International Rail Services: Ashford Debate
Full Debate: Read Full DebateJerome Mayhew
Main Page: Jerome Mayhew (Conservative - Broadland and Fakenham)Department Debates - View all Jerome Mayhew's debates with the Department for Transport
(1 day, 16 hours ago)
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Thank you very much, Sir Desmond, for chairing us today; you are the serial winner of the best dressed Chair competition.
As a Kentish man—I was brought up as a Kentish man—I congratulate the hon. Member for Hastings and Rye (Helena Dollimore) on securing this debate. I am glad that I was not part of the negotiations with the hon. Member for Ashford (Sojan Joseph), who probably put forward serial applications for a similar debate.
It is important to have this debate, building on the legacy of the former Member of Parliament for Ashford, Damian Green. My former colleague understood the significance of the impact on international services at Ashford and Ebbsfleet. He had an Adjournment debate back in October 2023, and, having read that debate in Hansard, it is remarkable how many of the arguments have been rehearsed in this very Chamber before. I suspect the speech of the then Rail Minister, Huw Merriman, will have more than a passing resemblance to that of the current occupant.
It is clear from the contributions that we heard way back in 2023 and today from all Members that reintroducing services at Ashford International would be welcomed by residents across Kent and the whole south-east—and it turns out, also those in Strangford and York Outer. The economic case has been set out most recently by the Good Growth Foundation, which has argued that reintroducing services would deliver significant benefits to the region. I intended to go through all the various data it put forward to support its case in its report, but various Members have already done that job for me, so I will avoid the temptation to repeat all those numbers.
It is so far, so good, as we are all furiously agreeing with each other. We agree, as did the last Government, that Eurostar—with a private business and ambitions to grow from 19 million passengers to 30 million passengers across Europe—should reopen its services to Ashford International and/or to Ebbsfleet. If it is looking to grow, why ignore a profitable potential market? Its business plan is obviously up to it as a private business, but it currently appears that Eurostar is content to focus on a more profitable route direct to London. It can do that because, without any direct rail competition, some have suggested that it has become complacent. That is what happens in the absence of competition: the same is good enough, there is no incentive for dynamic development, nor the creation of new products, the defence of one’s markets or the pushing of the boundaries. There is no drive either to cut costs to maximise efficiency.
I speak with personal experience of this; before coming into Parliament, I was the managing director of a decent-sized business. I hated competition, because competition in a market forced us to sharpen our pencil, both financially and in the services that we provided. I recognised that it was good for our business in the abstract, but in the day-to-day, people want to avoid it. I am therefore pleased that four challenger brands have seen additional opportunities for the tunnel and HS1, which we should now call—I learned to call it—London St Pancras Highspeed, since February this year. Eurostar uses just 50% of its capacity of the tunnel, and the ORR is currently considering the availability of depot space at Temple Mills.
Lord Hendy, the Rail Minister, appears to agree. In his letter to the ORR, he argues that
“the arrival of competition will benefit users of international rail services by expanding the number of stations served (including new markets), encouraging greater differentiation in service provision and promoting competitive prices.”
How right he is. Competition leads to improved services, increased efficiency and the development of new markets, so why will the Government not apply the same logic when it comes to domestic rail? If Lord Hendy believes what he said to the ORR, why are his Government doggedly pursing their nationalisation agenda, designing competition out of the UK railways? This is important, and it was referred to positively by Labour Members: why is he planning to remove the crucial role of the independent economic regulator from the ORR, making Great British Railways both the player and the referee in the new version of the railways? Surely, that is like giving Eurostar the job of deciding if there is room for more competition on HS1.
The case the hon. Member is making may have some valid points, but is he prepared to take responsibility for the fact that the British Government do not have a say in what Eurostar does because a previous Administration—run by the Conservatives with their then allies, the Liberal Democrats—ended up without the British Government having a say in how Eurostar runs itself? That was a failed opportunity to be an enabling state.
