McNulty Report and West Coast Rail

Jeremy Corbyn Excerpts

Thursday 19th May 2011 Commons Chamber

[Mr Hammond]

Yes. The High Speed 2 business case and the build and running costs put forward in the consultation document incorporate the Treasury’s generous additional percentages for risk and optimism bias—with as much as 60% added to the basic costs in some cases—to address the very concern that my hon. Friend outlines.

[Jeremy Corbyn (Islington North) (Lab)]

In all this emphasis on devolving and transferring responsibility to train operating companies, does the Secretary of State not recognise that there is a danger of losing the whole principle of having an integrated rail service, with integrated timetabling and ticketing for those who make complicated journeys? Additionally, he did not say very much in his statement about reopening disused branch lines, which could well benefit by becoming a useful feeder service into the network, or about the east-west freight line, which is so important in increasing freight usage and using existing rail tracks more efficiently.

[Mr Hammond]

I am grateful for the hon. Gentleman’s question, which allows me to make an important point. Integration in the railway at the level of timetabling, planning and route network operation is important. The hon. Gentleman will not have had a chance to read the report yet, but Sir Roy makes that point clearly. Those things have to be done on an industry-wide basis; they cannot be fragmented when greater autonomy is devolved to network rail route managers or when train operators are given greater flexibility.

The hon. Gentleman also talks about reopening disused lines. I am afraid to tell him that work on the cost base has a little way to go before that becomes a practical reality. However, as I said earlier, I intend to look carefully at the case for devolving responsibility for commissioning services and the budgets with which to do that for regional and local railways later this year. I would expect decisions to reinstate any currently disused lines to be taken at that level.

Oral Answers to Questions

Jeremy Corbyn Excerpts

Thursday 5th May 2011 Commons Chamber

[Norman Baker]

That is a novel and interesting suggestion, but I do not think it is the job of Transport Ministers to direct local councils how to spend their money.

[Jeremy Corbyn (Islington North) (Lab)]

11. What consideration he has given to electrification of the Barking to Gospel Oak line.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

We are committed to further electrification of the railways. However, electrifying Gospel Oak to Barking is not currently a strategic priority as a number of other schemes have stronger and more developed business cases.

[Jeremy Corbyn]

May I persuade the Minister that it is a priority and that the matter is of national as well as London importance? The Barking to Gospel Oak line is the only part of the London overground network that is not electrified, therefore running trains on it with diesel power is more expensive. Secondly, because the line is on a major freight route from the east coast, there has to be a change from electrified haulage to locomotive trains on that section. It would be of great benefit, both nationally and in London, if the line were electrified. Will the Minister look at it again and will she meet the secret group of Barking to Gospel Oak line MPs who would, I am sure, support the points I am making?

[Mrs Villiers]

I am happy to meet the group, as the hon. Gentleman asks. The problem is that electrification would be expensive, because tunnels, bridges and viaducts are close to habitation, and the passenger benefits would be quite limited because the route is already running brand-new diesel trains. The performance benefits—journey-time improvements—delivered by electrification would be limited. The combination of high cost and limited passenger benefits means that the scheme is well behind others, such as the midland main line, the Great Western line and the Wales valley lines in terms of best value for taxpayers’ money.

--- Later in debate ---

[Lynne Featherstone]

Yes, there is significant under-reporting. One of the actions that the Government have been taking is to work with key voluntary sector partners to encourage greater reporting. That includes, for example, the development of third-party reporting centres, because a great number of people do not report hate crime as they believe that it is not serious enough and they do not want to go directly to the police. Third-party centres will be able to pass reports on to the police.

[Jeremy Corbyn (Islington North) (Lab)]

On the Minister’s last point, I agree with her that there is a serious problem of under-reporting. Last year 11,000 racist or homophobic hate crimes were reported; I suspect that many thousands more were not. Will she talk to the Metropolitan police about increasing its resources specifically for an advertising campaign to report hate crime, so that young people in schools and in communities that do not normally associate with the police are made aware that they can get help, relief and justice for hate crimes committed in this city?

[Lynne Featherstone]

I thank the hon. Gentleman for highlighting the importance of getting that message out. I am happy to talk with the Metropolitan police, as there is indeed a great deal of under-reporting. There are certain sectors that lack knowledge or understanding of how or where to make reports. The police have set up a website called True Vision—just google “hate crime” and “how to report”—because the internet makes hate crime much easier to report where there is that lack of accessibility.

Rail Engineering (Jobs)

Jeremy Corbyn Excerpts

Tuesday 29th March 2011 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests. I have a railway estate in my constituency. It was a British Rail estate constructed to house railway workers. Although many of those properties have been sold off, it still predominantly houses railway workers, many of them retired but many of them still working. As a result, I have taken an interest in the railway industry for the past 30 years. I am also the convenor of the National Union of Rail, Maritime and Transport Workers group in the House. We come together as a group of Members interested in the railways to receive briefings from the union on issues of the day.

One of the key issues that has been raised consistently with us over the past year has been the current and future state of rail engineering in this country. Rail engineering concentrates on renewals, which includes the installation of new overhead lines and signals and the laying of track. It is skilled work and we have a skills base of trained and experienced workers developed over centuries. It requires that skill to produce the quality of work that ensures a safe transport system for the travelling public. We have learned to our cost over the years that if there is any undermining of that skills base, it produces accidents. I lost one of my constituents in the Paddington disaster, and others were injured in Southall.

