Future of the Coach Industry

Mike Hill Excerpts

Thursday 10th December 2020 Westminster Hall

[Mike Hill (Hartlepool) (Lab)]

I recently had the pleasure of speaking to Roderick Thompson from Regent Travel in Hartlepool, a family-run independent travel agent with over 30 years’ experience in the travel business. He told me not only that covid-19 has impacted his business and the travel industry as a whole, but that for many of his regulars the potential demise of the coach tour industry would have a devastating effect. He told me that many of his customers prefer to pay cash and were not used to the world of computers. When holidays got cancelled due to the pandemic, he and his staff spent most of their time recovering deposits for them.

That brought into sharp focus the magnitude of the hit the coach industry is taking. The Confederation of Passenger Transport UK has warned that, without urgent support from the Government, thousands of family businesses are at risk because, despite mothballing coaches and furloughing staff, they still face costs averaging £1,900 a day.

The owners of another local family business wrote to me recently. Paul’s Travel has been operating for 18 years in the minibus trade. In their own words, they sit between taxi companies and large coach companies. They, too, have suffered similar experiences, with private hire down and the number of regular weekly contracts down from 16 to two. They also rely on the hospitality and leisure industry. They are hanging on by the skin of their teeth.

I have chosen to highlight the plight of two local Hartlepool companies, but it must be recognised that on a national scale coach travel is a major player in the leisure industry. It directly employs 42,000 people, with thousands more jobs dependent on the sector. Without Government support, those jobs will simply go.

Oral Answers to Questions

Mike Hill Excerpts

Thursday 17th September 2020 Commons Chamber

[Mike Hill (Hartlepool) (Lab)]

What recent representations he has received on the creation of additional integrated public transport systems throughout England.

[The Secretary of State for Transport (Grant Shapps)]

The Department receives requests through many different routes to fund schemes that consider integrated transport, intra-city transport and all the other types of integration.

[Mike Hill]

As covid-19 breathes down the neck of my constituency and much of the north-east goes into local lockdown, and with local access to transport now needed more than ever, can the Secretary of State tell the House why many residents have seen their bus routes cut routinely over the last 10 years?

[Grant Shapps]

Good news for the hon. Member: this Government have committed to putting a record amount into bus investment. As he will know, 4,000 shiny new zero-carbon buses are part of that plan, as is a massive investment—a bus, cycling and walking package of £5 billion—in ensuring that bus routes can be expanded. We are certainly on the side of him and his constituents when it comes to expanding those bus services, notwithstanding the significant challenges of covid.

Rail Services: North-East England

Mike Hill Excerpts

Tuesday 4th February 2020 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

I am very pleased to have secured the debate, but it is sad that it also gives me another opportunity to raise the poor service that constituents of mine who travel from Chester-le-Street railway station are still receiving. I initiated a similar debate on 15 January 2019, highlighting the poor service that was being generated from the change in the timetables in May 2018. The Minister who replied was the then Parliamentary Under-Secretary of State for Transport, the hon. Member for Harrogate and Knaresborough (Andrew Jones), and I think it is worth reiterating what he said. He said:

“There will be no repeat of the processes that led to the failure of May 2018 and that timetable change.”—[Official Report, 15 January 2019; Vol. 652, c. 1139.]

He also said that he entirely agreed with me that services offered to several parts of the country, including the north-east, had been “unacceptable”. Then, trying to strike a bright note and thinking that it was a positive gesture, he said that new rolling stock which would be brought into service in the coming months should make life easier for passengers using Chester-le-Street railway station.

All I can say is that nothing could be further from the truth. We have now experienced the impact of the new timetable that was introduced in December 2019. Given the combination of shocking incompetence on the part of those responsible for the timetable and the blatant disregard of operators—mainly TransPennine Express—for the wishes of the travelling public, the situation is just as bad, and not just in my constituency: I know that it has been affecting others across the north-east.

[Mike Hill (Hartlepool) (Lab)]

Hartlepool is the third busiest train station in the north-east, which shows that there is great demand for rail travel, yet the trains to Newcastle run only once an hour, and even then they have only two carriages. Does my hon. Friend agree that that is completely unacceptable and that more resources should be put into stations that are well used, such as Hartlepool?

[Mr Jones]

I totally agree; it is the same story that we get all the time. If Hartlepool, a town adjacent to the two major conurbations of Teesside and Tyneside, were in the south-east of England, it would have a service every half hour, rather than the one my hon. Friend has just outlined.

