Northern Rail Services: Greater Manchester

Rachael Maskell Excerpts

Wednesday 6th June 2018 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to see you in the Chair this afternoon, Mr Howarth. I appreciate that many of your constituents in Knowsley have been frustrated in the past couple of weeks, whether travelling in the region or across the country. We heard about the issue in Monday’s urgent statement, of course. It was unprecedented: for 90 minutes 65 MPs of all parties relayed to the House the pain that passengers throughout the country were experiencing, including anxious students not able to get to college to sit vital exams, children late for school, adults late for work and, as my hon. Friend the Member for Bolton South East (Yasmin Qureshi) has said today, people who have lost their jobs. Family life has been disrupted and childcare made impossible; people do not know when they are going to get home of a night, and businesses struggle when staff do not arrive. In the heart of the tourist season there is the fiasco of trains being cancelled at peak times in the Lake district—we stand with the businesses there.

I was struck by the experiences of my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger), who talked on Monday—column 63 in Hansard—about people who were fasting during Ramadan standing for five hours in blistering heat. Trains have been cancelled and delayed; they do not stop. People have been failed—“Northern fail” is the expression that comes to mind. The situation is not just in the north, but across the country. I know that passengers in the south-east in particular have also had years of that pain. We have a broken railway system.

I thank my hon. Friend the Member for Bolton North East (Sir David Crausby), who eloquently highlighted the pain of his constituents, particularly the pain caused by Arriva Rail North. Electric trains in his area should have been running from Manchester via Bolton to Preston last year, but it will be lucky if they do so by the end of this year. Northern provides a poor service to passengers and they now have their worst punctuality rating in eight years. As we heard, only 83% of their trains arrived within 10 minutes of the scheduled time. Of course, in the past week things have got worse, with trains often being cancelled altogether at weekends.

The story for passengers in Bolton is one of broken promises, within a completely deficient system, and they are of course dependent on a completely deficient compensation scheme. As we have heard, it is far too complex for passengers to engage with, and it does not work for multimodal transportation, so fewer people claim on it. We have heard that disabled people and parents with prams have no chance of using the railway. At certain points on the line the trains are already packed, as there are too few carriages to meet the need. In the new upgraded rail system there is still a need to install the overhead gantries for the power lines at places such as Chorley, Bolton and Salford. However, because of poor ground conditions due to uncharted shallow mines around those locations, a third of the foundations were unsuccessful at the first attempt. All that work was outsourced to the failed company Carillion.

I thank all hon. Members who have contributed to the debate—the hon. Member for Hazel Grove (Mr Wragg), who put some pertinent questions to the Minister, and my hon. Friends the Members for Stretford and Urmston (Kate Green), for Bolton South-east, and for Oldham East and Saddleworth (Debbie Abrahams)—for sharing the impact of the rail meltdown on their constituents. The upset, anger and frustration that have been heard in the House this week are nothing compared with the actual pain that we have heard about directly from the public. Despite all that, the Secretary of State could not find it in himself to apologise for the part that he played. The only reason he remains in his post this afternoon is that the Prime Minister is too weak to sack him. All that we got was his belief that he was clever in apportioning blame to everyone but himself. Others are to blame—I grant him that; but the person in charge, at the heart of it all, is the Secretary of State. Perhaps the Minister will offer an apology on his behalf for the fact that he has utterly failed the British public.

So what do we know? Network Rail ran into serious trouble during control period 5, not completing many of the planned infrastructure projects, including promised electrification upgrades. Did the Secretary of State know? Yes; he personally intervened, cancelling many electrification projects. Hon. Members will remember that that was the day after the House rose last summer—presumably to avoid questioning of the kind that happened on Monday. The right hon. Gentleman announced that trains that do not even exist would run in the future, and said they would replace the planned new electric rolling stock as on the TransPennine Express route.

It is deeply offensive that new trains that cannot accommodate wheelchair users have been put on that line. We heard how Network Rail failed to complete its timetabling programme and how the Secretary of State, despite initial denial, knew that that was coming over the horizon. He said on Monday that he took calls weeks before the new timetable was due to be introduced, but in his statement he failed to mention that, with regard to a company limited by guarantee, he was the one person in charge—allegedly. Therefore he is fully to blame. If he neglected or negated his responsibilities he should resign.

