Lord Snape
Main Page: Lord Snape (Labour - Life peer)
Lord Snape
My Lords, first I apologise to the noble Earl for missing the first three minutes of his speech. I am afraid that I was running late, as was the Virgin train that I came down to London on this morning. However, it is about time that those of us who participate regularly in these debates in your Lordships' House paid tribute to those in the transport industries generally, and certainly in the railway industry, for the high level of passenger satisfaction that has been demonstrated in recent months. The PPM for our railways is running at about 94 per cent, which reflects enormous credit on those who work in the railway industry. We ought to give credit where credit is due and pay tribute to railway men and women at all grades for the efforts that they are making and for the high levels of passenger satisfaction that have been demonstrated throughout the country.
Having apologised to the Minister, I now thank him. He sent me a handwritten note last week thanking me for participating in this debate. Whether he will send me another one when I sit down remains to be seen. However, it is the first time that I have received such a note from a Minister, and I am grateful for it.
A very short time is available to all of us who are participating in this debate. The Minister is right that good and efficient transport is essential for a civilised society. I start with a warning to the noble Earl, Lord Attlee, and to the Government, about the so-called draconian cuts that are planned—if the media are to be believed—across our transport industries. The new Secretary of State did not make a particularly good start when he talked about the new Government’s policies ending the war on motorists. It is a pretty phoney war, because the cost of motoring has fallen in real terms since 1997 compared with the cost of travelling by both rail and bus, which has increased in real terms. I hope that his future pronouncements on government policy, and his actions, will be based on reality rather than prejudice.
The Government are seeking to make many savings in the transport budget. I will presume to make some suggestions to the Minister, which I hope he will accept in the spirit in which they are offered. Certainly, there is a problem with Network Rail. I probably carry both sides of the House with me when I say that various obvious savings can be made in the Network Rail budget. There are three things wrong with Network Rail: its governance, its performance and its prices. There is a lot wrong with its governance. I have had the privilege of serving on a couple of boards in my career. Any board that has more than 100 members is a recipe for chaos. I am not sure why Network Rail’s governance is as chaotic as it is, or why it has so many people on what is not a board of directors but merely an advisory group. Perhaps the best size of a board is five or six; it is certainly a lot less than 100.
We all know why Network Rail was created in the way that it was; it was an attempt by the previous Government to keep their expenditure off the PSBR. Laudable though that may be, it is no way to run a business to have an advisory board of the size that Network Rail has. I hope that the Government will look again at this. At the moment, Network Rail appears to be neither fowl nor good red herring. If it is to be run properly, the Government have to look again at its overall governance.
The Government should also look at Network Rail’s performance. All too often, these debates become a series of “All Our Yesterdays” stories, but from my time in the railway industry I seem to remember the much maligned British Rail being far more efficient than Network Rail is at present. As an 18 year-old newly qualified signalman in 1960—that rather gives my age away—the old BR managed to resignal Manchester London Road, as it then was, in a weekend. The semaphore signals dating from 1908 were swept away and scores of colour light signals were put into what became Manchester Piccadilly. Actually, it did not work out quite as well as BR had hoped, as I think it was about Wednesday before we were able to run a comprehensive service. However, for all that to be done in four days, although the target was two, far surpasses anything that Network Rail can do at the moment. I live very close to Yardley Wood station in Birmingham. Only last year, Network Rail decided to resignal the Stratford line, which passes my home. It was necessary to close the line on successive weekends and then for the line to be completely closed for 10 or 12 days in order to install a dozen signals and a new junction at Tyseley. BR could do things far better than that. Network Rail has to toughen up its performance if it is going to match what BR managed to do quite easily in the past.
The other aspect of Network Rail’s performance is price. I was at a recent meeting of the All-Party Group on Rail at which officers of the Office of Rail Regulation were present. They talked about benchmarking Network Rail. How do you benchmark a monopoly? Perhaps the Minister can tell us how that can be done. Is it necessary to have a monopoly such as Network Rail? After all, rail companies such as ScotRail run an organisation that is largely separate from the rest of Network Rail. Why not allow ScotRail to maintain its own track and infrastructure? There could then be a proper comparison between the costs there and those of the rest of the railway network. Why not let Merseyrail, for example—again, an organisation that is virtually completely separate from the rest of the network—operate and maintain its own track on Merseyside? Surely that would be the best way to benchmark Network Rail, where the simplest job appears to cost hundreds of thousands of pounds. If the Government genuinely want to save money—I understand their reasons for wanting to do so—why not have proper cost comparators such as that? As long as Network Rail is allowed to maintain its own monopoly, we will never really know the true cost of major railway works, and we have to accept the costings before, during and after as laid down by Network Rail.
There are other areas that I hope Her Majesty’s Government will look at. In the West Midlands, for example, close to my former constituency of West Bromwich is a company called Parry People Movers, which operates about 700 or 800 yards of line between Stourbridge Junction and Stourbridge. It has achieved a 99 per cent reliability rate on that stretch of line. Why—this is not a political point; it happens under all Governments—do we find it so difficult to innovate within the railway industry? Why are we so hidebound and traditional as to insist on rolling stock being made to the highest possible standard and with the tracks being maintained as though Pendolino trains will run at 125 miles per hour throughout the network? Why cannot we have a cheap and cheerful branch line perhaps run by Parry People Movers? I hasten to add that I have no direct connection with the business. Some years ago, John Parry, the chairman, asked whether I would be interested in joining his board. At that time, I was working for a rather bigger organisation called National Express, so, probably to his relief, I had to turn him down.
This is an area in which genuine savings could be made. We could operate a cheap, or cheaper, railway system on some of our threatened branch lines. Indeed, we should consider reopening some of them, but that cannot happen at present because of the costs of operating the current railway system.
I hope that the Government will look not at slashing front-line services or cutting railway infrastructure but on making the present system work more cheaply and efficiently. I hope in the 10 minutes or so available to me that I have been able to give the Minister some food for thought and that the Government will see that we depend on the railway industry economically as we do on other forms of transport.
I wish that I had time to talk about buses and aviation, but I know that other noble Lords want to participate in the debate and I do not want to take up too much time. The transport industry can do a lot to boost the economy of the United Kingdom, so please let us not slash infrastructure or front-line services.
Going back to my BR days, all too often when cuts had to be made it was the night-turn shunter who lost his premium payments on Saturday and Sunday nights. The problem with the present railway industry is that it is overmanaged and undersupervised. All too often when things go wrong, managers are far away and not in a position to put things right and no one on the spot has the ability, knowledge or authority to do what is necessary to combat either delays or dislocations. The Government could genuinely save money in those areas while preserving the best of our railway industry.
I wish the Minister all the best in his new post and hope that he can convince the Secretary of State that clichés such as “Ending the war on motorists” are not the right way forward. I also hope that he can find some time to write me another letter saying that not only are the Government taking some of my strictures on board but that they are prepared to act on them.