(6 days, 21 hours ago)
Public Bill Committees
Rebecca Smith
The Committee heard from some representatives of the private sector. Lord Hendy has also highlighted that Hitachi—I believe it was—has made multi-million-pound investments that the Government were very happy to accept. It may well be that that is backed up by Government, but that was welcomed by the Prime Minister, so to say that we do not want private investment seems a bit churlish—ultimately, it has been accepted by the Government in its entirety.
The new clauses in this group are pushing the accountability piece: the reporting back, to make sure that the Great British public has the opportunity to see what Great British Railways is delivering and whether it is holding itself to account in the right way. I do not understand why the Government do not seem to think that the new clauses are a good idea. If Great British Railways will be so wonderful, would it not be great if the British people can see what it actually achieves and hold it to account? Marking one’s own homework is never good, and being able to hold GBR to account in all its forms will be essential.
Sarah Smith (Hyndburn) (Lab)
It is a pleasure to serve under your chairship, Mr Western. My remarks will be incredibly brief, ahead of the Minister’s responses. To echo some of what my hon. Friend the Member for Truro and Falmouth said, as a representative of Hyndburn in Lancashire—which is currently not part of a mayoral combined authority—I look for reassurances that GBR will have regard to Lancashire’s transport authority and the local transport plans. This Government are clearly committed to the important agenda of devolution, but it would potentially undermine some of those efforts if in the transition phase—while we are trying to move as quickly as possible for as many areas as possible to benefit from that full devolution opportunity—a national body is undermining the local plans and those on the ground who understand the complexities of the needs of somewhere such as Lancashire. I would thank the Minister for reassurances in that regard.
I thank hon. Members from all parties for their well-considered contributions to this debate. I shall endeavour to give full answers to them.
First, on the point made by the shadow Minister about how GBR will handle conflicting priorities that emerge within different strategies, as laid out by mayoral combined authorities or otherwise. As part of the business planning process, GBR will need to demonstrate how its integrated business plan aligns with the objectives contained in the long-term rail strategy and the Scottish Ministers’ rail strategy, reflecting the role that they have as funders of the network. The Bill also requires GBR to have regard to the various other national and local strategies. Fundamentally, however, establishing no hierarchy between the general duties to which GBR is subject, in my view gives the necessary flexibility to allow it to manage competing priorities where those may arise. It will be the responsibility of GBR to ensure that its decision making demonstrates consideration of potentially competing requirements and strikes an appropriate balance in making trade-offs.
On the statutory role of mayors as part of the process, GBR must have regard to their transport strategies. Mayors of course will have the right to request services and work in active partnerships with GBR. However, I also hear clearly the concerns of not only the hon. Member for South West Devon, but my hon. Friends the Members for Truro and Falmouth, and for Hyndburn about those who do not live in mayoral strategic authorities. I appreciate the hon. Lady’s scepticism when comparing this to our existing system. When it comes to engaging with private operators and with other arm’s length bodies, at the moment it feels as if parliamentary accountability cannot always be applied, and that where power resides is very diffuse, making it hard to tell who is responsible. We are actively trying to avoid and redesign that through the creation of GBR.
The hon. Member for South West Devon points to the fact that the business units might not have the teeth to engage properly and to reflect the needs of local areas, but I would say that we are creating a decentralised Great British Railways, where local areas are imbued with the powers to enter into dialogue with local authorities especially to avoid that being the case. That does not change the fact that the reason that within the Bill we have referenced mayoral strategic authorities is that we believe they are the right unit of economic and of demographic power to drive forward truly devolved change on the railway. That does not mean that we cannot not have regard to those who do not benefit from living within a mayoral strategic authority.
(2 weeks, 1 day ago)
Public Bill Committees
The Chair
I am afraid that the next question will probably be the last to this set of witnesses. I call Sarah Smith.
Sarah Smith (Hyndburn) (Lab)
Q
Maggie Simpson: The industry is unnerved by the provisions in the Bill—I have members writing letters across Government to set out their concerns—but business goes on. Keith Williams picked up his biro in 2018; you could have raised a child in the time since then, so of course business has to go on. People are making good investments and, as I said at the beginning of the panel, we are pleased with the support of this Government. What we are looking at in the Bill is whether we have a framework that will enable those investments to happen in five, 10 or 15 years’ time, under a different Administration with, potentially, a different mindset, which might be better or worse—we do not know.
That question has different layers. Are we unnerved now? Yes. Is that stopping investment now? Not everywhere, but possibly in some places; other factors are at play too, of course. Will it start to impact investment? Yes, it will. The first time that GBR says to somebody, “Take your freight train off my network because I want to run this service instead”, if we have no or very limited right to appeal, it will absolutely start to spook the market.
Steve Montgomery: I know your question was about freight, but private sector investment, particularly in passenger rolling stock, is an area you have to look at and ask, “Where’s that coming from?”. We have committed to spend £500 million between buying new trains and maintaining them, and that keeps the supply chain going.
