PARLIAMENTARY DEBATE
Rail Services - 11 May 2023 (Commons/Commons Chamber)
Debate Detail
I start by thanking the entire transport industry and officials across Government for their professionalism and hard work over the last weekend. Tens of thousands of people travelled to Windsor and central London for the coronation of His Majesty King Charles III and Her Majesty Queen Camilla. Getting the public around efficiently and safely took months of planning and preparation, and special thanks must go to Great Western Railway for putting on additional services as well as Network Rail and South Western Railway, which facilitated the biggest movement of military personnel by the rail industry in more than 50 years for the coronation. It meant that people from across the UK and, indeed, around the world were able to unite in celebration during what was a truly historic moment.
In my most recent oral statement to the House, I made clear the Government’s commitment to deliver a railway that works for passengers, businesses and the taxpayer. Where services are not up to scratch, we are holding operators to account, and where there are systemic weaknesses in the industry, we are pushing ahead with reform. So I wish to update the House today on our progress, starting with the future operator of the TransPennine Express contract.
Since I took office, I have been clear that First TransPennine Express’s service levels have for too long been unacceptable. Passengers, including many hon. and right hon. Members across this House, have faced significant disruption, including regular cancellations and poor levels of communication. The underlying reasons behind this vary, but what is clear is that the twin challenges of covid and industrial action have left their mark. First TPE’s driver training backlog now stretches to nearly 4,000 days, which means that, at any one time, it can only draw upon 80% of its total driver workforce. Add to that a breakdown in relations between the operator and the driver union ASLEF, all told, there simply have not been enough drivers to run the planned timetable. Inevitably, passengers have borne the brunt, facing cancellation rates of up to 23% on Monday to Friday services and gaps in services on some routes of up to six hours. That clearly is not good enough, a point I have made directly with FirstGroup, which owns First TPE, and which the Rail Minister—the Minister of State, Department for Transport, my hon. Friend the Member for Bexhill and Battle (Huw Merriman)—has made in weekly meetings with the Rail North Partnership, where Transport for the North jointly manages First TPE’s contract with the Department for Transport.
We will always hold operators to account for matters within their control. We will give them a chance to put things right, but despite a recovery plan put in place since February, there remain significant challenges underpinned by ASLEF’s distinct lack of co-operation. To achieve the performance levels I expect, passengers deserve and the northern economy needs, it is clear that both the contract and the underlying relationships must be reset. I have therefore decided not to renew or extend First TPE’s contract when it ends on 28 May. Instead, I am exercising my operator of last resort duties and directly awarding a new TPE contract to a public sector operator that will manage it on my behalf.
As Transport Secretary, my obligation, first and foremost, is to secure passenger rail services on which TPE passengers can rely. That requires a new approach, and one that the OLR is best placed to deliver in these circumstances. Most significantly, it provides an opportunity to reset relations between management and all stakeholders—from passengers to trade unions. I have also asked my officials to review services in the north to help drive efficiency and find better ways to deliver for passengers across the region, and I will ask all interested parties, including the northern Mayors and Transport for the North, to engage with the Government on this work.
While today’s decision will be welcomed by many and while it shows a Government alive to the concerns of passengers, as my hon. Friend the Rail Minister and I have made clear, it would be misguided for anyone to think this is an instant solution. The problems First TPE faced will not disappear overnight. Any operator facing industrial action and a union co-ordinated ban on overtime working will struggle to run a reliable service. So I invite those who have long called for today’s decision, including unions, northern Mayors and colleagues across the House, to work constructively with me and the Rail Minister to fix the underlying problems and help return the service levels to where they should be. The OLR is just the next stop on the line—it is not the terminus station—and once market conditions allow, we intend to subject this and indeed all contracts, both private sector and those under the OLR, to competitive tendering.
There will be some, unfortunately, who use today’s decision to further their ideological ends, and to argue that this justifies all rail contracts being brought under public control. That would be a mistake. The majority of taxpayers do not use the railways regularly, but they could be saddled with the huge costs of nationalisation, only to inherit the industry’s problems with no plan to fix them. Nationalisation is a soundbite, not a solution, and this Government will always be guided by the evidence to help make the best decisions for passengers. That is why, earlier this year, having seen the noticeable improvements on Avanti West Coast, I resisted calls to bring the franchise into public ownership. I extended Avanti’s contract by six months—a decision vindicated, with Avanti-caused cancellation rates at the end of March falling to 1.4% from 13.2% in January, and continuing to improve, despite ongoing challenges.
