Increasing Choice for Rail Passengers

Madeleine Moon Excerpts

Wednesday 11th July 2018 Westminster Hall

[Mrs Madeleine Moon (in the Chair)]

Because of the Division, this debate will last until 5.43 pm.

[John Penrose (Weston-super-Mare) (Con)]

I beg to move,

That this House has considered increasing choice for rail passengers.

It is a pleasure to have you in charge of our proceedings, Mrs Moon. It seems that almost no one is terribly happy with how our railways are performing at the moment. Not passengers, who have to suffer delayed or cancelled trains when timetables go into meltdown, as they have done repeatedly recently, causing misery for millions. Not the unions, who have been in an on-off dispute on a variety of routes for months. Not the staff, who have to cope with angry passengers every day. Not the rail firms, who have repeatedly handed back expensive franchises to the Government because they cannot make them work, and not rail Ministers, who face continuous incoming flak, from urgent questions in Parliament to critical headlines and irate passengers who lose thousands of man-and-woman hours battling to get to and from work every day.

That is odd, because until recently Britain’s railways were quite a success story; something to be proud of. Since denationalisation, passenger rail journeys have more than doubled, and we have one of the safest railways for passengers of any major network in the EU. What has gone wrong? Why is everybody on all sides unhappy with where we are today? I argue it is because franchising has run its course. It might have worked in the past, but not any more—at least, not well enough. It has become a brittle, inflexible, fiendishly complicated, expensive old thing that causes misery and frustration for millions and which nobody loves.

The root of the problem is that franchises put train firms, rather than passengers, first, because passengers do not have any real choices when things go wrong. Why should we be at the mercy of a single train company when the timetable melts down? If a train is delayed or cancelled, we ought to be able to switch to a different firm’s service that is still running instead; franchising takes away that choice. If we do not like the service the franchise-holding firm provides—tough. Our only choices are to get in the car, which could mean traffic jams and is not very green, get on a bus, which is usually slow, or just lump it and get back on the train.

It is weird, really. We would not put up with being banned from changing to a different brand of coffee, cornflakes or broadband. We expect to be able to choose between a dizzying array of different car insurers or energy firms. But trains? No.

--- Later in debate ---

[Mrs Madeleine Moon (in the Chair)]

Before I call the next speaker, I remind Members who have indicated a desire to speak of the usual convention of either approaching the Speaker’s Office, notifying the Member who has secured the debate or passing a note to the Chair.

--- Later in debate ---

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mrs Moon. I know what an interest you and other south Wales MPs have in the rail network, not least since we saw the announcement of de-electrification last summer.

I thank the hon. Member for Weston-super-Mare (John Penrose) for bringing this debate to the Chamber. There was another debate on the same subject only yesterday afternoon. It is interesting to see how many Back Benchers and members of the Conservative party now recognise that the franchising system simply is not working. We have been saying for such a long time that it is failing and has no mechanism for success.

I am glad that that recognition is there. It has been brought to the fore over the last two months with the complete meltdown of the timetable and the real pain that that has put the travelling public through. The chaos continues even today. We have a new timetable coming in this weekend. We are holding our breath to see whether that will make a difference. Quite frankly, the public has had enough and wants change. They have said that they want a nationalised railway, and I will touch on what that means for the future.

I agree with the hon. Member for Weston-super-Mare, who wrote in The Telegraph that the chaos and the franchising system are

“symptoms of a broken rail franchising system that’s so brittle and inflexible it’s causing misery for millions. Franchises put train firms first, rather than passengers”.

That cannot be the case when we are talking about a public service. I will depart from agreement with him at that point, as he might expect.

I want to pick up the point about the range of options that would be available if there was an open access system, and the thinking that if someone’s train did not arrive on time, they could simply pop on to another train. We know that does not work at the moment under open access, and in fact, there is real frustration among the travelling public that they have to buy a new train ticket or wait at the station until that operator sends another train. Open access will not solve the ills that have been described.

The fragmentation across the railway system has failed, and bringing more operators on to the system through open access would mean more fragmentation, which is the last thing that the rail system needs. The whole rail industry is clearly saying that we need to bring the rail system together. In particular, its focus has been on bringing track and train together to ensure that wheel and steel connect, so there can be a conversation about what happens on the infrastructure and between the trains that run on it. That has universal support. I agree with the Government, who have also said that that is absolutely essential. Bringing more competition and more rail operators on to the rail operating system will further fragment those relationships.

