First Great Western Rail Franchise

Sarah Newton Excerpts

Tuesday 20th December 2011 Westminster Hall

[Sarah Newton (Truro and Falmouth) (Con)]

It will be a great pleasure to serve under your chairmanship this morning, Sir Alan. Before I begin, I would like to thank my colleague, the hon. Member for Plymouth, Moor View (Alison Seabeck). Although I secured the debate, my hon. Friend, as I shall call her today, has worked very hard with Members across the region to co-ordinate our action to enable us to work as a team, because the rail franchise is important to everybody who lives in the south-west. I welcome the opportunity to debate the Great Western rail franchise before the public consultation begins, so that the Minister and her team at the Department for Transport—it is good to see them this morning—who will work on the draft franchise document, can listen to the views of key stakeholders and of hon. Members who represent constituents who depend on this vital service.

The rail franchise will not be the only one in the region, but it is vital. The Penzance to Paddington line, with all the branch line connections, is central to the connectivity of the south-west with the rest of the UK and international markets. The new franchise will be let in 2013. As part of the Great Western franchising process, the Government intend to issue a consultation document, which will include the opportunity for individuals and organisations to give feedback on the draft franchise specifications. It will be helpful if the Minister confirms today that she intends the consultations to start in January and conclude in April 2012.

I want to ensure that the mistakes of the previous Great Western franchise are learned. TravelWatch recently reported that the 2006 Great Western franchise proved unacceptable for all involved—passengers, politicians and the operator. After representations by concerned stakeholders, a fare strike and a top management reshuffle, significant timetable enhancements were made and additional rolling stock procured at extra cost to the taxpayer and the operator. We must avoid a repetition of that with the new franchise.

I have welcomed the fine words of the coalition agreement on reforming our railway system, and specifically on reforming the franchising process. In July, I welcomed the findings of the Government’s review into how rail franchising can be improved. There is widespread agreement that the existing system has become too prescriptive at the point of bidding and lacks flexibility once operational. Arguably, Government now exercise more control over the railways than they did in the days of British Rail.

Earlier this year, the Government set out the key principles for the new franchising process, which can be summarised as follows. The specifics of each franchise will be decided on a case-by-case basis, with bidders having a greater role in helping Government to refine and define specifications. The Government will set demanding outcomes for operators to deliver, but also give them more flexibility to decide how best to achieve those outcomes, thus giving greater space for operators to plan and run their services more commercially. Longer franchises should expand the opportunity for operators to invest in improvements, as well as enable them to strengthen their working relationships with Network Rail and other stakeholders.

There have been reviews and consultations over the past 18 months—most notably the McNulty review. As the Secretary of State said to the House last month in a written statement:

“Our railways are currently the most expensive in Europe. That is something we…must tackle. The recent review by Sir Roy McNulty found scope to cut rail costs by 30%—up to £1 billion a year. My Department is committed to working with the rail industry to develop a strategy to deliver a better value railway for the benefit of passengers, taxpayers and the wider economy.”—[Official Report, 15 November 2011; Vol. 535, c. 42WS.]

We all want to achieve that balance through the refranchising process.

The re-letting of the Great Western franchise will be one of the first of its kind to test the new process, so today, I want to share with the Minister some feedback that I have received from key stakeholders, and hon. Members will have the opportunity to give their feedback. First, I will summarise the key findings of the report published by TravelWatch in the south-west and the research undertaken by Passenger Focus. They agree with those of us who are here today that the south-west is well placed to contribute significantly to sustainable growth in the UK. Rail users and the business community see better connectivity as key to growth and the reduction of congestion, thus reducing sub-regional disparities in wealth, while accommodating the fastest growing population in England. In terms of gross value added, the south-west is projected to grow at a rate second only to that of London and the south-east. However, other parts of the UK are more productive, and that is largely due to the south-west’s poor transport links to other major parts of the UK. According to the university of Bath, productivity decreases by 6% for every 100 minutes of journey time from London.

The boom in south-west rail usage puts the industry’s planning forecasts in question. Usage has almost doubled since privatisation and virtually tripled in the Bristol travel-to-work area. Growth is not confined to the main line and the principal conurbations; branch lines throughout the south-west are the fastest growing in England, so the invitation to tender must give more priority to capacity. There is likely to be a capacity gap of about 100 million seats on mainline services over the next decade, despite the planned introduction of new inter-city express trains. The franchisee should deal with overcrowding, not by increasing fares to deter travel, but by having the right to bring in additional rolling stock without months of negotiation with Whitehall.

[Mr Adrian Sanders (Torbay) (LD)]

I congratulate the hon. Lady on securing the debate. Unfortunately, I have to leave at 10 o’clock for a Select Committee. Overcrowding goes to the nub of the issue. We recently gained extra carriages, but that has not even kept up with the increased demand on the branch line services to which they will be given. It is crucial that whoever gets the new franchise plans for additional growth to ensure that people are not put off travelling because they cannot get a seat or the train is overcrowded.

[Sarah Newton]

My hon. Friend makes an excellent point. Like Torbay, the maritime line in my constituency, between Truro and Falmouth, has been fortunate, and we are grateful to the Department for Transport and Cornwall council for contributing to extra carriages to ease some congestion. He is absolutely right; in the new franchise, it is essential that branch lines and increased capacity on them be considered alongside the main line. The south-west has suffered the lowest level of investment in its transport network and much of the system is already nearing the end of its planned life.

