GWR and Network Performance

Stephen Doughty Excerpts

Tuesday 5th February 2019 Westminster Hall

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I beg to move,

That this House has considered the Great Western Rail (GWR) delays and performance across the network.

It is a pleasure to serve under your chairmanship, Mr Betts. I thank the Backbench Business Committee for generously accepting my application for this urgently needed debate on the Great Western rail franchise, and the many colleagues from across the House who supported it. It is good to see so many colleagues from across the network in the Chamber; they will represent the concerns of passengers from across the network and the difficulties that they face. It is clear that the deteriorating GWR service affects many hon. Members and their constituents.

I also thank those who shared their stories and frustrations about GWR’s failures on the RailUK Forums and the Great Western passengers forum, and my constituents who did so on Facebook and Twitter. I thank the Parliamentary Digital Service for its outreach work in support of this debate, and the House of Commons Library and my office for helping to compile a list of some of those concerns.

Carmel, who commented on one of the forums, summed up the situation:

“Terrible customer experience with travel and website use. Cannot rely on the train service to get me to work on time despite my rail fare going up year on year. Cancelled trains, delayed trains, high cost...Hopeless and frustrating journeys day after day. Poor Wifi, ridiculous paper filling out to get a refund on tickets. Makes life very stressful for commuters.”

Those are some of the issues that I will touch on.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on the way he is leading this very important debate. On that point, my constituents who have contacted me say they want to use the train service more often and not drive to work, but they cannot, due to the issues that my hon. Friend identifies—particularly those relating to reliability. Does he agree that that is simply not acceptable any more?

[Stephen Doughty]

Absolutely. I concur with that point. It is a great tragedy that the service problems are turning many potential rail users on to the roads. We do not want that to happen, particularly in the south Wales corridor.

As the Library helpfully summarised for Members in the debate briefing, Great Western Railway is currently run by FirstGroup under a direct award that is due to expire in March 2019. The Department for Transport decided to exercise its option to extend the direct award until April 2020, and we understand that it plans to negotiate another direct award for two years until April 2022. It took that questionable decision despite the fact that, as the Library outlined, Great Western’s performance has seriously deteriorated of late. That is reflected in the declining levels of passenger satisfaction on its part of the network. The autumn 2018 national rail passenger survey revealed that passenger satisfaction was just 78%, and had declined from 84% when the survey was conducted three years earlier. Even more shockingly, only two thirds of GWR passengers were satisfied with the reliability of trains, and only 40% were satisfied with the way GWR handled delays.

The Great Western route is unusual in that it is hugely wide geographically. It stretches right along the historical south Wales and west country main line, famously developed by Brunel, and serves the M4 corridor and the commuter lines into the Thames valley. Crucially, it also goes down to the south-west, Devon, Somerset and Wiltshire. It is a lifeline for many communities. People rely on it for commuting between those regions and travelling to and from London.

There have been substantial problems on the network for the past few years, a variety of which have hit the headlines. The bulk relate to the delayed and altered electrification programmes, the responsibility for which lies with the DFT and Network Rail, and to the introduction of the new trains. Surprisingly, the Department extended the franchise without adequate consultation or consideration. The problems include serious delays, poor service, delays in processing compensation claims and other concerns about performance include catering issues, failures relating to reservations and the management of rail replacement services at crucial periods.

[Kevin Brennan (Cardiff West) (Lab)]

On the point about new trains, does my hon. Friend find it staggering that the trains that have been commissioned for use on the line are in some cases worse than the old 125s, which were introduced in the 1970s? People cannot even walk the entire length of the trains that have been bought, so they can be stuck at one end of the train with no catering services. Even if there is a perfectly adequate trolley on the train, it may not be able to get to them because the train is split into two units.

[Stephen Doughty]

Indeed. In fact, I had that experience myself on the last Great Western train that I took. There was hot water in only half of the train—there was no hot water in the toilets or for the catering services. The staff simply shrugged their shoulders and said, “We see this problem all the time.”

I met Hitachi yesterday to discuss some of those concerns. I have to say that it has been very frank and forthcoming about the issues it has experienced with engineering the new trains. Unfortunately, that is what happens if a new fleet is rushed into service without adequate testing and operation time, and without redundancy and additional rolling stock. Great Western’s old HST fleet was sold off to Scotland before enough of the new trains were ready and functioning. That is why many of the problems have happened.

I am disappointed that, despite the many meetings that Members from both sides of the House have had with Great Western management, a blame culture seems to have developed among GWR, Network Rail, the Department for Transport and in some cases the developer of the new rolling stock, Hitachi. As I said, Hitachi has been frank and honest about the problems it has faced and what it is doing to deal with them, but the net result for passengers is poor service. I am sorry to say that the managing director of GWR, Mark Hopwood appears out of touch in relation to some of the problems, and unwilling or unable to get a grip on the litany of failure over the past few years.

[Jo Stevens (Cardiff Central) (Lab)]

Does my hon. Friend share my frustration that, despite the litany of complaints about service, GWR’s franchise keeps getting renewed? The Government do not seem remotely interested in performance and passenger satisfaction levels.

[Stephen Doughty]

I completely agree with my constituency neighbour. The reality is that the service was underperforming and declining, and yet GWR was given an extension, and could be given another one. Most passengers would find that extraordinary.

Our railways are a vital public service for all our constituents. I want to cover the price hikes, the delays, the new rolling stock, compensation and the electrification problems. Trains are increasingly overcrowded. Many constituents have contacted me and have even sent pictures of the overcrowding on Great Western services, particularly on the London-Reading leg, where the service is very disappointing.

Research released this week by Transport Focus, using results from the national rail passenger survey, which focused on 1,458 GWR passengers, shows that overall satisfaction has gone down and sits at a poor 78%. Only 49% of the group felt that the GWR services provided value for money. Meanwhile, season tickets prices continue to skyrocket. They have gone up by 20% since 2010, and some tickets have gone up by 30%. More fare increases were announced at the start of this year. It is good to see the Chair of the Transport Committee in the Chamber. She made that very clear in her comments in November. She said:

“After the year passengers have had, any increase in rail fares is going to be unwelcome. But 3.1 per cent—the largest increase we’ve seen since January 2013—represents a real kick in the teeth.”

That is what my constituents and others who have posted comments on the forums are telling me.

One of my constituents, Mark, spoke about the Cardiff-Portsmouth service, specifically through Trowbridge and Fareham. He said that, until December, he was able to book in advance and get a return for about £20, but since the new year the same journey, departing and arriving at the same time, has almost doubled in price, and yet the service is poorer. His words say it all: the trains are “always packed” and “often delayed”.

Others have shared similar experiences. Azriel said that GWR’s prices were “outrageous”, and that trains were always “very full”, and echoed other comments that point to the frustration that many of us have about the south Wales corridor and the fact that the electrification, which has been delayed and complicated, will stop in Cardiff. It will not even go to Swansea, as was promised.

[Jo Stevens]

My hon. Friend is being very generous in giving way. A standard return rail ticket to London from my constituency, Cardiff Central, costs £242. For the same price, passengers could fly from our Welsh Labour Government-owned Cardiff airport to Barcelona and back three times, and they would still have change for a taxi home. Is it any wonder that my constituents are giving up on using GWR? Does my hon. Friend agree with them?

[Stephen Doughty]

I completely agree with them. My hon. Friend’s constituency neighbours mine; they are either side of Cardiff Central station. If someone goes out the front, they end up in my hon. Friend’s constituency, and if they go out the back, they end up in my constituency. I hear the same stories all the time. Many people have told me that they are turning to driving, instead of using trains. They have called train travel on GWR trains “unbearable” and “awful”. One said:

“Since the new rolling stock was introduced on long distance services, I have driven long-distance more as the new trains are (for me and my partner) unbearable.”

[Lilian Greenwood (Nottingham South) (Lab)]

My hon. Friend is making a very compelling case on behalf of his constituents. When the Minister replies, he will no doubt say that the Government are investing record amounts in our rail network, and of course he is right, but the problem is that, due to the fragmented nature of our system and the lack of co-ordination, that investment is not leading to the improved services that passengers expect. They understandably feel very angry about having to pay higher fares when they are not seeing an improvement in service. Until that is fixed, there will not be the trust in the rail industry that we want.

[Stephen Doughty]

I wholeheartedly agree with my hon. Friend, who chairs the Transport Committee. Later in my speech, I will come to some of my own views on that, which have been known for a long time. We should have a co-operative, publicly owned service, and a different model for our railways in which we bring the different parts of the system together.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Since 2010, Wales has received 1.6% of investment for 5% of the population and 11% of the railway network. Over a longer period, it has been only 1%. That is fatal under-investment in Wales. There has not been a lot of investment and we need more.

[Stephen Doughty]

I completely agree with my hon. Friend. What a contrast with the new investment announced by the Welsh Labour Government for the services for which they are responsible. The new Transport for Wales services have recently encountered many difficulties, but I am absolutely convinced that with new rolling stock, the new services will be hugely improved. The Welsh Government are investing in those services.

[Chris Elmore (Ogmore) (Lab)]

I am extremely grateful to my hon. Friend for giving way; he is making a well-informed speech to represent his constituents, as he always does.

On the Welsh Government’s investment, does he agree that it is ironic that over a number of years we have seen little to no investment in stations—including in my constituency, in Pencoed, Tondu and Maesteg—yet that remains the responsibility of the UK Government? If it were not for the Welsh Government finding avenues to bring about station improvements, we would see very limited changes. The Welsh Secretary says, “I want to extend the line all the way beyond Carmarthen,” yet the Department for Transport does not invest in the infrastructure to achieve what is supposedly his grand design for rail infrastructure in Wales.

[Stephen Doughty]

Indeed; aspects of the process, including which services are covered and where the investment goes, can be confusing for passengers and for our constituents.

I will come back to train delays and cancellations, which are one of the primary concerns that my constituents contact me about. Claire told me,

“At least I've been able to take my booked trains this year. Last year 50% of the trains on which I'd booked a seat were cancelled.”

LZ said,

“Appalling, over-priced service. For nearly 2 months in October and November 2018 I travelled between Frome and Bristol 4 times a week…and it was ON TIME just 3 times! The carriages are dirty, too cold in the winter and in the summer trains were cancelled for being too hot.”

The House of Commons Library briefing that I mentioned absolutely confirms that performance has seriously deteriorated. It says that in the last four quarters, fewer than 85% of GWR services have arrived at their final destination within five minutes of their scheduled arrival time.

Research by Which?—interestingly, it just opened a support office in my constituency—ranked GWR 20th out of 30 UK train companies for commuter rail services, with an overall customer score of just 47%. It received just two stars for punctuality and value for money, which are both critical aspects of train travel. When ranked for leisure rail services, GWR also ranked 20th out of 30, and achieved a slightly higher—although not very good—customer score of 56%.

