West Coast Rail Franchise

Jim Cunningham Excerpts

Tuesday 14th June 2016 Westminster Hall

[Mr Jim Cunningham (Coventry South) (Lab)]

This is probably the second time that I have taken part in a Westminster Hall debate that you have chaired, Mr Brady, although we have known each other for a considerable time.

I will not take too long, but there are one or two issues that concern Coventry and investment there. As part of the consultation, it was suggested that the three trains an hour running through Coventry could be reduced to about two an hour. That could affect people going to work, as lots of people go to work in Coventry and lots of people from Coventry work outside it. It is important to think about that, if we are to line things up with high-speed rail, which will bypass Coventry. My experience is that if anyone is going to invest in the city, one thing they will ask about is the transport system, as well as such things as executive housing, the education system and the skill base. Transport is part of the whole package, and that is why I express concerns about high-speed rail and its impact on Coventry. We have in other places debated the issue of compensation for those affected, but that is part of another debate.

The intention is to reduce journey times between Birmingham, Manchester and Liverpool, and no one would quarrel with that, but we have to look at the impact on other areas, and I wonder how that fits into the Government’s proposals. Next year, they will set up the west midlands combined authority. It has been said that the combined authority will be an engine for economic growth in the region, but what about the impact of high-speed rail? If there is a reduction in the frequency with which trains go through Coventry and areas like it, the west midlands will certainly not gain too much out of that.

It is interesting to note that journeys to and from Coventry have tripled over the past decade, from 2.35 million in 2004-05 to 6,252,888 in 2014-15. That is a considerable increase by any stretch of the imagination. As part of the franchise, we should also look at the fare structure. It could be argued anecdotally, as it were, that it is cheaper to fly than to travel by train in the midlands, and that should be looked at—and it is not just about off-peak prices.

[Mrs Spelman]

The hon. Gentleman is right to mention Coventry’s position in relation to the new high-speed rail, and how that works with changes to west coast main line usage. HS2 will not be open until 2026; surely it is important to ensure that the west coast main line has the maximum capability, given that it is already at capacity, before the new service opens, so that the region, and Coventry in particular, are not compromised.

[Mr Cunningham]

I totally agree with the right hon. Lady. I know that she, along with her colleagues, takes a considerable interest in the welfare and prosperity of the west midlands. Earlier she raised a point about Birmingham airport; we should take a good look at the impact that high-speed rail could have on Birmingham airport and passengers. This is not necessarily a criticism, but the organisation of that airport needs to be looked at, from the point of view of passenger comfort. Passengers flying into or out of the airport have a considerable distance to go when they get off or go to the aircraft. It is quite a long walk, to say the least. The airport should look at how it organises things on behalf of passengers, whether they are going through customs or just coming back from a journey. While we all support the airport, we have to make it more passenger-friendly.

I link that with what I have been saying about the situation in the west midlands. The airport is part of the prosperity of the west midlands. Coventry airport, if I remember correctly, used to benefit from freight from Birmingham airport. Those are some of my concerns relating to how Coventry sees itself. I do not want to be too parochial, because at the end of the day we have to act in the best interests of the region, but those concerns have to be expressed.

I ask one final question, which I hope the Minister will answer. What has happened with and to the NUCKLE project? I am sure that some MPs with constituencies near mine share that concern. That project is important to the prosperity of not only Coventry but Nuneaton, and it seems to have come to a standstill. The Minister may know more about that than I do. It is vital that the line is looked at, because people have been waiting for it for 10 years. I have been involved in a number of delegations over the past decade to try to get that project off the ground. That is all linked to what I have said about Coventry station and the west midlands.

[Mark Pawsey (Rugby) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Brady. I congratulate my hon. Friend the Member for Carlisle (John Stevenson) not only on securing this important debate, but on his chairmanship of the all-party group. He raises the profile of the line, which he described as being of national importance. It is important to his constituents in providing access to Manchester, the west midlands and our capital city. My constituency is much closer to London than his, but the west coast main line is equally important to Rugby. Like him, I am a regular user of it.

Rugby has excellent communication links, not least road links. We are at the crossroads of the UK motorway system. That fact led to the media identifying “motorway man” in the 2010 general election. He is a sales engineer or a sales manager who needs good access to the motorway network to carry out his business around the country. We have great road networks, and that has benefited our logistics industry. We are at the centre of the golden triangle where logistics companies want to locate themselves.

