Oral Answers to Questions

Debate between Grahame Morris and Theresa Villiers

Thursday 19th April 2012 Commons Chamber

[Grahame M. Morris (Easington) (Lab)]

8. What assessment she has made of the effect on jobseekers of rail fare increases.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

No specific assessment has been made of the effect on jobseekers by my Department. The Department for Work and Pensions has a scheme in place to assist jobseekers. Jobcentre Plus issues a discount card to eligible jobseekers to help them travel more cheaply on train services to job interviews and for vocational training. The card offers a 50% discount on a wide variety of fares including London travelcards.

[Grahame M. Morris]

A previous Conservative Secretary of State advised people to get on their bike to find work; it seems that the Department for Transport has taken that advice to heart given the rapid increases in rail fares, particularly over the next two years. Can the Minister confirm that the Government will now allow train companies to increase fares by as much as 8% above inflation over the next two years, and will she at least consider limiting the cost for those people in constituencies such as mine for whom this is very difficult?

East Coast Main Line Call Centre

Debate between Grahame Morris and Theresa Villiers

Thursday 19th May 2011 Commons Chamber

[Mrs Villiers]

Absolutely, in the north-east and right across the country.

Before responding to the hon. Member’s questions, I must first clarify and reiterate the relationship between the Government and the east coast main line operator. East Coast Main Line Ltd is wholly owned by Directly Operated Railways Ltd, which is, as he pointed out, owned by the Government. East Coast and DOR are companies registered under the Companies Act and operate in accordance with their own articles of association and governance. This provides a framework for the operation of the franchise as a free-standing entity in readiness for the return of the franchise to the private sector, a return that was envisaged by the previous Government as well as the current one.

[Grahame M. Morris]

I am slightly perplexed by that explanation and tempted to think of the situation with the banks. The Chancellor and the Prime Minister have told us that influence is being exerted on the state-owned banks to ensure that they lend to small and medium-sized enterprises. Is the Minister suggesting that such influence cannot be applied on this company with regard to jobs?

[Mrs Villiers]

I will explain the relationship between East Coast and the Secretary of State. The aim is for that relationship to replicate the arrangements for franchises elsewhere on the network in order to ensure that the principles of private sector operation are embraced and maintained. The reason for that approach is so that the Secretary of State is able to protect the value of the franchise and the taxpayer gets value for money when the franchise returns to the private sector.

If the Department or my right hon. Friend the Secretary of State were to start intervening in the way the operator runs East Coast, for example by overturning decisions based on commercial considerations, they might well have to answer for their decisions in front of the Public Accounts Committee. I am afraid that we do not believe it a viable option to intervene on the basis of political or non-commercial considerations, even if the Secretary of State were minded to do so.

--- Later in debate ---

[Mrs Villiers]

As I have made clear, the coalition Government’s adopted approach, which the previous Labour Government espoused, is that the franchise should be operated on a commercial basis by East Coast Ltd. It should not be the subject of political direction from the Secretary of State.

[Grahame M. Morris]

That is a crucial point if we are arguing about commercial decisions. As my hon. Friend the Member for Gateshead (Ian Mearns) said in an excellent speech, is there not a weight of evidence from banks, insurance companies and various private sector companies that overseas call centres are becoming less and less popular, including with customers, and that therefore any move would damage the potential to sell the franchise to the private sector? Is there not an argument that it would be beneficial to the future sale of the company to keep the call centre at least in the UK, but certainly in the north-east, where it is?

[Mrs Villiers]

The people best placed to make the decision about what is best for the East Coast operation are the specialist practitioners who run East Coast Ltd, not Ministers, not Members. Those practitioners are the best people to make the best decision about what is in the interests of fare payers and taxpayers. East Coast is confident that the new arrangements will deliver better services for passengers and far better value for money.

Oral Answers to Questions

Debate between Grahame Morris and Theresa Villiers

Thursday 27th January 2011 Commons Chamber

[Mrs Villiers]

I know that my hon. Friend has championed this cause, and I enjoyed my visit to the disused rail line. Programmes such as he outlines can confer significant local benefits, but it is primarily for the local authorities to identify the funding to restore railway lines and, importantly, to identify the funding for any ongoing subsidy that is needed. Local authorities may well wish to consider those options in order to enhance economic growth in their areas.

[Grahame M. Morris (Easington) (Lab)]

What assessment has been made of increasing fuel prices and the rising costs of motoring in rural areas, particularly for lower-income households?