Passenger Railway Services (Public Ownership) Bill

Kieran Mullan Excerpts

2nd reading
Monday 29th July 2024 Commons Chamber

[Dr Kieran Mullan (Bexhill and Battle) (Con)]

Thank you, Madam Deputy Speaker, and congratulations on your new role. I want to begin by paying tribute to the previous Rail Minister, my constituency predecessor Huw Merriman. I saw at first hand how hard he worked with Members across the House to deal with their transport issues, and I have since come to learn how hard he also worked as a constituency MP.

It is a pleasure to wind up this debate for the Opposition and to have sat and listened to another set of accomplished maiden speeches across the House. We heard speeches from the hon. Members for Hertford and Stortford (Josh Dean), for South Ribble (Mr Foster), for Taunton and Wellington (Mr Amos), for Stevenage (Kevin Bonavia), for High Peak (Jon Pearce), for Thornbury and Yate (Claire Young), for Smethwick (Gurinder Josan), for Birmingham Northfield (Laurence Turner), for Melksham and Devizes (Brian Mathew), for Watford (Matt Turmaine), for Newcastle-under-Lyme (Adam Jogee), for Crewe and Nantwich (Connor Naismith), for Shipley (Anna Dixon) and for Blackpool South (Chris Webb).

There were excellent speakers all round, but I will leave it to the Minister to pay detailed tribute to Members of his party. A consistent theme was the importance of family, which I strongly agree with. It was slightly surreal to hear my successor in Crewe and Nantwich pay tribute to me, and I thank him for his kind words. Sadly, I am not sure what I got wrong because no one there ever asked me if I had finished school before I asked for their vote. To continue with the rail puns, I am sure that he will be a worthy successor to me in Crewe and Nantwich, rather than just a replacement service.

On the Opposition Benches it was helpful to hear from the former Rail Minister, my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton). She has first-hand experience of the recent changes to our railways, and she explained clearly how this ideological approach is ignoring the reality on the ground, where the franchises should be the focus of the Minister’s attention. She asked where this is leading, and I noted that the Secretary of State referred to the work that the Government will do on the supply chain. Other Members have related their concerns about rolling stock. This is the beginning of the end when it comes to a flourishing rail sector with all sorts of people playing their part. It is clear that we all want to secure better services for passengers alongside value for money for taxpayers. Whatever our differences, we agree on that. The question is how we do it.

The catastrophic impact of the covid-19 pandemic has forced a rethink—a necessary and important one. During the pandemic, the previous Government demonstrated clearly their commitment to the railways and to railway staff, providing large amounts of public money to keep the railways running and keep railway staff in their jobs. But that period also hastened the decline of the traditional franchise model as we know it. Passenger journeys plummeted and while there has been a significant recovery travel patterns have changed. That is why we conducted a major review of our railway services and how they operate, and suggested a change of approach as outlined by the shadow Secretary of State during her opening speech.

That change of approach, as we heard today, is one the new Government are taking forward in many areas, but what we also heard today is that they are bringing with them not a passenger-first policy, but an ideology-first policy. Their priority is to ban the private sector from operating our main train services. Of all the things they say need doing, and with 14 years of opposition to come up with a list of what needs doing first, they have nationalisation, even though, as the Secretary of State said, it will not make train tickets cheaper or end the strikes. In fact, it is worth reading out the complete non-commitment on rail fares that Labour makes in its plan. It says it wants prices

“kept, wherever possible, at a point that works for both passengers and taxpayers”.

I can imagine the civil service pen of Sue Gray hovering over that particular sentence. It really is an exemplar of Labour’s modus operandi: using a lot of words to say absolutely nothing. Reformed ticket prices, reformed working practices and increased reliability—that is what all our constituents want, and the consequence of their rush to implement their ideology is that they brought forward this plan without any evidence for why it will deliver any of that.

[Laurence Turner]

I thank the shadow Minister for giving way and I compliment him on his staying power during a very long debate. He talks about fares and affordability. Can he explain why, under the Government who have just exited office, fares increased on average by 4.7% each year, almost one and a half times higher than the rate under the previous Labour Government?

[Dr Mullan]

The challenge that Labour now has to face is whether they choose taxpayers or fare payers to meet the burden of the cost of the railways. In fact, in recent years we kept rail fare rises below inflation, and we have yet to hear a similar commitment from the Government.

The impact assessment on the policy is very clear about what the Government have committed to achieve: absolutely nothing. It says it in black and white, on page 3:

“specific quantified targets for each objective have not been set”.

