Rail Franchising

Martin Vickers Excerpts

Wednesday 10th January 2018 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

We have rightly heard from the Secretary of State that there is record investment in the railways and a record number of passengers, yet Opposition Members are here to criticise the running of the railways. I am sure we will hear many tales of woe from Opposition Back Benchers, but the reality is very different. There are problems, and we have heard from my right hon. Friend about the Virgin Trains East Coast situation, which is not desirable, but of course, to some extent Virgin predicated its income projections on improvements to be made by Network Rail, and of course Network Rail, being a nationalised organisation, usually delivers late and over budget. The Secretary of State was somewhat critical of Virgin, and it clearly should have taken note of the fact that Network Rail failed to deliver on the promises made on the west coast route some years ago, so there is some legitimate blame on both sides.

Regrettably, I am old enough to remember the days of British Rail, a failed nationalised monolith and a watchword for failure. Until 1992 there were direct train services to my constituency, but British Rail cut them, and the new Minister, whom I welcome to his place, will be hearing a lot from me about the need for through services to Grimsby and Cleethorpes.

The Government support the rail network to an enormous extent. Many of the figures cited in an article in the 13 October edition of Rail magazine were repeated in The Times last week, including that £925 million was invested by the private sector in the rail network in 2016-17. The shadow Secretary of State failed to identify how any Labour proposal would bring forth that money. The reality is that cuts are made under all Governments and usually the first thing that goes is capital infrastructure expenditure. There is no way that a renationalised network under a Labour Government would be able to raise the approaching £1 billion that the private sector is currently investing.

[Grahame Morris]

What does the hon. Gentleman think the state-owned German rail company that owns a substantial chunk of our franchises does with the profit it makes here in our privatised system? It invests that profit in its own system, through subsidised fares there. That seems ludicrous to me and most of the travelling public.

[Martin Vickers]

Perhaps they are a little more free-market and capitalist-minded over in Germany.

At present, competition is for the franchise; what we want is more competition in the running of services, and one way we can achieve that is through open access operators. Hull Trains and Grand Central both run on the east coast main line and provide services to areas that in the main do not get a service from the main franchise holder. Indeed, I understand that Grand Central will shortly put forward a proposal for direct trains from King’s Cross through to Scunthorpe, Grimsby and Cleethorpes. I hope that the Minister will be supportive of that, because it would be a great boost to the local economy.

[Will Quince (Colchester) (Con)]

My hon. Friend has mentioned open access, and I agree with the points he is making. Does he agree that open access tends to produce a higher satisfaction rate among passengers and rail users?

[Martin Vickers]

My hon. Friend is absolutely right. Hull Trains and Grand Central both get very high satisfaction ratings.

The House should take note of last year’s Transport Committee report on rail franchising. It states:

“Open access has been a success, albeit on a limited scale to date. The balance of evidence points to potential benefits in open access having an expanded role on long distance routes.”

It goes on to state:

“Reforms are needed if open access is to be expanded on the network. We recommend that the Department and the ORR work together, as they develop the financial framework for the railways over Control Period 6”.

I hope that the new Minister will make it one of his priorities to look more closely into introducing open access operations on to the railway, in order to provide genuine competition and to improve services, particularly on those routes that are struggling at the moment.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Will the hon. Gentleman give way?

[Martin Vickers]

I will not take any more interventions; it would be unfair to others.

Reference has been made to fare increases. It is a fair point that there has to be a balance involving what the taxpayer is prepared to put into the network. I gather that the net contribution from the taxpayer for the last financial year was £4.2 billion. That is not an insignificant amount. While mentioning fares, may I be critical of the rail operators? Tickets are often not checked, and barriers at stations often do not operate. That is something that urgently needs to be looked at.