The latest statistics from GWR’s own website, for 9 December to 5 January, show that only 90.7% of trains were punctual within their five minutes on-time allowance—below GWR’s own target for punctuality. That is extraordinary. The reasons for those delays—based on my investigations and conversations with different stakeholders—appear to be a series of problems, including delays and overruns of electrification works; staff shortages and aspects of staff training, to which inadequate time is dedicated; failures of new rolling stock, with the DFT introducing new trains without an adequate testing period; and delays in delivery while old stock was transferred early to Scotland, which left no contingency.

There is also another series of issues to do with communication and confusion among the different parts of this convoluted system, between which a blame game has developed. GWR will blame Network Rail and the Department for Transport; Hitachi will blame the Department and GWR; Network Rail will say, “It’s not us, guv, it’s the GWR franchise owners and the Department for Transport.” That is simply not good enough. In a tweet, the Welsh Labour leader of Newport City Council said to me that the high fares, such as a £200 return from Newport to London, are

“outrageous, especially when you have to stand all the way to Swindon on the return journey.”

She also mentioned the delays and cancellations.

[Nigel Huddleston (Mid Worcestershire) (Con)]

I thank the hon. Gentleman for giving way—he is being extremely generous with his time. His point about customers’ and constituents’ frustration about the delays is an important one. In my patch in the west midlands, where GWR also operates, those frustrations are often driven by a lack of staff. That causes frustration to the extent that, when they have a choice, some of my constituents drive up to 45 minutes to use an alternative railway line. Does he agree that that does that not make sense for my constituents and is disturbing for them, and does not make sense for the company either?

[Stephen Doughty]

Indeed—nor does it make sense for the environment and reducing carbon emission, which we all know is crucial. I feel quite sorry for the GWR staff at times, because they do an incredible job and work very hard. When speaking off the record, they are often just as frustrated about the lack of training and support that they are given. They often have to deal with complex problems, such as failures of the new rolling stock, when they have not been given adequate support to do so.

I will mention some of those particular problems. On the new trains, there have been door failures. We get frequent complaints about the seats, which are supposedly ergonomically designed but are some of the most uncomfortable seats someone could ever sit on. As for catering, we were told that they were going to get rid of the buffet cars on the London to Cardiff services, but that was not what passengers wanted. Often, a trolley with no hot water comes through, and it will only go through half of the train—that is if it can get through the train because, of course, if the train is overcrowded, it cannot. There have been issues with train safety systems failing, with the reservations system simply not working, as well as generator problems caused by the fact that bi-modal diesel and electric trains are running more on diesel because of delays to electrification. As a result, the engines sooted up and failure rates rose.

[Alex Chalk (Cheltenham) (Con)]

Does the hon. Gentleman share my frustration about the announcement —one sometimes hears it over the tannoy—that there is not a train crew available to drive the train? Does he share my concern that there seems to be a lack of planning, as well as potential skimping on preparing sufficient resources to crew the trains?

[Stephen Doughty]

Indeed; I have experienced that, particularly with services departing from Paddington, which should be one of the easiest places to have train crews available, as well as relief train crews if there is a problem.

As a result of all that, GWR has had the third largest increase in complaints rates in the country—behind Northern and Grand Central—with complaints rising in the last quarter. Like Grand Central, a reason for the increased volume of complaints is the quality of the train, as well as delays and cancellations.

[Kerry McCarthy (Bristol East) (Lab)]

My hon. Friend has not yet mentioned the problems faced by people with disabilities and mobility issues when travelling on trains. I was at a recent meeting with a group people who were mostly wheelchair users or had other mobility issues, and they have problems with ramps not arriving, the wheelchair space being blocked, and not being able to get through the train because it is so packed. Does he share those concerns?

--- Later in debate ---

[Stephen Doughty]

I certainly do—I have seen aspects of that with my own eyes. People with disabilities and, interestingly, people with bicycles who want to travel with them on board, complain about the lack of access on such services. We are supposed to be making the railways as accessible as possible to people, whether they cycle in, use wheelchairs or have other mobility issues. We are simply not doing well enough.

Claiming compensation is another serious issue. Which? research from last year revealed that train companies, including GWR, were providing misleading advice to passengers about their rights by making blanket statements that they were not liable for consequential losses. Hon. Members may be aware that Great Western currently offers only delay repay 30 to London Thames Valley route customers. Other passengers are eligible for delay repay 60. I have been delayed for 40 to 50 minutes many times, but was not eligible for any compensation. The number of people choosing to pursue a claim is relatively low in comparison to the number of people eligible. That is partly due to the failures of the compensation system, which is very complex to navigate. According to Which?, only 51% of people said that they would know how to find information about claiming compensation. Clearly, there is a gap.

One figure reveals all: how can it possibly be acceptable that GWR has had to pay out £22.6 million in compensation for delays between 2015 and 2017? That raises a very serious question for the Minister about whether the franchise should be extended or renewed in any way.

We have also seen problems with electrification, and the National Audit Office made a critical report about that—how it had been managed, the overall cost increases and delivery delays. I accept that that is not GWR’s fault; it is an issue for the Department for Transport and for Network Rail. Again, however, the seeming lack of communication at various points between GWR, the train manufacturers, the DFT and Network Rail has resulted in more problems, with trains having to operate in a way that they were not designed for and needing expensive overhauls and modifications to cope, let alone the huge disappointment about the cancellation of electrification to Swansea and other locations across the network.

Station management has been touched on, in particular at Paddington, and although Cardiff Central, where we see confusion, is managed by Transport for Wales, a lot of GWR services go through it. Other issues include accessibility of toilets, for disabled customers in particular, or toilet facilities not even being available; ticket barriers not working; the failure of rail replacement services, notably over Christmas, with no co-ordination of buses and trains, and many people being delayed even further; and of course the provision of information to passengers.

My view of what is to blame has been clear for many years. It is the separation of track from trains brought about by privatisation, the fragmentation of network and franchises, and the consistent lack of political leadership and oversight—epitomised in extremis by the current Transport Secretary, I am sorry to say. It is time to take back control of our railways and to return them to public ownership or, even better, in my view as a Co-operative MP, to move them to a public co-operative or mutual model, in some combination that brings together the best of a passenger or consumer and staff-led service, where everyone has a stake, and fragmentation in the system is simply reduced.

Many commentators and experts have written important works on how to run our railways in future. Back in 2011, Christian Wolmar did a report for the Transport Salaried Staffs’ Association, and in 2012 an ASLEF and Co-operative party report by Professor Paul Salveson looked at issues in Wales. The Leader of the Opposition and the shadow Minister, my hon. Friend the Member for York Central (Rachael Maskell), have made clear their support for a “people’s railway”, which would deal with many of the issues.

I have three simple questions which I hope that the Minister will address in his response. What are the DFT doing to hold GWR to its franchise commitments, and does he agree that the issues raised today are unacceptable? What justification did his Department have for extending the franchise, and is he considering further extensions? Why has the DFT set such unrealistic targets for the new rolling stock, and does his Department take responsibility for any delays?

[Several hon. Members rose—]

--- Later in debate ---

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

It is a pleasure to serve under you in the Chair, Mr Betts, for yet another crucial debate about our railways.

Over the last few months it feels like I have been taking a tour of our nation, as I have felt the pain of passengers who have been badly let down by the way in which our rail service has been run. We have seen cases of incompetence in governance under the Secretary of State, how the whole franchise system is broken, and the cost of that failure to passengers. We have also heard loud and clear the cry for one integrated rail service, in public ownership. It will be a new model of public ownership—unlike the myths peddled by the hon. Member for Cheltenham (Alex Chalk)—that moves the debate forward into a new era of rail. I say to the hon. Member for St Ives (Derek Thomas) that it is 25 years since the Railway Act 1993, so it is clear that the broken model has gone through its growing pains and that it is time for change.

The model that we are promoting will address many of the issues and concerns that hon. Members have raised in the debate, not least those raised by my hon. Friend the Member for Newport East (Jessica Morden), when she talked about the cross-border issues that are hampering the connectivity that we need. We are ambitious, but we are real; we are radical, but we will work within the parameters of the possible. Yet again, I put on record my thanks to industry, individual experts, the travelling public, trade unions and staff, for their engagement in building a plan for a modern integrated transport system, with rail at its heart.

My hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) opened the debate eloquently, not only speaking powerfully on behalf of his constituents, but advocating innovatively for reform. I know the Welsh Government have sought to bring about reform of the railways in Wales, but they have had their hands tied by the centralist approach of our Government and the Secretary of State for Transport himself. Perhaps that was most noticeable, as we have heard today, when the Secretary of State, without consideration for improving connectivity, reliability and economic opportunity for people in Wales, with the stroke of a pen cancelled the rail electrification programme beyond Cardiff. That shameful act denied some of the poorest parts of the UK the economic opportunity to reach their full potential.

I would like the Minister to explain to me how the cost of the electrification upgrade ran out of control. The project was costed at £1 billion when the work was first identified under a Labour Government for the full 216 miles of the route; the cost rose to £1.7 billion in 2014, to £2.8 billion under the Hendy review, and now to a staggering £5.58 billion. The cost ran away with itself under the coalition and Tory Governments. I further ask why, when the economic chances of passengers in Wales and of Wales itself were cut, the Welsh Government were not able to access the £700,000 to invest in improvements to their public transport system. That would have been an obvious response, especially given the under-investment in transport in Wales, which my hon. Friend the Member for Swansea West (Geraint Davies) highlighted.

Instead of moving things forward, the Secretary of State announced that passengers beyond Cardiff would need to travel not on the new electric trains—we have heard about the multitude of problems with those—but on bi-modes. We have heard even more scandal about how the bi-modes just do not work. Those trains will still bellow out dirty diesel; they are heavier, more expensive to run and more demanding on the infrastructure. As my hon. Friend the Member for Cardiff West (Kevin Brennan) highlighted, there have been further problems with the new rolling stock. We have certainly heard that it has not addressed the real issues of congestion; we heard about the “Sardine Express”, and other hon. Members such as my hon. Friend the Member for Reading East (Matt Rodda) have highlighted how hard it is to get a seat on the trains.

Sadly, that is what we have come to expect from the Secretary of State. Thank goodness we have creative and forthright Members of Parliament such as my hon. Friends, who truly speak up for our whole population in Wales and the south-west on these matters and have put forward, yet again, a real case for urgency in bringing forward the transition to a modern railway system.

[Stephen Doughty]

My hon. Friend is making some strong points. Would she agree that the innovation shown by the Welsh Government is in stark contrast to the DFT? For example, in my constituency, they are working with a local business partnership involving Investec, Nigel and Andrew Roberts and others to develop a new St Mellons Parkway station in the east of the constituency, which is currently under-served by rail stations. That is an innovative approach, with Government working with the private sector to see that development go ahead.

[Rachael Maskell]

What the Welsh Government have been able to demonstrate is that rail is not an entity in itself, but is fully integrated into the economy and connected with other transport routes. I thank my hon. Friend for bringing that point into the debate.

