Williams-Shapps Plan for Rail

Debate between Stephen Hammond and Martin Vickers

Wednesday 14th June 2023 Westminster Hall

[Martin Vickers]

I entirely agree.

I concede that even under the current system, the separation of cost and revenue across two departments creates perverse incentives. No business that wanted to grow would structure itself in that way. Only with major reform can we break a cycle of decline.

I hope we can agree that the solution will utilise a public-private partnership to bring train and track back together and provide strategic leadership of the railways. The Conservatives, the Labour party and the Liberal Democrats have all identified the need for a body to oversee track and train, and the rail industry has long called for a guiding mind to co-ordinate the network. That is why the Government are creating Great British Railways, which will be responsible for both track and train, as well as revenue and cost.

[Stephen Hammond (Wimbledon) (Con)]

My hon. Friend’s analysis of what the Government are creating is correct, in that it would be very good if Great British Railways were to be the guiding mind. The trouble is that it looks as though there will be centralised control of the system, driving out private sector initiative, driving out investment and underpinning the underperformance of Network Rail, to which at least 78% of the current delays on our railways are directly attributable.

[Martin Vickers]

My hon. Friend the former Minister identifies some of the downsides, although, as I mentioned earlier, there is no perfect solution. My next sentence was going to be that creating a big, monolithic public body will not solve all the problems unless there is a mix of public and private working together. The private sector has more than doubled passenger numbers in the past two decades, has increased services by more than a third since 1997, and has increased jobs by 27% since 2011. The private sector must have a role.

I recognise that the private sector has not got it all right. There are significant concerns today around particular services linked to industrial action and rest-day working agreements. I was a keen advocate for TransPennine Express to lose its franchise and for the service to be taken under the wing of the OLR until a new private operator could be found. But colleagues across the House must look to pragmatic solutions to fix the railways, with the private and public sector working together. We need to create a market in which the private sector can deliver for customers. We need to let customer-facing operators act in the interests of the customer, not constantly seek permission from the centre. That is not an ideological argument, but one based on reality: command and control from the centre is not helping the sector to bounce back after the pandemic. If we get the balance right, a public-private partnership will enable operators to deliver for customers.

As chair of the all-party parliamentary group for rail, I hear from all manner of stakeholders in the rail sector, including operators, trade associations, those involved in the supply chains, community action groups, industry journalists and, of course, passengers. It is clear that the vast majority agree that legislation is required to make the public body a legal entity and give it the powers necessary to be truly effective. In November 2019, the all-party group published a report, “Rail Reform: A Guiding Mind”, which called for a similar body. The report was presented to the then Rail Minister. I recognise that the next parliamentary Session will be tight, but a Bill to establish GBR would be relatively thin and ought not to be controversial. I urge the Minister to lobby within his Department to ensure that a Bill appears in the King’s Speech.

Having said that, and without wanting to give the Minister the impression that anything other than a Bill is the preferable way of underpinning the long-term success of the railways, some important reforms can be done in the meantime without legislation. The national rail contracts are one of the last vestiges of the pandemic. They were right in a crisis, but now they need to evolve to provide operators with more flexibility to use their commercial nous and attract customers back. That would restore some financial sustainability and allow the Government to spend more on other priorities.

The independent economic expert body Oxera estimates that the Treasury is missing out on as much as £1.6 billion over two years because of restrictive contracts for operators. That reduces operators’ ability to drive the recovery of passenger numbers. Money is also being lost through the lack of ticket checks on board. Many commuters will be aware of journeys on which their tickets are checked once in a blue moon. That means they could travel for free, knowing that if they did happen to be caught, the savings they would have built up would vastly outweigh any fines they might have to pay. However, at present there is no incentive for rail operators to ensure the collection of fares.

Beyond reforms to the current National Rail contracts, we must look ahead to the end state, as envisioned by Keith Williams, and the passenger service contract, which must be flexible enough to reflect the varying rail market. The public instinctively understand that when they book a flight earlier, the ticket should be cheaper than if they were buying it closer to when they travel. That approach needs to apply to longer-distance rail journeys.

