Scotland has ever seen, despite these relentless Westminster budget cuts.