The most powerful arguments I have heard in this debate have come from the voices of passengers, which hon. Members have reflected. We have heard their pain and their stories of woe. The fact that passengers across this line are paying 20% more but getting a worse service is frankly unacceptable.

We have heard about innovations that are needed to upgrade stations and making them safe. My hon. Friends the Members for Ogmore (Chris Elmore) and for Bristol East (Kerry McCarthy) both highlighted how disabled people need a proper service, not only at stations, but on the trains themselves, which has not been delivered even with the new rolling stock. There is a catalogue of problems that must be resolved. My hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) gave the most powerful of speeches in making the case that, five years on from seeing the railway at Dawlish washed into the sea, the Government have yet to drive forward a programme to protect the whole of that vital south-west economy. We must see peninsula rail moving forward at pace now to protect the economy there.

Of course, we have the route itself, which is crying out for focus and proper governance. We have heard how the delay repay 15 system has not been introduced in an expedient way, yet this is a line that has had three direct awards, which will shortly total nine years, when it only had a franchise for seven years. Surely the Government can set the terms to protect the interests of passengers, but they have failed to do so. I would like more accountability from the Minister when he responds on why they keep issuing direct awards, which clearly shows that the franchise system is completely broken and does not enable the state to demonstrate that it can run the railways far more efficiently.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is always a pleasure to serve under your chairmanship, Mr Betts. I will start by thanking everybody who has contributed to the debate, and congratulating the hon. Member for Cardiff South and Penarth (Stephen Doughty) on securing it in the first place. Many issues have been raised, and I will try to address as many as I can in the short time allowed, so I must press on fast.

The question has been asked, “Are the Government investing in railways?” The answer is yes, of course; we are investing a record amount to deliver more reliable, more comfortable and safer journeys for our rail network. Alongside our investment in infrastructure, we have delivered new, more reliable trains on the Great Western main line. There has been a change, however, in the way we approach investment in the next funding period. In the past, we focused very much on enhancements, but we are now focusing more of our £48 billion budget on reliability, and particularly on repairing and replacing the worn-out parts of our network to increase reliability and punctuality.

[Stephen Doughty]

Will the Minister give way?

[Andrew Jones]

Oh, crikey—go on. I am always generous about giving way.

[Stephen Doughty]

The Minister mentioned reliability; I sat with Hitachi, the manufacturers of the new trains on the Great Western service yesterday, and they took me through their own reliability stats, which they admit have not been good, particularly with the introduction of the new trains. Basic things were missed, such as fitting them with filters to deal with pollen and seeds in summer, which meant record breakdown levels last year, during the hottest summer on record since the 1970s. Surely there was some problem with the commissioning of those trains in the first place?

[Andrew Jones]

With interventions that long we will really have to scamper. I do not accept the hon. Gentleman’s argument. New rolling stock often brings with it some kind of teething period, as we have seen throughout the history of our rail network, but the bottom line is that we are seeing new trains deliver a better service.

The modernisation of the Great Western main line will improve more than 100 million passenger journeys each year and will stimulate economic growth from London, through the Thames valley, certainly through Cheltenham, to the Cotswolds, the west country and south Wales. I fully recognise how vital this service is in not only connecting people but driving the economy.

I also recognise that GWR’s performance last year was not good enough and fell well short of passenger expectations. As a result, GWR worked with partners across the industry and put in place a performance improvement plan, which, although there is of course still more to do, has seen GWR move from delivering 72% of trains between south Wales and Paddington on time six months ago to more than 90% today.

The December timetable change was successfully introduced. The industry significantly reduced planned timetable changes to minimise the risk of severe disruption, which has served to stabilise services and to improve timetable efficiency. In the future, we will stage timetable changes, rather than having one big-bang approach.

I am clear that I expect GWR to do everything it can to minimise cancellations and other disruptions to services. It agreed to and implemented a contractual performance improvement plan, which includes a wide variety of activities across the whole franchise area to improve performance for passengers, including matters under the control of Network Rail.

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[Stephen Doughty]

I thank the Minister for his comments. I very much appreciate the number of colleagues from constituencies across the Great Western network who have come to take part, including those from the other side of the House. They made their points with eloquence and seriousness on behalf of their constituents. I am deeply disappointed that the Minister chose to respond in the tone and with the lack of detail that he did. These are serious issues, and it is simply not good enough to gloss over them with a bunch of statistics, warm words and rhetoric. Passengers deserve better.

There is clear evidence that the services are not good enough. GWR admits that they are not good enough, the independent assessors admit they are not good enough and the House of Commons Library shows that they are not good enough. Reliability is not increasing, and is actually getting worse in some cases. Overall passenger journey satisfaction on GWR services is going down, not up. It is frankly time that the Government, the Secretary of State and this Minister got a grip and took some interest in what is actually going on at GWR, rather than simply glossing over the circumstances, and responded to the serious points that have been raised. [Interruption.] The Minister is chuntering from a sedentary position. The reality is that he has not answered a single question put to him today by Members from across the House and has not engaged with the issues in a serious way, instead simply glossing over them with statistics. He has not answered the serious concerns that have been put. This is very disappointing from the Minister and his Department, but it is what we have come to expect.

Question put and agreed to.

Resolved,

That this House has considered the Great Western Rail (GWR) delays and performance across the network.

M4 Upgrading: South Wales

Stephen Doughty Excerpts

Wednesday 14th November 2018 Westminster Hall

[David T. C. Davies (Monmouth) (Con)]

I commend my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) and the hon. Member for Newport East (Jessica Morden) for the way they put their points across.

No less a figure than the late Rhodri Morgan, former First Minister of Wales, described the M4 as the great infrastructure project in Wales of the 20th century. He recognised that the M4 is not just a matter of local convenience for people living in and around Newport; it also has a huge impact on the whole Welsh economy. Those of us from the Newport area know what it has done for that area. We have seen the development of Severnside, and my right hon. Friend mentioned the major sporting and musical events that now take place in Cardiff. I very much hope that the convention centre will host the Conservative conference sometime soon—I am told that it is the largest conference, and the one that generates the most income locally, so I am sure the whole of Newport would welcome it. We want to see that happen. We have also seen the development of the haulage and warehousing industry along the M4, particularly in the Severnside area.

The M4 has wider implications as it is one of the European Union’s critical routes. Although it is not labelled as such, it is part of the E30, which stretches all the way from Cork to Omsk, so even the European Union recognises its importance. As a great fan of the European states—it is important that we trade with all of them—I very much hope that, if they are going to tie us up in red tape, they insist that we maintain that critical piece of infrastructure.

We all know that there are many problems with the M4—other hon. Members have highlighted them—and this is not just about the Brynglas tunnels area. There are massive and unnecessary delays westbound, towards the Coldra roundabout—unfortunately, right where the convention centre is—and eastbound, coming out of Cardiff towards Tredegar Park, which has an impact on residents of Cardiff.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I apologise for not being here at the start of the debate. I was in a Delegated Legislation Committee. The hon. Gentleman is making a very important point. Clearly, the road infrastructure around the east of Cardiff has a huge impact on my constituents. I consider myself an environmentalist. I want more investment in rail, cycling and pedestrian opportunities, but we have to recognise that there is an environmental consequence to all that traffic queuing into the east—particularly around Rover Way, Splott, Tremorfa and those eastern links. Does he agree that that can have a serious impact on air quality?

[David T. C. Davies]

Absolutely, I do agree. I am also an environmentalist who recognises that to protect the environment we have to generate the funds, and to generate funds we have to have a thriving economy. That is why, generally speaking, the western European and wealthier nations have a better environmental record than some of the poorer nations in the rest of Europe. I very much agree with the hon. Gentleman’s point.

I am concerned not just about the increase in traffic that we will see as a result of the Conservative Government’s welcome decision to end the tolls on the Severn bridge—we will see the benefits of that only if this road is upgraded—but about the possibility of a major problem happening in the Brynglas tunnels, which would effectively shut the M4 and close off one of Wales’ major pieces of infrastructure. We need to have that alternative because the day will come when major work will have to be carried out in the Brynglas tunnels, and if there is no M4 relief road there when that happens the result could be absolutely devastating for the whole economy.

I very much hope that the Government in Wales get on with this. They have been given the powers and the money to do it. If they decide to go ahead I hope they will learn a few lessons from what has been going on slightly to the north where we have seen, I am afraid to say, a practice of Ministers turning up to be photographed in hard hats and high-vis vests for the dualling of the heads of the valleys road—a very welcome project—but not wanting to meet with residents who have been negatively affected by the work that has taken place.

Obviously, whenever a major piece of road infrastructure is built there will be inconveniences for local residents. It is important that those are recognised and dealt with by the responsible Ministers. I think we have agreed, on all sides, that there is a real problem here and there is a solution on the table. The only solution, I believe, is the black route. We have had experts poring over all the alternatives and we have had various people coming up with all sorts of schemes, involving trams and Lord knows what, but the reality is that there is only one scheme that will do it.

My understanding is that there are three candidates waiting to take over from the First Minister. Of those three, only one has given a 100% commitment to building this route. I hope that the Minister will do everything possible to ensure that the Welsh Government have all the power and money they need to build that road, and encourage them to do so as quickly as possible, given the welcome decision his Department has made about the tolls.

I urge my friends opposite, if I may call them that, to do whatever they can to influence the result of their own election and make sure that the candidate who wins is the one who is going to build this road. I am absolutely convinced that after the next Welsh Assembly election we are going to end Labour party rule in Wales. We are going to get rid of one-party rule and we are going to have a Conservative First Minister, but the M4 relief road cannot wait for that. Since we are going to end up with a Labour First Minister, we might as well have one who is going to take one very useful decision.

--- Later in debate ---

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

It is, as always, a pleasure to serve under your chairmanship, Ms McDonagh. I congratulate the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) on opening today’s debate and enabling a strong debate on the urgent need for transport investment in south Wales.

The right hon. Gentleman represents a beautiful peninsula in south Wales and a vital transport corridor, which I have no doubt will be in more demand following the UK’s leaving the EU; but without the right infrastructure in place, it could result in a massive impact on his constituency and throughout the south Wales corridor. This level of detail has been ill-conceived by the Government. As 29 March next year is rapidly approaching, I urge the Minister to ensure that the risk analysis for all parts of his portfolio, including the impact in south Wales, is clearly attended to.

My fear is that the Prime Minister's plans will not contain anywhere near the level of detail needed, whenever we get to see them—maybe later today. I have also heard a real call for better connectivity to the whole of south Wales, and rightly so, not least from my hon. Friend the Member for Newport East (Jessica Morden). We know that the Welsh economy has been seriously challenged by poor connectivity, and that recent decisions made in Westminster—not in the Senedd—have had the worst impact, not least on rail.

We will never forget how in 2017, the day after Parliament rose for the summer recess, the Secretary of State snuck out the announcement that he would cancel the rail electrification project in south Wales. That would have been a game changer to all communities in the region and would have enabled faster, cleaner and more efficient rail services to the valleys and conurbations. However, in writing off south Wales he has singly made the most detrimental decision to stem the potential of the Welsh economy and sustain a transportation challenge in the region.

