Rail Services

Nigel Evans Excerpts

Thursday 11th May 2023 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

Before I call the Secretary of State to make his statement on transport, Mr Speaker has given a statement that he has repeatedly made it clear that the House should be told first when the Government are making any important announcements, and he is extremely disappointed that there has been extensive press coverage this morning about these developments.

[The Secretary of State for Transport (Mr Mark Harper)]

Mr Deputy Speaker, that is a very helpful point for you to have made on behalf of Mr Speaker. As you know, I completely agree with that. [Interruption.] I can hear some chuntering from those on the Opposition Benches, but they should understand this. Once we notified FirstGroup of my decision, there was obviously market-sensitive information that it was obligated by law to disclose to the stock exchange as soon as the markets opened this morning and that meant the decision was in the public domain. We issued a press notice, but other than that no other information has been put into the public domain and I have therefore kept all of our remarks until the House was able to be updated. But in market-sensitive cases, I know that Mr Speaker will understand that certain things have to be disclosed to the outside world and cannot wait until they are notified to the House.

I start by thanking the entire transport industry and officials across Government for their professionalism and hard work over the last weekend. Tens of thousands of people travelled to Windsor and central London for the coronation of His Majesty King Charles III and Her Majesty Queen Camilla. Getting the public around efficiently and safely took months of planning and preparation, and special thanks must go to Great Western Railway for putting on additional services as well as Network Rail and South Western Railway, which facilitated the biggest movement of military personnel by the rail industry in more than 50 years for the coronation. It meant that people from across the UK and, indeed, around the world were able to unite in celebration during what was a truly historic moment.

In my most recent oral statement to the House, I made clear the Government’s commitment to deliver a railway that works for passengers, businesses and the taxpayer. Where services are not up to scratch, we are holding operators to account, and where there are systemic weaknesses in the industry, we are pushing ahead with reform. So I wish to update the House today on our progress, starting with the future operator of the TransPennine Express contract.

Since I took office, I have been clear that First TransPennine Express’s service levels have for too long been unacceptable. Passengers, including many hon. and right hon. Members across this House, have faced significant disruption, including regular cancellations and poor levels of communication. The underlying reasons behind this vary, but what is clear is that the twin challenges of covid and industrial action have left their mark. First TPE’s driver training backlog now stretches to nearly 4,000 days, which means that, at any one time, it can only draw upon 80% of its total driver workforce. Add to that a breakdown in relations between the operator and the driver union ASLEF, all told, there simply have not been enough drivers to run the planned timetable. Inevitably, passengers have borne the brunt, facing cancellation rates of up to 23% on Monday to Friday services and gaps in services on some routes of up to six hours. That clearly is not good enough, a point I have made directly with FirstGroup, which owns First TPE, and which the Rail Minister—the Minister of State, Department for Transport, my hon. Friend the Member for Bexhill and Battle (Huw Merriman)—has made in weekly meetings with the Rail North Partnership, where Transport for the North jointly manages First TPE’s contract with the Department for Transport.

We will always hold operators to account for matters within their control. We will give them a chance to put things right, but despite a recovery plan put in place since February, there remain significant challenges underpinned by ASLEF’s distinct lack of co-operation. To achieve the performance levels I expect, passengers deserve and the northern economy needs, it is clear that both the contract and the underlying relationships must be reset. I have therefore decided not to renew or extend First TPE’s contract when it ends on 28 May. Instead, I am exercising my operator of last resort duties and directly awarding a new TPE contract to a public sector operator that will manage it on my behalf.

As Transport Secretary, my obligation, first and foremost, is to secure passenger rail services on which TPE passengers can rely. That requires a new approach, and one that the OLR is best placed to deliver in these circumstances. Most significantly, it provides an opportunity to reset relations between management and all stakeholders—from passengers to trade unions. I have also asked my officials to review services in the north to help drive efficiency and find better ways to deliver for passengers across the region, and I will ask all interested parties, including the northern Mayors and Transport for the North, to engage with the Government on this work.

While today’s decision will be welcomed by many and while it shows a Government alive to the concerns of passengers, as my hon. Friend the Rail Minister and I have made clear, it would be misguided for anyone to think this is an instant solution. The problems First TPE faced will not disappear overnight. Any operator facing industrial action and a union co-ordinated ban on overtime working will struggle to run a reliable service. So I invite those who have long called for today’s decision, including unions, northern Mayors and colleagues across the House, to work constructively with me and the Rail Minister to fix the underlying problems and help return the service levels to where they should be. The OLR is just the next stop on the line—it is not the terminus station—and once market conditions allow, we intend to subject this and indeed all contracts, both private sector and those under the OLR, to competitive tendering.

There will be some, unfortunately, who use today’s decision to further their ideological ends, and to argue that this justifies all rail contracts being brought under public control. That would be a mistake. The majority of taxpayers do not use the railways regularly, but they could be saddled with the huge costs of nationalisation, only to inherit the industry’s problems with no plan to fix them. Nationalisation is a soundbite, not a solution, and this Government will always be guided by the evidence to help make the best decisions for passengers. That is why, earlier this year, having seen the noticeable improvements on Avanti West Coast, I resisted calls to bring the franchise into public ownership. I extended Avanti’s contract by six months—a decision vindicated, with Avanti-caused cancellation rates at the end of March falling to 1.4% from 13.2% in January, and continuing to improve, despite ongoing challenges.

Let me now turn to industrial action. For months, the Rail Minister and I have worked hard to change the tone of the dispute, and help facilitate fair and reasonable pay offers for workers. In negotiations with train operating companies, the RMT and ASLEF are refusing to even put those pay offers to a vote of their members, despite RMT members who work for Network Rail voting overwhelmingly to accept a similar deal earlier this year. Instead, the RMT has balloted for yet more industrial action and, along with ASLEF, it has cynically called strikes that will cripple the network during the Eurovision song contest this week. We are hosting Eurovision because last year’s winner, Ukraine, cannot. It will be an event attended by displaced Ukrainians who have fled Putin’s war, and the House has just been hearing about that threat, so it beggars belief that unions have chosen to disrupt such an internationally symbolic event—one that not only presents a united front against Russia’s aggression, but shows solidarity with Ukraine’s resistance. So my message on behalf of fed-up passengers is to say to the union leaders, “Call off your strikes, put the fair and reasonable pay offers to a vote and give your members a say on their future.”

With or without the unions’ support, the industry must modernise to avoid permanent decline, and we are building unstoppable momentum towards rail reform, as I set out in my Bradshaw address in February. I have announced that Derby will be the location for Great British Railways’ new headquarters, and today I can report progress against the commitment I made to extend single leg pricing to the rest of the London North Eastern Railway network. Tickets will go on sale from 14 May for travel from 11 June, and it means LNER passengers will benefit from simpler, more flexible and better-value ticketing, removing the frustration that a single ticket can cost almost as much as a return.

In conclusion, since becoming Transport Secretary, my approach has been to listen to the experts, weigh up the evidence and make decisions in the interests of the travelling public. Today’s announcements show a Government tuned in to the concerns of passengers in the north, unafraid to take tough decisions to deliver better services and relentlessly focused on modernising our railways while protecting passengers from the effects of industrial action. That is what the British people deserve, it is what we are delivering and I commend this statement to the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call the shadow Secretary of State.