People in the industry whom I have talked to have told me that the crisis was long predicted. When the company moved the timetabling function to Milton Keynes a significant proportion of the very skilled timetabling staff were lost, so there were not the personnel to do the work required. I have also been told that the process of rescheduling an entire timetable normally takes the best part of a year, and at least nine months. Given that the project commenced in earnest in February, it was not likely to meet its own timetable, to be stress tested and to be sure to work.

The glaring absence is the fact that the Secretary of State did not at any stage intervene and postpone the new timetable—and we learned why. He is, it now appears, the only person on both sides of an apparent Chinese wall dividing his Department. On a wing and a prayer he ordered that the timetable change should go ahead. There was a threat that the operators—the private, fragmented companies that he always defends—would sue him or the Department if the timetable was withdrawn. They had received promises from him on the new timetabling: that in May they would be able to run their new trains, on new infrastructure and at new times. Their financial structures, including how they would afford to pay their levies to the Department and how they would pay their shareholders, could not be delivered unless all the new slots ran on the promised terms in the new timetable, as set out in the franchises.

I think that we can expect law suits to come flooding in now. After all, those private companies’ sole reason for existing is to drive profit out of the state. Those rail companies had hired their new trains for the new electrified lines and expanded timetables. I remind Members that they do not own their rolling stock, but lease it by contract at an exorbitant rate from consortia of investment companies and fund managers. These private profit companies exist to drive profit out of the train operating companies, which in turn drive profit out of the state, taxpayers and passengers. They have disposed of their old rolling stock and moved it on to their next customers, while the new rolling stock cannot operate on the de-electrified lines—you could not make it up, Mr Howarth.

Then there are the train operating companies, and today we have heard much about Northern rail and its failure. It went ahead and signed contracts, demanding that services be run down to the bone. We heard how it cut the number of crucial staff to maximise its financial gain, and it failed to maintain or recruit sufficient staff to run on the new timetable. It knew what was coming over the horizon, and it failed. It is also trying to get rid of train guards, the very people at the heart of looking after the needs of passengers. We have ended up with not enough trains or staff to meet the needs of a rushed and untested timetable, although I must say that the staff have been phenomenal across the rail network, and we salute them for all that they have had to contend with over the past few weeks.

Only the Secretary of State and his Ministers sit at the top table and the interface of track, timetable and train. He knew about these challenges but did nothing. He let this chaos happen, either through sheer incompetence or by hoping that it would be the least worst option. He is the head of every decision, which is why either he must resign or the Prime Minister should sack him.

One subject that was not mentioned on Monday was how much all this will cost the public or passengers through future ticket increases. The money has to come from somewhere. I am sure the TOCs will call for compensation—they always do—and we also have the compensation scheme, and a commitment to a new compensation regime, which fellow MPs are already saying will be insufficient and that more will be required. Will students who were not able to sit their crucial exams, or businesses that could not open their doors because their staff had not arrived, be able to claim compensation? How much will all this chaos cost? I put that point specifically to the Minister, because ultimately taxpayers or passengers will pay, and they need to know how much it will cost.

This story will not end happily ever after. First we get a revised timetable that, as we have heard, has in many places been much worse than the original one. Then we get the mass cancellations across the service. We have heard that whatever timetable is applied, the chaos will run for months and months into the summer. What has the Secretary of State offered? An inquiry that will report at the end of the year. Thank goodness the Transport Committee, chaired by my hon. Friend the Member for Nottingham South (Lilian Greenwood), will provide answers long before then through its own inquiry. The Secretary of State’s inquiry will not report until after the next set of timetable changes have been put in place in December, although I have heard that those changes have fallen behind schedule.

This chaos has forced passengers off trains and into their cars—a modal shift. We talk a lot about a modal shift across our railway system, but we aspire to it going the other way. When rail services do not work and fail the public, people jump back into their cars because they have no other option. That leads to more congestion on our roads, more frustration and more pollution to exacerbate our poor air quality. I am sure that the rail companies will challenge the Government about that fall in patronage.

