First Capital Connect (Hertford Loop)

Lilian Greenwood Excerpts

Tuesday 28th January 2014 Westminster Hall

[Lilian Greenwood (Nottingham South) (Lab)]

It is a pleasure to serve under your chairmanship, Dr McCrea. I congratulate the hon. Member for Enfield North (Nick de Bois) on securing this important debate. Many of the concerns that he raised—overcrowded, uncomfortable trains, frequent cancellations and inadequate customer services—will be familiar to commuters throughout the country, but there are clearly particular challenges on the Hertford loop line. I listened carefully to the examples that the hon. Gentleman and other hon. Members gave of recent disruption on the line. Passengers undoubtedly expect better, and it is clear that action by Network Rail and First Capital Connect is needed.

Network Rail is responsible for maintaining and improving the line, but train operators also have an important role in managing disruption, providing public information and passing compensation on to passengers. Today’s debate has raised concerns over how well that relationship functions. Several hon. Members have highlighted the vital importance of the way in which operators deal with delays, especially when infrastructure leads to unavoidable disruption. The disruption on the line has affected passengers acutely, because by London standards people in the borough of Enfield are unusually dependent on national rail services. The unacceptable performances of recent months have thrown the quality of those services into sharp focus, and we can all understand commuters’ anger at the frequent disruption, especially against a backdrop of rising fares.

Regulated fares have risen by 20% since the election, and there have been much higher rises in some unregulated fares, but commuters on the First Capital Connect franchise have had to endure some of the worst punctuality figures in the country. Perhaps unsurprisingly, passengers report some of the lowest satisfaction rates. Between 8 December and 4 January just 74% of trains on the Great Northern routes arrived on time. The hon. Member for Enfield North highlighted periods of even lower punctuality. That is not to underestimate the challenges that Network Rail and operators face in running busy London commuter services, or the pressures on the local infrastructure and the rolling stock, some of which, as has been mentioned, is decades old; but as hon. Members have made clear today, passengers have, over the past three months in particular, had to endure an unacceptable standard of service.

Given the level of investment that is due to go into the part of the commuter network in question, it is easy to understand why the Government have opted for a management-style contract for the combined Thameslink, Southern and Great Northern franchise. However, that means that Ministers must take a greater degree of responsibility. Perhaps the Minister will outline how he expects that new approach to contracting to work in practice. How will the reclassification of Network Rail affect things? Will the reclassification make it possible to get more co-ordination between the infrastructure manager and passenger operators with a management-style contract? There are opportunities to deliver more frequent or otherwise improved timetables as part of the new franchise; that will be made possible by the infrastructure improvements.

A peculiar feature of the line is the southbound destination: most services terminate at Moorgate during the week, but there are exceptions, such as evening and very early trains, which are diverted to King’s Cross.

I hope that the Minister acknowledges that there are issues that will not be resolved by the franchising process, including the rolling stock used on the line. The hon. Member for Stevenage (Stephen McPartland) mentioned the class 313s, which are among the oldest trains still in regular commercial use. If they are still in use when the new contract ends in 2021, some of those units will be 45 years old. I understand that there are particular challenges, as trains on that route have to operate with both overhead and third rail electrification systems, but even in the light of that restraint we need to know what the Department is planning for the future. What assessment has the Minister made of the long-term viability of these trains?

It would also be good to have the Minister’s comments on the record about the long-term management of the lines. The West Anglia lines, including the route to Enfield Town, mentioned earlier, are due to transfer from the Greater Anglia franchise next year. I am sure that passengers hope that London Overground will deliver the same benefits it brought to other areas that were previously managed by Silverlink, namely investment in the trains, improvements to stations and increased staff presence. That approach has resulted in much improved passenger satisfaction, delivered integration with other Transport for London services and increased revenue.

The Campaign for Better Transport has said that passenger services have

“improved significantly since the previous arrangements”

and station standards have

“sharply improved…from the Silverlink days.”

Even the most significant customer service improvement in recent years—the introduction of Oyster cards on suburban rail routes—was driven by Transport for London, although rail operators have been the main beneficiary of the additional revenue that has been generated.

