Rail Update

John Bercow Excerpts

Monday 5th February 2018 Commons Chamber

[Mr Speaker]

Order. Just before the Secretary of State responds to the shadow Secretary of State, I must say to the hon. Member for Kingston upon Hull East (Karl Turner), who, in his usual fashion, yelled, “It’s a disgrace,” from a sedentary position, that this morning I conducted my weekly Skype session with school students from the Education Centre. They were students of the Herne Bay primary school, one of whom asked me, “Mr Speaker, is there a Member who is particularly cheeky in terms of loud and repeated heckling?” I said, “Well, seeing as you ask, there is a chap called Karl Turner, who is a very agreeable fellow, but he does tend to go from nought to 60 in about five seconds.” I proceeded to educate the pupils of that primary school class in the favoured expressions of the hon. Gentleman—“Shocking” and “It’s a disgrace”—and his ritual exhortation, which fortunately I have not heard today to a Minister, to wit “be’ave”, which he makes while conspicuously failing to do so himself.

[Chris Grayling]

As we were caught short by the speed of the urgent questions, I know that the hon. Gentleman did not have as much time as he might have wished to prepare, but I am not sure that he listened to a word I was saying. He talked about a bail-out culture, gifts and standing up to people, but I have just announced that we will terminate a contract and that we may bring the operation of this railway back into the system of operator of last resort, which is, if I recall correctly, what Labour did in 2009.

I intend to ensure that I do what offers the best value for the taxpayer and the best option for the passenger at a time when exciting things are happening on this railway. New trains arriving in the coming months will transform the journey for passengers on the route, and that is long overdue. In the next control period, there will be investment in different parts of the route in order to improve performance in places where it is desperately overdue. The future is promising for the passengers on this railway, as they will have a better travel experience in the months to come.

The hon. Gentleman talked about long-term thinking, which is precisely what the east coast partnership is about. It is about unifying track and train in a way that I believe the public of this country want, and people on the railway believe that this will lead to a more efficient railway. The more that we can reunite the day-to-day operation of the track and trains right across the network, the more reliable a railway we will have.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Despite what the Transport Secretary says, the franchising system is quite clearly not working, especially given today’s further announcement. When all these announcements are made, we keep hearing about the private investment that privatisation of the railways has brought in with the increasing passenger numbers. The reality is that all that new investment is paid for by the rail users. Sure, it might make the railways more attractive, but it is being paid for by those who use the railway. It is not magic money; it comes out of our pockets. It is quite clear that the parent company guarantee system is not working. If it were working properly, the east coast franchise would continue until the end, so there is clearly a failure in the system.

The Secretary of State did the usual bluster, but he mentioned water companies when he was talking about nationalisation. Well, I have news for him: in Scotland, the water company is a national company. It is owned by the public and operates successfully. The Scottish Government are also looking into a public sector rail bid, so these things can work. If the Transport Secretary’s defence is that Stagecoach got its sums wrong, what does that say about the Government’s due diligence on the tenders that were submitted? The fact is that the Government followed through and awarded the tender to a company that got its sums wrong. That is another reflection on his Department.

All this follows the west coast main line tender farce—the franchise deal collapsed in 2012, resulting in the direct award to Virgin, which is now going to get another direct award. There are way too many direct awards in the franchise system, and that kind of goes against the ethos of competition that a franchise is supposed to bring, which again highlights that the system is not working. What will be the duration of the next award and what impact will that have on the timescales for HS2? Will the Secretary of State give us accurate timescales for the HS2 tender process?

On the east coast and west coast awards, will the Secretary of State follow the Scottish Government’s lead? All employees on the ScotRail franchise are paid the real living wage, there are no compulsory redundancies and ScotRail is operating at a higher satisfaction level than the companies in the rest of the UK. For once, will he seriously consider the devolution of Network Rail to Scotland? That would save his Department money, take away some responsibility—given that it is a failing Department—and perhaps make up for a £600 million shortfall in maintenance monies allocated for the next control period in Scotland.

I have one final question. [Hon. Members: “Oh!”] How is the Secretary of State’s new railcard system working? What funding has been put in place for it? Does the inflation-level rise he has agreed cover the new railcard?

[Mr Speaker]

I simply advise the hon. Gentleman, in all friendliness and candour, that he was only 43 seconds over his time.

[Sir Desmond Swayne (New Forest West) (Con)]

It seemed longer.

[Mr Speaker]

I do not know how long it seemed to the right hon. Gentleman, who is usually quite a patient fellow. Not everybody, I am afraid, is as succinct as the right hon. Gentleman, who has developed it into an art form, but the hon. Member for Kilmarnock and Loudoun (Alan Brown) must do better.

[Chris Grayling]

We are going to hear a lot today about the public versus private argument. What SNP Members, and indeed Labour Members, have not remembered is that if the investment has to come from the public sector, it competes with money for schools, hospitals and the armed forces. That means that, as happened in the days of British Rail, our rail network is starved of investment, and we saw the consequences. By contrast, the new trains that are shortly going to be arriving in Edinburgh Waverley and going up the east coast to Aberdeen are paid for by the private sector.

--- Later in debate ---

[Mr Sheerman]

On a point of order, Mr Speaker.

[Mr Speaker]

Not in the middle of the statement.

[Mr Sheerman]

Is it not right that Members should be told of another Member visiting their constituency?

[Mr Speaker]

I am extremely grateful to the hon. Gentleman for his point. The Secretary of State says that the hon. Gentleman was notified and his office was informed. I must say, I think the spirit of the requirement is not always honoured. It is quite important that a genuinely conscientious effort is made to contact the Member concerned, but, to be fair, the Secretary of State did start by saying, “I informed his office.” That may or may not be entirely satisfactory, but we will have to leave it there for now, because notwithstanding the hon. Gentleman’s considerable perturbation about what he regards as late notification, other hon. Members are now waiting to ask their questions and will become very perturbed if they do not have the chance to do so.

[Several hon. Members rose—]

[Mr Speaker]

We will start with one that I feel sure, from experience and precedent, will be very brief. I call Sir Desmond Swayne.

[Sir Desmond Swayne (New Forest West) (Con)]

How good is Lord Adonis’s memory?

--- Later in debate ---

[Sir Edward Davey (Kingston and Surbiton) (LD)]

rose—

[Mr Speaker]

I call Mr David Linden.

[David Linden]

Thank you very much, Mr Speaker. You are far too kind.

The Secretary of State spoke in his statement about protecting the interests of passengers and taxpayers. When will he look at the example being taken forward in Scotland, where Scottish Government Minister Humza Yousaf has said he is minded to accept a public sector bid to run the railways? What is the Secretary of State’s objection to that? Is it ideology or just an obsession with corporate recklessness?

[Sir Edward Davey]

rose—

[Mr Speaker]

We shall now hear from a Kingston and Surbiton knight—Sir Edward Davey.

[Sir Edward Davey]

Thank you, Mr Speaker—that was a difficult choice for you.

The Secretary of State has today acted when a franchiser overpaid, hitting its shareholders. Will he commit to the House that when a franchiser under-delivers, hitting the passengers, he will also act?