The great British public have been completely let down by this Government and their failed rail model, and they are right to be furiously angry at the Secretary of State, who blames everybody else—the bosses at Northern rail, for example—while forgetting that he is in charge. That simply could not happen under Labour’s proposals for a new model of public ownership. We will scrap the juggling of multiple private company interests and have one rail service that works together in the interests of passengers. The Secretary of State could make a start by moving towards that model—that would massively satisfy passengers across the north—and he could take the contract away from Northern rail, and use his powers to start providing reparations for this complete disaster on our railways.

[Mr George Howarth (in the Chair)]

Before I call the Minister, I gently remind him that it is customary to leave enough time for the mover of the motion to respond briefly to the debate.

--- Later in debate ---

[Joseph Johnson]

That is a good question, and one of the things that Stephen Glaister’s review will be looking at very carefully. It will look at all the processes that went into the creation of the May timetable and all the planning and preparation around it, to answer those kinds of questions and to see what lessons can be learned for future timetable changes, including the December timetable change. I will come on to compensation, if the hon. Lady hangs on for a second; I want to ensure that I complete the account of how we got to the May timetable change and what lessons we can learn from that.

I was talking about the training of drivers. Some drivers have been unavailable for their normal train-driving duties while they were and are undergoing that training. To make a difficult situation worse, Northern was unable to ask its drivers to work on their rest days for the last three months of this period, because, as hon. Members will know, ASLEF declined to extend the rest day working agreement that ended in February. That meant that Northern has not been able to absorb those exceptional or last-minute training needs and provide the additional flexibility for the train driver rosters that it needed to.

Let me turn to the questions about who knew what, when, and about where the DFT was in all this. In January, Network Rail informed the Department that it would not complete its upgrade of the Manchester to Preston route in time for the May timetable change. In response, Northern developed a new timetable in a compressed period and briefed stakeholders on the reasons why that was required. Following that, the late completion of the Blackpool to Preston blockade in mid-April meant that Northern had less time to complete those plans and its driver training. Northern then did not finalise its plan for the timetable until three days prior to its introduction. Industry readiness boards assured the Department and the Secretary of State that the timetable was ready for introduction, and the Department was not made aware of any expectations of high levels of cancellations.

Hon. Members have asked about compensation to reflect the significant inconvenience experienced by passengers. There is no doubt, and the Department accepts, that Northern passengers have faced totally unsatisfactory levels of service. I have met with many colleagues in the House, and I have also heard directly many stories from the travelling public of how the disruptions have impacted the lives of all those constituents.

It is entirely right for all those affected by the disruption to be properly compensated. I encourage passengers, in the first instance, to continue to use Northern’s Delay Repay compensation mechanism for affected journeys. Northern operates the Delay Repay compensation system for all its passengers. Under that scheme, as hon. Members will know, passengers are entitled to claim compensation for each delay of 30 minutes or more that they experience, whatever the cause of the delay. There are no exclusions for weather or other delays outside the control of the rail industry.

The Office of Rail and Road guidelines require train operators to respond to claims within 20 days of their receipt. Northern has assured the Department that it is working hard to respond to all claims within industry standards. I acknowledge the complaints that the hon. Member for Bolton North East has made about various aspects of the Delay Repay scheme. The Department is discussing with Northern ways in which we expect it to reduce its processing time for Delay Repay claims.

In his statement on Monday, the Secretary of State announced that, in addition to the standard Delay Repay compensation mechanisms, there would be a special compensation scheme for Northern passengers, subject to agreement by the board of Transport for the North. It is to be funded by the rail industry and will ensure that regular rail customers receive appropriate redress for the disruption that they have experienced. The industry will imminently set out more detail of the eligibility requirements and how season ticket holders can claim. However, the Secretary of State has already indicated, at a high level, that he expects that the scheme should offer Northern passengers who have experienced protracted disruption of this kind similar entitlements to those under Southern’s passenger compensation scheme last year.

[Rachael Maskell]

Can the Minister set out exactly who he means by “the rail industry”? Clearly, we are talking about Network Rail, which is culpable for some of the issues, as well as the Department for Transport and the operators themselves.

[Joseph Johnson]

I want to allow us a few days to refine the details of how the compensation scheme will work. We are working carefully with all players in the industry to ensure that a fair scheme is put forward that adequately provides redress to passengers. The Secretary of State has been clear that this will be funded by the industry. We will be bringing forward further details imminently, which I hope will answer the hon. Lady’s question.