[Stephen Doughty]

My hon. Friend makes the point about the cancellation of electrification beyond Cardiff. Does she share my concern about the delays that there have been to the electrification as far as Cardiff? We have seen that put off again and again, with delay after delay. People are enduring really poor service on the Great Western main line, which has a huge impact on transport infrastructure.

[Rachael Maskell]

My hon. Friend makes a really important point. I feel great pain as he speaks about the delays in improving the railway network. The situation is unsustainable. We should be investing in high-quality digital rail, which would build far more capacity across the network, as well as upgrading rail networks through electrification projects. That is why I believe that people in Wales will focus on this issue at the ballot box at the next election.

I want to put it on record today that Labour, in government, in Westminster, is fully committed to expansion of electrification and digital rail projects in south Wales. We believe in optimising every economic opportunity for the population of Wales. Further, our renationalisation programme for rail will be a serious game changer for all rail operations across Wales, including those in the M4 corridor, both in Wales and leading into England. That connectivity will move forward the economy in that part of the country.

I now turn to the wider transport brief. It was so important for me to start my contribution with a focus on rail because connectivity is not about segregated transport systems, with rail in one silo and roads in another, as the Government place them; it is about a joined-up approach to ensure that business, commuter and leisure passenger movements can be made with maximum ease and minimum expense. Labour has clearly set out how we will put a real emphasis on bringing about modal shift, helping to decongest our roads and create greater reliability. The sheer misery—which we have borne witness to in today’s debate—of those using the strategic road network in Wales has been palpable. It will be important, therefore, for the Minister to tell us how he will provide short-term relief for that, as well as long-term solutions.

In an age when climate change is having a devastating impact on our planet, and when cars are logjammed on our roads, as highlighted by my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), the current situation is polluting our atmosphere today and causing major air quality problems to residents along the M4 corridor. We know that that hits the most deprived communities the worst. We need an urgent resolve to get quick relief.

The current proposal for a 14-mile stretch of road around the south of Newport is expected to cost around £1.4 billion. Since 2016, the proposal, which has been on and off the table for the best part of 30 years, has been the subject of consultation, with the final decision to be made in the coming months. The pubic consultation closed this spring. The so-called black route has been the preferred route and the Welsh Government have stated that it is vital that the route resolves issues of capacity, safety and resilience along the M4 corridor in south-east Wales. As with any road project, clearly strong arguments will be made on all sides—and I have read them—both on the economic and transportation challenges and on the environmental case.

Some £50 million has already been offered to offset the carbon cost of the project. There is recognition that the project will have a serious environmental impact, as we have heard today. We would be disingenuous, therefore, if we did not all recognise that it is a difficult decision. On the one hand, we have pollution as a result of congestion, delays as a result of queues, and 100,000 vehicles using the route every single day. There is an urgent need for better transportation—better connectivity between sea, rail and active travel—and there is an opportunity to be grasped. For every £1 spent we will see £2 returned to the economy. Perhaps the greatest prize will be the 300 accidents that the project prevents. We cannot wait until 2023 to see that number fall dramatically.

On the other hand, there is serious environmental concern. We are familiar with the evidence highlighting the impact of induced capacity, which draws vehicles on to major routes, causing them to become a source of major pollution and future congestion. The Welsh Labour Government have done more than any other to impact-assess their policies against that, through the Wellbeing of Future Generations (Wales) Act 2015 and the Environment (Wales) Act 2016. The figure that perhaps we should all focus on, here in Westminster and in the Senedd in Wales, is that the project is cited as becoming carbon-neutral by 2072. With nations that face catastrophic flood and drought, every decision we take must also seek to enhance our climate and focus on the humanitarian consequences. I know that such concern will be at the forefront of the Welsh Government’s thoughts as they conclude their deliberations.

Rail Timetabling

Stephen Doughty Excerpts

Monday 4th June 2018 Commons Chamber

[Chris Grayling]

I have been absolutely clear that, if GTR is found to be negligent, I will use the powers that I have under the Railways Act 1993 and under the contractual arrangements to deal with this.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

There could not be a greater contrast between the millions of pounds of new investment in our railways being introduced by the Welsh Labour Government and the shambles over which the Secretary of State presides. Can he explain what on earth is going on at Great Western Railway? There have been repeated cancellations, delays, trains that are understaffed with no catering services, and trains breaking down. I have spoken to Great Western Railway, to Network Rail and to Hitachi. Hitachi tells me that the Department for Transport did not give a long enough period for testing the trains, and Great Western tells me that it sold off a load of its own trains to Scotland before the new ones were ready. Will he get a grip on that situation?

[Chris Grayling]

The Great Western modernisation is delivering new trains and a faster service, and by the end of this year it will deliver an improved timetable. There have been teething problems with the introduction of the new trains, but anyone who has travelled on the new trains in which this Government are investing on the Great Western route will say that they are a step in the right direction.

Taxi Trade

Stephen Doughty Excerpts

Tuesday 18th July 2017 Westminster Hall

[Wes Streeting]

I wholeheartedly agree. My hon. Friend can be proud of the role that Coventry’s manufacturing plays in the licensed taxi industry. My argument is that there are two possible futures, both for the manufacturing of vehicles and manufacturing jobs, and for other areas of the taxi and private hire industry: a bright future or an existential crisis. The Government have a clear role in ensuring that we head towards a bright future rather than a bleak future.

The all-party parliamentary group on taxis, which I am proud to chair, was founded with that in mind, to ensure that the trade has a strong voice in Parliament. For the past six months we have conducted a wide-ranging inquiry on the future of the trade, which led to the publication of our report, “Lessons from London: The future of the UK taxi trade”. I will focus on that report and its recommendations.

I am glad to see the Minister here. I know that he takes an interest in the future of the trade and in these issues, and I look forward to working with him. He will be pleased to know that, during our inquiry, we engaged with a wide range of stakeholders in and around the industry to look at issues such as passenger and public safety, the effectiveness of regulation, and the future of the taxi trade. I was delighted that an APPG inquiry, as opposed to a Select Committee inquiry, generated such interest. We received 115 pieces of written evidence and heard from a wide range of witnesses at three oral evidence sessions.

I want to place on the record my thanks to that wide range of stakeholders, which included the Licensed Taxi Drivers Association; United Private Hire Drivers; Transport for London; the GMB and Unite trade unions; Addison Lee; Gett; mytaxi; the London Taxi Company; Guide Dogs UK; and the Chair of the Select Committee on Communities and Local Government, my hon. Friend the Member for Sheffield South East (Mr Betts). I also want to say a particular thank you to my constituents. It would take some time to name all the constituents I have had conversations with about this issue—as many people know, Ilford North still has a reputation for being “green badge valley”—but I particularly thank Danny Fresco, Jim Ludlow, Steve Kenton and Sean Harris for the time they have taken to engage with me throughout my time as their Member of Parliament. It is a source of regret that, although Uber was invited to give evidence, it chose not to, because it has a direct role and responsibility in many of these issues. I hope that its level of engagement will change.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I pay tribute to my hon. Friend for his work with the all-party group, particularly in producing such an excellent report. Does he agree that a lot of the report’s recommendations are applicable not just in London but across the whole of the UK? He will be aware that taxi drivers from my constituency in Cardiff, and many others, made submissions to the inquiry. The group’s findings apply to many of the issues that the trade faces across the UK.

[Wes Streeting]

My hon. Friend is absolutely right, and I really welcome his engagement with the inquiry as a Cardiff Member. In many respects, London bears the brunt of these issues, but many other towns and cities across the country are equally—if differently—affected. Our intention when producing the report was to ensure that we learned lessons from London but also addressed issues that apply across the UK.

--- Later in debate ---

[Wes Streeting]

I strongly agree with my hon. Friend, who leads me directly on to cross-border hiring. He is correct that, although the Government have not formally responded to the Law Commission report and have not introduced as anticipated a new licensing reform Bill for taxi and private hire vehicles, the Deregulation Act 2015 meant that private hire vehicle drivers operating in one area could be licensed in a different area: an issue known as cross-border hiring. In practice, that means that where local authorities have rightly and appropriately determined specific licensing conditions suitable for their local community and population, drivers can abuse the patchwork quilt of licensing regulations across the country to flout rules.

Most alarmingly, we saw evidence of that happening in Rotherham. Right hon. and hon. Members will be acutely aware that in response to the terrible child sexual exploitation scandal, Rotherham Metropolitan Borough Council rightly introduced one of the toughest licensing regimes in the country, including the requirement for drivers to have a recording device—either a camera or audio equipment—in operation at all times when someone under the age of, I think, 16 was travelling in the vehicle. However, the council found that private hire drivers could flout those conditions by licensing their vehicle in another part of the country. They could then operate on the streets of Rotherham quite legally and the council could do nothing about it. We heard compelling evidence from my hon. Friend the Member for Rotherham (Sarah Champion) about the risks presented to the people of Rotherham because those robust standards are being undermined.

Rotherham is the most serious example, but it is not the only example. Reading Council decided not to grant Uber a licence, yet drivers from Uber license themselves in London and drive around the streets of Reading. I was struck by the evidence provided to my office by the Mayor of London about the number of TfL licences granted and where the drivers live. For example, 747 people have TfL-issued licenses but live in Birmingham, 260 people live in Manchester and yet have licences granted in London, and 378 people live in Bristol but have licences granted by TfL in London. That is clearly flagrant abuse of the system.

We set out a common-sense approach to dealing with this problem: to create a statutory definition of cross-border hiring under which a journey must begin or end in the licensing authority where the licence was issued. That would be simple and easy to enforce and would solve the problem instantly.

[Stephen Doughty]

My hon. Friend is making a strong point, and I completely agree with him. Is he aware that this problem is replicated in other parts of the country? In Cardiff we see people with licences granted in Rhondda Cynon Taf, Caerphilly, Newport and other locations coming in and working almost entirely in Cardiff, which has different standards. There may also be a specific issue on insurance. People are often insured in other authority areas and may be underinsured for where they operate the majority of their work, or indeed for where they leave their car on the street.

[Wes Streeting]

My hon. Friend again makes a powerful point, which was very much reinforced by the evidence we received during our inquiry. I really hope that the Department for Transport acts on cross-border hiring; I think measures on that will be welcomed by local authorities across the country. I am conscious of time and the fact that several hon. Members wish to speak, so I will canter through some of the report’s other recommendations, but I will indulge my hon. Friend the Member for Bedford (Mohammad Yasin) before I do.

--- Later in debate ---

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Wilson. I thank my hon. Friend the Member for Ilford North (Wes Streeting) for doing so much hard work on the report. I also thank the Cardiff taxi drivers with whom I have worked for a number of years—particularly the members of Taxi Drivers Cardiff—and the GMB union. I draw attention to the relevant declaration in the Register of Members’ Financial Interests. I thank the GMB for raising these issues with me in the first place, and for working alongside me to get under the skin of what is going on.

