Future of Rail

Gavin Newlands Excerpts

Tuesday 26th April 2022 Westminster Hall

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I hear you, Sir Charles. It is a privilege to serve under your chairmanship. I congratulate the hon. Member for York Central (Rachael Maskell) on securing this important debate. She set the scene very well and spoke proudly—quite rightly—about York’s magnificent railway heritage. She spoke about modal shift, including freight—a point that was echoed by the hon. Members for Sefton Central (Bill Esterson) and for Luton South (Rachel Hopkins), who, along with many other Members, brought up pricing.

Decarbonisation was mentioned. The hon. Member for Stockport (Navendu Mishra) mentioned that the Government are not electrifying the track quickly enough. I completely agree and I will come to that in my speech. The hon. Member for Bedford (Mohammad Yasin) mentioned East West Rail using diesel on its trains. The hon. Member for Cynon Valley (Beth Winter)—apologies for my pronunciation—mentioned decarbonisation and HS2 with regard to Wales, and the fact that Wales gets no Barnett money, but Scotland gets 100% Barnett. It is a point I have raised before.

Connectivity and capacity were issues mentioned by the hon. Members for Kingston upon Hull East (Karl Turner), for Bradford East (Imran Hussain), for Ealing Central and Acton (Dr Huq), for West Dorset (Chris Loder)—who is my comrade on the Transport Committee—and for Ellesmere Port and Neston (Justin Madders). This debate became about the location of GBR’s headquarters. Many strong cases were made for York, not least by the hon. Member for York Central and the hon. Members for Harrogate and Knaresborough (Andrew Jones), for Thirsk and Malton (Kevin Hollinrake) and for York Outer (Julian Sturdy). If I have missed any hon. Members, I do apologise. It is a very good case that they made, but it is one that I cannot support, because there are six Scottish bidders—Dundee, Edinburgh, Fife, Motherwell, Perth and Stirling—and I am not choosing one of them either.

The hon. Member for York Central finished her contribution with a tribute to all our public transport staff for the work they did to keep us moving through the pandemic. It is a tribute I very much echo. Despite the significant impact of the covid pandemic, I believe that the future of rail is bright and green. I believe also that the future of rail is in public ownership. I think it is a policy that both the hon. Members for Bolton South East (Yasmin Qureshi) and for Blackley and Broughton (Graham Stringer) would also support.

I want to talk about the future of rail in Scotland. The future of rail in England and Wales is a little more debatable. The action by the Scottish Government to take ScotRail back into public control just under four weeks ago should be a template for railways elsewhere. Public ownership is a fresh start for the railways in Scotland. Already we can see innovation in the shape of the spring fare deals that far exceeded DFT’s plans. If the issue is about tempting travellers to use rail on a national and transformational basis, it should be up to Government to set the priorities of our railways and, more widely, set out how those priorities integrate with other modes of transport.

It is disappointing that the Williams review ruled out real public ownership, instead opting for operating concessions. It is a real missed opportunity to begin revitalising rail services in England and across borders. The chance to provide real accountability within the system has been missed. Instead, the DFT has settled for a halfway house, where blame continues to be placed on operators where expedient. Meanwhile, the real direction of travel is set by GBR and the DFT.

I know that the team at the top of GBR are leaders in the industry. The Transport Committee recently heard Andrew Haines give evidence, and we were impressed by his track record, knowledge and genuine enthusiasm for building a railway fit for the future. However, all the talent in the world will struggle against a structure that is not fit for purpose from the start. I worry that behind the glossy reports that the Secretary of State likes to show off on his bookshelves whenever he appears on the TV, the new GBR will simply be a rebranding of Network Rail, with some of the DFT and Office of Rail and Road’s current functions.

There also must be an appetite for real change right across the industry from those who hold the purse strings, and the signs from the DFT and Treasury are not good. We have a ludicrous situation where ScotRail is paying over double the amount of track access charges that Northern Rail is liable for—£340 million versus £150 million—while running only slightly fewer services by distance travelled.

