Transport Secretary: East Coast Franchise

Martin Whitfield Excerpts

Wednesday 23rd May 2018 Commons Chamber

[Joseph Johnson]

Indeed. Advocates of the full renationalisation of our railways should heed what President Macron is saying about the sustainability of the French model. It is a warning indeed.

The east coast provides an opportunity for the first of a new generation of long-term regional partnerships, bringing together the operation of track and train under a single leader and a unified brand and delivering more effectively for rail users.

[Martin Whitfield (East Lothian) (Lab)]

Will the Minister give way?

[Joseph Johnson]

Not at the moment.

That brand is the London and North Eastern Railway, LNER. This will evolve into a partnership between the public sector and a private partner, procured through a competitive process.

Of course, we are always seeking to improve the way in which we deliver. We continually refine the franchise model and monitor the performance of all franchises closely. We know that passengers have had enough of the blame game between train operators and Network Rail. We have also improved bid assessments since 2014 by introducing a new process to ensure that bids are more financially robust, such as when there is a lower level of growth in passenger numbers than was anticipated. We have developed new approaches to sharing risk with train operators, which means that they do not take on risks that they are not able to control, including impacts due to wider economic changes. Let me be clear: this means that the Government will continue to run a system that requires train operators to face financial penalties if they do not meet their commitments and ensures that we get the best deal for passengers and taxpayers.

Some Members have raised concerns about other franchises. I can reassure the House that the Department closely monitors the performance of our franchises, assessing a range of measures such as levels of bonding and parent company support, as well as assessing liquidity ratios to establish their health.

Colleagues have commented that this week has seen the launch of the biggest change to rail timetables in a generation. This timetable change will deliver improved passenger services across the country, including the delivery of substantial passenger benefits from the Thameslink programme and the great north rail project. By 2020 there will be over 2,000 extra services a week, with room for 40,000 extra passengers. There will be faster and more comfortable journeys, and new and direct services across the north and beyond.

This vindictive motion diminishes those Opposition Members who support it. I reinforce the Secretary of State’s message that we put passengers at the heart of the railway by making the best use of expertise from the public and private sectors, just as the Labour Government in Wales have done this morning.

Question put.