West Coast Rail Franchise

Drew Hendry Excerpts

Tuesday 14th June 2016 Westminster Hall

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

I always try to co-operate with the Chair and make sure to keep to the point, Mr Brady.

I congratulate the hon. Member for Carlisle (John Stevenson) on securing this important debate. It is always good to start these debates with points of agreement, and he made a number of good points. He said that this was a vital development for the west coast; I absolutely agree. He discussed the need to improve seating, toilets, luggage space and value for money for consumers and users, as well as parking and other facilities that people need to use the train network effectively. He rather skimmed over the franchise bid process—he went past it in his own version of the Euston sprint—but he can rest assured that I will cover that in a little more detail; not too much, but a wee bit. He mentioned what he described as the small things, although actually they are big things, as I think he knows; as he said, they are important to people. Unless we get the big things right—the developments at Euston station, which he referred to, and the franchise—those other things will be much more difficult to tackle.

The hon. Member for Coventry South (Mr Cunningham) rightly discussed the need for a better passenger experience, the effect on Coventry and Birmingham and the need to ensure that the Government are taking into account the connections required. That must happen all along the line from Euston to Glasgow and Edinburgh.

The hon. Member for Rugby (Mark Pawsey) rightly pointed out that the franchise must be handled right, and I will come to that point. He also discussed the need for new trains. As we have seen, the SNP Scottish Government’s franchise deal includes new trains and new stations across Scotland as part of the arrangement. There are lessons to be learned there.

My hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown) also mentioned the franchise. He talked about the knock-on effects, which are very important, and he made the great point about the cost to the public being equivalent to the cost of putting in place the wi-fi that is currently missing from passengers’ journey experience. He spoke about the ability to put into practice innovations, such as audio-visual accessibility, that make a huge difference to the travelling public who may need assistance. I underline his call for the Minister to update us on the commitments made during the direct award; I hope that we will hear from her on that. It would be remiss of me not to underline the great work done by Wabtec in his constituency on refurbishing rolling stock.

The west coast line is important to Scotland. Five Scottish stations are affected—Lockerbie, Carstairs, Motherwell, Glasgow and Edinburgh—so it is important that the Scottish Government have a say in the franchise process. I was pleased to see the Minister nodding when that came up earlier—I hope we will get a commitment from her on that. Passengers must have a safe, fast, frequent, reliable and punctual service that connects Scotland to London and the intermediate locations that have been mentioned, with on-board facilities and fares that attract passengers to the rail network and retain them.

Indeed, the UK Government can take lessons from the SNP Scottish Government on how to conduct a franchise process while offering passengers a fair deal on ticket prices and fares. After the shambles of the 2012 franchise bidding process, the UK Government must ensure that the next franchise process has the public’s confidence and that it will be able to deliver value for money for passengers. The cancelled franchise process for the west coast main line brought the whole franchise bidding process into disrepute, leaving the public with no confidence in the Government to conduct major rail franchise bids. In fact, the Public Accounts Committee said in 2013 that

“the Department did not apply basic processes properly.”

Crucially, the Committee also said:

“This is not the first time we have come across this situation.”

The Laidlaw inquiry found that there was a damning failure and that the public were left with a lack of confidence. That cannot be allowed to happen with this franchise.

The west coast main line serves five stations in Scotland, as I have said, and is one of the main routes that links passengers in Scotland with Liverpool, Manchester, Birmingham and London. At the time of the cancelled process, as my hon. Friend the Member for Kilmarnock and Loudoun mentioned earlier, the Scottish Government were going through their own franchise process for ScotRail, which had to be put on hold with absolutely no notice to Ministers in the Scottish Government. Keith Brown, the Scottish Cabinet Secretary, said:

“We had no advance notice of this decision being made. Obviously it does have implications for the line itself…what I would like to do is be involved in that discussion with the UK government to say what is best for rail users in Scotland.”

That is a fair request.