Let me now turn to industrial action. For months, the Rail Minister and I have worked hard to change the tone of the dispute, and help facilitate fair and reasonable pay offers for workers. In negotiations with train operating companies, the RMT and ASLEF are refusing to even put those pay offers to a vote of their members, despite RMT members who work for Network Rail voting overwhelmingly to accept a similar deal earlier this year. Instead, the RMT has balloted for yet more industrial action and, along with ASLEF, it has cynically called strikes that will cripple the network during the Eurovision song contest this week. We are hosting Eurovision because last year’s winner, Ukraine, cannot. It will be an event attended by displaced Ukrainians who have fled Putin’s war, and the House has just been hearing about that threat, so it beggars belief that unions have chosen to disrupt such an internationally symbolic event—one that not only presents a united front against Russia’s aggression, but shows solidarity with Ukraine’s resistance. So my message on behalf of fed-up passengers is to say to the union leaders, “Call off your strikes, put the fair and reasonable pay offers to a vote and give your members a say on their future.”
With or without the unions’ support, the industry must modernise to avoid permanent decline, and we are building unstoppable momentum towards rail reform, as I set out in my Bradshaw address in February. I have announced that Derby will be the location for Great British Railways’ new headquarters, and today I can report progress against the commitment I made to extend single leg pricing to the rest of the London North Eastern Railway network. Tickets will go on sale from 14 May for travel from 11 June, and it means LNER passengers will benefit from simpler, more flexible and better-value ticketing, removing the frustration that a single ticket can cost almost as much as a return.
In conclusion, since becoming Transport Secretary, my approach has been to listen to the experts, weigh up the evidence and make decisions in the interests of the travelling public. Today’s announcements show a Government tuned in to the concerns of passengers in the north, unafraid to take tough decisions to deliver better services and relentlessly focused on modernising our railways while protecting passengers from the effects of industrial action. That is what the British people deserve, it is what we are delivering and I commend this statement to the House.
After years of comprehensive failure, after tens of millions in taxpayer cash has been handed to an operator so clearly not fit for purpose, after needless damage has been wrought on the northern economy and more than six months after Labour demanded it, the Tories have finally accepted that they can no longer defend the indefensible. They have seen the writing on the wall, and the only question passengers will be asking today is: what stopped the Secretary of State taking action sooner? How on earth did it take this long?
Let us just be clear about the failure that, until now, has been allowed to go on unchecked. This operator has broken records for cancellations. Almost one in five services last year did not run and fewer than half the services were on time. It has been an issue not just for the last few months, as Ministers claim, but for years. Seven years ago—well before covid—TransPennine Express had exactly the same staff shortages it suffers from today. It failed to address the issues that passengers are still experiencing. That it managed to keep this contract for so long, and to be told only months ago that it was in line for an eight-year extension, is extraordinary.
The difficult truth for the Secretary of State today is this: his decision shines an unforgiving light on the fractured railways his party is responsible for. This endless cycle of private operators having to be taken over shows the rail system is fundamentally broken. The comprehensive failure of TransPennine Express is not a bug in the system; it is a feature of it. Since the Conservatives came to office, the east coast franchise has collapsed and been taken over, Northern Rail followed, and then London and Southeastern. For the Conservatives to have nationalised one railway may be regarded as misfortune; to have nationalised four demonstrates something much more fundamental. The privatised model they have rigidly lauded in the face of all evidence is collapsing. Passengers see services get visibly, demonstrably worse while hundreds of millions of pounds of taxpayers’ money is handed to shareholders without the faintest hint of competition. How much longer will people be asked to rely on a system that so routinely fails?
The Secretary of State’s decision today must just be the start. He now needs to show the leadership that has been so sorely lacking: the Government must stop casting around and blaming everyone but themselves. Will he set out to the House the immediate plan to address the long-standing issues of recruitment, training and rest day working? What steps is he taking to end the industrial dispute that has now been ongoing for over a year? Can he confirm when he last held talks with the employers and the unions to bring the dispute to an end? Strike action is imminent but he still has an opportunity to avoid it. Can it really be the case that he has not met the unions and the employers for more than five months? If that is correct it is a truly shocking dereliction of duty.
The Secretary of State’s decision today must be the start of something more fundamental. He can choose to continue with this charade, to entrench the fragmentation that his proposed reforms will deliver, or he can accept that he has been wrong and bring the remaining operators into public ownership. He can end this broken system that is failing passengers, bring track and train together, speed up fare reform and deliver a simpler, unified railway.
Today’s decision makes that case more obvious than ever. Services have never been worse, and for too long the Tories’ solution has been more of the same. The entire country should not have to put up with this for a second longer. It is time for fundamental change, and it is time to deliver the rail service that Britain deserves.
