Railways: South-eastern Franchise

Lord Beith Excerpts

Thursday 4th July 2019 Lords Chamber

[Baroness Vere of Norbiton]

I thank the noble Lord for that comment. I do not agree—surprisingly enough—that the sale of this asset to investors, foreign or otherwise, was a bad idea. Long-term infrastructure investors can provide a useful source of capital to assets precisely like this. This is why the ORR is involved in this process: it will determine if the concession agreement is being met and the outputs that HS1 must deliver in the next control period. It will look at the asset management plan, the regulatory framework, the structure of the charges and the charges themselves.

[Lord Beith (LD)]

My Lords, will the Minister clarify the press reports about franchising that have appeared today, indicating that the Government may give the state-owned LNER a five-year extension of its franchise?

[Baroness Vere of Norbiton]

I am afraid that the noble Lord has me stumped on that one, because I have not seen those press reports. I will certainly write to him if I can find out any more information.

Railways: Newcastle and Edinburgh

Lord Beith Excerpts

Monday 24th June 2019 Lords Chamber

Asked by

[Lord Beith]

To ask Her Majesty’s Government what discussions they have had with train operators about additional train services between Newcastle and Edinburgh.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, there are three possible sources of additional train services between these two stations. LNER is extending two Newcastle services to Edinburgh in September and plans one further extension in December; TransPennine Express plans to extend its Liverpool to Newcastle service to Edinburgh from December 2019, adding a further 13 services Monday to Saturday and 10 services on Sunday; and by December 2021 FirstGroup will start its open access trains, which will provide five trains per day in each direction between Edinburgh and London.

[Lord Beith (LD)]

Bearing in mind that the local stations along the line deserve a better service, will these trains be able to stop at intermediate stations or will capacity constraints mean that they have to run express from Newcastle to Edinburgh? For example, late-evening services are needed because 9 pm is a bit early to say that you have to leave an event in Edinburgh in the evening.

[Baroness Vere of Norbiton]

Determining whether there is enough capacity for new or extended services on this or indeed any other route is a matter for Network Rail and for the Office of Rail and Road through the sale-of-access rights process. If a route is congested and needs extra investment, it would be initiated and considered through the new Rail Network Enhancements Pipeline process. The industry is developing the timetable for the east coast main line and it will look at all the bids for timetable slots, whether they are for stopping or direct services.

Railways: East Coast Main Line

Lord Beith Excerpts

Tuesday 30th October 2018 Lords Chamber

Asked by

[Lord Beith]

To ask Her Majesty’s Government when new trains will be in service on the East Coast Main line between Newcastle and Edinburgh.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, passengers across the east coast main line, including in Newcastle and Edinburgh, will benefit from the introduction of new trains by London North Eastern Railway, delivered through the Government-led intercity express programme. These new trains will transform passenger journeys, providing more seats, more frequent services and faster journeys. LNER is working closely with Hitachi Rail Europe, Network Rail and other industry partners to bring these trains into service as soon as possible, with a full rollout scheduled to be complete by 2020.

[Lord Beith (LD)]

My Lords, the noble Baroness did not say very much about when these particular sections of the line will have the service. Because these new trains apparently interfere with the outdated signalling and points system on the east coast main line—and also, bizarrely, because the regulator thinks people might use the interconnecting things to climb on top of the trains—the introduction north of York has been delayed. In what year will each of these sections of the line get new trains, and for how long will the service depend on worn-out HST trains which are 40 years old?

[Baroness Sugg]

My Lords, I am happy to give some more information on the timings. The first trains were due to enter service in December this year, but LNER has recently announced that these will not be introduced until early next year. There remain challenges relating to electromagnetic capability, ORR approvals and train design. Of course, this is disappointing for all involved, but when introduced the trains will provide more seats and faster journeys. As I said, the full rollout of the east coast fleet is still scheduled for completion in 2020.

Railways: CrossCountry

Lord Beith Excerpts

Wednesday 18th July 2018 Lords Chamber

Asked by

[Lord Beith]

To ask Her Majesty’s Government what steps they are taking to ensure that the Cross Country rail franchise, when re-let, continues to provide regular services to stations north of Newcastle.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, the Department for Transport launched a public consultation on 7 June to seek views on the CrossCountry rail franchise and to identify options for improvement. We will consider the responses fully before making any decisions on that route but, as stated in the consultation, there will be at least one CrossCountry train per hour north of Newcastle, to Edinburgh or beyond. The options for intermediate stops to stations north of Newcastle form part of the consultation.

[Lord Beith (LD)]

Does the noble Baroness realise that CrossCountry is a key provider of train services from Berwick, Alnmouth and Morpeth, leading to 475,000 passenger journeys a year? Does she recognise that there are worrying suggestions in the consultation document to which she referred of,

“fewer calls at some stations”,

and fewer trains between York and Edinburgh? In his foreword, the Secretary of State states that his priority is to reduce crowding. Will he do that with longer trains, or by telling people in Northumberland to get into their cars while the trains whizz through the stations without stopping?

