Oral Answers to Questions

Maria Eagle Excerpts

Thursday 5th May 2011 Commons Chamber

[Mr Hammond]

The hon. Gentleman makes two good points. First, the fare system is incredibly complex and, secondly, passengers face high fare levels—we fully appreciate that. The only way in which we can tackle high fare levels is to make the railway more efficient. We are determined to do so, and we will receive and publish shortly the report by Sir Roy McNulty on value for money on the railways, which will make proposals to achieve that objective.

[Maria Eagle (Garston and Halewood) (Lab)]

I am glad that the issue of fares has come up, because on 9 March the Secretary of State attended a presentation on the findings of the rail value-for-money review, which he will publish later this month. I have a leaked copy, which includes a recommendation that in future rail franchises should have

“more freedom to set fares”.

Does he stand by what he told the House on 27 January, when he said that the objective of the review was

“to reduce the burden on both the taxpayer and the fare payer”?—[Official Report, 27 January 2011; Vol. 522, c. 426.]

[Mr Hammond]

Yes, absolutely—that is the key objective of the McNulty review. The hon. Lady will know, if she wants to look at this objectively, that we have severe crunch-points on our rail system, where the current pattern of fares is driving perverse behaviour. The 18.59 train north from Euston on a Friday evening is virtually empty, but the 19.01 train is packed, with people standing, and the police preventing others from joining the train for safety reasons, and that is because of the way in which the fare structure works. We must be able to use the pattern of fares to address crowding, and to avoid the perverse incentives that have been created.

[Maria Eagle]

Can the Secretary of State explain some quotes in the document that suggest that he will allow franchisees to do what they want with fares? For example, the document states that he needs

“to consider in letting future franchises: more freedom to set fares”

and should

“encourage TOCs to take a more commercial approach to fare setting”.

There are other such quotes in the document, which seems to suggest that he will allow train operating companies to charge whatever they want.

[Mr Hammond]

The hon. Lady is confusing herself. The document from which she has quoted is, I think, Sir Roy McNulty’s presentation to the seminar to which she referred. It is not a Government document.

--- Later in debate ---

[Mr Hammond]

I absolutely agree with my hon. Friend that the series of strikes is highly irresponsible. As I said last night, no one in the Government is spoiling for a fight with the unions, but the unions appear to be spoiling for a fight with London. I say to the RMT and other unions that that sort of irresponsible strike action, when an alternative, proper remedy—an ongoing employment tribunal—is available, only strengthens the hand of those, including the Mayor, who call for tougher industrial relations laws.

[Maria Eagle (Garston and Halewood) (Lab)]

As the Secretary of State will know, today marks the closing of the consultation on his plans to axe more than half the UK’s coastguard stations, leaving just three offering 24-hour cover. Yet, in a letter to me this week, the Maritime and Coastguard Agency stated that the consultation,

“will be reopened in the Summer”.

Will the right hon. Gentleman confirm that the consultation closes today, as the letter says, “for the first time”? Given that it is increasingly clear that the policy is a shambles, why does he not just abandon the ill-thought-through proposals, which will leave our coastline a more dangerous place?