Passenger Railway Services (Public Ownership) Bill

Debate between Graham Leadbitter and Judith Cummins

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.