Passenger Railway Services (Public Ownership) Bill

Helen Whately Excerpts

2nd reading
Monday 29th July 2024 Commons Chamber

[Helen Whately (Faversham and Mid Kent) (Con)]

It is a pleasure to serve under your chairmanship, Madam Deputy Speaker. Congratulations on your election.

It is my honour to respond to the first Second Reading of a Bill moved by this new Government, which I see as an opportunity to set the tone for how we will act in opposition. We are not going to oppose for the sake of it, and I do not believe that a single person on either side of the House, among the public, among those working on the rail network or even among those running the train companies would say that everything is as it should be with our rail system. We are in no doubt that rail needs reform.

Covid fundamentally changed the way we travel. Far fewer people now commute five days a week. The contracts that were brought in to save the railways are now stifling the companies they kept afloat, and the Treasury is subsidising the network’s day-to-day running to the tune of £3 billion a year, so things need to change.

That is why, in government, we commissioned a landmark review into our rail system. I welcome the fact that Labour is taking forward our plan for Great British Railways, which is the product of that review. Joining up track and train into a single public body will make the system more efficient and save passengers time and money, which is important because affordability and reliability are what people care about, and the point of being in government is delivering on what people care about.

[Mike Amesbury (Runcorn and Helsby) (Lab)]

rose—

[Helen Whately]

I worry about what this legislation tells us about how the Labour party plans to act in government. My worry when I first saw the Bill—multiplied many times over by the Chancellor’s statement, to which I will return—is that it seems to be based solely on ideology. There is no evidence, barely even a suggestion, that this Bill will actually improve journeys for passengers. The Secretary of State, perhaps to her credit, has even admitted so herself, saying that she cannot promise that fares will be any cheaper or that the trains will be more likely to run on time.

The Bill is the embodiment of the same old Labour mantra that anything run by the state is simply better than anything run by the private sector, and that the answer to a problem is putting politicians in charge, when it has been proven time and again that that is not the case.

[Mike Amesbury]

I thank the shadow Secretary of State for finally giving way. She referred to being ideologically wedded to a certain model of providing railway services. Will she explain why, despite its appalling record, Avanti West Coast was awarded a nine-year extension? Surely that was an ideological decision—the wrong decision.

--- Later in debate ---

[Helen Whately]

The point I will come to is that the Opposition and I, as shadow Secretary of State for Transport, do not choose to take an ideological approach. The important thing is what works. If the hon. Gentleman will hold on for a moment and listen to what I am coming to, he will understand my argument.

I confess I may be a little jealous if the Secretary of State is too young to remember life under British Rail: the dusty carriages, the worn seats, the clonk and rattle of the carriage doors, and hours spent waiting on deserted platforms wondering if, let alone when, the trains would ever arrive, without any information available. Even the sandwiches were tired. It is no wonder that in British Rail’s nearly 50-year history, passenger numbers across the network actually went down. There was a reason why private provision was introduced into the rail network and why the previous Labour Government stuck with it throughout the 13 years they were in power: it worked.

Today’s railway is unrecognisable from that under British Rail, not despite privatisation but because of it. In the first 20 years, passenger numbers doubled, a point that Labour’s own Rail Minister, who now sits in the other place, made in his 2015 report as the head of Network Rail. The majority of that growth is attributable to the private sector’s involvement, and it was achieved while operating one of the safest railways in Europe. Billions of pounds of private capital has been invested in rolling stock; there is now live real-time information on services; and, instead of British Rail catering, passengers can now choose between the likes of M&S and Greggs.

The railway went from costing taxpayers hundreds of millions of pounds a year to generating an operating surplus for much of the 2010s. It was not just taxpayers and passengers that benefited. To quote the general secretary of ASLEF, Lew Adams, back in 2004:

“All the time it was in the public sector, all we got were cuts, cuts, cuts. And today there are more members in the trade union, more train drivers, and more trains running. The reality is that it worked”.

We often hear it said in this country that our rail system should be more like those in Europe, where under a utopian system of public ownership, the trains always run on time and every journey costs less than a pint of beer. However, that is not how the European see it. In fact, in terms of the growth in passenger numbers and the controls on costs that privatisation delivered, our network is envied by Europe. [Laughter.] I knew Government Members would laugh, so listen to what I have to say.

[Ruth Cadbury]

On that point, will the shadow Secretary of State give way?

[Helen Whately]

I will give way but not right now because I heard the reaction.

Right now, many European countries are in the process of unravelling their public models. They are introducing private provision and competition into their networks. The Dutch, the Czechs and members of the European Union will all be very confused to see us hurtling past them in the other direction.

Of course, free enterprise does not always succeed. That is why we already have a system in place for times when state intervention would—or, at least, should—benefit passengers. As I am sure the Secretary of State knows, the Department for Transport is already running several train operating companies, such as Northern Trains, which was taken into public ownership back in 2020. Four years ago, when the state took it over, a measly 61% of its trains arrived on time. Today, free from the greedy profit vultures who previously feasted on its carcase, that figure remains at 61%.