[John Stevenson]

The hon. Gentleman makes a fair request to the UK Government; may I make a fair request to the Scottish Government? Carlisle station is a station for the Scots as much as for the English. If the opportunity arises for investment in the station from the Scottish Government, will he support that?

[Drew Hendry]

Absolutely. I hope the Minister will act on the hon. Gentleman’s promotion of Carlisle by committing to look into connecting the new Borders railway with Carlisle. Perhaps that is something we could investigate as well. It would benefit many more people.

As I said, at the time of the franchise process, there was no communication with the Scottish Government. On the basis of the Minister’s comments, I am hopeful that that will change in future years.

As for the passenger experience, people in the 21st century have a right to enjoy a train journey. There ought to be a focus on working with others to deliver improvements to stations and to the passenger experience. The points that the hon. Member for Carlisle made when he spoke about improving the passenger experience are all vital to ensuring that overcrowding is reduced, that ticketing is sorted out properly and that integrated journeys are increasingly facilitated across all the stations in England and across the border into Scotland as well.

The UK Government should ensure that the new franchisee makes fares affordable across the piece. The Scottish Government have already taken action to ensure that fares are affordable across the Scottish rail network, by ensuring that their new franchisee will continue to limit regulated peak fare increases to the level of the retail prices index. Regulated off-peak fares will also be limited to increases of 1% below RPI for the lifetime of a 10-year franchise. The Scottish Government are making the best of the system that the UK Government continue to persist with. The Conservative UK Government introduced railway franchising in the 1990s, and the legislation precludes any public sector organisation from bidding to operate a railway service. No such barrier applies to state-backed organisations from Europe or elsewhere. That is patently unfair, so I hope we can look at how we can adjust that.

The SNP tabled a new clause in the Scotland Bill that would have devolved rail services in Scotland, giving Scottish Ministers full powers and flexibility to decide who would run such services. However, like every other SNP amendment to the Scotland Bill, it was voted down by MPs. The new clause also sought to ensure that the provisions of the Railways Act 1993 allowed direct awards to be made, to the full extent possible under European law, for the operation of rail passenger services such as the ScotRail Caledonian sleeper.

As a result of the franchise deal in Scotland, passengers and staff will enjoy an enhanced range of benefits, with advance fares between Scottish cities starting at £5, a commitment to pay at least the real living wage—the one applied in Scotland—to all staff and subcontractors, at least 100 apprenticeships and a guarantee of no compulsory redundancies.

[David Mowat]

I was waiting to see whether the hon. Gentleman would address an issue that I am interested in. One day HS2 or a high-speed line will go to Scotland. Do the Scottish Government have a position on whether they would prefer that line to go up the west or the east coast?

[Drew Hendry]

At the moment, the Scottish Government’s position is that we must be included in the discussions. The UK Government have brought forward no plans to ensure that we are connected by HS2. It is vital to us that the routes that connect Birmingham and the central belt in Scotland are electrified immediately or as quickly as possible. As for the high-speed line, it is very difficult for me to give the hon. Gentleman a basis for our policy without seeing UK Government Ministers’ plans, because we have to scrutinise them to decide what is best for Scotland.

Rail staff pensions and travel rights are protected under the Scottish franchise. Crucially—this has come up a number of times—to make sure that we are connected and do business properly, there will be free wi-fi on all trains. That is often missing on journeys down here. There will be a new approach to cycling, with more than 3,500 parking spaces and bike hire at a number of stations. Eighty new trains are due to arrive at the start of December 2017, and there will be 23% more carriages across the network.

As I said earlier, the west coast main line affects Scotland. I mentioned the five stations. Passengers must have fast, frequent, reliable and punctual services connecting Scotland to London. The UK Government must commit to ensuring that the Scottish Government are much more involved in the future franchise.

[Andy McDonald (Middlesbrough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Brady. I thank the hon. Member for Carlisle (John Stevenson) for securing this crucially important debate. It is a pleasure to follow the hon. Member for Ross, Skye and Lochaber—

[Drew Hendry]

Inverness, Nairn, Badenoch and Strathspey.

