Passenger Railway Services (Public Ownership) Bill

Debate between Grahame Morris and Nusrat Ghani

2nd reading
Monday 29th July 2024 Commons Chamber

[Grahame Morris (Easington) (Lab)]

Congratulations on your election, Madam Deputy Speaker.

I declare an interest, as I have a long association of mutual support and respect with the transport unions, particularly Unite, the RMT and ASLEF, and with all the trade unions more generally.

I welcome my right hon. Friend the Secretary of State to her new post, and I congratulate her most sincerely on prioritising the public ownership of our railways from the Government’s first day in office. This is a really important Bill, which gives me and many others on the left of the party hope and faith that this Labour Government, in which we have placed our faith, will deliver for us.

I had meant to wear my British Rail tie, because when I started work 45 years ago, or thereabouts—my goodness—I worked for British Rail in York and Scarborough. The tie is my treasured possession, but it is more elusive than a Conservative Back Bencher in a public ownership debate. I just could not find it.

I have spent quite a number of years on the Transport Committee, which scrutinised the last Government’s draft Rail Reform Bill. I welcome the Passenger Railway Services (Public Ownership) Bill, but it is clear to me that the franchising model has failed for three decades. It is now time to put passengers before private profits. By establishing Great British Railways, this Bill is the first step in taking back control.

A number of Members have raised points with which I agree, and I will mention them. I also take this opportunity to mention a local issue in my Easington constituency. The train stations in Horden and Seaham should provide easy access to Middlesbrough, Sunderland and Newcastle for employment, education and leisure. However, my constituents often experience unreliable and, at times, dangerously overcrowded services, with the chronic overcrowding meaning that passengers are often left on the platform or travelling in distressingly overcrowded carriages.

This could easily be solved by running four carriages instead of two, especially during peak periods when there is predictable demand, including on match days when my team, Sunderland, are at home at the Stadium of Light or when Newcastle United are at home at St James’ Park. Northern Rail invariably runs only two-carriage services at peak times, which seems incredible. I hope Northern Rail will address this issue.

I believe that running rail under one public entity will save taxpayers money and allow revenue to be reinvested in improving capacity and service frequency, both in my constituency and across the country. The British public have lined the pockets of private shareholders for 30 years. Over the past seven years, private train operating companies have paid, on average, £130 million to shareholders in dividends while taking public subsidies. Under the terms of the Bill, these profits will be reinvested in our railways.

We have seen how LNER, on the east coast main line, has paid more than £40 million to the Department for Transport since it has been in public ownership under the operator of last resort, but this Bill will go still further. There will be no more hefty management fees and performance bonuses to train operating companies, with more money paid back into Great British Railways.

I understand the safeguards for open-access operators, where they add value and capacity. In east Durham, Grand Central has applied to the Office of Rail and Road for four daily calls at Seaham station in my constituency, which would provide a direct connection to London, alleviating pressure on the overcrowded routes from Seaham to Sunderland. Open-access operators can benefit the network, so I hope the ORR approves these new services at the earliest opportunity.

I congratulate the Minister on building consensus with those on the frontline who run our railways, and I note the vocal support for the Bill from the RMT and ASLEF. I have long campaigned with the RMT and ASLEF for public ownership as the first step towards creating an integrated railway that prioritises passengers and our economic wellbeing over and above shareholder dividends.

The Secretary of State is on the right track—excuse the pun—and, while she is on a roll, I urge her to go a little further by reforming how we procure rolling stock, which Members on both sides of the House have mentioned. At present, the rolling stock companies lease trains to the operating companies at exorbitant prices. In fact, £409 million was paid in profits to shareholders last year, a 41.6% increase on the previous year. When Opposition Members ask where the money is coming from and how we will wring economies out of the system, there is £409 million that we could get out of the system relatively painlessly.

One of the original ROSCOs, Eversholt, is owned by CK Hutchison Holdings Ltd, a Hong Kong company set up by the billionaire Li Ka-shing, who also has shares in Northumbrian Water, which provides water and sewerage services in my region—another company that is failing the public by making millions from taxpayers. During the pandemic, the public purse subsidised train operating companies at unprecedented levels while the ROSCOs’ profits continued to soar. Yet with all operators set to be under public ownership by 2027, surely now is the time to reconsider how we procure trains for Great British Railways. Labour has a mandate for change. We can end the abuse of the British taxpayer inflating profits for privatised monopoly industries that should be publicly owned, including water, rail and energy. At least for rail we have begun the process of change.

To meet decarbonisation goals, the UK needs to upgrade up to 4,000 rolling stock units, which will cost tens of billions of pounds, so we will need a new financing model to meet those demands. With adequate planning, that could also mean ample orders to sustain our British-based train manufacturing industry and avoid the gaps in the order books we have recently seen at Alstom and Hitachi. I praise the Secretary of State and her ministerial team for the effort and energy they have expended in trying to seek a solution.

With Great British Railways, I urge the Secretary of State to ensure that ROSCOs do not continue to exploit the taxpayer and that we take back control of our rolling stock. The Great British public deserve better value for money. Public control of our train operating companies is the first step in delivering a better service. I look forward to working with my right hon. Friend the Secretary of State as we set out the finer details for Great British Railways. This is a transformative Bill for our railways—one of the most transformative Bills I have seen in my lifetime—and my right hon. Friend has my full support in delivering the modern and efficient rail service our country needs and deserves.

[Madam Deputy Speaker (Ms Ghani)]

I call Adam Jogee to make his maiden speech.