Railways Bill (Seventh sitting) Debate

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Department: Department for Transport

Railways Bill (Seventh sitting)

Keir Mather Excerpts
Joe Robertson Portrait Joe Robertson
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I do. It is not difficult for me to agree and accept that the way Wightlink, which was part of British Rail, was dealt with was more than a missed opportunity; it was a bad decision. Locally, I work cross-party with the hon. Gentleman’s colleague, the hon. Member for Isle of Wight West (Mr Quigley) on that.

This Government have an opportunity. I thank the Minister for the work he is doing and I hope he will be prepared to intervene in a way no Government have done. There are clearly opportunities to make small improvements to the Bill, and accepting the amendments would do that not just in my constituency, but in others. I will leave the Minister with a question: if he does not support the amendments, how else might he use powers in the Bill, or would he be prepared to introduce amendments of his own, to improve connectivity for other modes of transport that do not have any formal regulation?

Keir Mather Portrait The Parliamentary Under-Secretary of State for Transport (Keir Mather)
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Good morning, Mr Western. It continues to be a pleasure to serve under your chairship.

I thank right hon. and hon. Members for their contributions and for the clarity and succinctness with which they delivered them. I am afraid I will not be able to follow in their footsteps when responding to what is a chunky group of amendments and new clauses, so they will have to bear with me for this section of our deliberations. Clause 15 has been of considerable interest to members of the Committee and to the rail industry more generally, as we heard during oral evidence. I am thrilled that so much enthusiasm is being expressed for the strategy both verbally and in amendments, each of which I will now address.

Amendments 134 and 25 relate to the timing of the strategy. Amendment 134 would require the strategy to be set for 30 years. The Government have already confirmed that the strategy will cover a 30-year period. Setting that in legislation, however, is inflexible and unnecessary. Although the Government’s ambition is for a 30-year-long strategy, we need to provide for the ability to make reasonable changes to that term when needed.

Amendment 25 would remove the ability for the strategy to be amended within a 15-year period. That would fundamentally limit the railway’s ability to respond to unforeseen circumstances such as the covid-19 global pandemic. I hope the hon. Member for Broadland and Fakenham agrees that such a circumstance, or any number of other possible events, would clearly require the strategy to be revisited within a timeframe of less than 15 years.

Rebecca Smith Portrait Rebecca Smith
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The Minister’s comments imply that a 15-year strategy would be fixed in concrete and could not be amended. I am assuming that the 30-year strategy will be fluid and flexible to take into account the circumstances that he has just mentioned, such as—God forbid—a future pandemic. I feel the way he has described the amendment is not entirely in the spirit of what was meant, so it is worth reflecting that. Ultimately, we all want a flexible railway; we are just trying to say that the strategy could last for 15 years instead of the current 30.

Keir Mather Portrait Keir Mather
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I thank the hon. Lady for her intervention. My reading of the amendment is that it would remove the ability to amend the strategy within a 15-year period. Her broader point, about having flexibility to make determinations about the long-term rail strategy and cater for unforeseen events, technological innovations and global events that we cannot predict, strengthens the argument that we made about amendment 134, when we considered whether to set the period in stone and make it exactly 30 years. There has clearly been deliberation between the official Opposition and the Liberal Democrats about whether it should be 15 or 30 years, but we think that not being overly prescriptive is the best way to ensure that the rail strategy gives a long-term perspective and is sufficiently malleable to meet changing operational realities on the railway.

Jerome Mayhew Portrait Jerome Mayhew
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I just want to give the Minister some further clarity about what amendment 25 actually does. He is right that it says,

“The document issued under subsection (1) must be in force for a minimum of three control periods”,

but that should be read in the light of subsection (4), which gives the Secretary of State express power to

“keep the rail strategy under review”,

and paragraph (b), which says that they

“may revise or replace it.”

Does he accept that it is quite clear that the amendment, read in conjunction with subsection (4), does not prevent reacting to new events?

Keir Mather Portrait Keir Mather
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On locking in a 15-year strategy that can be reopened only if the Secretary of State chooses to revise it, it has been said throughout our deliberations that we do not want politicians micromanaging the railway. I therefore presume that the Secretary of State would want to reopen the three control period review envelope only in extremis. Given our deliberations about whether it should be three control periods or 30 years, I think it is better overall to bake that flexibility into the Bill and allow those discussions to take place.