[Baroness Sugg]

My Lords, the consultation does indeed ask for passenger views around the stops that the noble Lord mentioned, as for other intermediate stops across the country. We want to address overcrowding, which will be done through additional rolling stock but there are other ways to look at that too. Of course passengers have conflicting demands: some will want quick express services and others will want a stopping service to get around locally. The point of the consultation is for passengers to tell us what they want from that service. I certainly do not want to alarm the noble Lord or the people of the north-east. I know how much the services are valued, and of course passenger views will be properly reflected before setting the minimum requirements for the new operator.

Railways: East Coast Main Line

Lord Beith Excerpts

Wednesday 23rd May 2018 Lords Chamber

[Baroness Sugg]

My Lords, I am afraid that I do not know the exact size of the trains on the new local railway. On capacity, moving towards the east coast partnership, as we are planning to do in 2020, will enable both Network Rail and the train operator to work closely together to ensure that we have enough capacity on all lines.

[Lord Beith (LD)]

My Lords, who will employ the staff under this arrangement, and what assurances have been given to them about their future?

[Baroness Sugg]

My Lords, that is a key question. As the noble Baroness pointed out, they have delivered an incredibly high passenger service and we should absolutely pay tribute to them for doing so. They have seen a number of changes in the train operating companies over the years. We can reassure staff that changes will not impact on their continued employment; it will be no different from a normal franchise change. Staff will be transferred and their existing terms and conditions of employment will be protected.

Railways: East Coast Main Line

Lord Beith Excerpts

Tuesday 13th March 2018 Lords Chamber

Asked by

[Lord Beith]

To ask Her Majesty’s Government what arrangements they propose for the continuation of train services on the East Coast mainline.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, the Government are currently reviewing two options for the continuation of services on the east coast. Our priority is the continued running of the line for passengers. The first option is to allow Stagecoach to continue operating the service under a very strictly designed short-term contract. The second is for the franchise to be directly operated by the Department for Transport through an operator of last resort. We will choose the best option that protects the interests of passengers and offers value for money.

[Lord Beith (LD)]

My Lords, the fact that we are on the third failed franchise is down to incompetent franchising, fanciful overbidding by operating companies and a failure of the publicly owned Network Rail to deliver the track and overhead improvements on which the bids were based. What is the plan now? Are there only two options or more than that—a rerun franchise competition, a new type of franchise combining track and train operation, a nationalised operator or a sweetheart deal for Stagecoach/Virgin to run the trains without taking the risks? When will we know?

[Baroness Sugg]

My Lords, we expect to make an announcement on the two options in the coming months. From 2020 there will be a new east coast partnership as part of our reform of track and train to ensure that they work together better to deliver the services that passengers need.

Rail Update

Lord Beith Excerpts

Monday 5th February 2018 Lords Chamber

[Baroness Sugg]

My Lords, I agree that there is no simple reason why the franchise has failed; there are a number of reasons. The east coast has not performed as expected. It can be attributed to external factors which were not predicted. For example, the decrease in petrol prices resulted in increased competition. On the enhancements, from the start of this franchise to date all the infrastructure upgrades planned for the east coast have been delivered. Further upgrades for the route are planned but were not due to be completed by this stage. It is clear that Network Rail’s overall performance has not been satisfactory in recent years and we need a change within the business to deliver a more customer-focused policy. Network Rail has committed to transformation and an efficiency programme of change. That will see it judged on the performance it delivers for passengers in partnership with train operators. We continue to push Network Rail to devolve to ensure that there is one route managing director directly accountable to passengers.

[Lord Beith (LD)]

My Lords, the noble Baroness says that on a franchising system such as this operators will sometimes fail; I think those were her words. This is three times on the same route. I fancy that if GNER had been allowed to exit its contract on a basis as favourable as Stagecoach has been allowed to, with the possibility of rebidding, it might not have left the line in the first place, which would have been helpful as it was probably the best of the operators that we have had. But each time we are told, “Oh, the department is refining its system. It is all going to be better next time”. Given the three failures, is there really a system in place which can judge bids at all?

[Baroness Sugg]

My Lords, on the failure of franchises, the Statement quoted the Brown review, which identified that it is neither sensible nor realistic to design franchise structures that seek to completely eliminate the risk of default. At the time, the department carried out an assessment to ensure that the bid was realistic and in the best interests of taxpayers and passengers. However, Stagecoach rightly took a degree of risk with its assumptions. I do not recognise the noble Lord’s view that this has been a favourable exit for Stagecoach. As I said, we are holding it to its obligations, and this has cost it dearly. It has lost almost £200 million running the service—a big sum for a company which is worth less than £1 billion.

