Railways

Iain Stewart Excerpts

Thursday 25th April 2013 Commons Chamber

[Iain Stewart (Milton Keynes South) (Con)]

Thank you, Mr Deputy Speaker. I am grateful for the opportunity to contribute to this debate.

I will first pick up on the fascinating comments made by the hon. Member for Nottingham South (Lilian Greenwood). I wonder whether we are witnessing the embryonic development of a Labour policy of whole-scale renationalisation of train operators. I have only five minutes, so I cannot pursue that much further. I imagine that the proposal finds a lot of favour with the hon. Lady’s Back-Bench colleagues and, indeed, trade union sponsors, but that is a matter for another day.

[Frank Dobson (Holborn and St Pancras) (Lab)]

Does the hon. Gentleman agree that the Government’s position is ideologically bizarre, in that they seem to oppose public ownership of the railways by British people or the British Government, but have no objection at all to public ownership of British railways by foreign Governments?

[Iain Stewart]

If the right hon. Gentleman will bear with me, I will come on to some of the proposals in the EU package that I think will help British operators to expand into Europe, if they so wish.

I broadly welcome the package of measures. It takes Europe in a direction that we have already taken, so its broad thrust will not have a dramatic effect on rail operators in this country.

I want to pick up on a few specific concerns. There is an issue about how the rest of Europe will respond and I am concerned about how effective the European Union will be in implementing the package in other countries. The Transport Committee’s evidence sessions made it clear that it will be very difficult to apply the package to all EU member states, because of the different sizes and structures of their respective railway systems. Past experience shows that the proposals are so opaque in practice that national Governments can implement them as they wish so as to protect their own national operators. I asked Brian Simpson, the Labour MEP who chairs the European Parliament’s Transport and Tourism Committee, whether there was lobbying from France and Germany to protect their national interests. He replied: “You bet there was.” I am, therefore, concerned about how the proposals will be implemented in Europe.

The Committee has recommended—I think this would help—that the maximum limit for the bundling together of rail network services should be one fifth instead of one third. On the evolution of services in Germany, while urban and regional services are diversifying, allowing different operators to enter the market, the entire inter-city network, with only two exceptions, is operated by Deutsche Bahn. Therefore, a contract covering one third of the national network would allow Deutsche Bahn a near monopoly of the inter-city services, which goes against the principle of the directive. I hope that in his discussions with colleagues in Europe, the Minister will pursue an upper limit of one fifth of the market, rather than one third.

The Minister has already referred to one of my domestic concerns, namely that the package should not prohibit the alliance between Network Rail and some of the train operating companies, particularly South West Trains. I believe that that is an effective way forward for the railways and I hope that the Minister will be able to get some clarification on it and protection for those British interests.

I am also concerned about international services. For obvious reasons, the impact on British railways has not been significant thus far, but High Speed 2 and its connection to High Speed 1 and the tunnel will lead to many more international services from this country. I do not want our interests to be inhibited by problems relating to track access or safety, which is what happened when Eurostar tried to buy Siemens trains for the tunnel. The existing regulations are not as effective as they could be. I hope we can get much greater clarity and certainty on both those areas, in order to allow the development of effective cross-border services from this country. The Minister has said that he is looking at whether the issue can be dealt with through a European-wide arrangement or through greater collaboration between national agencies. I do not have a particular preference, but the overall objective should be to give operators greater certainty so that they can plan services.

I am running out of time, so I will conclude by saying that I broadly support the thrust of the package, but hope that the Government will be successful in getting the assurances and clarifications needed to protect our interests.