For shorter commuter journeys, we need to introduce more turn-up-and-go services with tap-in, tap-out technology and some degree of flexibility for operators to entice customers on quieter days. I was delighted that in the George Bradshaw address, the Secretary of State signalled that this anti-one-size-fits-all approach is being adopted for future contracts. As a key principle, the future passenger service contracts should be developed to reflect the geography and markets that they serve. They should incentivise operators to use all their creativity and capability to deliver the best possible outcomes for taxpayers by growing revenues and reducing costs.

The Government also need to drive forward fares reform, which the public rightly and understandably care greatly about. Why has it been 18 months since the Government announced the tender for the consolidated online retail solution to deliver radical and long-awaited fares reform? Can we get on and start the tender process? As the Minister knows, it does not need legislation. The prior information notice for CORS was published in December 2021.

The Government have announced one measure relating to fares: a single-leg pricing trial extension on LNER. That is something that should be rolled out more widely to private sector operators. The use of single-leg pricing removes the anomaly of some single tickets being almost as expensive as a return ticket. It means passengers can more easily choose when to travel in the knowledge that the fare offers value for money. For example, if someone commutes in at peak-time in the morning, but then attends an event after work and comes back off-peak, why should they pay for a peak-time return? This is a good step forward that ought to be utilised more widely.

Moving on to freight, I had the pleasure of hosting a cross-party parliamentary reception on this issue in March. Freight makes sense for the environment and the economy. The longest freight trains can ease road congestion by removing up to 129 heavy goods vehicles from the road. If the Government set an ambitious target to treble rail freight by 2050, the sector would deliver nearly £5.2 billion in economic benefits as a minimum. The freight sector would flourish by setting a supportive policy environment and also by opening the east-west freight corridor, which, as I have pointed out on numerous occasions, would be beneficial to industry and the development of the Humber freeport, and would take a significant number of HGVs off the M62.

I want to highlight the Luxembourg rail protocol, which is making progress internationally and is expected to come into force towards the end of the year. However, the UK is yet to ratify it. There has been extensive engagement with the DFT and the Great British Railways transition team, with the DFT including it as part of a consultation last year. Will the Minister confirm today the Government’s position on the protocol? Is he still supportive in principle, and when will the Department issue a response to the consultation? Is there a particular legislative vehicle envisaged to see it implemented? Those involved in the protocol from the UK perspective would appreciate clarification.

The rail model is broken, and both legislative and non-legislative reform is crucial. Misdiagnosing the problem will not make it any better; it will make it worse. Over-centralisation is not in the interests of passengers, the economy or the environment. All parties have identified the need for a public body, but it is important to get the design right and ensure that the private sector is allowed to do what it does best with the package of reform I have outlined today. Along with much-needed changes to ticketing and fares, the Government can deliver rapid and much-needed improvements for passengers, trade customers and the taxpayer.

I know the Minister would be disappointed if I did not raise a couple of local issues, which I have spoken to him about on many occasions. One such issue is the return of the direct train service from Cleethorpes to London King’s Cross. Perhaps he could update us on that. Another issue, which I have not raised with him previously, but perhaps he could look into for me, is that for the past 30 years there has been a Saturday-only train from Sheffield via Gainsborough and Brigg to Cleethorpes, with three trains each way. A few weeks ago, Northern announced that it would make that a daily service, which on the face of it is welcome, but it appears to be more for the convenience of the operator than the passengers, because the one train to Cleethorpes arrives at 11.14 am and the return train is at 1.20 pm. An hour and a half in Cleethorpes is simply not good enough; people need at least a week there to enjoy all the facilities. More seriously, one train arriving mid-morning with a return train at, say, 6 pm would be sensible, but allowing people 90 minutes in Cleethorpes or Grimsby is not ideal if they want to do some shopping.

Future of Rail Services

Debate between Stephen Hammond and Martin Vickers

Tuesday 20th December 2022 Westminster Hall

[Stephen Hammond]

Interestingly enough, in my first life in this place I was the Opposition spokesperson on railways for four years, and for two years I was the Minister for rail, so I know all about Okehampton station and what it might bring forward. That refers back to the point I made a moment ago that, with clear prioritisation of investment and the right incentives to operators, there is absolutely no reason why regional and local investment should not be seen to be just as important as national investment. Indeed, the point I made at the beginning, about rail being the key to regeneration and economic growth in a number of communities, underlines the point that the hon. Gentleman was making

.

