Confidence in the Secretary of State for Transport

Huw Merriman Excerpts

Tuesday 19th June 2018 Commons Chamber

[Andy McDonald]

I agree entirely. The Government seem to want to have control and intervene, but they do not want to take responsibility. GTR should have been stripped of its contract years ago for running the worst rail service in modern times. The company has repeatedly been found in breach of its contract as well as overseeing toxic industrial relations and poor customer service. Had the Government heeded Labour’s call to strip the company of its franchise, the recent disruption could have been avoided.

[Huw Merriman (Bexhill and Battle) (Con)]

rose—

[Andy McDonald]

I will give way to the hon. Gentleman.

[Huw Merriman]

I thank the hon. Gentleman—he is always kind and courteous with his time. A month ago, I believe that he said at the Dispatch Box that the rail professionals should be allowed to get on and run the industry, but in this instance he is being critical of the Secretary of State for not intervening and stopping that very eventuality occurring. I would like some clarification.

[Andy McDonald]

I will come on to that. As an excellent member of the Select Committee on Transport, the hon. Gentleman knows that the DFT sits on those bodies—it has a presence—yet it did nothing when it was given those alarms or warnings that he knows all about.

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[Alan Brown]

Yes, I do. The Secretary of State says that there was a parent company guarantee of £165 million for VTEC, which is a lot of money, but if the parent company is picking up other money in franchises, including the direct award of the west coast main line, it is not actually losing that money. It should be penalised properly, and I agree with the hon. Gentleman that it should not be able to bid for other franchises. Its ability to bid for the east coast main line partnership has still not been ruled out.

The Secretary of State also justifies the predicament of the parent company by saying that it “got its sums wrong.” I remind him again that it is his Department that got its sums wrong when it carried out its due diligence and assessment. The Government are lucky that one of the other franchise bidders is not seeking redress from them, because they clearly got it wrong, and got the whole process wrong.

[Huw Merriman]

Will the hon. Gentleman bear in mind that private rail operators in Britain are paying money into the Exchequer, whereas in France, 20% of the running costs come from the Government? When it comes to sums, which other areas of public spending would he have cut in order to pay for the things that he is talking about?

[Alan Brown]

I do not think that the hon. Gentleman listened to the point that I made about the subsidy that is paid to the rail franchise companies. It is a circular process, which makes it more complicated and more expensive, because of the number of cost consultants involved, taking money from one direction and paying money in another direction, and then blaming Network Rail. All that money can then circulate, and there are still net subsidies for those companies, although they pay track rental fees.

As I have said before, Richard Branson came out fighting. He blamed Network Rail for the overruns, but we have heard that Network Rail was not really at fault. The Secretary of State should be more robust in attacking VTEC. Letting it walk away owing that money undermines his position.

In previous incarnations, the east coast main line service has proved that public ownership can work. When it was last in public ownership, it paid the track rental fees and made a nominal profit, which went straight to the taxpayer. That model can work, and it should be used again in future. The Secretary of State ought to consider that.

Also on this Transport Secretary’s watch has been the Southern rail shambles. He did not do enough to step in. When I highlighted some of Southern’s failings on another occasion, he intervened and said that he was not the Transport Secretary who had been responsible for the allocation of the franchise. That completely missed the point: he was simply saying, “It’s not my fault, guv.”

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[Huw Merriman (Bexhill and Battle) (Con)]

Madam Deputy Speaker, I am terribly sorry for stepping out of the Chamber earlier than I should have done. It should be me who steps down. I am grateful for being able to say a few words this afternoon, not least because I am a member of the Transport Committee.

I wanted to speak on this subject because I think there has been too much chopping and changing in the entire industry over the years. I recognise what the Opposition motion aims to deliver, but I ask them whether any more changes in leadership would actually deliver the stability that is required. I am not trying to make an argument that might play well; I absolutely mean it.

I have worked with the chief executive of GTR, Charles Horton, over a number of years, and I have tried to work between him and the leader of the RMT, Mick Cash, with whom I have a good working relationship, to try to find a way through the Southern industrial dispute. Charles Horton has now stepped down, which I know many people will celebrate, but, frankly, this is a man with years and years of rail experience who truly cares about putting things right. I am sorry because, frankly, I would rather see people stay in post to turn things around. If there are areas of responsibility, fine, allocate them, but then put that person under the spotlight to deliver the change that makes things better. I absolutely believe the same goes for the Government.

When the Government change position, it sometimes feels as though we have government by six-month fixed-term contracts; there is not enough stability and tenure in post. I support the Secretary of State. He has come to the Transport Committee and has been incredibly open and direct about, for example, where he sees the franchise system is not working and about the need for change.

Now that the Secretary of State has the opportunity to put new franchise agreements in place, it seems right that he should inject some of his ideas for change into those agreements. It is not as though he has constantly said that everything works well. He has admitted there are particular challenges.