That brings me to the changes that were brought in in 2019. The timetable for my constituents got off to a flying start, because the two peak-time commuter trains, at 7.10 and 8.03 in the morning, were both cancelled on the first day. A further 11 daily TransPennine services to the north-east were withdrawn by the end of January, which left only 50% of TransPennine’s timetable for the north-east operational. TransPennine had given clear commitments to Transport for the North that there would be a seamless integration of the new timetable.

--- Later in debate ---

[Mr Jones]

I will come on to my response to TransPennine, but the underlying problem is how the timetable was drawn up. Durham County Council clearly indicated what it wanted to see at Chester-le-Street, a growing commuter town, only to find that services were taken away. When I wrote to the Transport Minister, I received a letter saying, “Well, you’ve got more stopping services.” We have, but not at the times when people actually want to travel. For example, the popular 7.17 am train was taken off the timetable and the equally popular 5.15 pm train southbound from Newcastle was moved over half an hour later. It is no good arguing that more trains will be stopping if they stop at times when people do not want to travel. It is a fundamental flaw. Frankly, Transport for the North should be renamed “Transport for Leeds, Sheffield, Manchester and Liverpool” because it clearly does not seriously consider representations from anywhere north of York.

The ongoing effects have had an economic impact, as the hon. Member for Strangford (Jim Shannon) mentioned. This is not just about the frustration of individuals who find that trains have been cancelled, because there is an equal economic impact. As I said in my previous debate, people have had to give up jobs or not accept promotions because they cannot get into work, and families who want to come back to look after their children find it difficult to do so. That is just not acceptable.

I would like Transport for the North to tell me about another town like Chester-le-Street, where 30,000 people live, that has such a poor service and is totally disregarded. The facts speak for themselves, because train usage at Chester-le-Street is actually declining—it dropped by more than 9% between 2017 and 2019—and my hon. Friend the Member for Easington (Grahame Morris) saw usage at Seaham drop by 2.5%. There is this great mantra that we should be getting people out of cars and on to public transport, but the mess with the operation of the timetable is driving people off the railways, and that cannot be good for congestion in Tyneside and Teesside.

Turning to the point raised by the hon. Member for Thirsk and Malton (Kevin Hollinrake), I have to say that TransPennine is appalling. I hate using the term, but it is not fit for purpose. It could not run the proverbial in a brewery if it was given the instructions. It does not care about passengers. There is no information when services are cancelled. People turn up and they are told the train is late, and then it is just cancelled, leaving people to their own devices. No information or alternative buses are provided. The situation is not down to any lack of trying, because I have raised the matter directly with TransPennine officials, including at a public meeting I held with them two years ago where they said they would provide information, but they just do not care. Their attitude stinks.

I thought April fools’ day had come early last week when TransPennine put out its stakeholder newsletter. I do not know whether any other colleagues received it, but it included a big photograph showing how proud it was to win rail operator of the year at the business travel awards. All I can say is that I would hate to see what the competition was if TransPennine won, and it is quite clear that the judges did not speak to many of my constituents or those of many colleagues. It was a further insult when TransPennine announced on social media that from this week, it is going to stop people buying tickets on its trains, saying that if people get on without a ticket, they will be fined.

Since the ticket office was closed, Chester-le-Street station only has ticket machines on the southbound platform, and they are often not working, but people getting on the train without a ticket will be fined.

In the last week, two constituents have complained to me that they have bought tickets on trains, but have been treated in a threatening manner and told that in future they will be fined. I am sorry, but if the company cannot maintain a network and provide the service, it is an insult to my constituents, and other travellers, to make such threats. My constituents do not want threats. They want trains to turn up on time and, in some cases, to turn up at all.

The hon. Member for Thirsk and Malton asked what the answer is. I have to say that TransPennine needs the franchise taken away. Northern has had its franchise taken away in the last few weeks, and we need to follow. Ironically, at Chester-le-Street, the trains that turn up on time have actually been Northern, which I know is not the experience of other colleagues. If Northern has had the franchise removed, so should TransPennine. What will happen to the investment that Norther earmarked for improvements at Chester-le-Street station, because there is clearly some doubt about what will happen now? TransPennine has been given enough chances. As I said earlier, its attitude stinks. It is not customer-focused and it is having a detrimental effect on many of my constituents.