Our communications by road are good, but our rail links are equally important, because they provide Rugby with access to the north-west and, importantly, London and the south-east. The 50-minute journey time from Rugby station to Euston is vital for our local economy. Those things make Rugby an attractive business location, particularly in relation to sites in London and the south-east. The cost of premises and the cost of employing staff are lower in Rugby, but many businesses need good access to the capital for meetings and for accessing professional bodies. Our 50-minute journey time means that it is often quicker to get to central London from Rugby than it is from many places with a London postcode. We have that resource—it is a great asset to Rugby—and we want to keep it.

Rugby is growing very fast. We are just about to start the development of 6,200 new homes on the former Rugby Radio site. Immediately adjacent we have commercial development on the Daventry international rail freight terminal, which will provide for additional consumers on the railway line. The future of the west coast main line is important to Rugby. It is also important that the Government get the handling of the franchise right, especially in the context of the completion of the London to Birmingham phase of HS2, which should be delivered in 2026.

One or two people have said to me that consultation has already started, but the contract period will not start until April 2018, almost two years away. They say, “Why are the Government consulting so early? Why are we talking about this franchise now?” Given the history of the franchising process on the line, it is important that the process is thoroughly checked. The point has been made to me that the very last thing we need is a repeat of what happened with the previous allocation of the franchise. The Minister will be at pains to provide assurances that that will not happen this time.

The consultation document is looking for the views of passengers, businesses, local authorities and local enterprise partnerships so that priorities for improvement can be identified and to inform what the Department for Transport should include within its tender document. One concern that has already been referred to in the context of Birmingham airport and Coventry is contained in paragraph 3.17 of the consultation document. It refers to peak times where levels of service might not reflect demand and—this is the bit that those of us who have read the document are concerned about—it says:

“there may be opportunities to adjust the level of service at stations which might enable wider benefits to be delivered elsewhere.”

What might that mean? The document goes on:

“For example reducing the number of stops required at intermediate stations”.

That is a matter of concern for my constituents in Rugby and for those in Coventry.

[Mr Jim Cunningham]

The hon. Gentleman has touched on a vital point that I mentioned earlier. I am sure he will support and agree with me. Coventry, as he knows, is making a bid for the city of culture. It is not only vital that we get the traffic flow at the airport right, but equally important that we get the franchise right in relation to the frequency of trains because, as he knows, we can get a lot of tourism as a result, and Coventry has got a big tourist attraction.

[Mark Pawsey]

The hon. Gentleman is absolutely right. This is a matter of concern. In fact, the West Midlands Integrated Transported Authority, which represents the seven metropolitan authorities in the west midlands, has voiced concerns in respect of Wolverhampton, Coventry, Sandwell and Dudley. As my right hon. Friend the Member for Meriden (Mrs Spelman) highlighted, the point has been picked up by the operator of Birmingham airport as a possible threat to the region’s aviation connectivity, leading in turn to a threat to the west midlands’ economic development and levels of employment.

The same concerns apply to Rugby. It is of course very easy to reduce journey times between major conurbations and reduce the numbers of people on the trains by having those trains ceasing to stop at intermediate stations. I am a regular rail user and I can see changes that can increase capacity. The first, which has substantially been done, is to increase the length of trains. We have 11-car Pendolino trains, but a substantial number of nine-car Voyager diesel trains remain running. Replacing those and getting them up to 11 cars is important.

Secondly, the conversion from first class to standard class has partly happened. This was spoken about several years ago, but when I go to Euston station to catch a train to Rugby, I regularly walk past four pretty empty first-class carriages to get into one of the five or seven standard-class carriages.

Thirdly, more effective use of pricing can be used so that trains in the middle of the day take some of the load. I regularly come down from Rugby on the 12.23 and I often sit in a carriage that I think holds about 80 passengers with no more than a dozen or so. So additional use of pricing can be made to spread the load.

