Rail Reform

Louise Ellman Excerpts

Thursday 8th March 2012 Commons Chamber

[Justine Greening]

I believe that the performance on that line is starting to improve, but the document we are issuing today is all about making sure that train operating companies are in a position to deliver, and are working with Network Rail to deliver, better services for passengers in a more efficient way.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

I welcome the Secretary of State’s willingness to look at the rail sector overall, but how much funding do the Government intend to remove from supporting the rail service? Will she explain exactly how the spiralling cost of rail fares will be addressed, overcrowding will be reduced and extra capacity can be produced where it is required, such as across the north?

[Justine Greening]

We recognise that we need to tackle the underlying inefficiencies in the railways, which Sir Roy McNulty identified as totalling around £3.5 billion. I also recognise that some of the network provides a broader public good and that there will therefore be a need for public subsidy. However, we need to make sure that that represents good value for taxpayer money. We are concerned about overcrowding. That is why we are investing in 2,700 new carriages, which will provide extra capacity. That is why the overall £18 billion of investment going into the industry is so crucial; that is one way in which we can improve performance. Of course, making sure the industry is financially sustainable is absolutely critical too.