Finally, I want to raise a broader issue. I know that in the near future—perhaps this week—the Government will make a decision on HS2. Personally, I have never been a great fan. I do not think it will affect many of my constituents, apart from swallowing large amounts of public investment over the next decades, but there is an issue that the Government could address now. We have had various promises thrown around about opening the Beeching closure lines and others in the past few weeks, but if HS2 is to benefit the north-east—look past York, because there is more to the north than York and Leeds—what is needed is the upgrade of the east coast main line. Without that, HS2, when it finally does arrive—if it ever does—will not be able to increase capacity from the north of York to further north.

[Mike Hill]

I thank my hon. Friend for giving way again. First, I wish to correct the record as I ambitiously stated that Hartlepool was the third busiest station in the north-east: I meant on Teesside. Important to that is the condition and state of that line. The Durham coast line has needed an upgrade for years and years. Does he agree that that investment is absolutely necessary?

[Mr Jones]

I do, and my fear about HS2 has always been that investment will be sucked out of the rest of the network. Although we have now got the magic money tree—if not an entire equatorial rain forest of money trees—from the Government for HS2, plus all the investment in lines such as my hon. Friend’s, we will have to wait and see what actually happens. It is important that if the north-east is to benefit from HS2, that investment is put into capacity in the east coast main line north of York. The Government could do that now, and it would have a beneficial effect for the travelling public by helping capacity, and that should be addressed if we do have the announcement on HS2.

My constituents are frankly fed up with the service that they have received from the rail services from Chester-le-Street. My broader concern is the one raised earlier about the economic impact on my constituents, because Chester-le-Street is a great place to live. People move there because it is a great place to bring up families, with good schools, but people need to be able to travel to jobs in the south of the region and in the north of the region. Without a good rail service they cannot do that. What they want is not warm words or political promises of funding tomorrow: they want action now.

Bus Passes: 1950s-born Women

Mike Hill Excerpts

Wednesday 30th October 2019 Westminster Hall

[Mr Cunningham]

I thank the hon. Gentleman for that intervention. As I understand it, a number of WASPI women or women born in the early 1950s have submitted complaints and given evidence to the parliamentary ombudsman, but we do not know the outcome of that yet; we will have to wait and see.

The state pension is not a benefit, or a lottery win that people get once they retire. The state pension is the return of money that people—in this case, women—have paid into the system throughout their working life. The worst-affected women have lost out on tens of thousands of pounds and will retire six years later than they expected.

Last month, the High Court was sympathetic to the 1950s women, but ultimately ruled that they had not been discriminated against. However, the pace at which the changes have taken place certainly puts them at a particular disadvantage compared with men. These women have already suffered considerable inequalities and, in some cases, sexism in the workplace. They would have entered the workplace in the 1960s and ’70s. At that time, women were openly discriminated against. They were refused promotions and refused adequate pay for skilled work. In some cases they were refused maternity rights, and in other cases those rights were non-existent. Those factors mean that many of these women are already at a financial disadvantage.

[Mike Hill (Hartlepool) (Lab)]

My hon. Friend is a true champion of this cause. Does he agree that it is a great irony that many of the women who are suffering hardship as a consequence of the pension inequality will themselves be working in organisations such as bus companies, when they should be benefiting from a free bus pass from them?

[Mr Cunningham]

I fully agree. The factors that I have set out mean that many of these women are already at a financial disadvantage. The Conservatives’ changes to the state pension age only add to that.

The WASPI women have put up an excellent fight against the injustices, but the Government have refused to admit their mistakes or address the problem. The May Administration and now the Johnson Administration have refused to compensate these women for the money that they have lost out on. I note that the Prime Minister, when he was campaigning to be Prime Minister, acknowledged that there was an injustice there, and that it should be put right, but so far we have seen no action. Instead, we have a general election. It will be interesting to see what he does afterwards.

Transport Secretary: East Coast Franchise

Mike Hill Excerpts

Wednesday 23rd May 2018 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

One of the firmest ideological principles held by Conservative Members, as we have just heard from the hon. Member for Spelthorne (Kwasi Kwarteng), is their insistence on the superiority of the private over the public with regard to the ownership of capital. The continued failure of the rail franchising framework to harness the power of the private sector ought to give them pause for thought on this matter. Much has been said about the £1 billion surplus that was poured back into the Treasury when the east coast main line was run in the public interest prior to Virgin-Stagecoach, but less has been said about how East Coast achieved what private companies could not.