The hon. Member for Coventry South (Mr Cunningham) said that he would not be too parochial, but I will be, if I may, because Rugby has a very active rail users group. I meet them regularly and I am grateful to them for their observations. They have made clear to me some of the things that they would like to see, and I know they will be attending various consultation events, one of which will take place at Rugby station on 23 June. It is very important for Rugby rail users that there is no diminution of services at Rugby, especially not as regards the excellent fast service to Euston to which I have referred.

For some time there have been concerns about a recent reduction in direct services to the north-west, which historically took the Trent Valley line. Many of those trains no longer stop at Rugby, which means that a Rugby passenger wishing to travel to the north-west has to change at either Coventry or Birmingham International. Given the importance of Rugby as a commercial centre, as I have mentioned, it will be increasingly important for us to have links to the northern powerhouse.

The consultation will refer to stations, and Rugby station is one of those included in the franchise. The substantial recent increase at Rugby is starting to put pressure on the facilities at Rugby station. We had a fantastic station upgrade, which was completed in around 2008. The upgrade of the west coast main line gave our station a transformed appearance and provided a much better gateway to Rugby. Previously, people arriving would have had to walk down a long dingy tunnel. Now we have a new ticket hall, new catering facilities and a multi-storey car park. However, our parking facilities have not kept pace with the growth in the line.

It is often not possible to find a space in the car park on a Tuesday, Wednesday or Thursday. It is less of a problem on a Monday or Friday when there are fewer commuters and people are more likely to be working at home or perhaps taking a day’s holiday. So we need additional parking facilities, although I would add that we might be able to make better use of the existing space if the indicator boards at Rugby station, which have been out of order for quite some time, were repaired. I have raised that with Virgin, and perhaps a note in Hansard might push that along and get it sorted so that people can draw up at one of the three car parks in Rugby and have confidence that there is a space for them.

We need additional car parking spaces, but we could also do with additional investment in the road network around Rugby station. There is a particular issue with congestion around peak times. People have been known to be late for a train as a consequence of the congestion around the station, which is very much caused by the single running on Mill Road, a road running underneath the station that is controlled by traffic lights. That really needs to be upgraded to two-way running. It is a real shame that the opportunity to improve that was missed when the railway line was realigned in the west coast main line upgrade. It certainly needs doing.

Partly as a consequence of the congestion around the station, there has been recent talk of a possible parkway station just outside Rugby on the Northampton loop of the west coast main line, which would be two or three miles away from Rugby. Frankly, I cannot see the point in Rugby having two stations two or three miles apart. I and I think most of my constituents would much rather see investment in the infrastructure around the station, giving better road access and the additional parking to which I have referred.

On the services that Rugby receives, there is a particular issue with Saturday evening services from Euston station. The last train to Rugby from Euston on a Saturday evening is at 21.23. That of course means it is not possible for my constituents to attend a performance at a theatre in London and catch the train home. They have to stay overnight or alternatively, as my wife regularly does, come down for a matinee, but people should be able to catch the last train back in the evening.

Of course, when people do take late train services, the trains are slowed down and take longer. The last train on a Saturday leaving Euston at 21.23 takes 1 hour and 21 minutes. The last two trains on a weekday are at 22.30, which takes 1 hour and 28 minutes, and at 23.30, which takes 1 hour and 35 minutes. The fastest train takes 48 minutes. Why cannot we have trains running at that kind of speed later in the evening to enhance people’s use of the railway?

We have heard quite a bit about HS2. I do not think it is possible to consider the future of the west coast main line without some reference to HS2. It is vital that even when investment starts to be made in HS2 money continues to be spent on the west coast main line. What we do not want is a Cinderella line that gets forgotten about while the all-new sexy high-speed rail is developed.

In terms of general improvements, my hon. Friend the Member for Carlisle has spoken about improvements needed at Euston station. I am very familiar with the Euston sprint. The concourse is small and people race to the train. Earlier notice of the platform allocated to a train would be helpful. I share my hon. Friend’s concerns about reductions in space available at Euston while the construction phase of the high-speed rail is undertaken.

--- Later in debate ---

[Andy McDonald]

Very briefly.

May I also briefly pay tribute to Mr Neil Caulfield, who tragically passed away last week? He was a wonderful Clerk to the HS2 Committee. He was wonderfully helpful and professional, and we will miss him. I pay tribute to him and to all the Clerks who support us through this work.

