Williams-Shapps Plan for Rail

Huw Merriman Excerpts

Wednesday 14th June 2023 Westminster Hall

[The Minister of State, Department for Transport (Huw Merriman)]

It is a pleasure to serve under your chairship, Ms Fovargue, and to reply to this debate secured by my hon. Friend the Member for Cleethorpes (Martin Vickers). I thank him for his work as chair of the all-party group for rail.

Given my former role as Chair of the Transport Committee, it is also a pleasure to be surrounded by former Committee colleagues, including the shadow Rail Minister, the hon. Member for Slough (Mr Dhesi), who cannot stand to be Chair. We also have two former Transport Ministers. I welcome all continued liaison with the Transport Committee—a great Committee with great members.

In his Bradshaw address in February, the Transport Secretary set out his vision for rail: a customer-focused, commercially-led industry with Great British Railways as the guiding mind for the sector. I welcome the supportive comments of my hon. Friend the Member for Cleethorpes about the Bradshaw address and the need for a guiding mind. I agree and, to answer my shadow, we still support it and will still deliver it.

The case for rail transformation is now stronger than ever. As many have said in the debate, the railways are not delivering the services that customers deserve. The industry remains fragmented, which limits effective decision making. The existing commercial model is not sustainable, with the cost to the taxpayer remaining too high, and the structure does not provide adequate opportunity for private sector investment or initiative. Like my hon. Friends, I fully support the private sector in what it does and what it has done in the past; we need it now more than ever, following the pandemic and the reduction in passenger numbers. We need to put customers at the heart of what we do.

By establishing Great British Railways, we will enable a single guiding mind to co-ordinate the network, bringing infrastructure and operational decisions together, and planning coherently for the future with robust levers of accountability. It will develop local partnerships to bring decision making closer to the communities that the railways serve. Importantly, Great British Railways will enhance the role of the private sector, developing a new commercial model that focuses on operators competing to deliver high-quality, punctual services and excellent customer service.

New passenger service contracts will balance the right performance incentives with simple, commercially-driven contracts. Those will not be one size fits all. I want the private sector to play its part in reinvigorating the rail sector, driving innovation and attracting customers to rail. We are now working with industry on how we can introduce more private sector risk and reward into existing contracts.

On the points made by my hon. Friend the Member for Cleethorpes about open access, I too want to see more open access where it benefits passengers and taxpayers, with a more level playing field in track charging. As part of rail reform, we want more competition to drive up quality and choice. We look forward to working with existing open access operators, as well as new entrants to the market such as Grand Union Trains, which will shortly introduce new services between London and Carmarthen, to maximise benefits for passengers. Legislation is needed to take forward some of the structural elements of reform, but we will ensure that customers feel the benefits as soon as possible, ahead of the introduction of such legislation.

My hon. Friend mentioned the Luxembourg rail protocol. The Government signed it in 2016 and remain committed to unlocking the benefits of greater private sector financing of rolling stock, which the protocol aims to support. The Government intend to implement the protocol, and we will continue to explore all suitable legislative opportunities to do so.

Let me turn to the point made by my hon. Friend the Member for Cleethorpes about lowering barriers to entry to create a more competitive retail market. As set out in the plan for rail, we recognise that there is a multitude of train company websites with different standards of service, which is confusing to passengers. We are looking and working closely with industry partners to review the best way to address that. Reform is not something that can be completed overnight, but delivery is well under way. We have launched national flexi-season tickets, as mentioned by my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), and over 700,000 have been sold since launch. We have delivered on our commitment to extend single-leg pricing to the rest of the LNER network from 11 June. That delivers simpler, more flexible tickets that are better value. In March, we announced Derby as the winner of the GBR HQ competition.

The accessibility audit of all 2,572 railway stations in Great Britain is complete and work is under way to ensure that data is kept up to date and made available to the public. In response to the points on rail freight, the rail freight growth target call for evidence will be published shortly, and we remain committed to introducing a long-term rail freight growth target towards the end of this year.

The transition team at Great British Railways has analysed hundreds of responses to the first-ever long-term strategy for rail call for evidence. The plan will be published later this year. In response to the complex rules and industry processes, the Great British Railways transition team, with the support of the Office of Rail and Road, will identify and recommend such rules and what can be done.

We continue to press ahead to deliver reforms and tangible benefits, including publishing the Department’s response to the rail reform legislation consultation this summer, taking forward workforce reform, developing the new commercial model, and continuing to simplify fares and roll out pay-as-you-go ticketing, ahead of legislation. I was asked many questions about legislation in the debate; I can only say that we will deliver legislation when parliamentary time allows. Such decisions are made collectively across Government and can be confirmed only during the King’s Speech in autumn.

I heard the call from my hon. Friend the Member for Milton Keynes South (Iain Stewart), Chair of the Transport Committee; Nigel Harris is indeed an influential figure who has a lot of good ideas. With regard to the suggestion of a shadow body, I am working with my Department—I had meetings in the last week—to try to escalate and set up more of the teams, so that rather than waiting for matters to be transitioned over, they can take those matters and come up with ideas. I am not saying that our idea is exactly the same as the one put forward, but we are looking to create the very same culture. My hon. Friend is absolutely right: so much can be done without legislation, and so much is being done. Since the end of last year, I have met weekly with the team that is transitioning everything to Great British Railways to ensure that whatever can move without legislation does move. The reality is that this change project is more about getting the change delivered than, ultimately, about legislation; legislation delivers paper and powers—it does not actually deliver the change, which is what I am working on.

To the point made by my shadow, the hon. Member for Slough, it is deeply regrettable that today ASLEF has balloted its members to continue strike action. It has balloted to ask for a continuation of strikes, but it has not asked its members whether they would like to take up the fair and reasonable pay offer put forward by industry, which would take average pay from £60,000 to £65,000 for a 35-hour week. That is on the table, but it is not being put to members. We remain committed to that offer, but we ask the unions to do their part and ask their members to give their view on it. I hope that the hon. Member would join me in welcoming that stance, which could bring an end to strikes rather than seeing the unions continue to put this country and rail passengers through absolute misery.

To conclude, nationalisation is not the answer. We need simplification and modernisation. I agree with my hon. Friend the Member for Cleethorpes: privatisation has been a success story. The new model will take the very best of the private sector—innovation, an unrelenting focus on quality and outstanding customer service—and fuse it with a single guiding mind to drive benefits and efficiencies across the system as a whole. I look forward to working with all my colleagues across the House to make this reform work.