Passenger Railway Services (Public Ownership) Bill

Graham Leadbitter Excerpts

Committee of the whole House
Tuesday 3rd September 2024 Commons Chamber

[Catherine Atkinson (Derby North) (Lab)]

I will address my remarks to my amendment 7. It is a probing amendment, whose main purpose is to raise and discuss procurement reform.

I start with good news: 100 new jobs at Alstom Derby, refurbishing CrossCountry’s Voyager fleet, in an upgrade worth £60 million. Train manufacturing in Derby was at death’s door some months ago, and now it has a heartbeat, with 10 trains for the Elizabeth line in the pipeline. I thank the Transport Secretary and many other hon. Members for their extraordinary support in the dark days some months ago, when hundreds of jobs at Alstom—thousands when we consider the supply chain and agency workers—were being lost. The city came together to demand action. No one wants to see their city or their workplace go through that, so we need to see an end to boom and bust, replaced with consistency and certainty. We need crisis and sticking plasters to be replaced with long-term funding and stable projects.

We saw a failure to act in that way when privatisation happened. When British Rail was split up, there was real concern that the upheaval would crush the world-renowned expertise in the supply chain in Derbyshire. According to Hansard on 20 December 1994, in that year alone, 5,000 jobs were lost nationally. That was one of the first unnecessary tragedies of privatisation. In spite of that setback, more than 10,000 workers are employed today in Europe’s largest and most diverse rail cluster, centred around Derby. It covers every aspect of the railway supply chain.

Since the Bill’s Second Reading, I have been pleased to visit and meet with rail forum members, including Hübner, Serco, DB ESG, Resonate and Millennium Site Services, which are all enthusiastic about working with this Government to deliver improvements to rail. The Transport Secretary said on Second Reading:

“As private operators are brought in, their contracts and supply chains will be considered, to ensure that they are delivering the best possible service for passengers.”—[Official Report, 29 July 2024; Vol. 752, c. 1074.]

My amendment seeks to establish what details publications related to that consideration should include. Specifically, the amendment suggests that details should include the approach towards

“technological development…the management of demand and supply…the supply chain…future sectoral planning.”

Through better procurement we can also speed up delivery, reduce costs and create social value. That point was made in the Maier rail and urban transport review, which was recently published—I commend the Transport Secretary on commissioning it. One of its valuable recommendations is that the Rail Minister should be given responsibility for working in partnership with business to support the establishment of local supply chain capability. It makes the point that as supply chain capability goes up, costs and skills shortages come down.

I started with the good news of 100 jobs at Alstom, but there is no complacency in Derby, because we are looking five and 10 years ahead, and I know there is no complacency from the Transport Secretary. On Second Reading, my hon. Friend the Member for Easington (Grahame Morris) reminded the House that to meet decarbonisation goals, the UK needs to upgrade up to 4,000 rolling stock units. With management of contracts and sectoral planning, there is enough domestic work to create a stable base for train builders and their suppliers, who can then top that up with exports. I therefore look forward to hearing from the Minister how we can get the structure right now for delivery in the future.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

I will not speak for a great deal of time, as this issue is largely devolved in Scotland. However, I welcome the Bill, and the Scottish Government have been keen to support it through a legislative consent motion. That supports the work that has already been done in Scotland. We have put the railway into public ownership as a last resort, but the Bill will provide stability going forward for the Government and the operator and enable them to do much better on medium and long-term planning, with certainty on what the future holds.

My amendment 6 brings into the debate the role of rolling stock leasing companies, or ROSCOs. Many Members on the Government Benches will agree that the ROSCOs are taking a huge profit out of the public sector. Rolling stock contracts in the past couple of years took more than £3 billion each year, and the amount of profit being taken from that is in the billions over the lifetime of the contracts. That money could be reinvested in the railways. I appreciate that it is not for this Bill, but I would like the Government to come forward with proposals on ROSCOs in the next Bill that will come forward later in the Session.

That is all I want to say at the moment. I do not intend to press my amendment to a Division, but I would like some assurance from those on the Government Front Bench that serious consideration will be given to how we deal with ROSCOs and the amount of profit being taken.