Sub-national Transport Body (Transport for the North) Regulations 2017

Lord Beith Excerpts

Monday 18th December 2017 Lords Chamber

[Lord Beith (LD)]

My Lords, I welcome the authority that is being given to Transport for the North by these regulations and, indeed, welcome the work that Transport for the North has done so far, even without the status that the regulations give it. It is my hope that the strategic planning that it does will lead to some of its advice being taken by the department and some correction of a very serious imbalance to which other noble Lords have referred in levels of transport infrastructure investment in the north as compared with the south-east of England. That area has recognisable problems that require some fairly expensive solutions—but not at the expense of ensuring that we have the kind of transport system that encourages prosperity, business and innovation in the north of England.

When I say the north of England, I think particularly of the north of the north, not simply of the Hull-Manchester-Leeds-Liverpool corridor, important though that also is. As I have done previously, I want to encourage Transport for the North—given the powers that it now has—to address some of the issues that are important to us in the far north. That includes, of course, the franchise problems to which the noble Lord, Lord Liddle, referred. I say “problems”, but the reality is that every single commercial operator that has taken on the east coast franchise has been unable to deliver the terms of the contract and has left it—in the most recent case—on terms that are extraordinarily favourable to the contractor. In earlier cases, the terms were not so favourable to the contractor. This is the most important transport link for the north-east of England, as well as Scotland, and that issue will clearly require further attention.

Among the issues that I hope Transport for the North will be able to give the department strong advice on are issues which it has worked on for some time but which we want to see come to fruition. These include the extension of the trans-Pennine route through to Edinburgh, up the east coast main line; the reopening of services such as the Ashington rail link; and the development of commuter services into Newcastle, such as the one from Chathill, which is a small, Cinderella service. Newcastle has its own requirements for transporting people into the city centre and problems with excessive use of cars for that purpose. There is a lot of work to be done and I am glad that Transport for the North has been given the authority to get on with it.

[Lord Beecham (Lab)]

My Lords, I declare an interest as a resident of Newcastle and a member of the local authority. I also have the misfortune of being a regular traveller on Virgin Trains East Coast. I had the pleasure of sitting in a train outside Spalding for four hours recently while the train ahead of us had broken down. The relief train that was sent to deal with the problem also broke down. That is only one of the more dramatic examples of Virgin’s failure. As my noble friend Lord Liddle and the noble Lord, Lord Beith, have referred to, Virgin is now withdrawing, five to six years ahead of the date by which the contract should have ended. It is known that it had pledged £3.3 billion. I do not know whether the Minister is in a position to say how much it has benefited—or will benefit—from its decision to withdraw. Looking to the future, I join other noble Lords in welcoming the new organisation. Will it have a role in deciding—along with others, of course, because the train service runs from Scotland down to London—who will obtain the next franchise and on what terms? That is really important.

I mentioned Scotland. The north does not only look south; it also looks north. We need better road connections. A certain amount was done shortly before the general election, which was some time ago. That no doubt assisted on a political level, but it has not yet provided the improvements required. I trust that TfN will have the opportunity to press the Government on that.

Another aspect of the relationship with Scotland, to which I have referred from time to time in your Lordships’ House, is the question that still hangs over the future of air passenger duty. It is thought that, given the opportunity, Scotland may well exercise its right to abandon that duty. That would have a very adverse effect, certainly on Newcastle Airport and, I suspect, on other airports across the northern region. I have yet to get an indication from the Government of what their attitude would be if Scotland exercised its apparent right to abandon the duty. I would hope that, in the interests of the whole of the north, they would be able to follow that decision and apply it to the north of England. It may be that the Government would wish to see the whole thing gone, nationally. One way or the other, it would be extremely disadvantageous to the north if Scotland was able to do away with APD and the north was stuck with it. I am sure that TfN will have views about that, and I hope the Minister and her colleagues will take note of them, should the situation arise.

Transport: North East of England

Lord Beith Excerpts

Thursday 20th July 2017 Lords Chamber

[Lord Callanan]

I do not think there is a gender pay gap, particularly on the railways, between men and women—the problem is just quantity. Currently 95% of train drivers are men. Women can do the job perfectly well and, given the state of industrial relations and the problems on the railways, I hope that we get many more sensible, pragmatic women train drivers. They might see the benefits of the current 24% pay rise that is being offered and want to get on with doing the job that men, in some cases, sadly, do not.

[Lord Beith (LD)]

My Lords, the coalition Government committed substantial funds to the Highways Agency for schemes, including dualling a considerable part of the A1 north of Morpeth. Can the Minister give me a specific assurance that that is not one of the nine schemes that the Highways Agency is now reviewing and may not go ahead? Otherwise, can he be quite firm in the promise that the work will begin in 2018?