I have to make a lot more progress, and I do not want to detain the Committee for long. In the evidence sessions, several witnesses said that the ability to update and change the strategy in response to unexpected events is critical. No one can accurately predict things such as technological and environmental changes over the next 15 years. For that reason, the Bill has been drafted so that the strategy is not a once and done document, but can be revised when it needs to be.

The next theme in this group of amendments is to ensure that the long-term rail strategy includes specific content. Amendments 137, 207, 224, 135 and 136 all do that. The strategy will not go into specific operational requirements in the way sought by the amendments, which relate to topics such as rural railways, co-operation with local authorities, timetable integration, international rail and electrification. Those are all vital topics—of that there is no doubt—but they are all matters for Great British Railways to consider as it develops its strategic plan for the operation and optimisation of the rail network, informed by the long-term strategy.

Although I agree that co-operation with local authorities is critical to the success of this reform, I do not think that that objective needs to be captured in the long-term rail strategy. Rather, it is already captured in the Bill via GBR’s duty to co-operate with mayoral strategic authorities. That duty is provided for in legislation and will be enduring, so it does not also need to be in the strategy.

The suggestion that the long-term rail strategy should set out obligations relating to the timetable is in opposition to the views of the majority of stakeholders who responded to the Railways Bill consultation. They want Great British Railways to have the autonomy to manage the timetable without Government micromanagement, and I wholly agree with that.

Olly Glover Portrait Olly Glover
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We seem to be losing track of the words that have been tabled. Either that or, like a group of management consultants, we are in danger of getting plans confused with strategies and tedious things such as that. Amendment 207 is neither intended nor drafted to encourage or enable the micromanagement of timetables. It is about the development of and the longer-term vision for what those timetables are supposed to achieve, and that is very much in line with what should be a 30-year strategy. I just want to assure the Minister on that point.

Keir Mather Portrait Keir Mather
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I thank the hon. Gentleman for that assurance. I suppose that, in response to the amendments that he tabled, we agree that timetabling is of special significance because of the diffuse way in which it is currently organised between Network Rail and the Office of Rail and Road. We are conscious of the fact that making GBR a single driving mind for the railway means that timetabling needs to be dealt with in a way that is operationally responsive, but also not scattered throughout the Bill.

Although I agree with the hon. Gentleman about the importance of timetabling and having due regard for how it is implemented over the long run, I think the way in which the duties under clause 18 allow us to consider the best interests of passengers through that work has a necessary long-term impact on the timetabling process overall. I hope that that would be adequate in meeting some of the concerns that he outlines and seeks to address through the amendment.

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Jerome Mayhew Portrait Jerome Mayhew
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I am grateful to the Minister, who is doing his job in highlighting some of the practical challenges that the amendment might entail. The important bit is not so much the strategy; I think what my hon. Friend the Member for Runnymede and Weybridge is trying to get at is that, when Network Rail or GBR assesses the function of a level crossing, it also needs to take account of the impact on the society in which it is based: for instance, cutting a town in two or stopping vehicular access for multiple periods during a day. Does the Minister not agree that, if GBR did not consider that—it was not in the list of considerations that the Minister mentioned a moment ago—it would not be doing its full job?

Keir Mather Portrait Keir Mather
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I thank the shadow Minister for his intervention. I very much identify with the sentiment identified by the hon. Member for Runnymede and Weybridge. This is something that impacts Selby town, much as it affects communities across the country. It is right that GBR has regard to managing the way in which level crossings impact road users as much as it does the way that railway infrastructure and passenger services do.

My question is whether that obligation is best placed in this part of the Bill. Network Rail already has a system for considering the impact of changes on local communities, and that will be mapped over into the way that GBR functions. I believe that the transfer of that process, in a way that is reactive and operationally agile, is probably the best way to ensure that those considerations remain integral to how GBR carries out that work.

On connectivity and multimodal journeys, I am happy to confirm that strategic objectives in the long-term strategy will already include supporting better connectivity between communities. This will provide direction on the long-term trends affecting the railway. However, as with others in this group, amendment 261 would make the strategy a document focused on short to medium-term assessments of passengers’ ability to change between rail services or different modes—things that could change frequently, and are therefore not appropriate for inclusion in a document that sets out long-term strategic aims.

