Fabian Hamilton
Main Page: Fabian Hamilton (Labour - Leeds North East)Department Debates - View all Fabian Hamilton's debates with the Department for Transport
East Coast Main Line
Fabian Hamilton Excerpts(10 years, 11 months ago)
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Mr Burns
No, I do not have time. I am not giving way.
When my right hon. Friend the Secretary of State announced the new franchise programme, he set out three key principles that we want rail franchising to follow: first, that passengers gain; secondly, that the rail industry thrives, with growing companies and new competitors coming into the market; and thirdly, that the taxpayer gains through more efficient use of public money and less waste in the industry. We believe that letting the east coast main line back to the private sector in line with those three principles will deliver the best possible long-term outcome for passengers and taxpayers.
I am aware of a number of concerns raised by hon. Members, including the hon. Member for Aberdeen North (Mr Doran), on services to Scotland. Mindful of that, officials from the DFT who are developing the proposition for the future inter-city east coast franchise are meeting a number of interested parties along the route, including Transport Scotland, as I am sure he would expect, and other transport bodies in Scotland, as well as local authorities, to understand their concerns. The specification for the new franchise will address both current and potential markets along the franchise route, including those between London and Scotland and up to Aberdeen.
East Coast has delivered a great deal in the past three-and-a-half years of public ownership, which provides the foundations for more to be done by a private sector company that has certainty of ownership, longer planning horizons and an innovative and entrepreneurial approach to doing more for passengers and taxpayers. The operation of the east coast by the public sector was never intended to be a permanent arrangement.
Lord Adonis himself, when he was Secretary of State, said that he did not believe it was in the public interest for us to have a nationalised train operating company indefinitely, and I believe he still believes that. I would be fascinated if the hon. Member for Nottingham South (Lilian Greenwood) intervened to tell me exactly what he said when he told her that he had changed his mind, because I have great difficulty believing that someone as intellectually astute and consistent as the noble Lord Adonis has changed his mind now.
The announcement that we will return the franchise to the private sector in February 2015 provides the certainty that is needed so that longer-term plans for the business can be made. We now need a strong private sector partner.
Mr Burns
If the hon. Gentleman listens, I will tell him.
A strong private sector partner is needed to build on what has been done and take forward our exciting plans for the route as part of the next franchise. The Government are making a significant investment in the route over the coming years, as a number of hon. Members mentioned, with new trains provided by the substantial inter-city express programme and new capacity provided by infrastructure projects. To ensure that that is managed and delivered so that those investments are put to best use, with minimal disruption for passengers, the inter-city east coast franchise needs a long-term partner that is able to deal effectively with the risks and challenges that come with such huge investment and change. That is best provided by the private sector.
Much of the debate has centred on the idea of privatised railways versus nationalised railways. The implication is that the running of the east coast by the public sector through DOR represents an alternative model to normal franchised services. That is not the case. The operation of train services by DOR is an essential part of the privatised franchising model. The Secretary of State has a statutory duty to maintain and ensure continuous provision of service, which is why DOR exists, but it is a short-term mechanism to meet immediate problems. Once those problems have been sorted, the intention is always to return to franchising.
Time is running out. Hon. Members have mentioned a number of issues, and I will write to them with answers to their questions, but I have to conclude by saying that it is almost Alice in Wonderland to believe in the so-called halcyon days of British Rail. I do not remember them; I believe things have improved under the franchise system.