Railways

Jeremy Corbyn Excerpts

Thursday 25th April 2013 Commons Chamber

[The Minister of State, Department for Transport (Mr Simon Burns)]

I beg to move,

That this House takes note of European Union Documents No. 5855/13, a Commission Communication: The Fourth Railway Package-completing the single European railway area to foster European competitiveness and growth, No. 6012/13 and Addenda 1 and 2, a Draft Regulation on the European Union Agency for Railways and repealing Regulation (EC) No. 881/2004, No. 6013/13 and Addenda 1 and 2, a Draft Directive on the interoperability of the rail system within the European Union (Recast), No. 6014/13 and Addenda 1 and 2, a Draft Directive on railway safety (Recast), No. 6017/13, a Commission Report on the progress made towards achieving interoperability of the rail system, No 6019/13, a Commission Report on the profile and tasks of other train crew members, No. 5960/13 and Addenda 1 to 5, a Draft Regulation amending Regulation (EC) No. 1370/2007 concerning the opening of the market for domestic passenger transport services by rail, No. 5985/13 and Addenda 1 to 7, a Draft Directive amending Directive 2012/34/EU establishing a single European railway area, as regards the opening of the market for domestic passenger transport services by rail and the governance of the railway infrastructure, and No. 6020/13, a Commission report on the implementation of the provisions of Directive 2007/58/EC on the opening of the market of international rail passenger transport accompanying the Communication on the fourth railway package; supports the Government’s aim of ensuring any resulting measures are appropriate, encourage competition and help to deliver a level playing field across the EU; and further supports the Government’s view that any such measures should be evidence-based, proportionate and reduce or at least minimise the regulatory, administrative and cost burden for industry.

I welcome the fact that the European Scrutiny Committee has referred this subject to the House for debate. I also thank and pay tribute to the Transport Committee for its report on the fourth railway package, a number of whose conclusions and recommendations the Government support.

The fourth railway package is a major European Union legislative proposal involving three directives and three regulations. As Members will appreciate, we are still considering the implications of the proposals in consultation with other Departments, so all I can give the House this afternoon is our initial position.

The United Kingdom has one of the most liberalised rail networks in the EU, which is why the Government support further opening of the domestic EU public passenger transport markets. However, we want to ensure that the proposals that are implemented as part of the package are flexible enough to work within the UK’s public passenger transport structure, and are compatible with our plans for rail reform. The Transport Committee made that point in its report.

Evidence garnered by the European Commission indicates that about 40% of passenger routes in the EU are accessible to new operators. That implies that significant market opportunities could arise both for UK rail firms and for those in the rest of the EU if the proposals pass into European law. There would also be potential for expansion of the rolling stock leasing sector. The new infrastructure manager separation provisions could give freight operators benefits as well if they further open up access in practice, reducing the chances of discriminatory behaviour in some member states. In any event, I can assure the House that the proposals will be the subject of consultation with stakeholders and considerable negotiation within the European Union. We will continue to engage with the Commission, the European Parliament and other member states to ensure that any concerns are addressed in the final texts.

[Jeremy Corbyn (Islington North) (Lab)]

I am listening to the Minister’s comments with interest. Would these proposals force the publicly owned railway systems that exist in some parts of Europe to be handed over to the private sector, or would they allow the public sector to participate on a level playing field?

[Mr Burns]

I hope I can give the hon. Gentleman reassurance on that, if that is what he is seeking. It is not a question of forcing any railways in any country in the EU to move from one position to another, although the main thrust of the package is to create a greater liberalisation of the market for the benefit of both taxpayers in the EU and passengers.

--- Later in debate ---

[Lilian Greenwood]

I will make a little progress.

Countries should be free to choose the models that best suit national and local needs. We had just such a need in 2009, after two franchisees walked away from the east coast main line. As a not-for-dividend operator, East Coast has gone from strength to strength. Overall passenger satisfaction has risen and the operator has won a national award for how it manages disruptions to services, with a 12% improvement in satisfaction ratings in the past year. It has provided a public sector comparator at a time when the Government’s franchising policy has collapsed, at a cost to the taxpayer of more than £55 million. By the end of this year, it will have returned £800 million to the taxpayer and invested profits in the service.