Indeed, ScotRail pays the third-highest total access charges of any train operator in Britain. That might be worthwhile if that funding gave Scotland the kind of railway of the future that people and passengers in Scotland are looking for, but even with that kind of expenditure, Transport Scotland and the Scottish Government had to plough in an additional £630 million in capital and infrastructure investment in 2020-21, in line with the Scottish Government’s plans for decarbonisation of our passenger rail services by 2035. That is £1 billion toward track and infrastructure every year, funnelled to Network Rail and under its command, while Network Rail remains out of devolved control and reports to the DFT and the Office of Rail and Road.

As things stand, GBR will take over control of infrastructure in Scotland in the same way that Network Rail controls it. That is a missed opportunity to do the sensible thing and fully devolve responsibility and control of the entire rail network to the Scottish Parliament. Already ScotRail and Network Rail work closely together as part of the ScotRail Alliance. Full devolution would strengthen that alliance and finish the work of fully integrating track and train that started in 2005 with the transfer of franchising and services to Holyrood. We will have a situation whereby a publicly owned train company will have to negotiate with the publicly owned network operator, whose primary job will be dealing with private concession operators that are running services on behalf of the Government-owned GBR. Inevitably, the culture and institutional knowledge of GBR will skew towards that needed to deal with the private operators rather than a publicly owned company. Full devolution of Network Rail in Scotland, before it ends up under the auspices of GBR, will avoid that happening. Given the inevitability of all transport in Scotland coming under the control of the Scottish Parliament once we are independent, it would be real planning for the long-term future, but that future has to be cleaner and greener.

Scotland’s rail decarbonisation target of 2035 is hugely ambitious. It is 15 years ahead of DFT’s target for England. Hundreds of miles of our network run through areas of extremely low population, and maintaining and improving them over time is technically challenging. At this stage, full electrification of such routes would be disproportionate to passenger numbers, but in the longer term we should be looking to invest in these railways in the same way that Norway has electrified many of its rural routes. However, the development of alternative fuel trains, such as the zero-emission train developed under Transport Scotland and fuelled by hydrogen fuel cells, along with battery electric solutions, shows that no corner of our rail network will be untouched by the zero-carbon revolution that is not just desirable but critical for the future of our society and the planet.

That all said, our track record—apologies for the pun—on rail electrification since devolution has been excellent. Over the last 20 years or so, Scotland has electrified track at more than twice the rate that DFT has in England, which has resulted in a 44% increase in routes electrified since devolution, compared with just 17% across Britain as a whole. Moreover, this rolling programme of investment, which has been much lauded not just by me but by the industry, has resulted in far lower costs, with electrification costs 50% higher per single track kilometre in England than in Scotland, and there is a target to lower the cost to around half of the current English electrification cost.

In Scotland, we already have the Edinburgh-Falkirk electrification scheme, with the Shotts line, Paisley canal and Alloa all seeing the wires go up. Future projects will connect East Kilbride and Barrhead to the electric railway, and some lines have been reinstated after the short-sighted closures of decades past, including the Borders railway—a huge success story, as passenger numbers hugely exceed expectations. The Levenmouth link is currently under construction.

It pays to invest, to give certainty and to allow decisions to be made closer to the local people, communities and businesses that they affect. The fact that it took devolution for Scotland to get on and start our decarbonisation journey should be a red flag for the Government, and it makes an indisputable case for full devolution of rail. By the end, if there is one, of what has so far been a two-decade-long process—a process, incidentally, that was ignored by Westminster when it had control of rail in Scotland, but which has been driven forward by all political parties in Scotland, bar the Conservatives—we will have a railway that is fully fit for the future.

I want the future to include constructive relationships with GBR and the Department for Transport across borders—not just in Scotland but in Wales—but I fear that the overriding urge to centralise and the inability to let go, even when it makes very little sense not to do so, will mean that we still have the same outdated and outmoded structures of railway governance that have dragged the industry down over recent years. That cannot be allowed to happen, and if the Minister takes on board one thing from today, I hope it is that the new GBR cannot follow the centralising model that has been a dead hand preventing the devolved Administrations and many areas of England from taking the decisions that best support their priorities. Decisions on investment and growth are best taken by those on the ground, not by a DFT trying to extend its reach across the UK. That needs a real transfer of power to national Parliaments and regional authorities, and I hope that the future plans for rail mean that that task can be completed sooner rather than later.