Future of Rail Services

Debate between Stephen Hammond and John Penrose

Tuesday 20th December 2022 Westminster Hall

[John Penrose (Weston-super-Mare) (Con)]

My hon. Friend is making an excellent speech. I want to back up his suggestion for a much more slimline future system operator for two reasons. First, if I understand his point correctly, that would put customers and passengers right at the front rather than system and network engineers, which is the right way round and the right order of priority. Secondly, that addresses the fundamental point that my hon. Friend raised at the start that the difficulties from 2016 onwards were of an overly centralised, overly controlled agglomeration of power. He suggests a dispersal and relaxation of that power, and a transfer of it out from the centre, which is essential if we are going to have the flexible system we need to adjust to the changes that the pandemic has brought.

[Stephen Hammond]

I am tempted to say that great minds think alike, because my next point is to suggest to the Minister that the Government should look at passenger service contracts. We all accept that the post-2016 franchising system and the pandemic have meant there is a need for change, but passenger service contracts are a journey rather than an end in themselves and the Government should look at what the end might be, so I suggest two things. I suggest that we should look at evolving mechanisms, so that there is a spectrum of possibilities for either new contracts or revised franchises that look at revenue risk, how it is shared, a range of revenue incentives, and a range of arrangements that in some cases would allow slot auctions as well as new franchises and that potentially ensure passenger service contracts in some areas. To that end, a commitment to review what is now in place after two years would allow that to happen. As I say, it would also provide for greater competition by introducing slot and route auctions—initially, I suggest, for a limited number of some of the long-distance routes. It would drive passenger satisfaction, encourage initiative and secure a future for open access, which had been one of the drivers for change, and for a range of competitions.

Some really exciting recommendations in the Williams-Shapps review should be kept. They include a steady programme of electrification alongside the utilisation of enhanced battery and hydrogen technology; new procurement processes based on whole-life value, with consideration of opex and social value, not just old-style cost-benefit analysis; and the provision of open data being more accessible and available to all industry participants. Those are some of the sensible, well-thought-through suggestions, as is the need for a guiding mind, but I hope the Minister will also accept that now is the right time, as I understand that the Government are looking to bring forward new plans or even a Bill in the new year. I hope he will accept the points I have made about separating the guiding mind from the infrastructure provider, giving a commitment to revise the spectrum of possibilities for train operating companies, and giving a commitment to see the private sector work alongside the public sector to deliver a clear, identified and accountable investment programme, so that all the money that is available for investment is spent in control period 7.

I am optimistic about the future of the railways, and I am particularly optimistic about their being in my hon. Friend the Minister’s hands, so I hope that he will accept that what I am trying to do—in a very thumbnail and headline way—is to set out some ideas that I think will make the future of the railways even more secure. I hope he will accept them as positive, constructive and implementable ideas, so that we have a railway that is fit for the 21st century.

Increasing Choice for Rail Passengers

Debate between Stephen Hammond and John Penrose

Wednesday 11th July 2018 Westminster Hall

[John Penrose (Weston-super-Mare) (Con)]

I beg to move,

That this House has considered increasing choice for rail passengers.

It is a pleasure to have you in charge of our proceedings, Mrs Moon. It seems that almost no one is terribly happy with how our railways are performing at the moment. Not passengers, who have to suffer delayed or cancelled trains when timetables go into meltdown, as they have done repeatedly recently, causing misery for millions. Not the unions, who have been in an on-off dispute on a variety of routes for months. Not the staff, who have to cope with angry passengers every day. Not the rail firms, who have repeatedly handed back expensive franchises to the Government because they cannot make them work, and not rail Ministers, who face continuous incoming flak, from urgent questions in Parliament to critical headlines and irate passengers who lose thousands of man-and-woman hours battling to get to and from work every day.

That is odd, because until recently Britain’s railways were quite a success story; something to be proud of. Since denationalisation, passenger rail journeys have more than doubled, and we have one of the safest railways for passengers of any major network in the EU. What has gone wrong? Why is everybody on all sides unhappy with where we are today? I argue it is because franchising has run its course. It might have worked in the past, but not any more—at least, not well enough. It has become a brittle, inflexible, fiendishly complicated, expensive old thing that causes misery and frustration for millions and which nobody loves.

The root of the problem is that franchises put train firms, rather than passengers, first, because passengers do not have any real choices when things go wrong. Why should we be at the mercy of a single train company when the timetable melts down? If a train is delayed or cancelled, we ought to be able to switch to a different firm’s service that is still running instead; franchising takes away that choice. If we do not like the service the franchise-holding firm provides—tough. Our only choices are to get in the car, which could mean traffic jams and is not very green, get on a bus, which is usually slow, or just lump it and get back on the train.

It is weird, really. We would not put up with being banned from changing to a different brand of coffee, cornflakes or broadband. We expect to be able to choose between a dizzying array of different car insurers or energy firms. But trains? No.

[Stephen Hammond (Wimbledon) (Con)]

Although I agree with my hon. Friend that franchising has severe problems and has run its course, does he agree that one of the central problems is Network Rail and its inability efficiently to allocate track access, and the money it gets for investment and upgrading, to the franchises, as it would do if there was more open access on the system?

Oral Answers to Questions

Debate between Stephen Hammond and John Penrose

Monday 21st June 2010 Commons Chamber

[John Penrose]

I agree that the tourism industry would like such a change, but some people have very grave and important concerns that we would do well to listen to as well. Notably, people who live in the north of the UK, particularly in the northern parts of Scotland, are deeply worried about the issue, and we need to ensure that we take their valid concerns into account.

[Stephen Hammond (Wimbledon) (Con)]

T1. If he will make a statement on his departmental responsibilities.