We have potential future orders that we want to place, but we are again getting caught up in the mechanics of whether there will be open access, or whether we will lose our rights at any point under clause 71. All those different things are in play at this moment of time, so where do you get that confidence? The Bill is not strong enough in that area, particularly not for passenger service operators.
Sarah Smith
Q
John Thomas: I am fairly new to the role. We are a Brussels-based organisation and we do have lots of European members. I am not familiar with the Finland example, but the European Union is going in completely the opposite direction from us. They are continuing to liberalise, opening up their markets—in the United States, in Australia, in South America—
The Chair
Order. That brings us to the end of the allocated time for the Committee to ask questions, I am afraid. On behalf of the Committee, I thank witnesses for the evidence they have given this afternoon.
Examination of Witnesses
John Davies and Catriona Meehan gave evidence.
Rebecca Smith
Or at least make them jointly. Is that what you are after—that joint decision making?
Andy Burnham: Yes, I think that would be what we would want. The risk would be that GBR is too remote and not responsive—everything that Lloyd was saying about slow decision making. That is not what we would want. From our point of view, we would want a Bee Network business unit within GBR, with joint decision making and a very place-based focus. That would be meaningful.
Sarah Smith
Q
Andy Burnham: We have no plans to annex you yet, but I will let you know if that changes!
Sarah Smith
The Reform county council is trying to delay our progression towards a mayor, which is deeply frustrating because of all of the things you have outlined, and much broader things as well, about the benefits of devolution. What benefits might Hyndburn get, without being part of a mayoral authority, as the Bill currently stands? What more might we be able to do to benefit areas that are dependent on that progress before they can be talking in the way that you are today, Tracy and Andy?
Andy Burnham: Obviously, from Hyndburn, people will travel to Manchester, but also to Liverpool, Preston and other places. Once you see the emergence of more integrated systems in which Hyndburn is included, travel will become more convenient and cheaper. In effect, there will come a point where your constituents, Sarah, will be able to tap into the Bee Network cap and come into Manchester and then use our trams and buses at a much lower cost than might otherwise have been the case. I think that is the way to think about it: as this spreads out, in the end, it will make travel more convenient and more affordable for people everywhere. It is really just within the city region boundaries at the moment, but it will grow beyond that, and I believe that your constituents will feel the benefit in three to five years, possibly, but maybe not as immediately as others.
Jason Prince: We also have to remember that the reason we are here now is that the railway system did not work. What GBR will do, through the legislation that the Government have brought forward, is bring a much stronger focus. We will have a structure and a body that, almost as a minimum, seeks to deliver a good passenger journey and good access, whether that is for freight or whatever.
We are starting from a stronger base and probably with greater clarity, but we have to acknowledge that different areas, such as Greater Manchester and West Yorkshire, have been given powers and funding, and with that comes greater responsibility. They are all prepared to take that on and, conversely, with that they should have greater strengthening and probably deeper partnerships. I think that needs to be written into the Bill, to better define it. There are 20,000 words in the Bill, and the addition of probably only 500—about 2% of the overall text of the Bill—would make that relationship much stronger. I know that is quite geeky and very technical, but that is broadly where I think we need to land in terms of strengthening. GBR will set a framework that we have not had before, which should benefit every part of the country. I think that is what the Bill will do.
The Chair
Order. That brings us to the end of the time allocated for the Committee to ask questions of these witnesses. On behalf of the Committee, I thank you for giving evidence this afternoon. I am sorry to colleagues who were unable to ask questions.
Examination of Witness
Richard Bowker gave evidence.
(8 months, 2 weeks ago)
Commons Chamber
Sarah Smith (Hyndburn) (Lab)
Harpreet Uppal (Huddersfield) (Lab)
The Secretary of State for Transport (Heidi Alexander)
Economic growth is this Government’s top priority, and a reliable, well-connected transport network is critical to driving prosperity. That means delivering local priorities in places such as Huddersfield and Hyndburn, including through West Yorkshire’s £830 million city region sustainable transport settlement and the local transport grant for Lancashire combined county authority.
Sarah Smith
The Government have rightly prioritised rail as a key factor in the future viability of our transport infrastructure. There exists in Hyndburn an outstanding opportunity to create a freight rail terminal that would fit with the Department for Transport’s targets for increasing rail freight capacity by 75%. The proposal also adds value in increasing east-west rail freight capacity, which must currently pass through Manchester. Sadly, no progress was made on this under the last Government. Does the Secretary of State agree that a north-west freight strategy should be a priority, and will she meet me to explore the potential of this as a priority project in the north-west?
Heidi Alexander
My hon. Friend is right to highlight the importance of rail freight, and I am clear that with a reformed railway, we must do more to shift freight from the roads to rail. I am keen that Network Rail works collaboratively with industry to develop terminals where there is either current demand or the potential for future growth. If there is viable interest in developing this land, my officials and Network Rail would be happy to engage with interested parties.