Cost of Public Transport

Debate between Oliver Colvile and Lilian Greenwood

Tuesday 19th January 2016 Commons Chamber

[Lilian Greenwood]

If the hon. Gentleman looks at our record, he will see that rail fares increased only by the level of inflation or were actually cut in six of the 13 years that Labour was in power. Fares rose in some years, and that helped to fund investment. Under Labour, there was more investment in rail in real terms than under any previous Government. Under this Government, that link has been broken.

The Transport Secretary said that only commuters were paying regulated fares, and that unregulated fares could be “quite cheap”. Those comments are a world away from the frustrations endured by passengers every day on Southern and Thameslink, some of which were described in the House today by my hon. Friend the Member for Streatham (Mr Umunna). They reflect an increasingly overcrowded and unreliable network.

In 2009, the Conservative party’s rail policy review stated:

“Fare rises come with tacit Government approval and are often the direct result of the franchise process”.

Will the Secretary of State therefore explain why he intends above-inflation rises to resume after 2020, as his Department’s recent consultation on the East Anglian franchise makes clear? Passengers were always told that higher fares were necessary to pay for improvements, but under this Government that link has been broken. The electrification of key lines was first paused and then shambolically “unpaused” one week before the Conservative party conference, and those projects are now delayed by years.

That goes to the heart of public trust in the railways. Ministers and Conservative Back Benchers went into the last election on a manifesto that said that key improvements would be delivered in this Parliament, but information about the true state of those programmes was kept concealed within the Department. The Transport Secretary has said that he was not informed about the state of the electrification programme until after May, but why did he not pose searching questions within the Department in October 2014, when my predecessor, my hon. Friend the Member for Wakefield (Mary Creagh), challenged him to say

“which electrification projects will be delayed or cancelled”—[Official Report, 23 October 2014; Vol. 586, c. 1030.]

due to cost overruns on the great western main line?

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

I have one curious question for the hon. Lady: how is this all going to be paid for? Is it going to be borrowed or are we going to put prices up?

[Lilian Greenwood]

I shall deal with that very question later on in my speech, so the hon. Gentleman should listen attentively.

Why did the Transport Secretary not raise the alarm in the last Parliament when the estimated cost of electrifying the midland main line rose from £250 million to £540 million, and then to £1.3 billion? Why did he not do so when the cost estimates for great western electrification rose from £548 million to £930 million, and then to £1.7 billion? Of course, the estimate has now risen further still, to £2.8 billion. Why did he not act when the Transport Committee warned in January 2015:

“Key rail enhancement projects...have been announced by Ministers without Network Rail having a clear estimate of what the projects will cost, leading to uncertainty about whether the projects will be delivered on time, or at all”?

Will the Transport Secretary confirm that he commissioned a report on the state of the electrification programme, which was given to him in September 2014? This report has never been published, and a Freedom of Information Act request for a copy has been personally refused by a Minister in his Department. What did that report say, and what has he got to hide?

The truth is that the Department was clearly warned by Network Rail about the impending northern power cut. The company’s board discussed last March

“the decisions required jointly with the DFT”

regarding

“enhancement deferrals from June”.

Network Rail’s chief executive has confirmed to me:

“In mid-March 2015, Network Rail informed DfT that decisions may need to be made in the coming months about the deferral of certain schemes.”

If the Secretary of State really was not aware of what his own Department and Network Rail were doing, there is only one possible explanation: he made it clear that he did not want to know. He failed to take responsibility, and passengers are now paying the price.

We were told that 850 miles of track would be electrified before 2019, but now the Department is refusing to say how many miles of track will be electrified in this Parliament. Is it half the original target? Is it a quarter? Will the Transport Secretary confirm that by 2019 this Government would do well to realise the plans for electrification set out by a Labour Secretary of State, the noble Lord Adonis, a decade earlier?

Let me return to the cost of tickets.