However, the hon. Member for Broadland and Fakenham will be pleased to hear that we will soon be publishing our integrated national transport strategy, which will set out the Government’s vision for domestic transport across England. It will focus on a transport network that works well for people across the country, including improving integration across modes, but I will of course take the sage advice of the right hon. Member for Melton and Syston about my personal role as part of that process.

Amendments 225 and 213 both seek to make the strategy subject to additional procedural requirements. Amendment 225 requires consultation with operators during preparation of the strategy. I can reassure the hon. Member for Broadland and Fakenham that the Government have already committed to consultative engagement with key stakeholders, including freight and passenger train operating companies, which will be essential for gathering evidence and informing the strategy’s development. Therefore, in our view, this amendment is unnecessary.

Amendment 213, meanwhile, requires regular reporting from the Secretary of State to Parliament on delivery of the strategy. However, as GBR will be the principal organisation responsible for delivering the vision and outcomes that will be set out in the long-term rail strategy, it will be for GBR to report on its progress in delivering it. GBR already must have regard to the strategy, and will respond to it through its business plans, on which it will report regularly. Given that and other existing reporting mechanisms, the amendment would be duplicative.

The new clauses in this group all propose new strategies or reports—for example, on rolling stock, cyber-security and technology, Sunday working arrangements or signalling. Those all naturally cut across the long-term rail strategy and, if accepted, would, in my view, risk GBR being busier completing strategies than actually running the railway. However, I would like to take each new clause in turn to give them due regard.

On new clause 27, the Government absolutely agree with the principle of a long-term rolling stock strategy. In fact, we would go a step further and say that this strategy should cover not just rolling stock, but the related infrastructure as well, in a single integrated strategy. Such a strategy was sadly lacking during the last three decades of privatisation, with decisions about rolling stock and related infrastructure taken to meet short-term and route-specific needs of operators seeking to maximise their profits. It is this Bill, establishing GBR, that will put that right.

However, I do not agree that the Bill needs this as a duty on GBR. Rather than creating a duty for GBR to deliver at some time in the future, we are already working with relevant parties across the industry to develop a rolling stock and infrastructure strategy to be published this summer. GBR will inherit that strategy and act on it to deliver improvements for industry, taxpayers and passengers.

Likewise, there is no need for a reporting requirement relating to cyber-security and technology. Cyber-security remains a priority for my Department; we are committed, through both existing cyber legislation and policy, to ensuring that GBR operates safely and securely. While new clause 28 reflects priorities that the Government share, the measures it proposes, such as on artificial intelligence, digitalisation and innovation, are already being delivered without the need to include them in this Bill.

On new clause 29, relating to Sunday working arrangements, I would first like to say that I have no doubt that creating GBR to improve both the quality and dependability of train services on Sundays will drive up demand and allow more people to benefit from the railway. We want a railway that operates reliably and sustainably, seven days a week, on a lower net subsidy than today, with built-in resilience and a diverse workforce. However, this is not an overnight change, but a long-term one, and not a process that, in my view, needs to be set out in legislation. Rather, we will continue to work with staff, managers and unions across the future railway to deliver this change collaboratively.

Jerome Mayhew Portrait Jerome Mayhew
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The Minister is touching on a key issue that the railway will have to address if he is serious about achieving a reliable Sunday service, and that is operating a seven-day schedule with a six-day roster. Does the Minister intend finally to address the six-day roster issue and to move working practices on to a seven-day roster?

Keir Mather Portrait Keir Mather
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We want GBR to be empowered to address and deal with all these questions relating to personnel and timetabling in a way that is consultative and in partnership with both unions and private sector operators. My point merely remains that it is not appropriate to freeze them in aspic as part of this Bill, in a way that might prevent GBR’s ability to work properly through those considerations with the workforce once it exists. Producing a separate report on the demand for Sunday travel would duplicate the work that GBR already has to undertake through its business plan, which will set out the outcomes and key deliverables for GBR, including train service levels, which will be agreed with the Government and published accordingly.

