Wales and Borders Franchise

Liz Saville Roberts Excerpts

Tuesday 7th November 2017 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Does my hon. Friend agree that the previous franchise emphasised punctuality above all else in terms of success, and that for the next franchise to be a success, it must also include customer satisfaction in its criteria?

[Jonathan Edwards]

I am grateful for that intervention. My hon. Friend, who is the parliamentary leader of our party, serves on the Select Committee on Welsh Affairs, which has done very detailed work on this issue and specifically on the initial franchise procurement. The Committee, which consists of members from across the House, was especially damning of how that franchise was constructed.

Let us fast forward to 2015, when the story of this not-so-great train robbery steps up a gear. The then Prime Minister, David Cameron, and his deputy, Nick Clegg, graced Wales with their presence to announce a new devolution deal. As part of the so-called St David’s day agreement, we were told that powers over the procurement of the next rail franchise would be devolved. The cheers at our national stadium, where they made the announcement, were reminiscent of those at a Six Nations match. Finally, we thought, Wales would get the power to create a rail system fit for our people. Sadly, as is often the case, that optimism was misplaced.

In the next section of my speech, I will try to piece together what is a complex picture of confusion, chaos and ineptitude by Governments at both ends of the M4. As is often the case with such matters, each individual element of the story seems unremarkable—inconsequential even. However, in the round, we see an intriguing episode of incompetence, which has already cost millions of pounds and could mean chaos for rail users in Wales.

The story starts just over a year ago, in September 2016. Combing through what was then the Wales Bill—it is now the Wales Act 2017— I spotted what I assumed was an error. Despite the Government’s boy scout promises, devolution of the franchise was not included in the Bill. Being the assiduous and diligent parliamentarian that I am, I decided to flag up that omission to the Secretary of State for Wales. Following the appropriate procedures, I tabled an amendment to the Bill that would devolve the franchise. On 12 September, in a Report Stage debate on the Wales Bill, I sought the Minister’s assurance that the error would be rectified. I said:

“Before I get into my speech, may I say that I will gladly not say a word”—

regarding devolution of the franchise—

“if the Secretary of State or the Minister intervenes to say that they will proceed with that promise and if they outline the legislative vehicle whereby these powers will be devolved to Wales?”

The Secretary of State replied:

“We are negotiating with the Welsh Government over the use of a transfer of functions order under the 2006 Act.”—[Official Report, 12 September 2016; Vol. 614, c. 671.]

The more naive may have thought that that was job done, but as a veteran of many a Wales Bill, I know that devolving powers is not such a simple task, so we continued to push. During the Welsh Affairs Committee inquiry into procurement of the next Wales and Borders franchise, my hon. Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts) repeatedly asked how the Welsh rail responsibilities would be devolved. Every time she asked the question, whether to a UK or Welsh Government representative, she met with the same complacent response, “It’s just a technical thing; it will all get sorted,” yet everything seemed not to add up. Why wait to devolve the franchise if we could already do so? Why risk waiting? Why circumvent parliamentary scrutiny? Why be so complacent about the powers required for a multibillion-pound contract? Was the reason ignorance, incompetence or something more sinister?

Thanks to my hon. Friend’s excellent work, people will find on page 13 of the report two recommendations calling on the UK and Welsh Governments to update the Committee on the progress of the talks on the transfer of functions and to ensure that there is effective scrutiny of the transfer of functions and the way in which the Governments have agreed to devolve the powers. Of course, neither of those recommendations has been followed.

On 13 October 2016, despite still not having any powers actually to procure the franchise, the Welsh Government announced four shortlisted operators for it: KeolisAmey, a joint venture between French transport giant Keolis and public service provider Amey; MTR Corporation, which has interests globally from Australia to Sweden and is based in Hong Kong; Abellio Group, which operates bus and rail networks across Europe and is the international arm of the Dutch national rail operator; and the existing German state-owned operator Arriva. Those were the only four to enter a bid to run the next franchise.

According to the original plan, the four bids would be assessed by Transport for Wales, a Welsh Government-owned company. Through a process of “competitive dialogue”, the four bidders would work to create one of the most ambitious franchises ever, with the south Wales metro and the rest of the Welsh network covered by a single operator.