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Jeremy Lefroy Excerpts

Monday 17th September 2012 Westminster Hall

[Jeremy Lefroy (Stafford) (Con)]

I congratulate the hon. Member for West Lancashire (Rosie Cooper) on instigating the debate and congratulate everybody who has taken part so far. In the few minutes remaining, I want to stress why the debate is of great importance to my constituents.

More that 1 million people a year use Stafford railway station—the hon. Member for Halton (Derek Twigg) mentioned 650,000 at Runcorn, which is indeed an extremely important station. They are from not only the town of Stafford, but over the Shropshire border and throughout the rest of Staffordshire. The reaction over the past few years to the service offered by Virgin has been generally positive. There were clearly some problems at the end of the ’90s and in the first part of the previous decade, particularly after the Hatfield rail crash, which was obviously nothing to do with Virgin, but due to the state of the rails.

In a situation such as this the Government are really caught between a rock and a hard place. On the one hand, we can applaud the Virgin service and say that we want that or, indeed, a higher standard of service to continue. We can say that, in Virgin, to some extent we have a safe bet: it has proved itself over the past few years and is likely to continue to do so. However, if that had been the criterion, and the Government had accepted £1.4 billion less—or, in net present value, £700 million, which is perhaps a more accurate number—again, questions would have been raised about why the Government, on behalf of taxpayers, have accepted £700 million less, at net present value, simply because they liked the service that Virgin delivers, when a competitor claimed that it would deliver an equal service. The decision was not at all easy, which is why so many Members, including the instigator of this debate, have mentioned that the process is so important. We must see not only that it has been properly followed, but that it is the right process for future franchises.

I also have to say that I was glad that the final two bidders are headquartered in the UK. One bidder was Abellio, which is the Dutch railway; I think it also runs railways in Germany, and it runs Chiltern services very well. I wanted whoever runs the most important railway line in the United Kingdom to be a British-headquartered company. Notice that I say “British”, because both final bidders are based in Scotland—at least, Stagecoach and FirstGroup, if not Virgin, are.

I want to comment on the effect on staff. Clearly, a number of my constituents are affected, and it is extremely important that the transition, however it goes, should first and foremost be done with regard to staff, as well as to passengers. They have clearly been put into a state of some trepidation, although I am glad to hear the reassurances given by FirstGroup about the continuation of services. The issue is not only about the continuation of employment; it is also about how the company treats its staff. It is extremely important that staff are seen as the most valuable asset—not just on paper, but in reality.

When I met the managing director of FirstGroup, I made that quite clear. I have also said that it is extremely important that the service is maintained or improved. I was therefore glad to hear him offer to come to Stafford at least yearly, if not more frequently, to talk to passengers about the service. It is vital that, if and when the transfer goes ahead, it is not just that a service is promised at one point in time, but that, month in, month out, that promise is maintained and that passengers are able to have a direct input into the company running the service.

Clearly, it is extremely important for people in Stafford to see the maintenance of vital hourly services. However, there is also the important question of later and earlier services that I and my predecessor, David Kidney, have frequently raised with both Network Rail and Virgin. Most continental railways have much later services both from the capital to other towns and cities, and vice versa. Stafford is on the Liverpool line and, from what I have heard, I know that people in Liverpool would also like later services and ones earlier in the morning for that great city. I realise that that will be subject to the limits of the track, but with the improvements—particularly those around Norton Bridge just outside my constituency; it is in that of my hon. Friend the Member for Stone (Mr Cash)—that are coming up in the next year or two, I want to see whether it is possible, with additional train paths and improvements to time, to introduce either a later or an earlier service or, indeed, both.

I suppose that, as well as the staff and the service for passengers, the Government are equally concerned about the return to the taxpayer. To me, what it is absolutely key is the confidence that the winning bidder—in this case, FirstGroup—will fulfil its commitment; that is vital. There is a penalty of some £280 million, which is clearly substantial, but that is not a deal maker or a deal breaker. Far more important, as other Members have already said, is reputation. FirstGroup is, according to its website, the largest transport group in the world. It runs Greyhound buses in the States, as well as many yellow school buses and other franchises in Britain. To me, it is absolutely beyond question that any company that walks away from a rail franchise should have no further part in the UK rail industry. That must be absolutely clear: we cannot have confidence in a bidder that fails to fulfil its commitments. I want to hear the Minister’s response on that, and whether that is part of the thinking. This is too big a deal—not only for my constituents, but for the entire country—to allow people yet again to walk away from the firm commitments that they have made.

I have two other questions for the Minister. The first refers to the process. Whatever happens in this case, will he look very closely at the process for future bids to ensure that it is watertight and cannot be subject to the kind of public disquiet and challenge that we are now having. Above all, secondly, do he and his colleagues believe the passenger figures that we have been given? To me, that is the crux of the matter. If those passenger figures are realistic and have been calculated in a way that demands respect and is robust, I see no real problem with the contract going ahead. However, we have to be convinced that the Minister and his Secretary of State, who will stand behind the decision, are themselves convinced of the figures, and I want to hear that from the Minister today.