[Grahame Morris]

I start by declaring an interest. I am proud of the fact that I am a trade unionist and have strong links to the transport unions, particularly Unite, the National Union of Rail, Maritime and Transport Workers, and ASLEF. Indeed, as I pointed out on Second Reading, when I was a young fellow many years ago, my first job was on the railways, when they were part of British Rail. In those days, I was a member of the National Union of Railwaymen. More recently, I served on the Transport Committee for almost six years, and I am delighted that many of the arguments and issues that I and many other stakeholders raised in numerous sessions have finally found their way into a Government Bill and on to the Floor of the House of Commons.

Passenger Railway Services (Public Ownership) Bill

Graham Leadbitter Excerpts

2nd reading
Monday 29th July 2024 Commons Chamber

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

First, I will cover some of the maiden speeches that have been made by various new Members. I had the pleasure of doing mine in the King’s Speech debate, and I think we have had nine so far this evening—well done to everyone. I found it quite nerve-racking, and it is a bit easier speaking a second time. I will not mention all the names of Members’ constituencies—other people have done that—but the issues covered struck a chord with me. We heard from a former council leader, and I am a former council leader. National parks were mentioned, and I have a national park in my constituency. New stations were also mentioned, and I have one of them as well. Many things were covered in the maiden speeches—Bob Dylan and Knebworth particularly took my fancy, as I am a bit of a rocker.

To return to the subject at hand, two of the maiden speeches mentioned water quality. With a nationalised water company in Scotland, we have some of the best water quality in the UK and among the lowest number of leaks. It is also one of the lowest-cost water companies in the UK, which ties in neatly with rail nationalisation. I am sure that those on the Government Benches will be pleased to hear the SNP supports that, as we are proud of introducing it in Scotland two years ago. I am pleased to see a Government in place who want to go down that route, which is very positive.

In the past two years, we have seen punctuality and reliability improve. ScotRail is now fourth out of the 24 franchises on performance, with a significant reduction in serious delays and cancellations. I do not really understand the argument that has been given by some of those on the Conservative Benches, who say that nationalisation—as opposed to privatisation and private profits—is not the answer and might not deliver lower prices. One big benefit as a result of nationalisation is that we have been able to run a pilot on removing all peak fares across Scotland, which has been so successful that it has now been extended. I hope that we will be in a position to make that a permanent feature. It has been very well received and is a demonstration of how we can drive down fares in a public ownership model.

As I have said, I certainly welcome Labour’s following suit. My understanding from colleagues in the Scottish Government is that there has been really good communication between the two Governments, which is very welcome. I cannot imagine that the experience would have been perfect for colleagues in the Scottish Government—it had not been done before—but I hope that sharing what happened two years ago and in the interim will be helpful and that we can find common ground.

I hope that other proposed legislation will address one area that I have concerns about. At the moment, the Bill applies only to train operating companies, but the most profitable part of the system is the rolling stock leasing companies, which a couple of Members mentioned. They generate hundreds of millions of pounds of profit for the private sector and lead to soaring leasing costs, private investment and high prices. The rewards have been privatised but the risks have been put on the public purse. Some £1 billion was paid out in dividends during covid, with the bulk going to jurisdictions such as Luxembourg and Jersey.

That brings me to the point that the Chancellor made about tax avoidance and trying to increase the amount taken by His Majesty’s Revenue and Customs. I have given an example of companies taking huge amounts of money out of the private sector and paying out those dividends in other jurisdictions. I would like to see that tackled, and I hope that the Minister will cover that in summing up.

I will say a final thing about public investment. We have managed to open up three new lines in Scotland: the Borders railway, the Levenmouth railway and the Alloa railway. We have opened numerous new stations and there is a huge amount of enthusiasm, as many Members will know. Few bodies are as enthusiastic as those involved in rail. I have two historic railways in my constituency. Many historic railways offer public services and would like to continue—or grow into—doing so in future. There is an opportunity to harness that enthusiasm and energy, but we need to shift the dial on capital investment in public infrastructure. I hope that is something the Government will tackle rapidly, because we need capital to make progress.

[Madam Deputy Speaker (Judith Cummins)]

I call Apsana Begum.