The west coast main line is the backbone of Britain’s railways. It services great cities and towns in England, Wales and Scotland. The issues raised today are vital to so many passengers, as more than 34 million journeys a year are made on the service and almost 7 billion passenger miles are travelled. As the hon. Member for Carlisle said, the west coast franchise, which is currently operated by Virgin, ends in April 2018, and the Department is running a competition to find an operator for the next franchise. Before looking to what the Government should seek from the operator of the next franchise, I would like to secure assurances from the Minister that there will be no repeat of the franchising fiasco of 2011-12. The Department conducted a competition and announced that FirstGroup had been awarded the franchise before having to cancel the competition and subsequently award it to Virgin at a not insignificant cost to the taxpayer. That caused a great deal of confusion. The railway industry needs to be able to have confidence in the mechanisms of contracting. We simply cannot have a recurrence of that debacle.

The hon. Gentleman mentioned Euston station, which is considered to have particular problems. We have heard that it is often overcrowded and difficult to navigate. It is awkward to buy tickets, and there is a short time between announcement and departure. People speak of the unseemly scrum once the information appears on the screens. In its February 2016 report, “InterCity West Coast rail: what passengers want”, Transport Focus recite passengers describing the experience as “stressful and unpleasant”. The national rail passenger survey of west coast passengers in part reflects that, with a rating of 11 percentage points below average.

The good news for passengers at Euston is that it will be redesigned to become a modern, easy-to-navigate, integrated station. The bad news is that things will probably get worse before they get better. I am pleased that the Government have given assurances to Camden Council about the £2.25 billion redevelopment of Euston proposed by Labour, consequent on the passage of the High Speed Rail (London – West Midlands) Bill. When the station is completed, passengers will experience less crowding and improved connectivity among rail, bus and taxi services. Routes for walking and cycling through the local area will be created. That will go some way to addressing passengers’ concerns, but it is often the case with major station improvements—we see this at the moment at London Bridge—that passengers are significantly disrupted and inconvenienced during the period in which the work is taking place. I would like some assurances from the Minister about those matters.

Sir Jeremy Heywood, the Cabinet Secretary, is currently analysing HS2 to trim costs and gauge whether the £55 billion project can keep within budget. There have been rumours that the Government might entertain plans to alter the route of HS2 or their plans for an integrated Euston station, and instead have the high-speed trains run only to Old Oak Common. That would put a great deal of stress on Crossrail, which was not planned to include that extra capacity. I must admit that I find it strange that, after Report and Third Reading, and given the exhaustive and exhausting legislative process for HS2 to date, the Government are again having to re-assess it. Although close attention to and scrutiny of cost is absolutely vital, I am concerned that what appears to be a comprehensive review of key issues within HS2 runs the risk of undermining confidence in the Government’s capacity to progress the project as planned and agreed. Will the Minister clarify what Sir Jeremy is considering? If the plans for an integrated Euston station are still on track, what will be done to mitigate the impact on west coast services, given that the number of platforms available at Euston to the west coast service will reduce from 18 to 11? Once it is up and running, HS2 will provide extra capacity, relieve congestion on the line and improve passenger experiences. Those are some of the many benefits of HS2.

The hon. Member for Carlisle spoke about fares and ticketing, which are a common source of frustration for passengers, who too often feel they get poor value for money from train operating companies. One of the consequences of privatisation is that we were left with the most expensive and confusing ticketing structure in Europe. Many passengers struggle to understand fare structures and pricing; the difference in cost between tickets strikes people as illogical. The discrepancy between fares, especially if someone needs to travel at short notice—as might be the case for a family funeral—often leaves passengers feeling that the train operating companies have ripped them off.

Compared with the national average, west coast performs relatively well on value for money—however, that is against an exceedingly low baseline of just 48%. Frustrations over fare structure and pricing are common passenger complaints. There is more that the next franchise holder can do in that regard, including simplifying fare structures, making the purchasing experience less complex and more transparent, lessening the cost discrepancies between similar journeys, and allowing passengers to find the best tickets available for their journey.

[Mr Jim Cunningham]

One of the reasons why the fare structure is complicated and expensive is that, over the years, successive central Governments have gradually reduced the subsidy for fares.