Finally, new clause 54 relates to a signalling strategy, and again there is no need to place such requirements in this Bill. Network Rail has released its approach to digital signalling for 2024 to 2029, setting out the routes that will be converted to digital signalling. GBR will take over that approach and would be expected to develop it in its future business plans.

To bring the focus of the discussion back to clause 15, the long-term rail strategy will ensure that the railway will always have long-term direction from this Government and future Governments. Such directions are vital for stability and confidence within the rail industry. The strategy will help to prevent the constant short-termism that has been called out by both the industry and its supply chain.

I hope that, following my response to these amendments, the hon. Members will feel able to withdraw them, and I commend clause 15 to the Committee.

None Portrait The Chair
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I call Olly Glover—Mr Glover?

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Sarah Smith Portrait Sarah Smith (Hyndburn) (Lab)
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It is a pleasure to serve under your chairship, Mr Western. My remarks will be incredibly brief, ahead of the Minister’s responses. To echo some of what my hon. Friend the Member for Truro and Falmouth said, as a representative of Hyndburn in Lancashire—which is currently not part of a mayoral combined authority—I look for reassurances that GBR will have regard to Lancashire’s transport authority and the local transport plans. This Government are clearly committed to the important agenda of devolution, but it would potentially undermine some of those efforts if in the transition phase—while we are trying to move as quickly as possible for as many areas as possible to benefit from that full devolution opportunity—a national body is undermining the local plans and those on the ground who understand the complexities of the needs of somewhere such as Lancashire. I would thank the Minister for reassurances in that regard.

Keir Mather Portrait Keir Mather
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I thank hon. Members from all parties for their well-considered contributions to this debate. I shall endeavour to give full answers to them.

First, on the point made by the shadow Minister about how GBR will handle conflicting priorities that emerge within different strategies, as laid out by mayoral combined authorities or otherwise. As part of the business planning process, GBR will need to demonstrate how its integrated business plan aligns with the objectives contained in the long-term rail strategy and the Scottish Ministers’ rail strategy, reflecting the role that they have as funders of the network. The Bill also requires GBR to have regard to the various other national and local strategies. Fundamentally, however, establishing no hierarchy between the general duties to which GBR is subject, in my view gives the necessary flexibility to allow it to manage competing priorities where those may arise. It will be the responsibility of GBR to ensure that its decision making demonstrates consideration of potentially competing requirements and strikes an appropriate balance in making trade-offs.

On the statutory role of mayors as part of the process, GBR must have regard to their transport strategies. Mayors of course will have the right to request services and work in active partnerships with GBR. However, I also hear clearly the concerns of not only the hon. Member for South West Devon, but my hon. Friends the Members for Truro and Falmouth, and for Hyndburn about those who do not live in mayoral strategic authorities. I appreciate the hon. Lady’s scepticism when comparing this to our existing system. When it comes to engaging with private operators and with other arm’s length bodies, at the moment it feels as if parliamentary accountability cannot always be applied, and that where power resides is very diffuse, making it hard to tell who is responsible. We are actively trying to avoid and redesign that through the creation of GBR.

The hon. Member for South West Devon points to the fact that the business units might not have the teeth to engage properly and to reflect the needs of local areas, but I would say that we are creating a decentralised Great British Railways, where local areas are imbued with the powers to enter into dialogue with local authorities especially to avoid that being the case. That does not change the fact that the reason that within the Bill we have referenced mayoral strategic authorities is that we believe they are the right unit of economic and of demographic power to drive forward truly devolved change on the railway. That does not mean that we cannot not have regard to those who do not benefit from living within a mayoral strategic authority.

Rebecca Smith Portrait Rebecca Smith
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Will the Minister give way?

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Keir Mather Portrait Keir Mather
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I will give way briefly in a moment, but first I will build on the point that was made by my hon. Friend the Member for Bexleyheath and Crayford about how services can run across the boundaries of mayoral strategic authorities. Through GBR, we will be able to enter into processes that engage not only with a mayoral strategic authority, but with such authorities acting in a sense as a representative of pressures that exist in cross-border dynamics that may arise. That offers another useful lens through which to engage with local areas that do not have a mayor. I appreciate that the hon. Lady might want a little more reassurance, so I will give way.