The not-for-dividend east coast main line is working, and with a five-year business plan in place the operator could deliver more, if it had the Government’s backing. However, by prioritising the privatisation of the east coast main line, the Government seem to be saying that the service works in practice, but not in theory. We need to proceed on the basis of the best evidence available and build on success stories such as the east coast main line, Merseyrail and London Overground.

I am sure that the Minister will have listened closely to Transport for London’s concerns about the fourth railway package, particularly the definition of a competent authority. Interpreted literally, the definition of an authority that serves

“the transport needs of an urban agglomeration or a rural district”

could force TfL to divest itself of some services at a time when it is looking to take on additional responsibilities. Perhaps the Minister could offer reassurances on this issue, which may impact on other bodies, including the proposed rail in the north executive. The devolution agenda must not be put at risk by these proposals.

[Jeremy Corbyn]

My hon. Friend will be aware of the current consultation on changing the rail network in London by extending the London Overground network to take in some of the suburban services run by other agencies. I am unclear about the effect that this European proposal will have on that. London Overground, after all, is one of the most popular and successful rail networks in the country and its expansion would certainly be welcomed by many people in London.

[Lilian Greenwood]

I thank my hon. Friend, and that is the precise concern that I am raising on behalf of TfL. As he says, London Overground is a successful operation and we would not want to see this package stand in the way of TfL continuing to develop services for the benefit of passengers and taxpayers.

There are a number of concerns, therefore, about a number of points in the fourth railway package. We need to reach a deal that works for the British railway industry—a deal that removes the uncertainty over safety and devolution, while allowing us the option of replicating the success of the east coast main line, which should not be re-privatised, as the Government plan. The fourth railway package is not there yet, and that is why we cannot support this motion.

--- Later in debate ---

[Jeremy Corbyn (Islington North) (Lab)]

I should like to make a few points in the very few moments left to me. As a member of the RMT group, I commend its important evidence to the Transport Committee.

The Minister can never miss an opportunity to have a go at British Rail—[Interruption.] There is no need for him to intervene yet. He should recall a couple of things. British Rail ran the system from 1948 until privatisation in the 1990s. During that time, there was a great deal of electrification, innovative engineering and scientific research. At the same time, the system was grossly underfunded. British Rail was always denied the funds it needed for infrastructure investment—it was always short of what it needed.

We privatised the railway system, and now spend more on subsidising train operating companies, which make considerable profits out of the system. We are spending more on the system so that we do not control it. Fares are among the highest in Europe, and we have the most expensive and diverse railway system.

I agree with the Minister that, for example, Virgin Trains runs a very good service on the west coast main line. I have travelled on Virgin trains and all the services at various times. The service is very good. I pay tribute to those who work on the trains and run the system—they do it very well with great difficulty. However, the Minister should not run away with the idea that Virgin Trains or any other company has done well because of its investment in the system. Who paid for the west coast electrification? We did. Who is paying for the electrification of the western region? We are.

The system is that we pump public money in for private companies to cream off very large profits. I am a strong supporter of the principle of the railway system and what it can achieve. Railways are the thing of the future. They are efficient and more environmentally sustainable than road traffic. The construction of railways has much less environmental impact. I understand the complaints about the route HS2 will take and the impact it will have in various places. I urge those who are concerned, next time they go on the west coast main line, to look at the section of the line that runs parallel to the M1 just south of Rugby. They should look at the land space taken up by the railways, and the number of people and freight travelling on that section of track, and compare it with the environmental impact of the M1, and of the widening of the M1 or any other motorway. The argument for railways is overwhelming.

The document is not a short, easy read, and these are just some of the papers associated with this subject, which is a proposal for the privatisation of the whole railway system across Europe. We do not need that. As many colleagues have said, integration can work within the existing framework. Yes, we need common safety standards. Yes, we need trains running directly from Spain bringing agricultural produce to this country, just as we need trains running directly from Russia and many other countries. That can all be achieved. Switzerland, which is not a member of the EU, has no problems integrating its services with Germany, France and Italy, and I do not think that any other country should have any problems either.

What we have is the worst of all worlds. The public are expected to pay for infrastructure and Network Rail has massive debts because of its investment in the system. I do not complain—