I want to pick up the challenge about the creativity of new routes. Those opportunities will exist under any system. The complexity sits in the fact that many of those routes cross traditional route lines—the main lines—so they become more complex for timetabling. We need integration, rather than fragmentation, to address those challenges.

Labour has clearly said that we would introduce a programme of nationalisation of the railway system, but I want to make it clear to all hon. Members that that is not going back; it is moving forward to a new system of nationalisation. Just as hon. Members have articulated that they want new private-market models operating on the railways, there is no one system of nationalisation. That is what we have focused on in developing our model. We have worked closely with the rail industry, rail operators—who are embracing what we are saying—and people working across the infrastructure, and we have looked at examples globally, on how best to run the railway system in the future and how to put in the challenge, opportunity, enhancements and vital long-term investment to ensure that we have a system that works best for the future.

As the hon. Member for Kilmarnock and Loudoun (Alan Brown) said, we need only remind ourselves that the fact that more people are on our rail system is because in 1997 a Labour Government came in and invested in rail services, which had been so starved of resources that British Rail was run down in its final days. It is about ensuring that resources go to the right place in the system to revitalise the railways. We will see that under a new rail structure.

So much of this is about where the money flows. We must remember that private train-operating companies do not own the trains; they lease them from the rolling stock leasing companies. They lose between 30% and 40% in the additional charging by the ROSCOs on the back of those trains. If we owned our rolling stock, we could put that investment back into the rail service, which is exactly what we need to do. A report from the industry says that 30% is lost because of the Government’s on-off decision making. I agree with the hon. Member for Weston-super-Mare that we do not want political interference in the running of our rail. The level of political interference today across the rail system is extraordinary, with the Secretary of State at the head and making decisions about which lines will be electrified.

A Labour Government would not be interested in doing that. We want the rail service to run the rail service; we do not want the state to interfere. We will set the strategy, and the nationalised company will run the railways. People who are the experts in running the railways should move forward, rather than politicians who, frankly, make political decisions about the railways, as they are today. That would not happen under the nationalised company that we will put forward to run the railways.

We would structure the railways to ensure that we get that long-term investment, because the cry from industry is that the Government changing their mind about electrification and other projects has meant that it has had to not only gain skills and put apprenticeships on to build up to a programme that the Government said was going ahead, but then lay people off. What a waste of talent, let alone resource. We want a long-term plan. The franchising system and the open access system do not serve that need. The public are demanding that we ensure that investment, so we can plan our infrastructure changes and co-ordinate them with the routes and enhancements, such as the new rails and new opportunities, that we want to bring on to the track. That is what a Labour Government will deliver when we come to power.

One thing that has not even been mentioned in the debate, although I appreciate it is about passenger choice, is that we need to ensure that the rail network is there for freight. Operators across the network also need to have good access to our tracks and the ability to move goods across our country. As we are talking about the future of our economy, it is crucial that those choices are made for the sake of our economy, and that they work.

In the future, we have to say where the investment will come from. Open access is not the answer to longer term investment in our railways. The franchising system ensures that there is a profit margin that can go to companies, although many are not receiving those profits because, quite frankly, they are failing. The amount of money that leaks out of the system is not acceptable to the taxpayer. With regard to the recent chaos, we could be talking about £1 billion of taxpayers’ money being used to pay the compensation due to that failed timetable. It failed because of franchisers putting in their different demands and everyone wanting their new routes put on to a new timetable, and the Secretary of State changing his mind about his priorities and not leaving sufficient time to put a new timetable in place. The Secretary of State’s decision making and the infighting among the railways has been so costly. That will disappear with our nationalised railway system, because we will not have the barriers that could create that.

[Mrs Madeleine Moon (in the Chair)]

Order. I hope the shadow Minister is about to wind up. We have to hear from the Minister yet.

[Rachael Maskell]

I am watching the time. I will not go over my halfway mark.

[Mrs Madeleine Moon (in the Chair)]

You have gone over your five minutes considerably.

[Rachael Maskell]

Five minutes?

[Mrs Madeleine Moon (in the Chair)]

In an hour debate, it is five minutes.

[Rachael Maskell]

No one has ever told me that before, so thank you, Mrs Moon. I will come to my conclusion.

We want to ensure that the rail system works for passengers, that it improves social mobility, that it drives our whole economy forward and that it causes modal shift, to ensure that people are not getting into their cars, as they are today, but back on to the railways. That is why Labour’s model will work, and when we get into power, we will put it in place.