Passenger Railway Services (Public Ownership) Bill

Debate between Wera Hobhouse and Christine Jardine

Committee of the whole House
Tuesday 3rd September 2024 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

The Liberal Democrats’ first principle is to put the rail user at the heart of any new arrangements for rail passenger services. We are ultimately agnostic about public or private ownership so long as what the Government propose clearly delivers the improvements on our railways that are so desperately needed. I thank Ministers for their prior engagement and for today’s debate. I am aware that the Bill is only a step towards more comprehensive legislation later in this Parliament. We Liberal Democrats have tabled three amendments to address three core issues that are relevant to the Bill but might become even more relevant to any future Government plans.

Amendment 21 is aimed at keeping passenger experience under review. Public confidence in our rail system has been falling year on year. Greater scrutiny is needed of how nationalisation will impact day-to-day travel. Our amendment will ensure that getting a fair deal for passengers is the guiding principle of the Bill.

[Christine Jardine (Edinburgh West) (LD)]

Does my hon. Friend agree that an essential part of that is addressing the problems that the railways face now? Although the Liberal Democrats are agnostic on nationalisation, as my hon. Friend says, the problems that customers face now are about pricing and timetabling, and this Bill will not address them.

[Wera Hobhouse]

I thank my hon. Friend for that intervention and repeat that it remains to be seen how quickly that can be addressed. That is really our main point—we will scrutinise the Government on how quickly these changes can be delivered, because that is what all our constituents are really asking for.

Our amendment would ensure that an annual report was published on the effects of public sector contracts, particularly on the ticketing system. Fare hikes, delays and cancellations all contribute to a loss of confidence. Despite that, passenger numbers are up; people want to use our railway as a clean, green way to travel. We agree with the Government that competition is not working as intended, but we cannot expect nationalisation to be a silver bullet that solves all the issues with our rail services. It is therefore vital that the Government get a clear picture and are fully transparent about the public experience throughout the change.

The current ticketing system is simply not fit for purpose. Complicated and inconsistent ticketing is a barrier to rail travel. If we are to meet our climate commitments, green travel must be encouraged. I often hear from my constituents that they find it hard to understand when a ticket is best value for money, which highlights the need to simplify the entire system. When people buy a ticket, the best value fare should be clear and should be displayed first. There have been cases where operator-owned ticket machines have had an in-built bias to sell their own company’s tickets even if they are not the best value. Commuters should not have to jump through hoops to find the most effective price.

Amendment 21 would also require a look at the effects of nationalisation on digital season tickets and compensation for delays and cancellations. Delay repay is another big issue on our rail network. In the last reporting year, train operators closed 7.6 million delay compensation claims. That figure was 30% higher than the previous year even though passenger journeys were only 16% higher. However, current operators treat delay repay claims differently: while some passengers can get automatic compensation if their journey is delayed, others have to fill in complicated forms and have to wait. A unified approach to delay repay is clearly needed to improve passenger experiences, and I agree with my hon. Friend the Member for Edinburgh West (Christine Jardine) that it is absolutely vital that passengers see such changes very quickly, rather than having to wait for a whole-system change.

The same is also the case with season tickets. Annual passes for similar-length rail journeys differ immensely across the country depending on the operator. An annual report scrutinising how nationalisation affects those inconsistencies is essential to reducing them. To ensure that passengers get a fair deal from nationalisation, I urge Members to support our amendment 21.

Amendment 20 aims to bring people further confidence as rail companies are brought into public ownership. The amendment would establish an independent body to review contracts made by the Transport Secretary and public companies. That body would put the customer at the heart of services, as well as delivering, putting commuters first and holding operators to account. The amendment would ensure that if the independent body did not agree with a proposed contract, the Secretary of State must explain to Parliament why they were going ahead. To give the public confidence in our railways, the process of contract allocation must be kept under scrutiny and be fully transparent.

Our third amendment is amendment 22, which would require the Government to review how the transition to public ownership affects services such as Merseyrail and Transport for London. Those services are already under public control, but in those cases the control is local, not national. The amendment would allow more services to be operated by local public bodies in the future—we have discussed that in our pre-meeting. The review would not simply look at direct impacts, but engage with the local public bodies themselves on their capacity and their wish to deliver such services.

If the new Government are serious about devolution, the option for combined authorities to deliver services must be on the table. We have already seen how devolved authorities can deliver rail services effectively. Transport for London and Merseyrail are two such examples. If devolved authorities wish to deliver rail services, there must be a way for them to have discussions with central Government. I understand that such a proposal might be for the future, but it is important we put a marker down here. Amendment 22 provides a mechanism for that process.

Nationalisation must be a means to an end. The public at large do not care who is running the trains as long as there are good services and travel is affordable. Our Liberal Democrat amendments would ensure that the legislation has the passenger at the heart of any changes and that the public get value for money.