[Andy McDonald]

I beg your pardon. I am going to talk about HS2 in my speech—it has been touched on already —

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[Drew Hendry]

On the ability of companies to bid for a franchise, the Minister says that the Department has learned lessons; does she agree that there is a place for public sector bids, and will she look at allowing Scotland to receive them?

[Claire Perry]

I am agnostic on such things, but I can see no benefit in that. I do not know who in my Department the hon. Gentleman thinks would do a better job of running the west coast railway than those who do so now. I remind him that before privatisation, 14 trains a day ran between London and Manchester; 47 brand-new trains now run, with fantastic on-board services, of which we have all availed ourselves. I cannot see why he is so obsessed with the idea of civil servants running companies. The west coast case is a good example of how the private sector has invested.

Before I move on to the bulk of my speech, I want to associate myself with the comments of the Opposition spokesperson, the hon. Member for Middlesbrough (Andy McDonald), on the tragic loss of the Clerk to the HS2 Committee. It was an absolute tragedy, and we would all want to pass on our condolences to his family, and to put on record what a wonderful job he and that Committee did in very difficult circumstances.

As my hon. Friend the Member for Carlisle said, the west coast franchise has been a real success story; for example, we have seen a big increase in passenger numbers, a big improvement in passenger satisfaction, and capacity increase by more than 2,000 seats a day. The franchise is also leading the way with automatic delay repay, so people who buy a ticket on the west coast trains website and find that their train has been delayed do not have to do anything; they automatically get a refund if the train is delayed by more than 30 minutes. That is an excellent piece of passenger-facing innovation. The franchise has also put free wi-fi into 17 stations—I will talk about wi-fi on trains in a moment—and several other obligations have been delivered, or are in the process of being delivered. To reassure Members who asked about this, the company is replacing self-service machines, improving concourse and ticket-retailing facilities, upgrading waiting rooms and loos in many stations, and putting in about 350 new cycle racks. About £20 million is being spent along the route.

--- Later in debate ---

[Claire Perry]

The hon. Gentleman illustrates a point that has been made well. Part of the reason why we need HS2 so badly is that capacity is so tight on the route. If there is a hold-up, there are few places that can take the additional services. On any tight route, whether on the west coast or in other parts of the country, disruption spreads quickly—the disruption simply cannot be absorbed, because the timetabling is so tight.

The public consultation has been launched. It sets out the Government’s vision for this franchise, how they can continue to support investment in vital cities right across the UK and build on current levels of customer satisfaction, and how the operator can do more to provide better information and train services.

A very legitimate question that is asked in the consultation is causing alarm and has been raised several times. It is right to ask people, communities and local authorities what sorts of trade-offs they want. Do they want faster journey times? Do they want more connectivity? We in Horseferry Road could sit and design timetables that look perfect on paper, but unless they deliver what is required on the ground—a train service that works for those who use it and maximises the economic potential of transport, which are things that have to be pulled through locally—we will not be doing a service to the communities that we serve. Questions such as, “What would a reduced service to Coventry look like?” are genuinely questions; there is no vision or master plan. We want as many people as possible to help answer these questions, and those trade-offs are vital.

The consultation has started and is on gov.uk. We regard the Scottish and indeed Welsh Governments as vital partners in that; the service of course links very much to the north Wales service as well.

[Drew Hendry]

I am grateful to the Minister for being generous and allowing me to come back in. I take at face value her commitment to working with the Scottish Government. Will she look at the improvements made to smart ticketing through CalMac, the popular public sector winning bidder for the ferry franchise?

[Claire Perry]

I am always happy to look at things that happen on ferries, because I represent one of the most landlocked constituencies in Britain, so it is always novel to do so. I will come on to smart ticketing, which the hon. Gentleman knows is a particular passion of mine.