Welsh Ministers (Transfer of Functions) (Railways) Order 2018

Lord Wigley Excerpts

Monday 16th April 2018 Lords Chamber

In giving effect to the transfer of functions, we sought to reconcile the need for appropriate accountability for both the UK and Welsh Governments for rail services solely in their territories, while ensuring that the experience of passengers in terms of connectivity and quality of service will be maintained and improved. Welsh Ministers have formally approved this draft order. I beg to move.

[Lord Wigley (PC)]

My Lords, it would be very strange if I did not welcome a devolution order, but in extending that welcome I have some grave reservations and three questions I wish to raise with the Minister.

First, on achieving some integrity of service, surely the infrastructure of the railway system should be devolved to Wales alongside appropriate funding to ensure a holistic approach to railway services in Wales. The position in Wales is in stark contrast to that in Scotland. Can the Minister tell us why?

Secondly, why has there been such an inordinate delay? I understand that the order is 12 months behind schedule. The blame may be at one end of the M4 or the other, but it lies somewhere, because we are now coming right up against the deadline. The new franchise has to be up and running less than six months from now. Only two of the four companies remaining are bidding for it, and it is totally unsatisfactory that the two contenders should not have known sooner. Is it technically possible to carry out all the aspects of the new agreement within that timeframe, in fairness to the companies which take on the responsibility? Also, which department will take responsibility if there is a failure to deliver the franchise in that time?

Thirdly, regarding the powers and timescale, do the Welsh Government include as part of the franchise a requirement to negotiate with one of the two successful bidders the remaining development of the proposed Cardiff valley metro lines to which the Minister has referred? Has that been accepted as part of the contract requirements? Will it be the responsibility of the Welsh Government or the Department for Transport to make sure that that is rolled forward after this measure comes into operation?

[Lord Bradshaw (LD)]

My Lords, there are several questions I should like to address to the Minister. First, I offer her a caution against the bureaucracy she has described. I have managed a Wales and borders franchise; I began my career on the railway at Shrewsbury, which is right in the middle of it. It does not need a lot of civil servants to manage a railway. The people who are going to take on the Wales and borders franchise will, we hope, be experienced railway managers who are able to deal with their customers and will expect to satisfy the rail regulator that they are doing so correctly. I find it very difficult to know what a joint board is going to do except add to the bureaucracy. The new Wales and borders franchise management will of course be accountable to the elected representatives in Wales and I am sure that people in places such as Ludlow will be able to write to their MP, who will take up any reservations they have with the department. Most respectable operators do not expect much involvement by MPs in the decisions about how to run their franchise: the competition is to determine somebody who is capable of running a franchise.

More specifically, I want to ask the Minister to make it clear whether investment in the railways in Wales forms part of the settlement between Westminster and Cardiff, or what happens if there are funds for which people have to bid? This Government have often, in all sorts of places, had a fund which has been open to all people. If such a fund has in the future to be the responsibility of the Welsh Government, does the money entirely come out of what Wales gets?

Secondly, I turn to the question of safety. I want an assurance that the regulations that apply to the railways are going to be handled evenly across Wales and England. I give as an example the recent failure of the much-vaunted signalling system on the Cambrian line, when two trains were found to be able to go into a section of signalling. Will that sort of thing still be the reserve of the regulators at the Office of Rail and Road across the UK, rather than a separate body of any sort having to be set up in Wales?

Thirdly, is there any variation in the arrangements for pensions, promotion, conditions of service, travel or other concessions which apply to people engaged in the franchise? That needs to be clarified. These are some of my concerns and I note that the noble Lord, Lord Wigley, has raised others. We can probably leave the question of the management of the franchise to the new franchisees, but we want it to be made quite clear how it is going to work and how issues such as investment will be determined in future.