[Andy McDonald]

My hon. Friend makes an excellent point. There is always a balance between fares and subsidy, and Governments of every colour have to struggle with that. On that very point, there are certainly improvements to be made, but I fear that as long as the Government persist with an exclusively privatised rail network, the feeling that passengers are receiving poor value for money will persist, and understandably so. Virgin runs one of the better services in the country on the west coast, but it is a poor comparison with our recent experience of when the public sector was presented with the opportunity of running passenger services. We need only to compare Virgin’s receipt of £2.5 billion in direct subsidy, and the £500 million it paid out in dividends between 1997 and 2012, with the performance of Directly Operated Railways between 2009 and 2014, which ran on a much lower subsidy. Under public operation, the east coast returned the highest level of premium to the Government—over £1 billion—while achieving passenger satisfaction ratings that surpassed all other long-distance operators. The public are absolutely right when they say they believe that rail should be in the public sector—they have good reason to do so.

Commuters and passengers desire free and decent wi-fi on trains; it is an important matter for them. We often get free wi-fi when we buy cup of coffee, but people who spend a fortune on a train ticket may have to rely on an unreliable wi-fi service. A good service is clearly beneficial for those people—both for leisure purposes and for conducting business as they travel. One hopes that attention will be paid to that.

The hon. Member for Carlisle spoke about the potential for a residual value mechanism, which would reward train companies for investing in things such as stations, where the return on their investment would go beyond the period of the franchise. I think the hon. Gentleman hoped that that would be a way to ensure better long-term thinking and investment, which is a reasonable point, but I caution against over-eagerness for the idea, because improving stations should not depend only on train companies deciding that there is an overwhelming case for them to make significant profits. Train operators do not have a great record of investing their own capital in stations, and increasing residual value mechanisms might make it harder for a national public operator or local authorities to improve facilities later.

The franchising system has failed to deliver clean, safe, accessible and properly staffed stations in too many areas, and tweaking the arrangements is not the best or most cost-effective way of making services better for passengers. I trust that the Minister will deal with the issues and concerns mentioned and, with that, I bring my remarks to a close.

--- Later in debate ---

[Claire Perry]

My hon. Friend’s point about avoiding defensive timetabling is absolutely right. I will come on to talk about how everyone can make their important proposals for the new franchise. We want the franchise due to start in 2018 to put the customers on the route absolutely at the heart of the service, continuing some of the innovation and progress that has been delivered. We know that we need more capacity on the route, better value for money, improved punctuality—it is improving, but it is not good enough—and better management of disruption. By the way, those are things we want, and are contracting for, right across the country.

[Mr Jim Cunningham]

Occasionally—I do not want to exaggerate—a hold-up between Birmingham and Euston seems to stop the whole line. I do not understand that, and we should have a better method of dealing with hold-ups. If there is an accident on the line involving an individual, there should be another way to proceed without necessarily creating hold-ups. Also, while I am on my feet, I congratulate the hon. Member for Carlisle (John Stevenson) on securing the debate—it was remiss of me not to do that earlier.

[Claire Perry]

The hon. Gentleman illustrates a point that has been made well. Part of the reason why we need HS2 so badly is that capacity is so tight on the route. If there is a hold-up, there are few places that can take the additional services. On any tight route, whether on the west coast or in other parts of the country, disruption spreads quickly—the disruption simply cannot be absorbed, because the timetabling is so tight.

The public consultation has been launched. It sets out the Government’s vision for this franchise, how they can continue to support investment in vital cities right across the UK and build on current levels of customer satisfaction, and how the operator can do more to provide better information and train services.

A very legitimate question that is asked in the consultation is causing alarm and has been raised several times. It is right to ask people, communities and local authorities what sorts of trade-offs they want. Do they want faster journey times? Do they want more connectivity? We in Horseferry Road could sit and design timetables that look perfect on paper, but unless they deliver what is required on the ground—a train service that works for those who use it and maximises the economic potential of transport, which are things that have to be pulled through locally—we will not be doing a service to the communities that we serve. Questions such as, “What would a reduced service to Coventry look like?” are genuinely questions; there is no vision or master plan. We want as many people as possible to help answer these questions, and those trade-offs are vital.

The consultation has started and is on gov.uk. We regard the Scottish and indeed Welsh Governments as vital partners in that; the service of course links very much to the north Wales service as well.