Future of Rail Services

Debate between Huw Merriman and Laurence Robertson

Tuesday 20th December 2022 Westminster Hall

[Huw Merriman]

I should make some progress, because time will push me towards the end. I shall try to take a further intervention if I can.

I want to talk about other parts of the reform: fares and ticketing. As part of the plan, we will invest £360 million to radically reform and improve the passenger experience. We will also look to deliver our manifesto commitment by introducing tap-in and tap-out at additional stations in regional and urban areas, and contactless pay-as-you-go ticketing at over 200 stations in the south-east. We will also introduce simpler, modern ways of paying for travel and a straightforward compensation process.

Let me touch on the proposals for reform. In addition to our significant investment in the passenger experience, one reform that we are considering is the creation of a new guiding mind to bring the fragmented railways under a single point of accountability. That would not be nationalisation; rather, it would be simplification. A simple, more agile structure will be needed to change travel and working patterns, introduce new technologies and enhance business models. My hon. Friend the Member for Wimbledon talked about the role of the private sector.

My hon. Friend the Member for Wimbledon talked about the role of the private sector. Rail reform must have at its core greater private sector involvement. I want any new model to take the very best of the private sector: innovation, an unrelenting focus on quality and the type of models that drive reform, a better experience for the passenger and better return for taxpayer value. I am happy to discuss the private sector contribution, and to meet my hon. Friend to reassure him about that. He knows that I have always had a real passion for what the private sector has brought for rail. I agree that, although the franchise model may have run its course, it was not made easy for the private sector to navigate, because it became a very complex, documented process that put off new entrants to the market. Any rail reform has to be simple and nimble enough to bring in new innovators, not just the largest.

My hon. Friends the Members for Wimbledon and for Weston-super-Mare (John Penrose) have championed open access. Rail reform must see an important role for open-access operators. We want to make the best use of the network and grow new markets for rail. The Department recently supported Go-Op’s innovative proposal to operate open-access services from Taunton to Swindon and Weston-super-Mare, providing new direct services and improved connectivity for communities.

I have challenged my Department on open access. It seems to be the case that we are not putting open access on equal footing, which means that there is some sort of charge and enablement. The response is always, “It just takes away from the other contracted operators.” We need to charge open access more to allow it not to take away but to compete. In my view, open access definitely has a place, but we perhaps need to reform the entrance requirements so it is not constantly turned down. I am very excited about those possibilities.

My hon. Friend the Member for Wimbledon asked when legislation would be forthcoming. We will not be taking forward legislation on rail reform in this parliamentary Session, as he is aware, but we will introduce it when the parliamentary timetable allows, and I am very keen that we do so. In the interim, rather than do nothing because legislation is not immediately forthcoming, many areas can be progressed outside legislation. They include making significant investment in ticketing and retail, and the formation of the reform proposals that we will focus on. I assure my hon. Friend that we will bring those forward in parallel with legislation.

My hon. Friend mentioned the control period 7 settlement. That process is vital for securing value for money for the taxpayer and providing certainty to investors. The Government published a strong funding settlement of more than £44 billion for England and Wales for the next control period, which begins in April 2024. My hon. Friend touched on that. That demonstrates our long-term commitment to securing a safe, reliable and efficient railway. The industry—public and private—now needs to work together to establish stretching yet realistic targets for improvements and reliability, supported by Government investment.

On the lack of reference to rail reform or GBR, the HLOS, which my hon. Friend mentioned, is more of a statement of principle. He should not read anything into that. We have not landed on one particular model, so it would not have been appropriate to insert one in there. I got my pen out and made sure there was reference to innovation and private sector involvement—I do not believe anyone took those words out. I was particularly keen to ensure that, with innovation, we included small and medium-sized enterprises so that we are focusing not just on larger private sector involvement but on the small innovators that can really drive change. They need to be in the room too.

On industrial action, passengers rightly expect a regular, reliable service, seven days a week. Current shift patterns and voluntary weekend working for railway staff make that vision nearly impossible. The only solution is for everyone to come together and agree a new way forward. I have met the unions and employers, and the Secretary of State has met the unions too. I hope that will send a message to this House that we want to facilitate an end to industrial action. I again ask all right hon. and hon. Members to come together and push not just the train operators and the Government but those who are responsible for the strikes—the trade unions. It is time for all to be called out where they can deliver more.

The Government are wholly committed to improving journeys for passengers and creating a better, more modern rail industry. I thank my hon. Friend for his contribution. I assure him that the private sector will be right at the heart of any reform proposals. The Secretary of State and I are committed to an improved railway with the private sector at its heart, and I hope that my hon. Friend will keep me to that mantra.

[Mr Laurence Robertson (in the Chair)]

I wish everyone a very happy Christmas and a very peaceful new year.

Question put and agreed to.