At the root of the matter is the fact that drivers tell me they work all the hours God sends, but cannot make a decent living. That comes down to several factors, which break down into three areas. One is drivers’ experience with the companies they work for. Another is their experience of dealing with councils, as well as the resources available and the implementation of licensing regulations—but, fundamentally, it is about the powers that councils have. Although powers were recently devolved under the Wales Act 2017, we are dealing with the legacy of legislation that is well over 100 years old and takes us back to the 19th century. Clearly, that is not fit for purpose. The third factor is the wider regulatory environment.

I thank Dragon Veezu, which owns taxi firms across the country, for its willingness to engage. I criticised it in the House some time ago, and since that time we have had some positive and constructive engagement. I welcome the fact that it dealt with some of the charges and unfair fees that drivers faced, for example. A lot of progress is still required in that relationship, but at least we are having a dialogue and there is openness. I welcome that and hope that it will continue.

I am also pleased about the engagement that we have had with Cardiff Council in particular. I want to praise the new council leader, Huw Thomas, and the cabinet member, Michael Michael, for their willingness to put the creation of a fair playing field for the Cardiff taxi trade at the heart of their new “Capital Ambitions” document, which was published a couple of weeks ago. There will be a meeting with them shortly to discuss practical methods of implementation.

I also want to praise the Welsh Labour Government for opening up a consultation on the taxi trade in Wales, using their new powers. There have already been meetings between the Economy and Infrastructure Secretary Ken Skates and representatives of the GMB and others. I hope the Cabinet Secretary will listen to the debate, as many of the issues that are being raised are relevant in Wales.

There are four issues that I particularly want to highlight. First, the question of cross-border hires is clearly at the centre of the debate. Many people who have been licensed in neighbouring authorities, at lower standards, and often with lower insurance costs, come in and do all their work in Cardiff. Their cars can be seen parked in Cardiff every week. That is not supposed to be going on. Not only do they undercut the market in Cardiff, but the council often cannot enforce against them because of the regulations. Uber drivers also come in, perhaps using the TfL licences that have been referred to. I have even heard of Uber drivers being paid large sums up front to drive down from London and other cities to Cardiff, effectively to run a loss-making business and undercut the existing Cardiff trade. That is simply unacceptable, and it cannot go on.

The second issue is that it seems absurd not to be able to impose a cap on the number of private hire vehicles. That is clearly at the core of the matter. There is a cap on hackney drivers in Cardiff, but the number of private hire licences has continued to go up. It is simple economics—supply and demand. There are too many taxis in Cardiff, and the result is that each driver gets a much smaller part of the pie, so that they cannot get by on their daily wage.

Thirdly, on the question of a fair playing field, standards are not implemented fairly across authorities. A particular issue is safety glass in cars. Drivers in Cardiff are often asked to remove glass, at their own expense, whereas that is not required in neighbouring authorities.

The fourth issue is taxi companies dealing with such issues as account work and introducing a fair playing field. Those are the issues that drivers in Cardiff want to have addressed, and I hope that the Welsh Government and this Parliament will listen.

--- Later in debate ---

[The Minister of State, Department for Transport (Mr John Hayes)]

Prejudice gets a worse name than it deserves. Burke said that prejudice

“engages the mind in a steady course of wisdom and virtue and does not leave the man hesitating in the moment of decision sceptical, puzzled, and unresolved.”

I seek, I strive, I emule to little more than to match the prejudice of the hon. Member for Ilford North (Wes Streeting), whom I congratulate on securing this debate, in his advocacy of the importance of London black cabs. They add quality to our kingdom and are symptomatic of the best of British and emblematic of its capital’s character. The hon. Gentleman should be aware that in anything I subsequently say that is my starting point. We can be proud of our London cabs and should be hesitant about anything that endangers their future, which is certainly not the Government’s intention.

The hon. Gentleman is right to point out that in recent years the taxi and private car hire market has experienced very significant change. That has been particularly true in our capital city. My suspicion is that it is not the end of a process but the beginning. I suspect that we will see continuing change as the ways in which people communicate and acquire services change. He said that it was important not to be stuck in the past. I spend a good deal of my life wishing that I could be, only to be dragged to the present by imperatives and drawn to the future, seduced by the promise of improvement and opportunity. Nevertheless, it is right to say that, whether we like it or not, changing communications are likely to mean that the services provided to us—in this case, by private hire vehicles and taxis—will change too. That does not mean that we should allow ourselves to be seduced—to use the word a second time in a short debate—by the Whiggish idea of progress. It is not true that all technological change is beneficial, and it is not true that all the alterations that the hon. Gentleman set out are likely to add to the quality of what is provided to people in London and elsewhere.

Let me now address some of the specifics in the excellent all-party group report and congratulate the whole of that group on producing it. It is clear to me that we share a common aim: open, safe and fair competition in the taxi and private hire car market. There will be a debate—a proper discussion—about how we can achieve that objective, but it is one to which we can all sign up. I am reassured that in the report there is an appetite to continue to encourage the best of the trade and to seek out ways to improve what is not as good as it should be.

As the hon. Gentleman argued, the Government are responsible for the legislative framework within which licensing authorities set their own standards and requirements, so have an important role to play, but those licensing authorities must play their part too. I will come back to that point, which was raised by the hon. Member for Dagenham and Rainham (Jon Cruddas) when he spoke of inconsistencies, and by my hon. Friend the Member for St Albans (Mrs Main).

[Stephen Doughty]

Obviously, that is the case; however, the Minister is aware that the law in this area dates back almost 170 years—some of it is under the Town Police Clauses Act 1847. Given that the Welsh Labour Government are now looking at introducing new legislation to deal with many of the issues we have discussed today, will the Minister make a similar commitment on the UK Government’s behalf?

[Mr Hayes]

Most of what inspires me goes back to the time of Jesus Christ, so I do not think the fact that something goes back a long way is necessarily indicative that it is inappropriate, but I certainly want to make sure that it is fit for purpose. Part of the job of government is to make sure that the legislative framework that we operate in is suitable for the changing circumstances, as I described. If they are as dynamic as the hon. Member for Ilford North and I suggest, we certainly need to review these matters regularly and thoroughly. He is right that in the light of that changing landscape, we need to look at such things closely.

I am aware of the changing landscape of the taxi and private hire market, and the impact that changes in the way people engage services have for the public and on traditional business models, which, in my own use of taxis, I personally prefer. It is right that we address some of the specific issues raised in the report, and I shall try to do that in the short time available to me. Having said all that, using an app to request a taxi or a private hire vehicle is increasingly popular with the public and has the potential to change the structure of the market significantly. There is a taste for a certain kind of access to a certain kind of vehicle. That is an undeniable fact. I see it among people I know—friends and others—although personally, I prefer to hail a taxi. I like the theatre of that, as well as the quality that it ends in, but that is not the way that everybody goes about their lives and business, and we have to face that reality. Given that appetite, the important thing is that we are mindful of the disadvantages that it might bring too.

It is the case that in addition to accepting pre-booked journeys, taxi drivers have the exclusive right to ply for hire in the area in which they are licensed. This is the fundamental difference in the licensing of taxis and private hire vehicles, and underpins the requirement for taxi drivers to have the geographical knowledge that is indicated, in London at least, by the knowledge—the acquisition of detailed understanding of the character and geography of our city.

The all-party parliamentary group recommends that the Government introduce a legally enforceable statutory definition of plying for hire. That will, of course, be considered, but the Law Commission’s view was that it was not practical to define plying for hire:

“No statutory list of factors could be sufficiently determinative to give clear guidance, leaving many of the current grey areas unresolved.”

I welcome the recent efforts of Transport for London to ensure that competition within the taxi and private hire market is fair. Private hire vehicles do not have the hard-earned right to ply for hire, and I wholeheartedly endorse action against those who break the law. As the hon. Gentleman will be aware, Transport for London has quadrupled the number of dedicated compliance officers on the street, meaning that there are now more than 250. Not only do those enforcement officers ensure fair play among legitimate parties, they play a vital role in preventing unlicensed, unvetted, uninsured and unsafe drivers and vehicles from circumventing the regulations and stealing business from the legitimate trade.

Oral Answers to Questions

Stephen Doughty Excerpts

Thursday 13th July 2017 Commons Chamber

[Chris Grayling]

If I remember rightly, the Labour Government electrified only 10 miles in 13 years. My right hon. Friend will understand that we have to ensure first and foremost that we are delivering better journeys for passengers, and I am pleased that this autumn’s changes and the new trains arriving in Swansea and other parts of south Wales will lead to an immediate improvement in passengers’ journeys. That is what they really want.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

In order to make the most of the benefits of electrification in south Wales, we need new stations to take advantage of capacity on the line. The proposals for St Mellon’s parkway in the east of Cardiff are good, and they are backed by the private sector, the Welsh Government and Cardiff Council and have cross-party support. When can we expect a decision about money from the new stations fund?

[Chris Grayling]

I also think that that is an interesting proposal, and it does not actually need quite the same mechanism of approval as a station built with public funding. I am happy to see the project go ahead. The real issue is ensuring that it can work with the timetables, so that trains can stop and the service can work. As a private sector-funded project, if it is practical, I can see no reason why any of us would do anything other than support it.

Severn Bridges

Stephen Doughty Excerpts

Tuesday 31st January 2017 Westminster Hall

[Jessica Morden]

The hon. Gentleman is absolutely right; this issue has ramifications for the whole economy of Wales, in south Wales and beyond, including his constituency. I thank him for being here today and for making that point.

Getting more clarity about the direction of travel is important for my constituents who commute, the businesses that do business across the bridges and those who work on the bridges. In recent years those people have had to suffer the highest toll in the UK, and commuters have just had to absorb the annual increases, however unfair they are. Constituents have had to turn down job offers because the toll is equivalent to nearly an hour on the minimum wage. Just this morning I received an email from a constituent, who said:

“The tolls add a considerable amount to the cost of travel to Bristol, where a lot of attractive jobs for young graduates like myself exist. Many of my friends who have graduated from university recently and are looking for a job fail to look at Bristol because in my opinion, the toll gives…the impression that Bristol is out of reach, even though in actual fact, travel time is not much more than to Cardiff.”

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I pay tribute to my hon. Friend for securing this debate and for the campaigning she has done on the issue, along with so many of us. She is absolutely right to mention Bristol. I have heard again and again from businesses and individuals in my constituency who trade across the Severnside area, particularly in the creative industries. We have people working in the BBC drama village in Cardiff Bay and the BBC natural history unit in Bristol. Does my hon. Friend agree that sorting out the tolls is absolutely crucial to growing and strengthening that creative economy?

[Jessica Morden]

My hon. Friend is right. House prices in Bristol mean that more and more people are choosing to live in Severnside, Monmouthshire and Newport and to commute. Our local economy is interlinked with Cardiff, but also with Bristol. It is incredibly important that we do all we can to support that growth.