Compare that with Greater Anglia, whose contract comes up for renewal in September. By the way, Greater Anglia is the first train operating company in the Secretary of State’s crosshairs, and why the Government are choosing to rush this Second Reading through before recess. All of Greater Anglia’s services are running new trains. Some 94% of those trains arrive within three minutes of the scheduled time. The company manages to deliver that while paying a premium back to the Treasury. It is not failing.

In fact, every single one of the top five performers across the network is a private provider. By contrast, are hon. Members aware which company accounts for more delays than anyone else? Network Rail—some 60% of delays are caused by a single public sector organisation.

[Ruth Cadbury]

I am old enough to remember British Rail. On quite a lot of measures, British Rail was improving before it was privatised. While the hon. Lady wants to make an ideological attack on a state-owned railway, British Rail was 40% more efficient than eight comparable rail systems in Europe used as benchmarks in 1989. Does the hon. Lady agree with the former Secretary of State, Grant Shapps, when he admitted that the franchise system was no longer sustainable? What is her idea?

[Helen Whately]

I was perfectly clear at the beginning of my speech that we agree that reform is needed. That is why we commissioned a review and set out ambitious plans for reform, including the Great British Railways. I welcome that the new Government intend to introduce that.

I am not here to make an ideological argument. To respond to the point made by the hon. Member for Runcorn and Helsby (Mike Amesbury), sometimes, like with our plan for Great British Railways, the public sector is the right vehicle to solve a problem. At other times, a competitive, private model will lead to better results. The point is, if the Government are going to change things in the first piece of legislation they bring before this House, they need some pretty clear evidence as to why, so I have some questions for the Secretary of State and the Under-Secretary of State for Transport, the hon. Member for Wakefield and Rothwell (Simon Lightwood), who will be summing up.

How exactly will bringing train operating companies into public ownership benefit passengers? Unfortunately, the Government’s impact assessment does not tell us, for sure. What improvements can passengers expect? Who is the Secretary of State going to get to run these companies? Where are all these different, better train operating experts going to come from? If they are out there, twiddling their thumbs in the hope that this day would arrive, would the Department for Transport not have brought them on board already to help with the running of Northern Trains or Southeastern?

It is the same question across the network. Will she be sacking everyone currently working for the train operating companies and replacing them with a horde of superior, yet currently out-of-work, staff? Or, as I suspect, will passengers simply encounter the same group of people in a different colour shirt? What we need to hear is what tangible difference this going to make for passengers, because if the answer is nil, then there are lots of other things she could be doing with her time, such as prioritising the railways Bill.

The railways Bill is the legislation that will actually make a difference to how passengers experience our railways, with simpler tickets, joined-up decision making and efficiency savings that can be passed on to passengers. She could be modernising working practices, instead of bending over backwards to the unions, as reports suggest she has already done. How does she think that creating a single employer and, in the process, uplifting every rail worker’s terms and conditions to the least favourable for passengers, will benefit the network?

She could start by saving the train manufacturer, Hitachi—something that, when in Opposition, she said she could do with the stroke of a pen. I notice that it has been three weeks and that pen is yet to materialise. Perhaps she no longer takes for granted the work her predecessor did saving the Alstom factory in Derby. Or she could prioritise investment in the network, like the £100 billion we spent improving the railways since 2010.

On that point, I feel for her because I know what it is like to argue with a Chancellor for investment in something and not win that argument. It is clear from the Chancellor’s statement earlier that the Secretary of State for Transport lost the argument pretty catastrophically. Rather than setting out to reform welfare or control public spending, the Chancellor opted to slash a host of transport infrastructure projects. She will now review all transport infrastructure plans, putting the entire transport pipeline into chaos, letting down communities across the country and letting down a fair few of her new colleagues, too. Those new colleagues will be dismayed to find that they campaigned on false promises to the electorate, and that their pledges to invest in economic growth and not to raise taxes were not even worth the glossy paper on which their leaflets were written.

Although I know what it is like to lose an argument with the Chancellor, I do not share the experience that the Secretary of State and many of her colleagues will now be going through: of changing their tune just three weeks after they were given a mandate by the electorate and less than two weeks after their party leader had said that trust was the new battleground of politics. It seems as if he has given up on that battle already.

All the same, I welcome the right hon. Lady to her post, and I do genuinely wish her well. I will gladly offer my support to anything that she does to make our railways more reliable and more affordable. This Bill will not do that. It is a rushed piece of left-wing ideology. The evidence, both here in the UK and across Europe, shows that an effective public/private model, where the incentives are properly aligned, delivers more choice, more passengers and greater efficiency.

Over the next few weeks of recess, the Secretary of State and her team will have some time to reflect and reconsider. I hope that they will return in the autumn with a Bill that jettisons the baggage of ideology and takes up the mantle of evidence—a Bill that will have more prospect of improving the rail service for passengers, because, as I said, I have no interest in opposing for opposition’s sake, but this Bill as it stands will not be receiving the support of His Majesty’s Loyal Opposition.

[Madam Deputy Speaker (Caroline Nokes)]

I call Andy McDonald.