Draft Railway (Licensing of Railway Undertakings) (Amendment) Regulations 2021

Tanmanjeet Singh Dhesi Excerpts

Tuesday 13th July 2021 General Committees

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone.

I want to address the future of rail passenger and freight services using the channel tunnel and the high-speed link to London. The statutory instrument is all about the licensing arrangements for the operation of the services, but surely the more salient question is whether there will be a viable service to license. The Opposition firmly believe that the Eurostar service has a central role to play in our post-pandemic transport system, and we support the shift of international passengers from air to rail wherever possible.

High-speed rail is responsible for 80% less carbon emissions than the alternatives and I have been consistently calling for a huge rolling programme of electrification across the rail network, and a post-diesel railway. High Speed 1 must remain a central part of that clean, green future; it was the first high-speed link, but it must be the first of many across the UK. And yet the Eurostar service is under threat.

There is a real danger that the licensing regime under consideration today will have nothing to license if Eurostar goes under. The facts are stark: a 95% fall in demand; one service a day, instead of 50; a collapse in revenue from £1 billion in 2019 to just £180 million a year later; and the company is struggling with huge debts and the need to raise finance from shareholders and loan facilities. For example, in May this year the shadow Transport Secretary, my hon. Friend the Member for Oldham West and Royton (Jim McMahon), wrote to the Transport Secretary to point out that stations in Kent have been closed for the Eurostar service; UK jobs lost; and that the company was operating at less than 3% of its normal revenues.

The situation is not merely one in which Ministers are slow to respond, intransigent or that the focus has been elsewhere. No, it is much worse than that. The Secretary of State’s appearance before the Select Committee on Transport let the cat out of the bag when he said:

“It is not our company to rescue”.

It is true that the Government divested themselves of their shares in Eurostar back in 2015, but privatising the British people’s share of that vital public service has left us without the levers to protect it. Yet again, we witness privatisation driven by ideology, not practical common sense. Today, it is simply not good enough for Ministers to divest themselves of all responsibility and to turn their backs.

We will abstain on the SI. I invite the Minister to address my questions. Does she see a long-term future for Eurostar? What communications has she had with her French counterparts? What discussions have Transport Ministers had with the Treasury to devise a rescue package? Will she guarantee today that Eurostar will not collapse under her watch?