What are we doing concretely to fix the problems that have occurred? Acting through the Rail North Partnership, the Department for Transport has put in place an action plan with Northern, which includes improving driver rostering to get more trains running now, increasing driver training on new routes, additional contingency drivers and management presence at key locations in Manchester, and putting extra peak services in the timetable along the Bolton corridor. Northern has also announced that, until the end of July, it will run fewer services than were originally planned, per the May timetable, to give passengers greater certainty and to increase opportunities for driver training. I believe that this temporary measure is necessary to stabilise the service, enabling improvements to be introduced gradually. Northern will then get back to a full timetable service.

The interim timetable, rolled out on Monday, will see an approximately 6% reduction in the number of train services—about 165 out of the normal 2,800 daily services. Northern is expecting to start to see significant improvements this week, from today, as their drivers are fully rostered on to the new interim timetable. The timings for today, as of 10.35 am or so, saw Northern achieve 86% on the public performance measure. With 665 or so trains operated, 2% were very late or cancelled, which is about 15 trains. There is positive progress here. This is Northern’s best weekday morning performance since the timetable changed. That 86% compares with weekday out-turns of between 60% and 70% for the first two weeks following the introduction of the May timetable.

[Joseph Johnson]

The May timetable is a big timetable change. It is roughly four times larger than any previous change over recent years of such timetables. It was a six-monthly timetable change. It was a very big change that reflected the massive investment that has been going into the rail system and all the opportunities to create new services across the country. In those circumstances, the timetable change did not just affect Northern and Thameslink, it affected every train operation in the country. All those other train services around the country had interlinkages with the train services being run by Northern, Thameslink and other Govia Thameslink Railway services.

As a consequence, simply suspending the timetable was not possible, because all the other train operators had put in place their own driver rosters and driver training programmes for all the other services running across the rest of the country. Not introducing the May timetable at that point would have been a far worse and more disruptive solution. This is progress. We recognise that there is significantly more to be done. We want to get back to where we were meant to get to, which was the full introduction of the May timetable, as soon as we can, but we want to do that gradually and to reintroduce services as soon as we can, once the appropriate driver training has taken place.

How can we ensure this does not happen again? As I have mentioned, work has begun to set up the independent inquiry into the timetable, implementation and deliverability of future timetable changes. That will be chaired by an independent transport expert, the chair of the current independent regulator, the Office of Rail and Road, Professor Stephen Glaister. In parallel to the inquiry, the Department for Transport is assessing whether Northern met its contractual obligation—a subject which a number of hon. Members asked about—in the planning and delivery of this timetable change. We will carefully assess Northern rail’s planning, risk assessment and resilience in preparing for the May timetable change.

We are currently reviewing whether Northern is in contravention of the franchise agreement. If it is found to be so, it would be referred to the Department’s enforcement advisory panel. The purpose of that panel is to review any contraventions of the franchise agreement fairly and consistently across all franchises. It will seek to respond in a consistent manner where different train operators commit similar contraventions, taking account of the Department’s enforcement policy and previous enforcement decisions, and will recommend the appropriate response, including any remedial plan or enforcement action, if required.

[Rachael Maskell]

Will the Minister set out a timetable for that? I think passengers have a real interest in knowing what timetable that scrutiny will cover.

[Joseph Johnson]

Work has been underway over the last few weeks on this question, and we expect to come to a conclusion as soon as is reasonably possible.

In assessing whether Northern has breached its franchise agreement, it is important to bear in mind that there are other players in this story and Network Rail is an important one. While bearing in mind Network Rail’s failure to deliver the infrastructure I mentioned on time, I want hon. Members to be assured that we will hold the operator to the terms of its contractual obligations.

I want to give the hon. Member for Bolton North East a chance to wind up at the end. I thank all colleagues for their contributions. I remind them that once this phase has been completed, passengers on Northern will benefit from 1,300 extra services a week. Rail users of Northern have much to be hopeful about in the future of their rail services. Brand-new trains will soon be introduced, building on the improvement to timetables and stations already made in recent years. We are working closely with train companies to drive down cancellations and will support Network Rail and the wider industry in delivering these significant improvements.