Rail Update

Lord Liddle Excerpts

Monday 5th February 2018 Lords Chamber

[Baroness Sugg]

I am pleased that the noble Lord’s experience of staff on the trains is positive. He is absolutely right to say that they are committed. When we are making decisions about future franchises, we are also trying to provide consistency and structure for them, so that they have the security of knowing that the services will continue. I am afraid that I do not agree with the noble Lord on privatisation. I have spoken before about the amount of investment it has brought in. Passenger numbers have doubled; we have one of the highest satisfaction levels and safest networks in Europe. New trains would not have been delivered without private investment from rail franchising. Some 7,000 new carriages will be introduced to the rail network between now and 2021.

[Lord Liddle (Lab)]

My Lords, I share the interests of my noble friend Lord Judd as a regular traveller on Virgin trains and agree with his kind remarks about the staff. I seek a point of clarification from the Minister about what she said in the Statement and in answer to questions. Is she saying that the Secretary of State has no legal power to ban Stagecoach from seeking to operate this franchise in future? Is it being seriously suggested that if Stagecoach tried to take the Government to court, because it was not allowed to bid, a judge would uphold its right, given the way it has let down the taxpayer in this instance?

[Baroness Sugg]

My Lords, as Stagecoach is meeting its contractual obligations to support the franchise, including full parent-company support, and because it has operated the services on the east coast, there are indeed no adequate legal grounds to restrict it from bidding in future franchise competitions. That is the current situation: we will continue to look at it as the months progress and we look at future franchises.