Wednesday 15th June 2022

(2 years, 6 months ago)

Commons Chamber
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Grant Shapps Portrait The Secretary of State for Transport (Grant Shapps)
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I beg to move,

That this House recognises the vital role of the railways in supporting people and businesses across the UK every day; condemns the decision of the rail unions to hold three days of strikes; believes those strikes will adversely affect students taking examinations, have an unacceptable effect on working people and a negative effect on the economy; and calls on the rail unions to reconsider their strike action and continue discussions with the industry.

The railway is one of the nation’s greatest legacies. The industrial revolution was forged upon it, and for two centuries it has been the means by which we have connected north and south, east and west. It is a proud part of our history, but the truth is that the railways in this country have fallen behind the times. When I became Transport Secretary three years ago, it was clear that our railways were expensive, inefficient, fragmented, unaccountable and desperately in need of modernising and reform. There were delays to upgrades, collapsing franchises and busy lines operating at the very peak of, and sometimes beyond, their capacity, suffering overcrowding and delays. Some working practices had not changed for decades. As a result, we have a railway today that is struggling to keep pace with modern living, particularly in the wake of the pandemic. Our railways need a new direction.

Office workers are working from home more often and the railway has lost around a fifth of its passengers, and also a fifth of its income. The Government kept the railway running when most passengers stayed at home. We kept trains available for key workers and protected the brilliant railway workers who managed the track and ran the trains. So this Government have stepped in. We put our money where our mouth is and we committed £16 billion to support the railways through covid. That is taxpayers’ money, and it is the equivalent of £600 for every household in this country. Put another way, it is the equivalent to £160,000 per rail worker in this country. As a result, the trains continued to operate, the industry survived and not a single railway worker had to be furloughed or lost their job—not one. We stepped up, but the honest truth is that this level of subsidy—which, let us not forget, is not the Government’s money but the taxpayer’s—simply cannot continue forever. If our railways are to thrive, things must change.

As I see it, there are four ways to bring about that change. First, we could continue to attempt to pump billions of pounds of taxpayers’ money into the system in the same unsustainable way we have been doing for the last two years, but that would take money away from the NHS and schools. Secondly, we could ramp up fares, but that would price working people off our railways completely. Thirdly, we could cut services and lines, emulating those sweeping cuts made by Dr Beeching in the 1960s, making it harder for people to access our railways. I do not support any of those options, which leaves us with the fourth option: modernise the railways, making them more productive and getting the industry off taxpayer-funded life support.

Make no mistake, as a Government we profoundly believe in our railways, which is why we have reopened abandoned routes and electrified thousands of miles of lines—not just the 63 miles that Labour managed to electrify over 13 years. It is why we have got behind projects such as High Speed 2, the Elizabeth line and Northern Powerhouse Rail, and rolled out contactless to 900 more stations and digital signalling across the network. And it is why we are transforming the industry through Great British Railways, ending the fragmentation and putting passengers first, but we need the industry to help with that transformation.

Jeremy Corbyn Portrait Jeremy Corbyn (Islington North) (Ind)
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The Secretary of State rightly says that billions were pumped into the railways during the covid pandemic. That money kept the system going, and a lot of people worked very hard to keep it going. The train operating companies were preserved and supported, and they did very well during that period, as did many others in the private sector. Why is he now punishing the people who kept the railway system working, and who do all the difficult jobs on the railways, with job losses, inadequate pay and a loss of morale? Should he not talk to their representative unions about the real situation on the railways and work with them to ensure we have an effective, efficient and secure rail system for the future?

Grant Shapps Portrait Grant Shapps
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I pay tribute to the workers on the railway who kept things running, with a lot of taxpayers’ cash, during the pandemic. The right hon. Gentleman is absolutely right about that, but he talks about inadequate pay. I remind him and the House that the median salary for a train driver is £59,000, compared with £31,000 for a nurse and £21,000 for a care worker. [Hon. Members: “That’s the train drivers!”] The median salary for the rail sector is £44,000, which is significantly above the median salary in the country. What is more, salaries in the rail sector went up much faster over the last 10 years than in the rest of the country—a 39% increase for train drivers, compared with 7% for police officers and 16% for nurses. It is a good package, and we need to get the railways functioning for everybody in this country.

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Zarah Sultana Portrait Zarah Sultana (Coventry South) (Lab)
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This House has just discussed the Government’s disgusting Rwanda deportation policy. On Monday I attended a demonstration against that policy, coming directly from a debate in Parliament on the Government’s similarly disgraceful refusal to ban trans conversion therapy. That debate, the debate on the Rwanda deportations and this afternoon’s motion on the rail strike are connected: they are all about this Tory Government’s attempt to divide our communities and distract from their failure to serve the British people.

That is clear with the Rwanda policy, which has nothing to do with tackling people-smuggling and everything to do with whipping up hate, demonising marginalised groups and pitting people who were born here against people who seek asylum here. That is what the refusal to ban trans conversion therapy—letting abusive practices against trans people go unpunished in order to pit cis women against trans women—is about: division and distraction.

That is also what the demonisation of railway workers and the RMT Union is all about: threatening anti-democratic and anti-worker legislation; vilifying workers who are standing up for jobs, pay and conditions; and pitting those railway workers against other workers. It is all an attempt to distract and divide, at a time when this Government are overseeing a cost of living emergency and a growing poverty crisis across the country.

Railway workers are clear: this strike is a last resort, no matter what Conservative Members say. The union and the workers have been calling for the dispute to be resolved for two years, but Ministers have refused to do so. Ministers have refused to get employers to withdraw the threat of compulsory redundancies against thousands of railway workers or to end the pay freeze for workers, which is really a pay cut, worth thousands of pounds per worker, when inflation rises to 10% and beyond. This dispute is not about modernising the railways or whatever else people say; it is about attacking workers, declining standards and worsening services for passengers.

These workers—we should applaud them for it—are standing up for their jobs and pay, but are being scapegoated by a Tory Government who would rather distract and divide.

Jeremy Corbyn Portrait Jeremy Corbyn
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My hon. Friend must be aware of the anger that many people who work in the rail industry feel—those who clean and repair the carriages, those who repair the track and those who provide the catering that many Members of this House enjoy—at being told basically to take a pay cut and face compulsory redundancies at a time when billions has been poured into the train operating companies, which have done very nicely out of their cosy arrangement with this Government.

Zarah Sultana Portrait Zarah Sultana
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I absolutely agree. These tactics from the Government are to stop us talking about the fact that private rail companies take more than £500 million out of the railway system every year in private profits. It is the richest in the country who are truly raking it in, from the Chancellor, who is one of the wealthiest people in the country, to the record number of UK billionaires, one third of whom donate to the Conservative Party—[Interruption.] Tory Members can make all the sounds they like, but the facts are the facts.

That is all while working people are experiencing the biggest squeeze on living standards since the 1950s. Tory Members want us to believe that railway workers are the problem. They want us to blame refugees, not Tory cuts, for the crisis in public services and why they are at breaking point. They want us to think trans women are a threat to cis women. This House should be clear: the problem is not railway workers, it is not refugees and it is not trans women. The problem is this Tory Government and the billionaires who back them.