Christmas Adjournment

Gareth Thomas Excerpts

Thursday 18th December 2014 Commons Chamber

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

I will do my best, Madam Deputy Speaker.

Transport for London is London’s biggest and arguably least accountable quango. Bossed by the Mayor, in practice it is answerable to no one in London apart from him. Londoners have virtually no say in what it does. Fares go up with Londoners having no chance to stop them, never mind reduce them, while vanity projects such as a plan for an estuary airport, on which a royal ransom has been spent, and a cable car that carries few passengers, are funded and no one can stop them. That needs to change.

Londoners need to be given more control over TfL, in the same way that patients were given the right to become members of their local hospital so that they have to be listened to and consulted on the trust’s strategy and non-executive director appointments. Surely it is time that Londoners were allowed some power to shape what TfL does, affect the decisions it makes and have a voice when its spending and fares plans are put together.

London’s fares have gone up by some 60% in the past six years, with outer-London residents, including those in my constituency, being hit very hard. TfL’s most senior staff member recently said that he fears riots if the cost of London travel keeps rising. There has been little discussion with Londoners about the decision to shut virtually every ticket office despite the current Mayor’s pledge to keep them open, and there has been even less public debate about how TfL’s property might be used to address London’s housing crisis.

There is the fiction of mayoral and London assembly accountability: every four years, if people do not like what the Mayor has done with public transport in London, they can vote for change, and there are regular London assembly transport question times, when the likes of Val Shawcross, Navin Shah and other assembly members do a great job within huge constraints, but there is no real input from ordinary Londoners. The first that anyone on the 8 am train from Harrow on the Hill or East Croydon hears of the next year’s fare increases is when they read about them in the Evening Standard, and only once the Mayor’s spin doctors have carefully packaged the announcement so that the worst rises are not discovered for a couple of days.

If Londoners are to be given the chance to have a say on the big decisions that are needed on the future of London’s transport, they must surely be part of TfL’s decision making. They should be able to challenge the Mayor’s proposals on significant issues such as above-inflation fare rises, big projects or significant shifts such as privatising services or the use of TfL land.

How could Londoners be given a greater say? The simplest way would be to create a right for all those paying council tax in London to join TfL if they want to do so. Membership of TfL would entitle London’s residents to attend annual meetings and to listen to, question and approve TfL bosses’ plans. Such a system already exists in foundation hospitals, and to a lesser extent in Welsh Water. The Mayor would still have the right of initiative, but crucially he would have to face a far more vigorous system of public scrutiny and approval. I gently suggest to the House that TfL needs to be reformed and that a more engaged and democratic TfL needs to emerge.

Secondly, I wish to mention the huge cuts in funding that my local authority faces—some £25 million this year. That will put facilities such as Harrow arts centre and Harrow museum at risk, although they appear to have been saved at least for this year. Other cuts that the council envisages include those to North Harrow library and Rayners Lane library, both of which are popular facilities. North Harrow library in particular is a crucial community facility in an area that has lost a number of other services and commercial firms of late. Harrow faces some £50 million of further cuts in future years, so there will be difficult choices. I nevertheless hope that there might be a way to save North Harrow library in particular.

Thirdly, I want to raise the example of Desjardins, the biggest financial services player in Quebec, in Canada. It is basically a credit union, but an unusual one. It is essentially a federation of 480 individual credit unions, which co-operate to present a unified back-office service and a unified front-facing offer. The individual credit unions share back-office services, cross-guarantee each other’s financial decisions and share the same brand name, making marketing of their services far easier.

Desjardins is owned by its members and backed by the Church in Quebec, and its branches have become almost as prolific in Quebec as churches. It offers the full range of individual and business financial services, helping individuals to manage their future and helping small businesses to grow into larger ones. It makes a profit, which is shared by members across the credit unions.

In the UK, the challenge remains how to take credit unions to scale. Part of the Desjardins model is being considered in the UK under the credit union modernisation project that the Department for Work and Pensions has funded. What has not yet been created is a similar front-facing offer—a common brand with an extensive common marketing offer and agreement on common products. Co-operatives are often fiercely independent, but I wonder whether it is time for an attempt to be made to bring credit unions together, at least on a regional basis, to fund for a number of years the common front-facing offer that is needed. Clearly, flexibility would be needed so that individual credit unions did not lose their identity or power. Why could not the Mayor of London, perhaps working with the Church of England, consider such an operation to help London’s credit unions grow in membership and number?

The last point that I want to raise is about London Welsh rugby club. I have recently written to Alex Chisholm, the chief executive of the Competition and Markets Authority, about the fact that London Welsh, newly promoted to the premiership this year, get just £1.5 million in subsidy whereas other premiership rugby clubs get more than £4 million. Inevitably, the premiership is a rigged market as a result, always making it harder for newly promoted clubs to compete with more established clubs on an equal basis.

Talks are in progress between London Welsh and Premiership Rugby, but I hope that Mr Chisholm from the CMA might be willing to use his good offices, following the letter that I have written to him, to which I hope the shadow Deputy Leader of the House might encourage a quick response, to encourage Premiership Rugby to see sense and sort out the huge imbalance in funding.