Railways

Kelvin Hopkins Excerpts

Thursday 25th April 2013 Commons Chamber

[Mr Burns]

The hon. Gentleman is displaying a degree of incredulity and suggesting that that was not the case. I know that he was not a Member at that time, but if goes to the Library to find the relevant copies of Hansard, he will read that Lord Adonis and the right hon. Member for Tooting were emphatic in their announcements to Parliament that the decision on the east coast main line was a short-term measure. I am rather grateful that Lord Adonis went a step further by saying that it was better for the railways to be run by franchises in the private sector.

[Kelvin Hopkins (Luton North) (Lab)]

But he’s a Tory.

[Mr Burns]

It is fascinating to hear that from one of Lord Adonis’s colleagues. I suspect that the hon. Gentleman—there seems to be a problem with Luton today—meant that in a derogatory way, but I thought that Lord Adonis was not a Tory, but the last Labour Secretary of State for Transport. I also thought that he was working with the present leader of the Labour party on formulating Labour’s policies.

--- Later in debate ---

[Kelvin Hopkins (Luton North) (Lab)]

I am a member of the RMT parliamentary group and the chair of the ASLEF group, so in a sense I have an interest in the railways.

The core intention of the fourth railway package is simply to visit the mistakes made in Britain on the rest of the EU. Railway privatisation in the UK is a laboratory experiment that was designed in the EU. It has been an expensive failure which continental Governments would be foolish to imitate. Separating trains from track and privatising train companies to set up liberalised and allegedly competitive rail operations has been massively expensive to taxpayers and passengers. We have the highest fares in Europe and we know all about the taxpayer subsidies. Sir Roy McNulty’s report clearly demonstrated that in concluding that UK railways were up to 40% more expensive to operate than state-owned and integrated railways on the continent.

Some five years ago I had the pleasure of visiting Germany with the Rail Freight Group, and we met Dr Mehdorn, chairman of the German state railways, Deutsche Bahn. He was visibly angry and banged the table with his fist at the prospect of DB being privatised, especially on the “British model,” as he called it, of separating track from trains. The fourth railway package brings that outcome closer. Separating track from train operators has been a serious mistake, and significantly in the UK we have been making moves in the opposite direction towards vertical integration. The fourth railway package will force continental railways to go in the opposite direction and disintegrate—a big mistake.

On the same visit to Germany I met a British transport economist who had been a supporter of the UK privatisation model—a computer model—which apparently told him that such a system would reduce costs and produce efficiency. It had the opposite effect, as McNulty clearly demonstrated. My economist chum confessed to me—rather feebly—that his computer model had failed. I suggested that the logical answer was to renationalise and reintegrate Britain’s railways, to which he had no answer.

Why on earth is the EU pressing ahead with this package? It must simply be ideology, dogma, and serving the interests of those who make money out of privatisation. Incredibly, as we have heard, more than 50% of UK franchises are now operated, or part operated, by European state railways. When English, Welsh and Scottish Railway was taken over by DB Schenker I said, “You’ve been nationalised.” It said, “No we haven’t,” and I said, “Yes. You’ve been nationalised and taken over by the German Government.” It had been a private company in this country.

Are UK railways simply being exploited for profit to the advantage of continental Governments and their taxpayers? The same is happening in the energy sector with companies such as EDF. What nonsense is that? What happens if the fourth package proceeds? It is time to junk this model of railway operations, stop the fourth package, and return to sensible, integrated, publicly owned railways, especially in the UK.

There are, of course, good reasons for international co-operation to promote cross-border travel, but that can be done most easily by nationalised railways negotiating at international and national level. We do not need fragmented private companies trying to do that. As we know, rail travel is growing—I have been a commuter on Thameslink and its predecessors for 40 or 45 years—but it is growing in spite of privatisation, not because of it, and essentially because travelling to work on the roads is becoming more and more difficult. With the growth of the economy, particularly in London, more and more people are commuting.

Railways are wonderful things and the mode of the future, but they need state involvement and state running to make them work properly on behalf of us all, and to make them more efficient. We want to cut railway costs, and the way to do that is to bring them back into public ownership.