[Sir Greg Knight (East Yorkshire) (Con)]

Does my hon. Friend agree that one way forward might be to follow the suggestion of my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) to increase the availability of compensation to passengers who have been badly treated?

[Huw Merriman]

I certainly do, not least because my Automatic Travel Compensation Bill is awaiting Second Reading. The Bill is all about automatic and automated compensation, on which I have met the Rail Minister. It is fair to say that I have not quite persuaded him of the Bill’s merits, but it would place a duty on train companies that currently receive money from Network Rail where there have been delays. Only a third of passengers claim for such delays, so I contend that extra money is left with the train operators. My Bill would require the train operators to invest that money in technology so that my right hon. Friend and I could both tap in and tap out, which would tell us whether we had been delayed by more than 15 or 30 minutes, and if we had been, we would automatically be credited with the compensation we were due. That would be a good step forward, because passengers find it too complex and difficult to claim. Therefore, they do not claim, and as a result, they feel raw about the service. The Government could do more for passengers by making it easier to claim compensation, and perhaps passengers would then give us more support on some of the other changes we are trying to put through. That is a rather lengthy response, but I agree with my right hon. Friend. I hope that my Bill’s Second Reading will yield some success. If my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) has a similar proposal, perhaps we could merge the two.

On the rail timetabling issue, my constituency has had an additional service—a fourth service each hour—in an incredibly congested network. I take my hat off to GTR and my rail user group, which came up with an ingenious solution to deliver the extra service without any new rolling stock. The timetable just changed when trains go back and forth between Ashford and Brighton, which has worked incredibly well.

I understand that we, as MPs, are less likely to hear about things that have worked well. Quite rightly, we hear about the challenges where things have not worked. I use the trains every day to come into work, and today I had the opportunity to talk to one of the conductors on my line, a guy called Giles. I was supposed to be reading through the Transport Committee’s draft report on rail infrastructure, but I put it down to have a chat with the conductor. We chatted for the entire journey about some of the issues he has, and his points were well raised. He is aware that, as technology advances, the workforce will need to embrace it, too. His concern on the role of the guard, conductor or on-board supervisor, as these people tend to be called, is that there will be fewer of them. That is a valid concern, because most passengers on trains want to see a second member of staff on board.

My point is that, where the system is inflexible, if the second member of staff is unable to join the train for any reason, that train cannot roll. I was a Southern season ticket holder for 10 years and we had one train every hour, so when that train could not go because the conductor was not able to board, there was a two-hour delay, which was no good for anybody. It certainly was no good for tackling congestion or for those who had mobility issues in the station. So I like the flexibility that has now been introduced in Southern whereby in all but exceptional circumstances there must be a second member of staff on board. Where such circumstances do apply—and this cannot be where Southern has not recruited enough conductors—the train can still roll, so passengers can get home. Of course that type of situation has existed on Southeastern for years and it also exists on 30% of the rail network, where the driver operates the doors.

There is another point to make about incidents that have taken place, including one in Liverpool. Where the driver and the conductor are performing different roles, tragedies can occur. A young lady died on the tracks and the coroner’s inquest made the point that if the control mechanism is taken by one person, we are less likely to see that eventuality occur. I often hear safety used as the reason why this is an issue. I was asked by the rail unions to see whether a safety report could be created. We got the rail regulator to deliver that, but it was then ignored, so I feel that all sides need to work a little more together.

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[Grahame Morris]

Absolutely; that is a key point. I am kind of long in the tooth now, but I remember the dreadful train accident at Ladbroke Grove, where 31 people were killed and 500 injured; a dear friend of mine was killed in the Southall train disaster, in which seven were killed and more than 140 were injured; and I remember another accident at Clapham Junction. What with the complexity of the new signalling systems at places like London Bridge, with large numbers of tracks, it is safety-critical that the drivers are fully aware of which signals actually apply to them. It is a mistake for the Secretary of State to imply that ASLEF, representing the train drivers, should somehow make a concession on the training to which its members are subjected. When I get on a train, I want to be absolutely certain that it is completely safe and that the drivers are familiar with the track and the signalling system. I also want to know that there is a guard on the train, so that if anything happens—if anyone is attacked or taken ill—or there is a disabled or blind person or a woman with children travelling, the guard will be able to assist. That is reasonable in such circumstances.

I agree with the hon. Member for Bexhill and Battle about the GTR chief executive, Charles Horton, who seemed like a thoroughly decent man. He said that he was deeply sorry for the timetable disruptions. It is a bit unfair that he seems to be carrying the can, when I suspect the blame should be apportioned further up the food chain. The witnesses yesterday were well schooled in collective responsibility, but ultimately the buck must stop with the Secretary of State. It is not good enough just to keep saying sorry.

[Huw Merriman]

Will the hon. Gentleman give way?

[Grahame Morris]

I am sorry; I am running very short of time.

It is another failure on the Secretary of State’s watch. We have fundamental problems with integration, lack of planning and decision making. The franchising model is broken. It is time for a new approach and a new driver at the head of the Department for Transport.