Let me turn to the hon. Lady’s more substantive points. I will set out my position on industrial action very clearly. When I took this job, I changed the tone of the debate: I met the rail union leaders and ensured that the employers were facilitated to make fair and reasonable offers. On Network Rail, a fair and reasonable offer was made of pay and reform—importantly reform, which is how these offers are being funded. That was put to the RMT members who work for Network Rail and they voted overwhelmingly to accept. Those are not my words; they are the RMT’s own words—there was a 90% turnout and 76% were in favour. Fair and reasonable offers have been made by the train operating companies, under their umbrella group, the Rail Delivery Group, to RMT members working for the train operating companies: broadly comparable offers in value, also with reform. The RMT, for reasons I really do not understand, has refused to put those offers to its members. So offers are on the table and are waiting to be put to members, and the unions will not put those offers to their members. ASLEF has an offer on the table which would take the average salary of a train driver from around £60,000 a year to £65,000. So I have been doing my job. Offers are on the table; they need to be put to the members of those unions so that they can make a decision.
The focus from the hon. Lady is not surprising, however, because the rail unions have donated a total of just over £1 million to the Labour party or Labour office holders over the last five years. The general secretary of ASLEF is chair of Labour Unions, the group of unions affiliated to the Labour party, and sits on Labour’s national executive, and the hon. Lady said that she would be working hand in glove with ASLEF. She should suggest to ASLEF that it uses this opportunity to do rest day working—[Interruption.] I have made those points to the unions, but if the hon. Lady is working hand in glove with them, she should say that and tell them to call off their strike at the weekend. She should tell them to stop focusing on damaging the Eurovision contest that we are hosting for Ukraine and work in hand in glove with them on that. If she fails to do so, people will see she is all talk and no action.
It is good to see another England-based operator nationalised; slowly but surely the UK Government are following in Scotland’s footsteps. The Secretary of State said that nationalisation is a “soundbite, not a solution”—despite it being the solution the Government have gone for. I would gently say to him that privatisation has been a bourach not a benefit.
We welcome the UK Government following the lead of the Scottish Government in nationalising an under- performing rail service and would note that this means this anti-nationalisation Tory party has now nationalised four rail services in five years. The Tories are as confused as the Leader of the Opposition, who pledged to nationalise the railways but then recently seemed to backtrack on that; it has at the very least hit signal failures.
Only 10% of people in the UK support private ownership of the railways, and even among Tory voters only 13% support privatised railways. The UK Government’s privatisation obsession is out of step with both the wider public and their own voters’ desires. Is it not time therefore for the Government to listen to the experts, the workers and the voters, and end the failed experiment of privatisation?
Disputes involving the unions and the Scottish Government were resolved very quickly, yet Scots passengers have faced disruption due to this Government’s unwillingness and inability to resolve disputes. Why does the Secretary of State think that Scotland has managed to resolve strikes so much more efficiently than this Government?
On industrial action, it does take two to reach a deal. From our side, fair and reasonable offers have been put on the table. They are broadly in line with the offers made to the RMT staff who work for Network Rail which, when put to the members of the union, were accepted overwhelmingly, with a 90% turnout and 76% in favour. Similar value offers with reform have been made to RMT staff working for the train operating companies and have not been put to the members. So the clear outstanding issue is not a new offer but for the offers to be put to the members of the trade unions to enable them to make a decision. There is also an offer on the table for train drivers in the ASLEF union, which has not been put to members. As I said, that would take their average salaries to £65,000 a year. I think that offer is at least worth putting to them. That is the outstanding piece of work that needs to take place. We have done our bit of that job.
The reason why the Scottish Government reached conclusions was that they caved in. They have not delivered reform, and I think they have overpaid with taxpayers’ money. There is a balance to strike in offers that are fair and reasonable to the workers in the industry and the passengers it serves, as well as to the taxpayer. That is a responsibility that I take very seriously.
The hon. Gentleman’s second point about trade unions is fundamentally wrong. When I took this job I decided that it was important to change the tone of the debate. I met all the rail union leaders. I have a perfectly constructive relationship with them. I facilitated fair and reasonable pay offers, which settled the dispute on Network Rail and which was overwhelmingly accepted by members of the RMT. There are fair and reasonable offers on the table for RMT workers working for the train operating companies and the train drivers. All I hope is that those offers get put to the members of the trade unions—those whom the general secretaries are supposed to work for—to allow them to make a decision on what I believe are fair and reasonable pay offers.
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