[Mike Hill (Hartlepool) (Lab)]

Does my hon. Friend agree that improved transport links are vital to the success of the so-called northern powerhouse? As such, does he agree that this east coast fiasco means that we can now show that only a publicly owned company model can deliver that agenda?

[Alex Sobel]

I thank my hon. Friend for his comments. I often stand at King’s Cross waiting for my train home and see the words “Train cancelled” above me. I look wistfully at platform nine and three quarters, hoping that I may be able to go through the wall and travel home on the Hogwarts Express. Although the Minister for Magic, Cornelius Fudge, was a very inept Minister, he at least managed to run the Hogwarts Express successfully—unlike the Secretary of State. I completely agree with my hon. Friend’s point.

I would like to turn to the remarkable East Coast Rewards loyalty scheme that was made available to customers from 2011 until it was scrapped by Virgin Trains East Coast. I extend my thanks to the individuals behind the “Save East Coast Rewards” campaign, who kindly provided my office with a collection of documents obtained through freedom of information requests, including financial reports and business plans produced while East Coast was under public control. The documents disclose the business thinking behind the creation of East Coast’s generous loyalty scheme. There is a sharp focus on understanding and exploiting the unique market characteristics of the east coast main line, to compete with fierce competition from road and air.

The scheme had the following benefits. Frequent business travellers who spent £1,800 over three months would receive six first-class return tickets, lounge access for them and a guest, 20% off advance fares from the East Coast website and a quarter of a bottle of wine, which I am sure Conservative Members would enjoy. That was a bold and competitive offer, and it brought business back from air travel and road on to the railways. For less frequent business and leisure travellers, a spend of just £255 through the East Coast website entitled them to a free standard-class ticket anywhere on the network, so they could enjoy Yorkshire, the north-east or Scotland completely free.

After Virgin took over the franchise, it decided to roll out the Nectar point scheme. Subsequently, an £1,800 spend over three months would award business travellers £18-worth of Nectar points, instead of six first-class tickets. A £255 spend would get someone £2.50-worth of Nectar points, instead of one standard ticket under the public East Coast. It appears that Virgin Trains simply pushed the Nectar reward scheme on to East Coast, without paying any attention to what was already on offer, demonstrating a lack of understanding of the loyalty market, what East Coast had to offer and competition from air travel.

Financial reports from East Coast show that, in 2013-14, East Coast Rewards had more than 380,000 members, who accounted for 50% of expenditure. In subsequent reports, the reward scheme is shown to be ever growing, with more than 600,000 members, before being folded when Virgin-Stagecoach came in. The reward scheme was increasingly central to the surplus that East Coast provided back to the Treasury.

The remarkable thing is that a not-for-dividend subsidiary rail operator appears to have understood far better than Virgin-Stagecoach how to run a viable rewards scheme that succeeded in exploiting the market characteristics of the east coast main line—its status as an artery route and its discretionary travel base of leisure travellers, with competition from road and business air travel—to successfully run a rail franchise. Virgin’s inability or unwillingness to recognise the viability and popularity of the reward scheme it inherited from East Coast seems at odds with the belief that private interests are best placed to organise business profitably.

East Coast was an example of a rail operator that was not responsible to shareholders or profits and was not contorted into complementing the brand identity of Virgin. We had a well-run and well-liked organisation that understood its market position and its strengths and weaknesses and improved the service while pouring money back into the public purse. We need to return to that situation, not as a last resort but as a default position, using the best ownership model for rail travellers, whether as directly operated rail or a co-operative, which would have strong employee and consumer interest. We on the east coast deserve the best railway, which we have not had under Virgin-Stagecoach but did have under the public East Coast.

Durham Tees Valley Airport

Mike Hill Excerpts

Wednesday 22nd November 2017 Westminster Hall

[Phil Wilson]

The Tees Valley Mayor has a few questions to answer on this issue. I will come to that matter later in my speech, but I am pleased that my hon. Friend raised it.

Despite the losses and the low passenger numbers, there is still a strategic role for regional airports. There is a strong correlation between regional GDP, employment in air-intensive industries and aviation connectivity. Regional airports provide a major gateway for visitors to the region.

[Mike Hill (Hartlepool) (Lab)]

Does my hon. Friend acknowledge that the workers at the airport have sacrificed pay and conditions and will soon sacrifice their pensions as part of the efficiencies to keep the airport going?