Railways: South-eastern Franchise

Lord Snape Excerpts

Thursday 4th July 2019 Lords Chamber

[Baroness Vere of Norbiton]

I reassure my noble friend that we are keeping a very close eye. Obviously, the new trains are freight like everything else when they are being transported, but we are concerned by the proposed significant increases. As I have said, we will be looking to the ORR to provide that robust challenge.

[Lord Snape (Lab)]

Does the Minister agree that it was perhaps an unfortunate business for the coalition Government—which I recollect included the Liberal party—to vote to sell Britain’s first high-speed line to a foreign-based consortium? Does she agree with my noble friend that such consortia will be more concerned about their return to Canadian teachers, as well as South Korean pensioners, than the plight of passengers travelling between St Pancras International and Ashford? Whether she agrees or not, what is she going to do about it?

[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.