--- Later in debate ---

[Jessica Morden]

The hon. Gentleman makes an important point, which I will come to later when I talk about the debt that the Government say they have to recoup. That is interesting, given the money they have recouped in the past from other sources.

The Minister will say that halving the tolls will allow an assessment of the impact on traffic. The traffic using the bridges has increased and, as recent media coverage shows, many people are choosing to relocate from Bristol and the south-west to Newport and Monmouthshire as a lifestyle choice—a very good choice, as it is an absolutely wonderful place to live. In response, the UK and Welsh Governments need to work on a holistic transport plan that includes the metro, and the Government must help to make up the shortfall from the loss of EU funds. While I am being parochial, the Government should support a new station bid for Magor and provide greater rail capacity, especially on the commuter services from Newport and the Severn tunnel junction, which have been dubbed the “sardine express”—I have had debates on that in the past—and the Welsh Government should look at the matters that are devolved.

[Stephen Doughty]

My hon. Friend is being very generous in giving way. I agree with her point about rail. I and others have been campaigning for a new station at St Mellons Parkway—I hope the Minister will be listening closely, because the decision is going to be taken—and for funding for the south Wales metro. Does she agree that the tolls are not only a tax but a time penalty for Welsh residents, because unlike the Dartford crossing and the M6 toll, which have much faster technology—Dartford has got free flow—we do not have free flow or the faster toll technology on the bridge?

[Jessica Morden]

I absolutely agree, and I will come to the issue of free flow later. The fastest transaction at the moment is the TAG, which takes six seconds, but there is further scope for helping with congestion.

Will the Minister tell us where the figure quoted in the public consultation of a 17% traffic increase over 10 years has come from? How much of that will be in the first year? In fact, it would be particularly helpful if he could publish all the research that the Government have commissioned on traffic modelling in relation to the end of the concessions and the traffic flows. I know that all hon. Members would be grateful for that.

If, as the consultation indicates, the Government decide to continue tolling, the toll level should not exceed the cost of operating the two bridges. Severn River Crossing collects about £90 million-plus each year, and that is going up. Maintenance and operation costs are between £13 million and £15 million. Based on a rough, back-of-the-envelope calculation, that requires a toll of about £1, which means the Government will still be charging three times more for cars and 10 times more for lorries. The Government argue that they will have to recoup a £60 million debt for fixing defects but, as the Welsh Affairs Committee has documented, they have done very well out of the bridges so far: the Treasury has received £154 million-plus since 2003 in unexpected VAT—more than enough to cover the debt and undertake the resurfacing work, which the Government value at £12 million, with a lot left over.

On the point made by the hon. Member for Ceredigion (Mr Williams), why do we have to pay for resurfacing on this stretch of road out of bridge tolls, when for any other stretch of road the cost is taken out of general taxation?

--- Later in debate ---

[Paul Flynn]

Absolutely, because both those things would have a major effect. It is a matter of great regret that the Government have not been inclined to spread the very welcome electrification of the railway that far. Certainly, economic vibrancy means everything. The cost of the toll is not huge given other motoring costs that we pay—buying a car, insuring it, fuelling it—but it is a psychological barrier for Wales. It seems to be in the way, and people see it as a great disincentive to business and leisure traffic.

To get back to the trinity of Tories posed by the Severn bridge, £3.70 was the figure they were quoting. I challenged the Secretary of State for Wales about that, because he described £3.70 as a 50% cut. A well-known conclusion about opinion polls is that 50% of the population do not understand what 50% means, and we can include the Secretary of State among those people because in no brand of mathematics is £3.70 half of £6.70. The next week the new rate was announced, with the huckster, the snake-oil salesman, saying, “No, not £3.70, it’s going to be £3”—but no reason why—“or, better than that, £1.50, but, sadly, both ways.” That is how this confidence trick is being sold to the people of Wales and the west of England.

There is no case for continuing with the tolls. If the Government are going to charge £3, as my hon. Friend the Member for Newport East asked, how is that figure reached? In no way can all the costs be put together and multiplied, even with extra costs added here and there, to get to a figure of £3. The Welsh Affairs Committee investigated, and its figure was an absolute maximum of £1.50, which was very generous in allowing for how things would be run and all kinds of new arrangements for the TAG system. Will the Minister tell us what makes up the £3? I believe that most of the costs are for running the bridge itself—costs that would disappear if the Government abided by the Severn Bridges Act and got rid of the tolls altogether.

For 50 years, the people of south Wales and the west of England have been double taxed. As the hon. Member for Ceredigion (Mr Williams) said, we are all paying our taxes—we pay for roads throughout the country in the same way as everyone else does—so why on earth should we have to pay twice for our local road? The toll is almost unique now, with few others left. The Government should sweep away any debt and take the bridges into the roads spending budget.

You will remember, Mr Davies, from your reading of Welsh history and your deep knowledge of religion, this passage from Genesis, at chapter 24, verse 60:

“And they blessed Rebekah, and said unto her, Thou art our sister, be thou the mother of thousands of millions, and let thy seed possess the gate of those which hate them.”

That verse, in an interesting part of Welsh history, is the reason why the Rebecca riots started. For those less well versed in Welsh history, what happened was that between 1839 and 1843 the Hosts of Rebecca were formed, when men dressed up as Rebecca—a bit of cross-dressing, which was rather unusual at that time in that part of Wales—to charge against the toll gates and destroy them. The toll gates, owned by alien landlords, were barriers to the free movement of goods and people, so the Rebeccas destroyed them. It is time for the Hosts of Rebecca to be revived. We remember their cause, because we now have a similar situation: a Tory Government are out to disguise a rip-off as an act of generosity.

[Stephen Doughty]

My hon. Friend speaks with the greatest eloquence, as ever, and his example is one for readers of Hansard to enjoy. Does he agree that given that we have had to wait for electrification, that we do not have clarity about new stations and that there is still this chokehold over the Severn bridges, which is coming off a little but not nearly enough, many people in Wales—particularly south Wales—look at the Government’s support for High Speed 2 and think, “We’re being treated differently from the rest of the UK”?

[Paul Flynn]

My hon. Friend is absolutely right. I wish the Government would not try to pose as generous people who are giving us a gift. Those three grins should be wiped off the faces of our trinity of Tories.

Cardiff Central Station

Stephen Doughty Excerpts

Tuesday 8th November 2016 Westminster Hall

[Craig Williams (Cardiff North) (Con)]

I beg to move,

That this House has considered enhancing Cardiff Central Station.

It is a pleasure to serve under your chairmanship, Mr Bone. I am delighted to highlight in this debate a key issue for the Welsh capital: the enhancement of Cardiff Central station. I am delighted also to see here the hon. Member for Cardiff South and Penarth (Stephen Doughty), in whose constituency half of the station resides, and the hon. Member for Cardiff West (Kevin Brennan), and I look forward to their contributions.

Anyone who has been to Cardiff by train will have marvelled at the wonderful listed station building, which shows the significance of this railway hub. Trains from the valleys converge there, providing easy access for passengers to mainline trains heading to Swansea, Newport, Bristol, Swindon, Reading and, of course, London Paddington. No doubt the 13 million-plus passengers who use the station appreciate how its design and structure emphasise the importance of Cardiff as both an economic centre and a key tourist destination. Put simply, Cardiff Central station is the gateway to our capital city and to our nation, Wales, and its significance cannot be underestimated.

However, Cardiff Central needs to move with the times. The bus station opposite was demolished, to be replaced with a new BBC flagship development and top- quality offices. I welcome that development, but I just wish that the cart had not been put before the horse and that a new bus station had been built at the same time, if not before. Nevertheless, not since St David’s 2 has Cardiff seen the scale of redevelopment that will be involved in Central Square and the new transport interchange hub that will be relocated on the edge of it. For someone running a business or catching a bus or a train, Cardiff Central Square will be incredibly impressive, and its success needs to be reflected in our Cardiff Central station.

Network Rail, in its March 2016 “Welsh Route Study”, forecast that the number of passenger journeys through Cardiff Central would be upwards of 23 million by 2023 and 32 million by 2043. I know that the Minister will be aware of those growth projections and of what they mean for a Cardiff Central station that is at capacity now, will be at capacity tomorrow and will certainly be at capacity by 2045. The Welsh capital is a key tourist destination for the United Kingdom; people want to come to Cardiff, more so because of the actions of the UK Government both in the city and across the world. Our Prime Minister is in India right now selling Cardiff as a place to visit and do business, and we need our Cardiff Central station to reflect those ambitions.

Many present here today will know the delights of Cardiff castle and Cardiff bay, and the destination shopping offered by St David’s and St David’s 2. Cardiff has hosted many memorable sporting events. I have mentioned them in the Chamber and in previous Westminster Hall debates, but that does not mean I will be shy in mentioning them again. There have been Football Association cup finals, Ashes cricket and speedway, to name just a few, and there is the excitement about the UEFA champions league final coming in June.

Cardiff Central station is, however, at capacity today, and it will be at capacity tomorrow. Something needs to be done.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The hon. Gentleman has secured an important debate and I agree with what he has said about the pressures. Cardiff and Vale College and the new businesses that are being built on my side of the station—in my constituency—also put pressure on the station. Will the hon. Gentleman join me in congratulating Cardiff’s Labour council, which has been raising the issue with Network Rail, the Treasury and the Department for Transport for some time? Does he share my concern that we have not had clarity about the important funding that is needed for the governance for railway investment projects—GRIP—studies, which would enable us to go forward with the investment needed to expand the station?

[Craig Williams]

I will touch shortly on GRIP 2, which is where we are at, and GRIP 1, to which there was a significant private sector contribution, and also a contribution from Network Rail. I want to work with everyone. I will work with Cardiff’s current Labour council—I was a member of the council for eight years—and I want to work with the Labour Welsh Government. However, I remind the hon. Gentleman that the UK Government have been given significant powers and moneys, in the form of £1.2 billion for infrastructure and the city deal. The money is not a great amount in the context of transforming the station now, in phase 1, but bigger ventures are being looked at. If I and the hon. Member for Cardiff South and Penarth agree on something we are bound to be right. I welcome us all working together.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Paul Maynard)]

It is a pleasure to serve under your chairmanship for the first time, Mr Bone. It is my first time speaking as a Minister in Westminster Hall. I find it hard to believe that it has taken until now for rail issues to be brought to this Chamber since I was appointed, but here we are, and I will do my best.

I congratulate my hon. Friend the Member for Cardiff North (Craig Williams) on securing the debate. He set out his ideas and a compelling vision for Wales’s capital city, Cardiff, including the future role it can play and the part its station will have in the city’s development. I fully appreciate the importance of Cardiff and the station to the vision for Wales. The UK Government have already shown their commitment to the station by funding an additional platform and more capacity at the station in recent years. Network Rail is investing more than £300 million through the Cardiff area signalling renewal project. The majority of that investment is focused in and around the Cardiff Central station area and between Queen Street and the Canton depot. We have also provided additional enhancement funding of £27 million to support capacity, including the development of a new platform at Cardiff Central, which will be brought into use this Christmas.