Network Rail, the not-for-profit company that was established by the previous Government, is responsible for the rail infrastructure and for rail engineering. Network Rail puts out to tender to private companies all the renewals work. Jarvis was a major contractor in the field of renewals until a year ago, almost to the day. On 31 March 2010 Jarvis went into administration. Some 1,200 workers—skilled railway engineers—across Britain were sacked. That put a large section of the rail engineering skills base of this country in jeopardy and it is still impacting on the industry.

The impact on the workers and their families was disastrous and heart-rending in many cases. They were paid only statutory redundancy. Their accrued benefits were lost, and active and retired members of the Jarvis pension scheme suffered detriment to their pension entitlement. I have met a number of the ex-Jarvis workers and it has been extremely distressing. They appealed to me to explain to the House just what had happened to them and the effect of being sacked in that way. They asked me to give a couple of examples.

I met Mick. He was one of the workers who explained that they were sacked the week that they were due to be paid four weeks’ money, and the mortgage and bills still had to be paid. The loss of his job led to a strained relationship with family members and severe financial difficulties. They were forced to sell the family car. He suffered medical problems as a direct result of the stress brought on by his redundancy. The chief grievance for him is the pain of knowing that his former work is still being done, but by someone else on less pay and with worse conditions.

I met Brian, who had worked for Jarvis for 36 years. He had been a skilled worker. He told me that

“to sign on unemployed is soul-destroying and we have to live off our savings to pay for food and bills. I have applied for lots of jobs, over 50, and have received only one reply. I was unsuccessful in that application.”

He went on to say:

“The future looks bleak. I feel very let down by Jarvis and Network Rail for putting us in this life-changing situation.”

The last individual I met, Martyn, is in work. He said that other rail contractors have taken

“advantage of sacked engineers’ desperation to find work”.

He said there are now

“low wages, poor terms and conditions; long hours; zero hours working; long driving times and a culture of keeping quiet about safety for fear of not being picked for contracts… I hope my fears about accidents and death on a railway I just don’t recognise anymore prove to be untrue.”

[Jeremy Corbyn (Islington North) (Lab)]

I congratulate my hon. Friend on securing the debate and on his speech. Could he explain, if he knows, why the valuable and skilled workers of Jarvis were not taken into direct employment by Network Rail at the time of Jarvis’s collapse? Clearly, all their work was done for Network Rail anyway, as there are no other railway services in Britain to work for.

[John McDonnell]

I will explain, but first I will give another example of what I found among ex-Jarvis workers. We met workers who are now touring the country picking up days of work. These are skilled engineers, but some of them are unable to afford proper accommodation because they are now agency workers on low wages and are having to sleep in cars and vans so that they can pick up a day’s work wherever they can.

Let me explain what happened, because lessons need to be learned from what happened for the future of rail engineering in this country. Jarvis’s bankruptcy did not need to happen. It was forced into administration because Network Rail deferred renewals work to comply with the Office of Rail Regulation’s decree that it needed to make a 21% saving over the five-year control period 2009 to 2014. Jarvis’s bankruptcy was not the result of the recession. Despite the cash-flow problems, it had £100 million-worth of work on its order book.

My hon. Friend the Member for Islington North (Jeremy Corbyn) referred to the fact that Network Rail refused a rescue plan from the administrator for Jarvis’s rail division. The administrator put forward a proposal for a £19 million investment to cover the running costs and wages for a couple of months of operation, which would have enabled the staff of Jarvis to be transferred in an orderly way to other companies that were picking up the Jarvis contracts. That was rejected by Network Rail, and the Government refused to intervene and use their legal powers under the Railways Act 2005 to treat Jarvis’s work as an essential railway activity, as that would have allowed them to step in and protect the work and the workers themselves. We now know from freedom of information requests that the Government knew months in advance of Jarvis’s imminent crash.

The lesson is that we must never again allow the failure of one company to put railway engineering at risk in this way, because the results of this fiasco are horrendous. One year on, the majority of the ex-Jarvis workers are still on the dole and Network Rail is re-letting former Jarvis contracts to agency labour. We are discovering exploitative wages and conditions. Even if ex-Jarvis workers have followed their work, they have moved across to inferior terms and conditions. There is now a fear about the commitment and quality of the work being done by the agency work force.

The irony is that we now know from Deloitte, which communicated this to Jarvis’s creditors, that the book value of the rail debts that were written off was £10.7 million, and the vast majority of the amount that was written off was owed to Network Rail. If we add to that the cost of redundancy, which fell on the taxpayer because the staff were not transferred under TUPE, and the drain on the staff funds of the benefit payments for the unemployed workers, we find that the overall cost of allowing Jarvis to collapse into administration in this way outweighs the £19 million cost of the rescue plan that the administrator proposed. It was a false economy not to accept the rescue plan, and it had a tragic outcome for the workers.

There is also a longer-term cost that threatens the future of the rail industry and safe transport, because we are undermining the rail engineering skills base that we developed over two centuries. One of our concerns is that we have a demoralised work force, many of them unemployed, and that insecure work is being offered to agency workers with no stable future. We seem also to have undermined the attraction of a career in rail engineering, thereby jeopardising the recruitment of a future generation of rail engineering workers.