[Martin Vickers (Cleethorpes) (Con)]

I wish to make that very point about economic growth and investment in an area. As the Minister knows, I have been campaigning for the restoration of the three trains between Cleethorpes and King’s Cross for many years and they now appear in the London and North Eastern Railway draft timetable for next May. When the Minister sums up, will he comment on whether those services are likely to happen? As my hon. Friend said, economic growth and investment are crucial to the regeneration and levelling up of many of our more deprived areas.

[Stephen Hammond]

It is 20 December, but already many hon. Members wish my hon. Friend the Minister to become Father Christmas in his summing up. As it is Christmas, and given he is a great friend of mine and an acknowledged expert in this field, may I offer him a few Christmas cracker thoughts about how I would like to see him use this opportune moment by accepting the best from the Williams-Shapps plans but also looking at what could be done to make our rail system even better?

A moment ago I referred to “the staggeringly obese controller”. One of the first things that could happen is that the Fat Controller could go on a new year diet. Everybody agrees that a guiding mind is needed for this industry. It would be right for Great British Railways to be turned into that guiding mind, with the clear objectives of setting timetables in conjunction with the infrastructure provider and operating companies, and being the body to set safety standards, let current contracts, see an evolution of the system and potentially oversee slot auctions.

If that is what Great British Railways is to become, then it is implicit that the infrastructure operator and maintainer should be separate from the guiding mind. If both functions were under that one body, it would make that body partial to the interests of network engineers rather more than to ensuring the satisfaction of passengers, freight operators and ticket operators. It does not matter what that separate entity is called—we could call it national rail, network rail or whatever we like—but I suggest to the Minister that setting Great British Railways up as the guiding mind and distinctly separating the role of infrastructure operator would be an excellent way forward.

Open Access Rail Services

Debate between Stephen Hammond and Martin Vickers

Tuesday 10th July 2018 Westminster Hall

[Martin Vickers]

I acknowledge what the hon. Gentleman says, and I have to say that I have experienced similar problems on some of my own journeys. Hull Trains, in particular, has recently gone through a rather bad spell, from which it has now hopefully recovered. That does not take anything away from the concept of open access which, as the hon. Gentleman acknowledges, has provided services to towns off the main east coast and west coast lines. That is essential if we are to develop the north-east and Humberside economies.

[Stephen Hammond (Wimbledon) (Con)]

Will my hon. Friend give way?

[Martin Vickers]

I give way to yet another former Transport Minister.

[Stephen Hammond]

Does my hon. Friend agree that the concept of open access could drive efficiency back into the railway system, where it is needed? He mentioned the failure of the franchising system. Network Rail’s inability to link to the requirements of the operator is one fundamental problem with the rail system. A slot auction system for access could give Network Rail an incentive to align itself with the operators’ objectives.

[Martin Vickers]

I thoroughly agree. My hon. Friend’s experience as a former Minister makes that a particularly relevant point.

We are currently experiencing record private investment in UK rail. In 2016-17, that investment totalled £925 million—the highest since records began. The vast majority—£767 million—was spent on rolling stock. Some of that went to Hull Trains.

Given the other demands on the Budget, the idea that more taxpayer investment would go towards the railways was a myth. I know the Opposition’s policy is to renationalise the railways, but those of us who remember the nationalised system know that, in fact, it spiralled down because of a lack of investment. The reality is that there are so many calls on Government investment that transport does not get what it deserves. If the Government have a choice between investing in the health service and improving the rail services to Cleethorpes, I rather suspect that the rail services to Cleethorpes would suffer.

Oral Answers to Questions

Debate between Stephen Hammond and Martin Vickers

Thursday 10th July 2014 Commons Chamber

[Stephen Hammond]

The hon. Lady is wrong: the Department has identified a potential solution. We hope to be able to make a formal announcement later this summer. The decision to move the nine TransPennine Express class 170s was made by their owner. To address that, the Department is in commercial negotiations to develop a solution that is likely to see the introduction of more electric trains into the north, in addition to the 14 class 319s we have already announced, to release even more diesel units.