The hon. Lady and I come from different perspectives. I think competition drives good economic behaviour, not the state directing individual companies on what they can do, whether profitable or unprofitable. That is a genuine difference of approach. In this instance, I agree with Lord Hendy, the Rail Minister, that it is competition in this market that will drive benefits to consumers and the taxpayer. We have to remember that Labour left office in 2010 when there was “no money left” and Governments have to take difficult decisions, as the current Government are learning to their cost.
On competition, why did it take a Labour Government to press the Office of Rail and Road to revisit the question of access to Temple Mills, which is key to unlocking competition? Unless other operators use Temple Mills, there is no competition. Why did it take this Government to do that? The hon. Member referred to a debate some years ago after which nothing seemed to happen.
The hon. and learned Member will be aware that the ORR is looking at Temple Mills because applications have been received under open access agreements. That is not a response to the Government; it is a response to applications from the private sector.
We can already see the direction of travel with domestic railways. The Government have argued against every single new open access application since coming to power. It seems they can support competition only when the competition is not against them. Who loses out? Just as at Ashford International, it is the passengers, with fewer routes, fewer services and fewer efficiencies leading to higher costs.
The Conservatives support any approach that encourages competition and grows the rail sector, whether domestically or internationally. We welcome the four applications requesting access to Temple Mills, at least one of which anticipates the use of Ebbsfleet and Ashford International. We welcome the Government’s conversion to the benefits of competition, at least on High Speed 1. We look forward to seeing that new-found belief in the private sector in their approach to rail nationalisation more widely. If not, I fear it will be passengers who pay the price.
My hon. Friend’s point is very well made. What has struck me throughout this debate is the access opportunities for the constituents of every Member in the room. Members have also pointed to the importance of modal shift and the impact on freight and our decarbonisation ambitions. We have also heard about the impact on our international resilience and our ability to respond to the challenges in the channel with nimbleness and agility. These can all be enhanced by the prospect of increasing our international rail capacity, and those points have been very well made.
The hon. Member for Dartford (Jim Dickson) gave us the welcome perspective of the case for Ebbsfleet, and he pointed ably to the unity of advocacy from Members of Parliament, businesses and local people. It would be remiss of us to forget Ebbsfleet’s role in this important debate.
My hon. and learned Friend the Member for Folkestone and Hythe (Tony Vaughan) usefully outlined how, in this country, international rail thrived in the 1990s, and he provided a reasonable and ambitious perspective on how Ashford could facilitate its ability to thrive again.
The Liberal Democrat spokesperson, the hon. Member for Didcot and Wantage (Olly Glover), encouraged me to explore different opportunities to revitalise Kent’s economic connections to the economies of northern France. I would suggest that encouraging competitiveness between different potential providers in this space is exactly what will allow us to explore those opportunities, and to push and work constructively with them. That is why the DFT has been working hard to convene Kent county council, private providers and local residents to explore where those opportunities lie.
I am pleased to hear that the Conservative spokesman, the hon. Member for Broadland and Fakenham, has a personal stake in this debate as a proud Kent man—
Please forgive me. I learn something new every day in this role.
The hon. Gentleman is right to mention how many debates have landed on some of these themes over the years as we have wrangled with these questions. It is earnestly hoped, from the Government’s perspective, that facilitating competition and greater access in this space will allow us to solve what have formerly been incredibly knotty and intangible problems.
Well, I think it is important to note that this Government are not fixated on ideological dogmatism in this space. Where competition works and can offer tangible benefits to local people in Kent and across the United Kingdom, we will of course proceed with it.
I am very grateful and encouraged to hear that point made from the Dispatch Box. If that is the case, can the Minister explain why the Government have written to the ORR advocating against every single open access application since coming into power? After all, open access is bringing additional competition to the wider network.
Of course there is open access ability through these international rail links, which is an important thing to point to. What I find challenging about the assertions that the hon. Member made in his winding-up speech is the notion that some sort of perfect free market competition existed in our rail system prior to the Labour Government taking office. There was enormous dysfunction, which arose from an overly deregulated system.