Industrial Action on the Railway Debate

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Department: Department for Transport

Industrial Action on the Railway

John Redwood Excerpts
Monday 20th June 2022

(2 years, 6 months ago)

Commons Chamber
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Grant Shapps Portrait Grant Shapps
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I will address the point about P&O, because the hon. Member for Sheffield, Heeley (Louise Haigh) also raised it. I am surprised that they cannot see the glaring and obvious differences in the disgraceful treatment of P&O workers. For a start, it fired its workers and brought in foreign workers at below the minimum wage—I would have thought that was a fairly obvious difference. Secondly, no one’s wage is being cut here. Thirdly, let me remind the hon. Lady that in the industry we are talking about train drivers have a median salary of £59,000 and rail workers have a median salary of £44,000, which compares rather favourably with that of nurses, who have a median salary of £31,000, and care workers, whose median salary is perhaps £21,000. No one is talking about cutting salaries; everybody here is trying to get the modernisation that could secure the future of our railways, and it is a great pity to see respected Opposition Front Benchers trying to mislead the public by somehow suggesting that this is something to do with the P&O situation when it is entirely separate and different.

The other point worth quashing is the idea that somehow we have not provided a negotiating mandate or that we have told Network Rail not to negotiate. That is simply not true. Network Rail has a negotiating mandate and is able to negotiate. It is negotiating on a package of measures that includes more than 20 areas of reform, which are deeply technical and require not only the input but the work of the employers to negotiate. In return for these reforms lies the route to better salaries—higher pay. But I want to ensure, once and for all, that we quash the idea that our railway workers are poorly paid in this country; they are not.

John Redwood Portrait John Redwood (Wokingham) (Con)
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What has been the monthly rate of taxpayer subsidy to the railways so far this year? What additional flexibilities could managers use to try to get a bigger proportion of services running even on a strike day?

Grant Shapps Portrait Grant Shapps
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My right hon. Friend is right to discuss the subsidy, which has been £16 billion as a whole through covid—or £16 billion committed, which means that we do not have the exact number yet for the amount of that which is still going towards the operations this year. One thing I can say to him is that without that support the railways simply would not have been able to operate. It is the equivalent of £160,000 per individual rail worker. To turn around and call these strikes is a heck of a way to thank taxpayers. We have lost around a fifth of the income from rail. I hear Mick Lynch, the leader of the RMT, claim that the Government are cutting the money that is going to the railways, but that is a fundamental misunderstanding on his part. The money that is missing is the £2 billion of passenger fares that are not being paid because people are not travelling.