I noted my hon. Friend’s comments regarding the lessons learned from the rugby world cup. I too looked at the Enterprise and Business Committee’s report published by the Welsh Assembly, and I noted the problems with the first three matches and the ensuing queueing that then occurred. I gather that lessons were learned promptly and urgently and improvements were made for subsequent games. A larger gate line has been installed to enable improved passenger flows, for example, along with the new ticket office and a passenger waiting room on platform 8. That has been achieved by moving the old crew accommodation out of the station into a new modular building off platform 8. The new platform will be commissioned over the Christmas and new year period, and I hope that it will make a positive improvement.

We recognise that there will be a significant uplift in passenger capacity, but demand will still increase, as was pointed out, until 2043. We are currently undergoing testing and validating with colleagues from Network Rail on what the pace of the growth will be, when it will occur and what demand will be placed on Cardiff Central station. We hope to provide better and more reliable journeys into and out of the station, allowing it to accommodate the forecast growth for some time to come.

[Stephen Doughty]

I note what the Minister has said about growth, but it is not only growth in the city centre that is crucial to the project. I have long argued for the reopening of stations throughout the east of the city in places such as Rumney, Splott and St Mellons. Expanding capacity in Cardiff Central is crucial to that. Will the Minister look at that with Network Rail as part of a wider strategy for enhancing transport in that area?

[Paul Maynard]

I very much welcome what the hon. Gentleman says. Plans are ongoing to improve the service on the Valley Metro lines and to increase devolution to the Welsh Government over how they configure plans for the future. We are currently waiting for the initial industry advice as to what the priorities are for both the Welsh Government and Network Rail in the Wales area. Once we have that industry advice and the key asks with regard to Wales, we can then start to work out what our priorities are for control period 6. The hon. Gentleman has made his point and I am sure my officials have heard it, as will Network Rail, and we will be in touch.

As my hon. Friend the Member for Cardiff North mentioned, we are investing heavily in new trains across the network. We will be replacing the ageing high speed trains on the Great Western and south Wales main lines with a new fleet of bi-mode intercity express trains. These will offer more seats and up to 40% more capacity during peak times into Paddington, and will be reducing journey times from south Wales to London by about 15 minutes as electrification progresses. Bi-mode trains are capable of meeting the existing line speeds in south Wales, but will also provide more leg and luggage space to enable a better ride for passengers. They will enable us to markedly increase capacity to meet forecast growth on this inter-city route, with improved service reliability and reduced environmental impact. The electrification of the Great Western mainline will bring direct benefits for Wales, as will our provision of £125 million towards the cost of the valley lines electrification.

Severn Bridges (Tolls)

Stephen Doughty Excerpts

Tuesday 21st July 2015 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I beg to move,

That this House has considered tolls on the Severn bridges.

It is a pleasure to serve under your chairmanship, Mr Gray. I am grateful for the opportunity to debate probably the No. 1 issue on which constituents approach me. Obviously I am not alone in that, as the monster turnout here on the afternoon of the last day before summer recess shows. We have Members from Llanelli all the way across the M4 corridor to Monmouth, from Northern Ireland, and even the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). That shows how keenly the issue is felt across south Wales and in other places. I hope that other Members’ contributions will only strengthen the case for lowering the Severn tolls when the Severn river crossings concession comes to an end.

I should be clear from the outset that we pay the absolute highest tolls in the UK on the Severn bridges. With the concession coming to an end in a few years’ time, there is real strength of feeling about the need to reduce the charge to a maintenance-only toll, as recommended by the Welsh Affairs Committee’s excellent reports in the previous Parliament. There was cross-party agreement on the Committee that we could get down to a maintenance-only toll of around £1.50. I commend the Committee’s work over the years under the chairmanship of the hon. Member for Monmouth (David T. C. Davies)—we have looked at the issue in much detail and done a lot of work on it.

There is now a real need for clarity from the Government on the profits, operating costs and so on, and on where we are going in future. We urgently require some kind of strategy for the bridges, because we have only just over two years to go until they return to public ownership. We need to know the Government’s intentions for the future of the bridges. We must have clarity about what discussions the Government are having and what the direction of travel is. I hope that this debate will help us to flesh out those issues a little.

The Government have done incredibly well out of the bridges over the years. I will say a bit more about that later, but people really feel that they have been paying through the nose over the past few years. We need to redress the balance for the future. I know the Minister will argue that the Government are doing something to reduce the tolls—they announced in the comprehensive spending review that they were going to take the VAT off the tolls—but they are doing the absolute minimum. They know that they will have to take VAT off the tolls when the bridges come into public ownership; any Government would have had to do that. They are taking some measures on reducing the costs for cars and vans, but any Government would have had to do that as well. I want to see them go much further.

Along with other Members present, I have spoken in many debates on this issue over the 10 years I have been in the House. I think there have been eight Secretaries of State for Transport over that time, and numerous Transport Ministers. At this point, the Government cannot ignore the need to offer some light at the end of the tunnel for my constituents. Part of the reason why I have called for this debate early in the new Parliament is that, with the Government’s plans for English votes for English laws, who knows where Welsh MPs might be and what say we might have in future negotiations?

Three of the four legs of the Severn bridges are in England, with the other falling in my constituency, Newport East. Control of the Severn bridges and tolling rests falls completely within the remit of the Department for Transport. Aside from the assurances given in last week’s debate on English votes for English laws, I hope that the Government can reassure us today that Welsh MPs will have an equal voice on Severn bridge tolls, not least because the tolls are paid going into Wales and the impact is felt most keenly by Welsh commuters and businesses.

As I said, we have the highest tolls in the UK on the Severn bridges—[Interruption.] I think the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) is demolishing the Chamber. Since the second bridge opened in 1996, the tolls have increased 19 times because of the inflexibility of the concession, which I will come to later. We are now paying £6.50 for a car, £13.10 for a van and £19.60 for coaches and lorries. By comparison, the undiscounted price of a single journey for a car at the Dartford crossing is £2.50, and for the Mersey tunnels it is £1.70. The Humber bridge currently has undiscounted tolls of £1.50 for cars, £4 for medium-sized vehicles and £12 for heavy goods vehicles.

Campaign groups, motorists and businesses have called for the Government to step in and help, but their calls have fallen on deaf ears. There is, however, an example of where the Government have listened to local concerns in the past and stepped in to help: the Humber bridge. In 2011, the Government reduced the debt on the bridge by £150 million, which halved the toll for cars to £1.50. On the Government’s own estimates, the accumulated deficit on the Severn bridges will be £88 million in 2018. Why will the Government not step in for a smaller amount?

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I wholeheartedly support the case that my hon. Friend is making, as well as the recommendations made by the Welsh Affairs Committee, on which I also sat.

It is not only the disparity in the tolls that is so shocking; there is also the disparity in technologies. We have not seen the introduction of free-flow technology or contactless payment. Those of us who use the tolls regularly know, as do businesses, that a wait in the queue often lasts ages. It is only recently that credit card payments were introduced. Does my hon. Friend agree that the disparities in technologies are also causing problems for businesses and customers in south Wales?

[Jessica Morden]

I agree with my hon. Friend wholeheartedly. As I remember, it took a joke on “Gavin & Stacey” and the approach of the Ryder cup for things to get to where they are now. It was like pulling teeth trying to get the decision taken to accept card payments. I will come back to that point, but I agree that we need to consider free-flow technology, which would help the congestion in the run-up to the plazas.

Over the years, various Ministers have argued in their responses to debates like this that the impact of the tolls on the Welsh economy is not clear, but we know from the Welsh Government’s 2011 report that the total cost to businesses and consumers, once VAT is taken into account, is in excess of £80 million a year. Furthermore, they came to the tentative conclusion that removing the tolls could boost the Welsh economy to the tune of around £107 million.

--- Later in debate ---

[Nia Griffith (Llanelli) (Lab)]

I add my congratulations to my hon. Friend the Member for Newport East (Jessica Morden) on raising such an important subject in a timely manner. The beginning of a new Government and Parliament is the right time to look at what we can expect in the next couple of years.

Owens Transport is based in my constituency, but it has depots in Newport East and Aberavon, as well as in other parts of the country. It competes not only with companies that go to and from Wales, but with England-based companies that go to other parts of England or to the continent, and with companies that come over from the continent and take business in the UK. We are talking about an international, cut-throat business. If companies have to pay an additional cost to come back to their home base in Wales, they are at a distinct disadvantage, and £500,000 a year is no small amount of money.

Following the concession that has been given to vans, companies such as Owens Transport are disappointed that absolutely nothing has been done for hauliers. Several suggestions have been made over the years, such as off-peak concessions, but nothing has been done to help hauliers. The company is anxious to have a timetable for what will happen when the concession finally ends. If the Minister cannot give us this information today, we would like a timescale for when he will be able to tell us. When the concession ends, will he confirm that VAT will definitely come off? Can he confirm exactly what moneys are still “owed” to the Treasury? As the hon. Member for Monmouth (David T. C. Davies) succinctly said, it is questionable whether anything is owing when the scheme has been a cash cow for the Treasury in past years. How do the Government intend to recoup the moneys? In other words, will there be a timescale during which the money would be paid back? We have heard various suggestions for how that might work, involving dates from 2017 to 2023. When will we be able to move to a maintenance-only tariff? We would like some form of consultation to take place. Now would be a good time for the Minister to try to set out a full timescale for exactly what will happen and when.

[Stephen Doughty]

I could not agree with my hon. Friend more about the importance of a timescale. Business requires investment certainty and clear timetables. That is true not only for existing businesses but for businesses that we are trying to attract to Wales. Given the news that we have heard during the past week about possible delays in the electrification of the south Wales main line, is it not crucial for the Government to set out a clear timetable for the road network and for electrification, so that businesses have the certainty they need to invest and grow?

[Nia Griffith]

My hon. Friend makes a good point, which I would have made myself, about certainty for businesses, particularly those that have to plan a long way ahead. Many businesses that invest in south Wales involve the transport of heavy materials, so they use haulage companies.

We need as much detail as possible. If the Minister cannot give us that today, I would appreciate it if he told us when he can give us a timetable for all the different parts of the process: the consultation, the ending of the concession, what will happen then, how long it will happen for and what he intends to do about moving to a tariff that reflects only maintenance charges.

We are so determined to move to a maintenance-only charge because it already seems unfair to pay even for the maintenance of the crossings when we do not have a pay-as-you-go system for any other roads, with one or two small exceptions in the UK. To make one road into a pay-as-you-go system when none of the others is seems totally unfair. It would be absolutely monstrous for it to become a cash cow, because that would be a tax raised on one small group of people, which would be totally out of kilter with any other form of taxation.

I would be interested if the Minister gave any indication of whether the Government intend to keep the matter as a UK Government responsibility, or whether he intends to open the discussion about whether it might be devolved. We really want to open a dialogue with the Minister and get as many answers as possible. We want a very clear timetable to be set out so that we all know where we are, and so that our businesses and industry know where they are and can make the necessary investment decisions. That investment would come to Wales much more readily than it will if businesses see no end to the “continual taxation” on the bridges.

