(6 years, 9 months ago)
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It is a pleasure to serve under your chairmanship, Ms Dorries. I congratulate the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on securing this debate. He has taken a long-term interest in this issue, as indeed have the hon. Members for Dwyfor Meirionnydd (Liz Saville Roberts) and for Ynys Môn (Albert Owen). I hope that I can provide some reassurance. I realise it is tempting to provide a running commentary on these issues, particularly when one is not involved in the negotiations, but I hope that I can set the mind of the hon. Member for Carmarthen East and Dinefwr at rest. He has asked many questions on the issue, both of me and in the House more generally, so I know he is very knowledgeable on these matters.
I start by reassuring the hon. Gentleman that we are committed to devolving rail powers to the Welsh Government, as we stated in 2014. The devolution of these powers takes forward one of the Silk commission’s recommendations and is an important part of the St David’s day Command Paper that he referred to. Like him, I want improved rail services for passengers in Wales. I always focus on the output for the customer, not just the input into the train set.
Last month, we saw the launch of the invitation to tender for the next Wales and Borders franchise. I agree with the hon. Gentleman’s comments about the previous franchise. It was a very good example of some of the flaws of the earlier franchising models, and one that we hope to learn from in setting out what we aim to do with this franchise. I am sure he will recognise that it is one key milestone among many on the journey towards a new franchise.
It may help if I set out the other milestones that we seek to achieve. First and foremost, we hope that bidders will respond by 21 December this year to the ITT. The evaluation will take place over January and February, and between March and June 2018 there will be a contract award by the Welsh Government, signed on 13 June 2018, we hope, with a new franchise commencement date of 18 October 2018.
We have a clear set of timelines ahead that we are looking to achieve. I remain committed to supporting the Welsh Government in progressing with the procurement of the next Wales and Borders franchise to make sure that it does indeed commence in October 2018. I also repeat our commitment to progressing with the procurement of an infrastructure provider for the south Wales metro. I am sure that the hon. Gentleman would agree that devolution cannot be a simple task, and it is worth reminding ourselves of what the Government are actually doing. We have seen tireless work by officials, both here and in Cardiff, to give effect to the formal transfer of powers, which had required the resolution of a number of very detailed policy and practical considerations, particularly around cross-border services, but I am pleased that we have been able to agree the broad principles under which that devolution should happen. This will see Welsh Ministers’ statutory powers in Wales supplemented by powers exercised on behalf of the Secretary of State.
These proposed arrangements will, for the first time, enable Welsh Ministers to procure a franchise that, like the current one, includes important cross-border services to and from parts of England, as well as services entirely within Wales. I am sure the hon. Member for Carmarthen East and Dinefwr will agree that it is in Wales’ economic interests to have a strong set of cross-border connectivity, not least to Manchester airport to the north of Wales, and to London along the Great Western main line to the south of Wales.
Both the hon. Gentleman and the hon. Member for Ynys Môn raised the point about not-for-profit services. As they will understand, because this franchise involves cross-border services, the nature of the contracting vehicle cannot be a decision solely for the Welsh Government. That is why a not-for-profit solution, tempting though it may be to hon. Members, is not necessarily appropriate in this case.
I will give way just once, but I am keen to make sure that I answer the hon. Gentleman’s questions.
I am grateful to the Minister for giving way. Can he explain why, if it is indeed his Government’s intention to improve the transport links between Wales and England, they have taken the treacherous decision to cancel the electrification of the main line all the way to Swansea?
The hon. Gentleman is almost tempting me to give another 10 minute speech on how to improve rail services for passengers. I am afraid, as ever, that he falls into the trap of focusing on how we power the trains, and not the benefits for the passengers. As he will be aware, if the 40 miles from Cardiff to Swansea were to be electrified, that would have a cost-benefit ratio of less than 0.3, with no added benefits for passengers—not a single extra seat, mile per hour of the train, or minute off the journey time. As he will also be aware, the National Audit Office and the Public Accounts Committee have been clear that the Department needs to consider each electrification project in isolation to ensure that it still represents good value for money.
It is my duty as Rail Minister to focus on how to deliver the benefits for passengers in south Wales, including in his constituency, and to bring those benefits forward as soon as possible. That is what we are doing with the Intercity Express Programme trains that are already in operation. When electrification to Cardiff is complete, that will save 15 minutes on the existing journey time. Electrifying further to Swansea would not reduce that journey time by a single minute; nor would it add a single seat to any one of those journeys.