The region I am talking about today stretches from Wiltshire, Bristol and Gloucestershire, across the peninsula to the west, including Dorset, Somerset, Devon, Cornwall and the Isles of Scilly. The line is well over 300 miles in an east to west direction. Road and rail arteries have to travel disproportionately longer distances than those in the midlands or the north of England, because the populations are sparse and the distances between economic hubs greater. Whitehall has not understood that peninsular geography well since the post-war nationalisation of the former regional rail companies; therefore, over the years, Whitehall business case models for strategic investment have often not delivered extra investment in the south-west.

The decision to invest £5 billion in modernising the route from London to Bristol and Cardiff and to Oxford and Newbury is welcome, but the disruption caused by work on the main line and Crossrail will be felt across the franchise until the end of the decade. Without extra investment, electrification could adversely affect millions of passengers, beyond the electrified lines, such as those using the services from the south coast to Bristol and south Wales, to Weston-super-Mare and Taunton, services west of Exeter and those parallel to the M4 corridor from east Wiltshire through west Berkshire.

The Government are committed to progressive electrification of the network, which should be a priority for lines serving major employment centres, such as the Bristol travel-to-work area. It should also be a priority for diversionary routes to Bath and the far west via Westbury, and Wales via Gloucester, because that would relieve the Severn tunnel to Wales. Bidders should be encouraged to develop proposals for additional electrification schemes and to specify how they intend to meet any capacity shortfalls.

Reliable services are essential for business and for passengers. Investment should focus on eliminating bottlenecks and enhancing capacity to ensure delivery of reliable, user-friendly, clock-face timetables. The Government say that they want people to have a voice on service provision, and we all say hooray to that. The new franchise is an opportunity to give local stakeholders a say in their rail services. It may be time to explore whether the devolution of responsibility for infrastructure and operations to local partnerships might better align services to local needs.

Timetable planning must deal with existing pent-up demand and substantial latent growth. Today’s service levels barely meet demand. The franchisee should be incentivised to provide additional services where needed, particularly with the surge in demand that comes with electrification. There must be a mechanism for regular reviews of the service requirement with stakeholders. Passengers need a reliable, seven-day railway and the opportunity to travel somewhere and back in a day. Rail should do more to exploit that competitive edge by speeding up longer distance journeys to places such as Plymouth, Torbay and the far west.

The franchise’s trains are already by far the oldest main line fleet in the country. Bidders should have replacement plans for the diesel train fleet, with carriage lay-out and seating designed to accommodate the needs of the contemporary passenger. Where through-services are not practical, connections need improving. They need to be made more convenient, with adequate platform staff to assist with changing trains. Better co-ordination with the wider public transport network should be encouraged, and multi-modal and multi-operator information and ticketing should be promoted. The opening up at Old Oak Common of an interchange directly linking with Crossrail to Heathrow, High Speed 2 to the north and the proposed new link to High Speed 1 and the European high-speed rail network should be supported as providing a step change in connectivity to the south-west.

Stations can be focal points for the communities that they serve. Bidders should consider their improvement with imagination, and welcome active community involvement. The ticketing system should be made simpler and ticket purchase made easier, with greater use of electronic ticketing and a less punitive approach towards passengers who mistakenly travel on the wrong train with a restricted ticket. There is a continuing need to obtain value for money from lightly-used services if they are to be sustainable. The use of less onerous infrastructure and maintenance standards and light-weight vehicles could be appropriate without in any way jeopardising safety.

South-west lines that are run as community rail partnerships have experienced record-breaking passenger growth. The franchisee should at least match local contributions, which would therefore encourage complementary contributions from local authorities and other partners. The Government should encourage stakeholders to contribute their local insights, expectations and aspirations to the specification process.

I would like to share the feedback that I have received from some of my constituents about the rail services in my constituency, which reiterate the point made by my hon. Friend the Member for Torbay (Mr Sanders). We very much appreciate our branch lines and think that they should be included in the franchise. We are very concerned that if branch lines are not compulsory and stipulated by the Department, it would be possible for a future operator to choose not to run those services if they became financially unviable. Especially for those of us from Cornwall, it is also important that the Department stipulates the need for a sleeper service to Cornwall. We would very much like to hear a commitment to the potential upgrading of the service to include modern facilities, such as en-suite showers and toilets.

In relation to the current franchise specification, the Department for Transport could also consider improving journey times between Cornwall and London. The requirement to make stops—often for very few passengers —at all stations slows the train down. I would like the Minister to consider whether some London trains could have fewer stops, with passengers using local services to connect with larger stations such as Truro. That would dramatically reduce the journey time between Penzance and London.

Cornwall has a fantastic record of support from the local authority, local volunteers and local business. As a result, the maritime line is the fastest growing rural line in the UK. This could be an opportunity to make partnership working and localism an integral part of the new franchise by empowering the local authority with direct involvement in the specification of services. It is also very important that the franchise is realistic about growth. The number of vehicles currently operating in our west fleet is 147. The original franchise specification for 2006 said that 102 vehicles would suffice. The new franchise must start from where we are today—cuts would be absolutely unacceptable—and recognise the considerable potential for growth over its period of operation.

The fact that there is a range of hon. Members here today representing a broad range of constituencies across the south-west shows that this is a vital franchise, which will be a very good test of the Government’s new franchise regime. We want to work with the Minister to ensure that the new franchise meets the key principles that the Government have set out while, at the same time, improving the service on the Penzance to Paddington line and the many important branch lines that support it.