West Coast Rail Franchise

Debate between Simon Burns and John Stevenson

Tuesday 14th June 2016 Westminster Hall

[John Stevenson (Carlisle) (Con)]

I beg to move,

That this House has considered the West Coast rail franchise.

It is a pleasure to serve under your chairmanship today, Mr Brady, for what is my first Westminster Hall debate of this new Parliament.

I should mention that I am the chair of the all-party group on the west coast main line. The group takes a keen interest in the line; we have met the operator and the franchisees, and recently we visited Euston station itself. I also thank and pay tribute to the West Coast Rail 250 group for its support and assistance, and for being a source of information. It is the secretariat to the all-party group and it has been of much use to us.

The forthcoming franchise is extremely important for the west coast rail line. The line is, in my view, the most important inter-city line in the country. It connects the great cities of our country—namely London, Glasgow, Manchester and Birmingham—and it links many smaller cities and major towns on the west coast of the country. Of course, I could not neglect to mention my own constituency, the city of Carlisle, which is a key railway city. Indeed, there are four railway lines that connect into Carlisle: one going to the west coast of Cumbria; one going to Newcastle; there is, of course, the famous Settle to Carlisle line; and of course there is the inter-city connection between Glasgow and London. So, the west coast line is one of the most significant and indeed vital transport links for the west of the country.

The line was originally built between the 1830s and the 1880s. It was not built as one line; it was a series of lines that ultimately got connected together. That period was the key time for investment in the line, but between 1955 and 1975 most of the line was electrified. In total, there are about 700 miles of track.

After world war two, as we all know, the railway system went into decline. There was a lack of investment, a lack of interest in the network and a decline in passenger numbers. That was true for many rail lines across the country; many lines were shut and so were a number of stations. Fortunately, the inter-city connections continued. Even though they may have had issues, they remained in use.

Then we started to see the revival of the railways in the 1990s, with the introduction of the franchise arrangements, which remain the arrangements today. On the west coast, about 17 stations are under the franchisee, although Network Rail continues to manage three of the key stations, namely, Euston, Manchester Piccadilly and Glasgow Central. On top of that, there are a number of other stations that are not part of the franchise. From an employment point of view, the west coast rail company—effectively, Virgin Trains—employed just over 3,000 staff in March 2015.

We have seen a dramatic increase in passenger journeys. In the 18 years since the start of the franchise system, the number of annual passenger journeys in Britain has risen from 845 million in 1997-98 to 1.65 billion in 2014-15, which is a faster rise than for any other major European rail system. In the past three years on the west coast line itself, annual passenger journeys have gone up from 30.4 million to 34.5 million, so that from the start of April 2014 to the end of March 2015 4.3 billion passenger miles were travelled. Indeed, passenger journeys have grown by around 20% between 2010 and 2015.

The majority of the demand for rail travel on the west coast line is for journeys to and from London. There are around 300 train services every day on the west coast line, with journeys to and from London accounting for 63% of those services. Typically, journeys on the line are long-distance journeys, with approximately 60% of them being over distances greater than 100 miles. Of the journeys made, around 66% are for leisure, 23% for business and 11% for commuting purposes; many of the commuter journeys are made with season tickets.

The London terminus at Euston, which is obviously essential to the west coast line, is the sixth busiest station in the country, and outside London the stations at Birmingham New Street, Manchester Piccadilly and Glasgow Central are three of the four busiest stations in the country.

[Sir Simon Burns (Chelmsford) (Con)]

I was extremely interested to learn about the number of journeys and of passengers using this important line up the spine of the country. Does my hon. Friend agree that by about 2024 it is expected that capacity on the west coast main line will be 100% and bursting at the seams? That is why it is so important that we move ahead with building High Speed 2, to provide some extra passenger capacity.

[John Stevenson]

My right hon. Friend hits the nail on the head with regard to the key issue with HS2, which is capacity. He is absolutely right that on many parts of the west coast line capacity is already becoming an issue, and that situation will continue as we approach the 2020s. Therefore it is vital that we invest in the rail network and HS2 is very much part of that.

Funnily enough, the line is not just about trains and stations; it is also about the track itself. In recent years, we have seen significant investment—of almost £10 billion— in the track on the west coast line. That investment has led to a huge improvement in capacity, reliability and punctuality. As a user of the line myself, I have certainly seen significant improvements in the punctuality of the service, and in the level and quality of customer services provided at both stations and on the trains themselves. However, quite clearly there are still many issues that remain to be dealt with, one of which many colleagues will understand—wi-fi. Overall, however, there have been big improvements since the start of the franchise system.

Also, we must not forget the benefit that there is to the taxpayer from the franchise system. Between 2008 and 2015, the overall payment to the Exchequer from the franchisee was roughly £650 million and over the entire franchise period nearly £1 billion has been paid to the Exchequer. As for passenger satisfaction, in autumn 2015 overall journey satisfaction with the existing west coast franchise was 91%, which was 4% higher than the average for the long-distance sector. Clearly that is good, but there is also room for improvement.

Indeed, the areas where the west coast franchise could improve were identified by the Transport Focus group in its report. The group highlighted the areas that passengers were most concerned about: availability of seating at stations; car parking facilities; luggage space on trains; toilet facilities; and of course value for money in the price of the tickets. Overall, therefore, comparing where we are today with where we were in 1997, when the franchise scheme started, I would say that the west coast service is much improved, but there is still room for further improvement.

Also, it would be neglectful of me if I were not to mention the aborted attempt at the franchise renewal a few years ago. Without doubt, that was a considerable setback for the Department for Transport and it will undoubtedly have put back investment and development of the service. I appreciate that we now have an interim arrangement under a direct award, which expires in April 2018. Clearly, that has been the short-term solution.

I also acknowledge the contribution that Virgin West Coast makes. It has done an excellent job. Quite clearly, it will be in competition with other rail transport companies for the next franchise, but at least it has set a benchmark that we can build upon.

There have been improvements within the direct award scheme, with investment in stations, the provision of wi-fi at stations and one or two other things. However, the situation is not the same as it would be with a full franchise; there has not been the same level of necessary improvements or the same commitment, which are what we wish to see.

I do not want to go into the many reasons why the previous franchise did not happen; we need to look forward and not to the past. Suffice it to say that I hope the Government have learned from the experience, and so far my contacts with the Government have been positive.

The really important thing is where we are today and how we can ensure that we get the new franchise right. It needs to be right for passengers.