Transport for London previously expressed an interest in running the Hertford loop line, which in theory could happen when the combined Thameslink, Southern and Great Northern franchise expires in 2021. Given the success of London Overground, any such proposals deserve to be taken seriously. What discussions has the Minister had with TfL on the possibility of any future devolution of the Hertford loop line, either in whole or in part? Although that is a long-term question, which will surely be revisited, the point it underlines is that there are alternative models for operating services, which we should consider.

[Mr Prisk]

As the Member for Hertford and Stortford, I caution the hon. Lady slightly. I wonder whether she is aware that there is a danger that services could be improved for those within the M25, with money being spent on carriages there, not for my constituents. Does she agree that, where improvements are made and provision is offered, all the passengers along that line should benefit, not just some?

[Lilian Greenwood]

I agree that that danger could present itself, if there is devolution of only part of the route. It is important that we understand whether the Minister is considering devolution and, if so, how protection would be put in place in respect of such issues. I understand why the hon. Gentleman expresses concerns on behalf of his constituents.

The Hertford loop is a branch of the east coast main line. Of course, hon. Members’ constituents have the option of catching a direct train to Stevenage, unless they are already there, where they can change on to InterCity East Coast services. As a key transport artery, we have to look at the east coast main line’s inter-city services and how they relate to First Capital Connect’s commuter provision, just as we look at improvements to the Hertford loop in the context of the wider Thameslink programme. In recent years, the quality gap between inter-city and commuter services on the east coast main line has widened, but instead of concentrating on bringing the local trains up to standard, the Government are committed to abolishing the successful long-distance operator.

East Coast has gone from strength to strength since the last private operator failed in 2009. Record passenger satisfaction and punctuality ratings have been achieved and all profits are reinvested in the service. However, if the Government’s privatisation goes ahead, that money would be split with shareholders instead. By the time the Government expect the new franchise to start, almost £1 billion will have been returned to the Treasury in premium payments.

This year, East Coast has raised fares by an average of 1.2%, a real-terms cut, at a time when commuters across the country are having to budget for fare rises of more than double the rate of inflation. This decision was a welcome relief for passengers up and down the line, including those who change on to East Coast services from north London and Hertfordshire, but it underlined the absurdity of the Government’s drive towards privatisation, which seems born out of a desire to end this successful alternative to franchising before the election. It certainly does not seem to relate to the passenger power that the hon. Member for Hertford and Stortford wants.

It is nonsense that the current successful operator has been barred from bidding for ideological reasons, but Eurostar East Coast, which is ultimately owned by the French and British Governments, has been shortlisted. The refranchising budget runs to £6 million. In the light of today’s discussions, it is disgraceful that Ministers are wasting Government time and taxpayers’ money on this unneeded, unwanted and wasteful privatisation, instead of getting to grips with the cost of living crisis and addressing problems on routes such as the Hertford loop.

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

Is the hon. Lady considering taking other services back into the public sector when the franchises run out, should her party win the next election?

[Lilian Greenwood]

The Minister is aware that we are committed to maintaining East Coast as a public sector comparator, if we are in a position to do that, if he has not already privatised it. Certainly, given the amount of taxpayer and fare-payer money going into our rail system, we are right to be open-minded about considering possible rail reform, in the interests of passengers and taxpayers.

Investment in the Hertford loop line must lead to improved services in the short term and long-term strategic questions need to be dealt with, including about the trains used on the line. I urge the Minister to concentrate on securing those improvements, on this line and on other commuter lines, instead of pursuing a costly and wasteful privatisation that will not benefit passengers.

--- Later in debate ---

[Mr Goodwill]

I will see whether that information is available. If my hon. Friend tables a written question, he will probably get an answer more quickly than if he writes me a letter. Written questions seem to be an effective way to get officials to work as quickly as they can.

We have already told First Capital Connect that it must continue to challenge Network Rail to improve its performance on the line, and we are seeing some positive signs, including better plans for clearing trackside vegetation and for reducing minor defects in overhead line equipment. Network Rail has also started a programme of measures to reduce fatalities at stations. I welcome the programme, and I am aware that Network Rail has looked in some depth at how those tragic incidents can be reduced. Not only are fatalities still a significant cause of delays on the network, but of course each and every incident is a tragedy for the families of those involved.

First Capital Connect’s franchise agreement, as with all franchise agreements, contains benchmark measures. It should be stressed that although passengers have seen some significant delays, particularly in the recent extreme weather, the operator’s overall performance is well within its contractual requirements, which are measured as moving annual averages. We will continue to monitor the situation closely, and we will be quick to act in the event of any breach of the operator’s contract.

