Rail Franchising

Debate between Hilary Benn and Andy McDonald

Wednesday 10th January 2018 Commons Chamber

[Andy McDonald]

I will make a little progress, but I will take interventions later.

In 2016, the Department for Transport set out that its aims and objectives for rail franchising were

“to encourage a flourishing, competitive passenger rail market which secures high-performing, value for money services for passengers and taxpayers whilst driving cost effectiveness.”

The Department has clearly failed to meet those objectives. The latest collapse of the east coast franchise, which was announced in November, makes a mockery of the Department’s 2016 aims. Virgin-Stagecoach did not deliver and defaulted on their contract, and the Secretary of State has given them a gift.

[Hilary Benn (Leeds Central) (Lab)]

Given that this is the third occasion in just over a decade that a private contractor has announced that it wishes to hand back the keys to the east coast franchise, was it not a fundamental mistake for the Government not to allow East Coast, which successfully ran the franchise for more than five and a half years and paid back £1 billion to the Treasury, to continue its good work? Instead, the Government ideologically said that anyone could bid to run the franchise except the state-owned company that had run it so successfully.

[Andy McDonald]

My right hon. Friend makes a perfect point. I have no doubt that that will be a consistent theme throughout this debate.

The Government should have followed Labour’s example. When the operator defaulted in 2009, Labour took the contract back into the public sector. If a company defaults, it does not deserve a contract. Taking a contract back into the public sector would mean that there is no reward for failure, and other companies in the industry would not expect the same treatment. In the light of what happened with the east coast franchise, what plans does the Secretary of State have to renegotiate the TransPennine Express, Northern and Greater Anglia franchises?

Europe, Human Rights and Keeping People Safe at Home and Abroad

Debate between Hilary Benn and Andy McDonald

Tuesday 24th May 2016 Commons Chamber

[Hilary Benn]

That is indeed the case, and it shows that we can have the best of both worlds because we are gaining from the trade deals that the European Union has negotiated at the same time as increasing our trade with other countries with which Europe does not currently have a trade deal.

[Andy McDonald (Middlesbrough) (Lab)]

Is my right hon. Friend aware of the significant inward investment in the automotive trade in the north-east of England, not only at Renault-Nissan but at Nifco, at Elring Klinger and at A. V. Dawson in Middlesbrough, which are all part of the supply chain? If we had to wait seven years for a new trade deal to be reached, what would be the likelihood of Nissan or Hitachi continuing to invest in our region?

[Hilary Benn]

My hon. Friend makes a powerful point. The north-east, along with Wales, probably understands better than any other part of the country just how important membership of the European Union is to the economic prospects of the communities and families that depend on the jobs that come from that investment, not least because the north-east exports a higher proportion of what it produces to Europe than to other parts of the world.