So clearly that leaves us on the Conservative Benches to hold them to account. I have a number of questions that I hope the Minister can address in his closing remarks.

First, what will be the exact timetable for renationalisation? We might assume that the Government are rushing to do this so that they can begin with Greater Anglia and West Midlands Trains in September, but all they have said is that they want all the contracts nationalised by October 2027. The Minister will understand the uncertainty that will create for the sector, so can he confirm a more detailed plan to the House for making use of the powers they are asking for?

Secondly, what will be the approach on nationalising terms and conditions? The Minister will know there are a variety of working practices across the railway network, many of them clearly not in the best interests of passengers and taxpayers—for example, the varied approach on mandatory Sunday working, where clearly passengers would be better served by that becoming standard; or annual leave, where again passengers would experience less delays and cancellations if drivers were required to give a reasonable amount of notice. Will the Government introduce a standard contract that prioritises the terms and conditions across the industry that will benefit passengers and taxpayers, or will they be letting the unions dictate a standardised contract that puts the unions first and passengers last?

Thirdly, what plans does the Minister have to secure increased passenger numbers, by how much and by when? We have seen a huge increase in passenger growth since the introduction of the train operating companies. What will take the place of contract incentives to secure that growth in future?

Fourthly, on modernisation, people up and down the country have seen the explosion of technology into our workplaces, but all across the network modernisation is blocked and frustrated with demands of more money from the unions for the introduction of technology. What plans do the Government have, as they directly take over running the railways, to ensure that technological innovation can be implemented across the network without undue barriers or union demands getting in the way?

Fifthly, when it comes to funding, how will they be reallocating the theoretical money saved? They argue they will save £150 million from management fees. Reinvesting that across track and train would mean, in total, a 0.5% to 0.75% increase in the overall annual budget. They need to tell us what exactly it is they will be doing with that money that is apparently going to radically improve our railways.

Sixthly, what are the balance sheet implications? The franchising model allowed the purchase of new trains and other investments to be made with no impact on public debt. Will Labour be adding those costs to public debt in future as yet another excuse for their inevitable tax rises?

Finally, what are the Bill’s implications, direct or indirect, for open-access operators? Whatever the Government may say, I am afraid that the implication of their words and actions is that they do not want the private sector running train services, so are they going to turn their sights on those operators next? If they truly believe in what they are doing—if it is not just designed to appease the left wing of their party—they will have to justify their own inconsistency.

It seems pretty clear that this, the Government’s political priority, is the wrong approach at the wrong time. They should be focusing on getting their union backers to stop frustrating reform of our railways. They should be focusing on taking forward our plans for Great British Railways. They should, at the very least, be transparent with the public about the implications of this rushed plan for fares, punctuality and reliability. There is consensus in the House that a new way of working was needed, and we had begun the process of bringing that forward, but Labour Members are more concerned with re-fighting the political battles of the 1970s and 1980s. Whatever they may say, these are the same old ideas, this is the same old ideology, and this is the same old Labour party.

[Grahame Morris]

The hon. Gentleman is presenting an interesting proposal. He has talked of “evidence”. If we look back over the past few years, we see that 70% of train operating companies running train franchises in this country were Government-owned—owned not by the UK Government, but by the Governments of Germany, the Netherlands and Italy. Was this not dogma to prevent an evidence-based build-up around the east coast main line franchise, providing profit and an income stream?

[Dr Mullan]

Let me point out to the hon. Gentleman that we also saw an increase of more than 89% in passenger numbers on our railways, and a record level of investment. If taxpayers in other countries want to invest in our railway services, I welcome that. As the shadow Secretary of State said in her opening remarks, we have proved our lack of adherence to ideology by running, when necessary, a number of private sector operators. The point that the Labour Government have to answer is this: if they are so concerned about Avanti and other private sector operators, they have the necessary powers and could do that tomorrow. If they are so convinced of their ability to sort all this out simply through nationalisation—if they are so convinced that Avanti’s performance is one that requires them to step in—let them do it tomorrow. They are not in opposition any more, so they can take steps to do things that they criticise us for not doing.

However, I am afraid that this is the same old Labour: more government good, private sector bad; unions first, passengers last. We on this side of the House have seen it and heard it all before, and we will make sure that everyone knows what Labour has spent its time focusing on and what it has put first when legislating here, politics and ideology, instead of focusing on what will actually make a difference to passengers.