South-Eastern Rail Franchise

Michael Fallon Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Sir Michael Fallon (Sevenoaks) (Con)]

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on his decision to delay, yet again, the award of the south-eastern rail franchise.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

In June 2017, the Department for Transport announced that the shortlisted bidders for the south-eastern franchise competition were: South Eastern Holdings Ltd; London and South East Passenger Rail Services Ltd, a wholly owned subsidiary of Govia and the current incumbent; and Stagecoach South Eastern Trains Ltd, a wholly owned subsidiary of Stagecoach Group plc.

Subsequently, in December 2018, the Department exercised an extension with the existing south-eastern operator, London and South Eastern Railway, until 23 June 2019 to allow further time for the competition to identify the next operator for the franchise. The Department is now in the process of negotiating a further direct award which, subject to a successful negotiation, will run until 10 November 2019, with an option to extend the agreement until April 2020. We are taking these steps to ensure continuity of services for passengers. This additional time is necessary to deliver the best possible outcome for passengers and taxpayers alike. We will update the House in the usual way as soon as this work is concluded.

[Sir Michael Fallon]

I am grateful to the rail Minister, but he has not quite explained why such a mess has been made of this franchise. Can he confirm exactly when my constituents, who already pay the second-highest fares in the home counties, will get the long-promised new carriages? Can he explain why, if the franchising system is now under review, he has been able to award an eight-year franchise for the east midlands? Finally, can he explain why the compensation in respect of last year’s timetable chaos is not going to the two stations most affected in my constituency, Shoreham and Eynsford, when the two operators enjoy common ownership? Is it not time to restore confidence in the whole franchising system?

[Andrew Jones]

I thank my right hon. Friend for those questions. He has been a strong and tenacious champion for rail passengers in his constituency, raising issues with me and speaking in Westminster Hall debates. I share his impatience to get the benefits that are emerging from our franchises to his, and indeed to all, constituents. This is a huge and complex piece of public procurement, and it is right to take the time to make sure we get it right and to finalise this competition. The area is one of the most complex on our network; it has a mix of high-speed and commuter services, with a highly intensive use of infrastructure. I cannot tell him the date on which we will be able to make the announcement. This is a live competition involving market-sensitive information. There is an established method of communication to the House and the markets, so I cannot answer him and am able to say little on that point today.

I can confirm to my right hon. Friend why the east midlands franchise was awarded, with the rail review taking place. That was simply because it was considered that with the east midlands franchise award and this one we could get the benefits to passengers before the work of the rail review came into play. On compensation in respect of the two stations he mentioned, I will look at that carefully. On the point about the compensation following the May 2018 timetable changes, there were some significant problems, but they were not everywhere. The issue was to get the compensation to those who had been most affected. They received compensation that I think was appropriate, but I will check out those two stations and write to him as quickly as possible.