Oral Answers to Questions

Stephen Doughty Excerpts

Thursday 22nd January 2015 Commons Chamber

[Mr McLoughlin]

I will look into the points that my hon. Friend makes, which have not been made directly to me before. I am sure we can sort it out.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

9. What assessment he has made of the recent performance of train services on the great western main line.

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

In the latest operating period to 3 January, the First Great Western public performance measure was 82.5%. The average for the previous year was 87.7%. Both measures are below the target of 90.3% set by the Office of Rail Regulation for this franchise. I am sure that, like me, the hon. Gentleman has heard Network Rail, the regulator and many MPs saying that this is not good enough.

[Stephen Doughty]

Is the Minister aware of the concerns expressed by the RMT, TSSA and other organisations and passenger groups about the future provision of buffet cars and guards on First Great Western services? Was she aware of those concerns before the Department awarded a direct award franchise to an extension to the First Great Western franchise?

[Claire Perry]

I am sure the hon. Gentleman, like me, is delighted that this line is receiving so much investment, in the form of billions of pounds for electrification and the new intercity express programme rolling stock to which he alludes, which will transform the passenger experience. I gently encourage him not to read the scaremongering press releases put out by the RMT. I have visited the IEP mock-ups. I have discussed in great detail what the franchising and catering capabilities will be. It is up to the operators to specify, and I am sure he will have seen the East Coast statements that it intends to offer an enhanced catering service on those trains when they are running. I am happy to discuss this further with the hon. Gentleman, but I suggest he looks at the facts, not the scaremongering.

Severn Bridges (Tolling)

Stephen Doughty Excerpts

Wednesday 5th March 2014 Westminster Hall

[Jessica Morden]

I strongly agree, and I will say much the same thing in my remarks. The Severn bridge tolls are the most expensive in the UK. It now costs £6.40 for a car to cross the bridge, £12.80 for a van, and £19.20 for a coach or lorry. By comparison, it costs just £1.50 for a car to cross the Humber bridge or £2 to use the Dartford crossing. However, the Dartford crossing is free to use between 10 pm and 6 am, and a scheme was recently launched under which local residents can pay just £20 a year to cross the bridge as often as they like. Those are both examples of the Government stepping in after local campaigns and helping long-suffering road users. If they can help businesses and residents in those areas, why can they not take decisive action to help in the case of the Severn bridges?

The tolls are a cost-of-living issue for my constituents, especially those who commute daily over the bridge, and the cost is a big burden for many businesses that operate out of south Wales. Constituents constantly tell me how hard they find it to absorb the increased tolls each year when pay is frozen, hours are reduced and the cost of living continues to rise. A constituent e-mailed me a few weeks ago to say:

“I’m employed in Yate in Bristol which means I have the daily trip across the bridge. While I had budgeted for the bridge cost, the actual cost of commuting along with the increase in the cost of living is currently causing me great concern. I try to ride an old motorcycle as much as I can”—

a motorcycle can cross for free—

“but I have found the wind protection on both bridges to be unsatisfactory, even in the summer, leading me to balance the cost of taking the car with the danger of taking the motorbike. Therefore, I would really like to take the car every day but the cost is just too high, and as you know the cost has now increased again.”

There is little choice. It costs about £2,400 to commute to Bristol by train using a standard adult ticket. Some of my constituents feel that the yearly toll increases have a knock-on effect on alternative modes of transport, such as the bus or the train, which further restricts their choices. The train service from Severn Tunnel Junction station is frequently full, and commuters are sometimes left standing on the platform at peak times. Those who commute between Bristol and Newport East have a really raw deal, which is a significant barrier to those looking for employment in Bristol. It is one thing to pay the toll once a week or so, but quite another to pay it every day, just to go to work. The local anger and frustration was demonstrated just a few days ago on St David’s day, when 120 local singers re-enacted the Rebecca riots—the men were dressed in traditional women’s clothing, apparently—on the M48 bridge. That shows just how strongly people feel about the matter.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I congratulate my hon. Friend on securing an excellent debate on a crucial issue, and I endorse all the points that she has made so far. She has mentioned individuals, but does she agree that we are also hearing increasingly from businesses? In particular, the Freight Transport Association, which has 700 members across Wales—many of them in my constituency—has talked about the impact that the tolls are having on the small margins in its members’ businesses.

[Jessica Morden]

I thank my hon. Friend for his intervention. I was going to praise the Freight Transport Association for its campaign, so I am glad that he mentioned it, and I very much agree with him. The Newport business man I mentioned earlier also told me about the negative impression of the toll:

“the toll has a major effect on recruitment and retention of staff in both directions. The northern fringes of Bristol across to Cardiff are all very commutable (M4 allowing) but having to build in excess of the £30 per week in to commuting costs prevents a lot of skills transfer between the areas. As an example, an employee of one of my clients told me that the bridge tolls have risen nearly 50% in her time commuting, whereas her salary has risen less than 15%.”

Businesses, particularly those in the haulage industry—I make special mention of the Freight Transport Association’s campaign—say that the tolls mean they bear a cost that their competitors across the bridge do not have to deal with. They have to add the cost on to their bottom line, which hits their competitiveness. Some companies pay in excess of £250,000 a year.

A Welsh Government study, of which I am sure the Minister is aware, shows that scrapping the tolls altogether could improve the economic output of south Wales by some £107 million. The report also shows that for a car journey—excluding commuters and business travel—the toll represents approximately 19% of the costs of a trip between Cardiff and Bristol. For light goods vehicles the figure is 23%, and for heavy goods vehicles it is 21%. The total cost of crossing the bridge for businesses and consumers, once VAT is taken into account, is in excess of £80 million a year in 2009 prices.

That is the impact of the tolls, which I am sure other Members will also articulate, but what can the Government do to help? Every year, when it is announced that the tolls will go up, bridge users ask for them to be frozen, and the Government say that they cannot be, because of the concession. However, the Government wrote off £150 million of the £330 million debt on the Humber bridge, so where there is a will, there is a way. The Government could step in and compensate the concessionaire; they just choose not to. Will the Minister address that point when he responds?

Last year, the Welsh Affairs Committee asked the previous Minister, the hon. Member for Lewes (Norman Baker), to look at a scheme for business—for example, a toll-free overnight period that would help businesses with their costs, as well as easing congestion. The current Minister has replied that the concession would have to be extended to pay for that. I will say it again: the Government stepped in to help with the Humber bridge; why not do so here? Will he clarify his remarks about the TAG concession being the limit of the concession that the Government can offer under European law? It would be helpful to have that explained in person.

Will the Minister also give us some answers on what the Government are planning, as regards where we go at the end of the concession, when the bridge returns to public ownership? The Treasury has done pretty well out of the Severn bridges in previous years. In 2000, the European Court of Justice ruled that VAT must be charged on private bridges. Between 2003 and 2012, the Government accrued an unexpected windfall of £121 million as a result of that change. Estimates from the Scrutiny Unit suggest that by the end of 2013, the figure is likely to be nearer to £135 million.

The Finance Act 2007 started the abolition of the industrial buildings allowance, meaning that the Government held on to an estimated £21.2 million, in 1989 prices, which they would never have expected. I understand that in today’s prices, that would be nearer to £40 million. Although the Government argue that they must continue tolling to recoup the £88 million in costs from unexpected repairs to the first bridge, they have actually accrued more than £160 million from both changes, which is more than enough to write off the existing debt. Will the Minister please update those figures and confirm how much to date the Government have received from VAT, and how much has been saved as a result of abolishing the industrial buildings allowance? The Department for Transport does not seem keen to answer my latest parliamentary question, even though we have had the figures before.

Will the Minister confirm that we are still looking at mid-2018—the last date we had—for the end of the concession? Previous Ministers have alluded to the fact that they would like to continue tolling for two years after the concession ends in order to recoup the Government debt that we have discussed previously—that was admitted to the Welsh Affairs Committee a couple of years ago. Is that still the case? Will the Government publish an updated full breakdown of the outstanding £88 million of debt and how and when it was incurred?

What is the current thinking on the level of the toll? The Minister has just written to the Select Committee to say that VAT would not be collected on a public bridge after the concession ends; will the tolls therefore reduce by at least that amount? If not, and the Government maintain the level of the toll, the Freight Transport Association has pointed out that businesses will no longer be able to reclaim VAT and so could effectively face a 20% hike in tolls. A specific answer on that possibility would be helpful, because we do not want businesses to end up in a worse position.

What serious work has been done on concessions for people who live locally? As I mentioned earlier, people who live locally can now cross the Dartford crossing an unlimited amount of times for £20 a year; that sounds extremely good to me. I hope that we do not hear, again, the stock answer to all such questions: “We have made no decisions about the tolling and do not know what the level will be. We are not there yet.” At the heart of the issue is a strong suspicion that the Government see the bridges as a cash cow, or even—as was suggested to me—a river of money. The concessionaire is in a win-win situation, as it can increase the tolls every year and be compensated for any changes. Meanwhile, the Government receive more than they expect through VAT and other income, while the poor old user has to pay more for longer.

In its 2010 report, the Welsh Affairs Committee recommended that, come 2018, tolls be reduced to a maintenance-only level, which would be very much supported by my constituents. We called for transparency on the financial arrangements of the bridges, and for discussions on ownership to be considered. We also asked the Government to consider off-peak rates for businesses, and local concession schemes for residents. Four years on, we have very little detail on anything. May we please have some answers today?

--- Later in debate ---

[Paul Murphy]

Perhaps there should be joint decision making, or some arrangement could be made. Yes, of course, the bridge is hugely important to the people of the Forest of Dean and elsewhere in Gloucestershire, but that was not the purpose of building the bridges. I repeat that they were not built to go to the Forest of Dean or Gloucester; they were built to ensure that Wales and England were connected, to avoid the terrible journey through the Forest of Dean, around Gloucestershire and on to the A4.

[Stephen Doughty]

My right hon. Friend makes a crucial point. Are the bridges not also a crucial European transport road link to the Republic of Ireland? There are benefits from and consequences for that crucial trade link. Access to Cardiff airport is also important and needs to be considered.

[Paul Murphy]

Indeed. That is why, in a post-devolution world, the Welsh Government have a huge interest in this matter. I hope that the Minister tells the House that he has been in conversation with his colleagues in Cardiff.

Finally, let me mention what happens to tolls after the concession finishes. Yes, of course, VAT means that there will be money available anyway, and what is collected in VAT should at least go to ensuring that the toll is lowered, but there is more to it than that. Lying behind everything in Government is the dead hand of the Treasury. I spent a decade having to deal with the Treasury as a Minister. Anybody who has been a Minister knows that it wants to get as much money as possible—that is its job—but it is the job of Ministers to obstruct it as far as they can, to ensure that the people can occasionally benefit from a concession.