South-Eastern Rail Franchise

Rachael Maskell Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Andrew Jones]

I thank my right hon. Friend for those questions. He has been a strong and tenacious champion for rail passengers in his constituency, raising issues with me and speaking in Westminster Hall debates. I share his impatience to get the benefits that are emerging from our franchises to his, and indeed to all, constituents. This is a huge and complex piece of public procurement, and it is right to take the time to make sure we get it right and to finalise this competition. The area is one of the most complex on our network; it has a mix of high-speed and commuter services, with a highly intensive use of infrastructure. I cannot tell him the date on which we will be able to make the announcement. This is a live competition involving market-sensitive information. There is an established method of communication to the House and the markets, so I cannot answer him and am able to say little on that point today.

I can confirm to my right hon. Friend why the east midlands franchise was awarded, with the rail review taking place. That was simply because it was considered that with the east midlands franchise award and this one we could get the benefits to passengers before the work of the rail review came into play. On compensation in respect of the two stations he mentioned, I will look at that carefully. On the point about the compensation following the May 2018 timetable changes, there were some significant problems, but they were not everywhere. The issue was to get the compensation to those who had been most affected. They received compensation that I think was appropriate, but I will check out those two stations and write to him as quickly as possible.

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

So here we are again: a Transport Minister forced to the Dispatch Box to defend the actions—or, in this case, the lack of action—of the ever-failing Secretary of State. Following four delays on the south-eastern franchise, we now know that the Government are planning a direct award. After 12 other direct awards, including on south-eastern, is this approach being taken to avoid the embarrassment of failure further down the road? Two monopolies, Govia and Abellio, are left in the competition to run Britain’s most beleaguered franchise. Following a litany of failures under Govia, highlighted in Chris Gibb’s report two years ago, and a lacklustre response by the Secretary of State, who, frankly, should have brought the franchise under direct operation, the travelling public are being failed.

What discussions has the Minister had with the trade unions, as the hard-working staff face further uncertainty, not least over their jobs and pensions? Will he also confirm that there is no intention to cut pensions to staff through this franchise process? Are the Government going to stall on all franchises until the conclusion of the Williams review, which is undertaking a comprehensive look at why our rail system is floundering? If so, when will this report be published? In the light of revelations this weekend that sensitive confidential information was leaked from Stagecoach into the hands of Abellio during the east midlands process, what changes has the Minister made in his Department to ensure that commercially confidential information is not shared with competitors in this broken process? How are the Government measuring past failure of these rail monopolies? In the light of evidence, will he then rule out their bidding, as he has for other companies involved in other franchises?

With 176 million journeys being made each year, how can these passengers have any confidence that they will not pay the price for failure—something they have had to endure under the current award? They are paying some of the highest fares in exchange for one of the worst services, so it is clear that this franchising fiasco must end. If the Secretary of State will not take back control of our rail, Labour will.

[Andrew Jones]

I thank the hon. Lady for her questions. We are negotiating a short direct award to allow the competition to reach its end. This is not the end of franchising, which has been a significant ingredient in improving and turning around rail performance in this country. It has led to our having more services and passengers and at a greater level of safety than at any point in our country’s history. Franchising has been part of that success. This is an issue not of failure but of making sure that we get it correct.

Have I discussed the franchise bid with the trade unions? No, because the bids are assessed by officers of the Department for Transport, who anonymise them. It is important, market-sensitive information. Such information runs through a standard procedure, of which the hon. Lady should be aware; it operates in councils, in the Government and in devolved Assemblies, too. I have of course met the trade unions, and I was able to confirm with them that my aspirations for the rail industry include the careers of those who serve the industry. The Chair of the Transport Committee, the hon. Member for Nottingham South (Lilian Greenwood), asked about the same point in an urgent question just before the Easter recess. I do not want to see any cut to pensions; I want to see those who work on our rail services retire with secure and stable pensions. Nevertheless, we are talking about pensions from a private business, not something that comes from the Government.

The work on the Williams review is under way. I am sure the hon. Lady will have seen some of the evidence papers and heard about the emerging thinking that Mr Williams has discussed in some of the speeches he has made over the past few weeks. We look forward to seeing the output of that review. Franchising has been an ingredient in the turnaround of our rail industry that has been so fantastic for this country. The question now is how we take that to the next stage, which is what the Williams review is all about.