[Martin Vickers (Cleethorpes) (Con)]

The improved rolling stock that was introduced by TransPennine for Cleethorpes to Manchester services a few years ago increased patronage considerably. Will the Minister give an assurance that when the new franchise documents—the invitation to tender—are published later this year, he will specify that the highest quality of rolling stock be maintained on services out of Cleethorpes and that it will be at least the quality of the 185 units in use at present?

[Stephen Hammond]

My hon. Friend is an absolute campaigner for his constituents, and he has spoken to me a number of times on this issue and on the consultation. I should say that the consultation is just that. We are viewing a number of proposals at the moment, including the remapping of certain services, but I am sure that he will wish to continue to make those points during the consultation period. When the consultation finishes, we will consider all the points made and look to specify the necessary rolling stock requirements in the invitation to tender to ensure that the best services are provided for people across the north.

Oral Answers to Questions

Debate between Stephen Hammond and Martin Vickers

Thursday 17th January 2013 Commons Chamber

[Stephen Hammond]

I am sorry—co-chairman of the group. I look forward to seeing its report, which I am sure will cover a number of those issues. He will be aware that we have committed a local sustainable transport fund of £650 million, and a number of the schemes being developed under that have exactly the cycling element that he is asking for.

[Martin Vickers (Cleethorpes) (Con)]

I welcome the Secretary of State’s recent announcement on the improvement of the A160 into Immingham docks. The next part of the network that needs improving to provide access to the Humber bank ports and industrial areas is the A15 between Lincoln and Scunthorpe, which is in urgent need of dualling. Will my hon. Friend agree to meet a delegation of Members from the appropriate constituencies to discuss the matter?

[Stephen Hammond]

I would be delighted to accept my hon. Friend’s request. I have been meeting a number of Members and groups from their constituencies to discuss the possibility of their qualifying for route-based strategies, and I look forward to talking to him about this matter.

HGV Road User Levy Bill (Ways and Means)

Debate between Stephen Hammond and Martin Vickers

Tuesday 23rd October 2012 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

In order to arrive in the Brigg and Goole constituency, the Minister will travel along the A180, which is heavily used by road hauliers in Stallingborough and Immingham dock in my constituency. One problem is that the A180 has a very old concrete surface that causes great disturbance to local residents. The £18 million to £23 million that he will raise from the measure will more than cover the cost of improvement. I therefore invite the Minister to visit Cleethorpes and Brigg and Goole, and to journey on that rough road.

[Stephen Hammond]

I thank my hon. Friend for that detailed explanation of the problems with the A180. I have no doubt that the chief executive of the Highways Agency will be on to me in the morning to tell me what his plans may be at some stage in the near or distant future for that road. I am bound to reflect that when I was in this role in opposition, I was spokesman for the rail industry, and by the end of it I had a near-encyclopaedic knowledge of almost every rail station and route in this country. I am increasingly finding in government that that opportunity is being extended to me on the road system. I am really looking forward to visiting the A180 on the way to Brigg and Goole. I have no doubt that my hon. Friend will invite me to stop in his constituency as well.

We have had a long and interesting debate this afternoon and we have fully explored the legislation that is the subject of this ways and means resolution. I was delighted that my ministerial colleague was able to introduce the debate earlier and I am also delighted to commend it to the House.

Question put and agreed to.

Resolved,

That provision may be made for charging a duty of excise, to be known as HGV road user levy, in respect of heavy goods vehicles used or kept on public roads in the United Kingdom.

Ordered, That a Bill be brought in on the foregoing Resolution;

That the Chairman of Ways and Means, the Prime Minister, the Deputy Prime Minister, Mr Chancellor of the Exchequer, Mr Secretary Hague, Mrs Secretary May, Mr Secretary Grayling, Mr Secretary Moore, Mr Secretary McLoughlin, Mrs Secretary Villiers, Mr Secretary Jones and Stephen Hammond presented the Bill.

Hgv Road User Levy Bill

Stephen Hammond accordingly presented a Bill to make provision charging a levy in respect of the use or keeping of heavy goods vehicles on public roads in the United Kingdom, and for connected purposes.

Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 77) with explanatory notes (Bill 77-EN).