Rebecca Smith Portrait Rebecca Smith
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On those local business units, how large an area are they likely to be structured on? That has not been in the debate to this point, and may reassure me. I appreciate that that may be a detail that is coming later, but some indication of how many counties might be included within each business unit would help.

Keir Mather Portrait Keir Mather
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The hon. Lady must have read my mind about that detail being forthcoming. If she will allow me to take away that specific point over the break that we are about to have, I might be able to come back to her when we resume the debate.

For the moment, I will quickly turn specifically to the amendments in the group. The lead amendment would require GBR and the ORR to “seek to achieve” the long-term rail strategy and devolved strategies, rather than to “have regard to” them. The existing wording deliberately reflects the nature of those strategies within the system. The LTRS will take a 30-year perspective and set strategic objectives, rather than define a narrow set of deliverables.

We of course want GBR and the ORR to have regard to the strategies in all decision making, but they must also have the flexibility to balance long-term objectives with the practical business planning processes that operate over fixed periods. To legislate that such a vision should be achieved would not be in line with that principle, or with the overall approach to the general duties that set the conditions for successful decision making, but do not dictate specific outcomes. As I have reminded hon. Members, GBR, not the Government, will be running the railway.

New clause 37 also relates to GBR’s delivery and looks to establish a statutory annual reporting framework. The Bill already provides robust reporting and accountability arrangements. GBR is required to produce an integrated business plan for each funding period, which must be published and kept up to date, and that will give Parliament and stakeholders a clear view of GBR’s objectives, activities and expected outcomes. A separate statutory annual delivery report would in essence duplicate that information. Furthermore, the ORR will have a role in monitoring GBR’s performance against its business plan and will provide independent advice to the Secretary of State. Such oversight ensures that GBR can be held to account without the need for an additional statutory reporting requirement.

New clauses 33 and 36 relate to GBR’s long-term approach to securing rolling stock. The former calls for the Secretary of State to publish a long-term rolling stock leasing framework and sets out a substantial amount of detail on what that should include. Within that detail, there are certainly points on which we can agree, including the benefits of longer leases and the proper consideration of whole-life asset costs, both of which have been made more challenging to achieve under the franchising model. However, I profoundly disagree that the Secretary of State should dictate the detailed approach that GBR should take to rolling stock leasing, and with the specific terms set out in the new clause. It is rightly for experienced industry professionals within GBR, guided by the Secretary of State’s long-term rail strategy, to secure the best value and achieve GBR’s other objectives through commercial arrangements with the rolling stock leasing market. It should not be for the Government to dictate the detail of those arrangements.

On new clause 36, I of course agree that GBR should have a long-term rolling stock and infrastructure strategy, which is why we are already working with parties across the industry to develop one. The strategy will be published this summer, and will remain a live document. GBR will inherit and implement it as soon as it is established. The new clause is therefore unnecessary, as by the time it would take effect, GBR will already be up and running with a long-term rolling stock strategy.

Amendment 218 would require GBR to have regard to the transport strategies of single strategic authorities. We are of course supportive of a more locally focused railway under GBR. The provisions in the Bill are pitched at mayoral strategic authority level, reflecting their growth across England, the vital role that mayors play in convening local partners and the scale and capability required to integrate rail into the wider public transport network. Nevertheless, all tiers of local government will benefit from empowered local GBR business units that are outward facing and actively engage local authorities on their priorities and local transport plans. That engagement will ensure there is sufficient opportunity for local authorities outside the mayoral strategic authority areas to collaborate with GBR on their priories and to consider proposals. I hope the hon. Member for Broadland and Fakenham therefore feels comfortable withdrawing the amendments.

Clause 16 places duties on GBR to have regard to the long-term rail strategy, devolved transport strategies and local transport plans. Overall, it seeks to ensure that strategic decisions on matters such as future services and infrastructure plans appropriately reflect national, devolved and local priorities. I commend the clause to the Committee.

Jerome Mayhew Portrait Jerome Mayhew
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This is now a common refrain in our deliberations. The Minister says, “Don’t worry. All these things will be taken care of at some future date in documents that have not been drafted and certainly haven’t been shared with the Committee.” With the greatest respect to him, I do not take it on trust that the Government are looking carefully and in sufficient detail at these matters, so I will press the amendments to a Division.

Question put, That the amendment be made.