[Lilian Greenwood]

What discussions has the Minister had with First Capital Connect on how it deals with delays? The hon. Member for Broxbourne (Mr Walker) said that delays are often unavoidable, such as in periods of inclement weather, but it is how the operator deals with those delays and informs passengers of the cause and of how long the delay will last that causes the most inconvenience and upset.

[Mr Goodwill]

The hon. Lady is right. One of the problems, as mentioned by my hon. Friend the Member for Stevenage (Stephen McPartland), is with the information provided to passengers. We have discussed inaccurate information on the live update boards with First Capital Connect, and my hon. Friends the Members for Broxbourne (Mr Walker) and for Enfield North, who also mentioned the problem, may be interested to know that First Capital Connect is already considering the implementation of a live countdown system at a number of stations. Although I cannot promise that the system will be installed at every station for the time being, it is definitely a step in the right direction.

This month Passenger Focus, the statutory representative body for rail passengers, published the autumn results of its national passenger survey, which contained some positive signals for First Capital Connect passengers, so it is not all bad news. For example, First Capital Connect showed an annual 10% increase in satisfaction with the way it deals with delays and a 5% increase in satisfaction with the helpfulness of staff. Good results were also seen in improvements to the train and station environment; passengers report that trains and stations are cleaner and better maintained.

[Mr Goodwill]

I am not saying that everything in the garden is beautiful. I am saying that there are a few more blooms around this year than in the past. The pressure is now on First Capital Connect to improve performance on punctuality and reliability, in which the survey showed an annual decline.

As my hon. Friend will know, we are planning to re-let the franchise in September, and the Department is currently assessing bids from several operators and looking at their plans for the future. I am sure he will understand that I cannot say more about the details of those bids at the moment, but I assure him that the new franchise will contain a regime of financial penalties and rewards to improve passenger satisfaction.

The extent to which bidders meet or exceed the Department’s requirement to improve the quality of services and to increase customer satisfaction will form an important part of the evaluation of bids, as my hon. Friend suggested. The winning bidder will be required to publish a regular customer report, setting out how it is engaging with passengers and taking account of their views, and how it is meeting its commitments and targets. It will also have to monitor and publish its performance against a new passenger experience metric, which combines a national passenger survey of satisfaction run by Passenger Focus, an independent body, and an objective assessment of service quality. We will, of course, make further announcements in due course.

If my hon. Friend is interested, extensive information on the new TSGN franchise is available publicly on the gov.uk website and includes the draft franchise agreement and the invitation to tender. Between them, those two documents set out the Department’s detailed expectations of all bidders hoping to be the next operator of train services in my hon. Friend’s constituency. In particular, they provide a full explanation of how the operator will be challenged to improve services throughout the entire spectrum of passenger experience, and detail how it will be rewarded if it exceeds passenger expectations, or held to account if it falls short. They also explain how the operator will be measured against the targets, including by reference to the national passenger survey independently undertaken by Passenger Focus.

On compensation for passengers, Network Rail pays compensation under schedule 8 of its track access agreement to train operating companies for unscheduled delays. A proportion of that will find its way to passengers via delay repayment refunds, but I accept that it is sometimes a hassle to fill in the paperwork and get the refund.

I was pleased to hear my hon. Friend the Member for Enfield North praising some of First Capital Connect’s front-line staff. I hope that passengers will take advantage of its facility to nominate staff who go an extra mile for passengers.

[Lilian Greenwood]

I want to take the Minister back to the new franchise, which is a management-style contract. How will he ensure, or what action has he taken to ensure, that there is better integration between Network Rail and the successful operator under the new contract? I am thinking of experience elsewhere, such as the alliance with South West Trains.

[Mr Goodwill]

There is often criticism of such franchises and questions are asked about what incentive there is for the operators to provide a decent quality of service as they do not keep the revenue. We are very mindful of that.

The winning bidder’s performance in key areas will be subject to a performance regime with financial incentives and penalties used to drive the quality of service, protect passengers’ interests and, therefore, increase revenue. The winning bidder will focus on reducing delays, cancellations and short trains and improving customers’ experience of the railways in the franchise area, not just on minimising costs.