Passenger Railway Services (Public Ownership) Act 2024

1

Before Clause 1, insert the following new Clause— “Purpose: improvement of passenger railway services (1) The purpose of this Act is to improve the performance of passenger railway services in the United Kingdom. (2) The Secretary of State must, in taking any actions under the provisions of this Act, have regard to this purpose.”

2

Clause 1, page 1, line 12, at end insert— “25B Termination of existing franchise agreements (1) The Secretary of State must terminate franchise agreements for default in accordance with the terms of the agreement as soon as it is possible to do so. (2) The Secretary of State must assess and rank existing franchise agreements according to performance criteria established after consultation with relevant stakeholders. (3) Subject to subsection (1), the Secretary of State must only terminate a franchise agreement pursuant to a break clause if — (a) there are no other franchise agreements which are performing worse under the criteria in the list referenced in subsection (2), and (b) the Secretary of State is satisfied that provision of the services by a public sector company will improve existing service provision. (4) In this section, “break clause” means a contractual provision in a franchise agreement which entitles the Secretary of State to terminate the franchise agreement before the end of the franchise term by notice without reason.”

3

After Clause 2, insert the following new Clause— “Application of public sector equality duty In Part 1 of Schedule 19 to the Equality Act 2010 (authorities subject to public sector equality duty), at the appropriate place under the heading “Transport", insert - “A public sector company providing services for the carriage of passengers by railway under a public service contract awarded under section 30 of the Railways Act 1993 (public sector provision of services).'”””

2

Clause 1, page 1, line 12, at end insert— "25B Termination of existing franchise agreements (1) The Secretary of State must terminate franchise agreements for default in accordance with the terms of the agreement as soon as it is possible to do so. (2) The Secretary of State must assess and rank existing franchise agreements according to performance criteria established after consultation with relevant stakeholders. (3) Subject to subsection (1), the Secretary of State must only terminate a franchise agreement pursuant to a break clause if – (a) there are no other franchise agreements which are performing worse under the criteria in the list referenced in subsection (2), and (b) the Secretary of State is satisfied that provision of the services by a public sector company will improve existing service provision. (4) In this section, “break clause” means a contractual provision in a franchise agreement which entitles the Secretary of State to terminate the franchise agreement before the end of the franchise term by notice without reason.”

5

Clause 2, page 2, line 15, after “Regulations” insert “or by the competitive award of a contract in the form of a concession to a private sector entity."

13

LORD BERKELEY

Clause 2, page 3, line 32, at end insert — "30D Statement on the impact of the Act on rail freight target The Secretary of State must, within six months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 is passed, make a statement in each House of Parliament outlining how the Government's plans to achieve a 75% increase in the volume of rail freight in the United Kingdom by 2050 are affected by the provisions of that Act.”

16

LORD BERKELEY

After Clause 2, insert the following new Clause- "Future railway bills: draft bill For four years from the day on which this Act is commenced, any proposal for a bill to be introduced by a Minister of the Crown primarily concerning the ownership or operation of passenger railways must be published in draft as a Command Paper and laid before both Houses of Parliament at least three months before that bill is introduced."

19

After Clause 2, insert the following new Clause- "Report: National Insurance contributions The Secretary of State must, within three months of the day on which this Act comes into force, lay before both Houses of Parliament a report on the impact of National Insurance employer contributions on the operational costs of public sector companies awarded a public service contract under section 30(1A).”

LORD BERKELEY

After Clause 2, insert the following new Clause- "Future railway bills: draft bill For five years from the day on which this Act is commenced, any proposal for a bill to be introduced by a Minister of the Crown primarily concerning the ownership or operation of railways must be published in draft as a Command Paper and laid before both Houses of Parliament at least three months before that bill is introduced."

LORD ΜOYLAN

After Clause 2, insert the following new Clause- "Impact on Open Access Regional Connectivity The Secretary of State must, within twelve months of the day on which this Act comes into force, and annually thereafter, lay before Parliament a report on the impact of awarding public service contracts to public sector companies under section 30(1A) on the transport connectivity, particularly regional transport connectivity, provided by open access operators.”

LORD ΜOYLAN

After Clause 2, insert the following new Clause- "Costs of harmonising pay (1) The Secretary of State must, within three months of the day on which this Act comes into force, lay before Parliament a statement of the Government's intentions concerning the terms, conditions, and pay rates of staff of existing train operating companies as they transfer to employment by public sector companies under section 30(1A). (2) Before the publication of the statement, the Secretary of State may consult with relevant stakeholders, including employee representatives and trade unions, to assess the implications of the proposed terms and conditions."

Clause 1, page 2, line 12, omit "only"

Clause 2, page 2, line 6, at end insert – “(1A) In section 4 (general duties of the Secretary of State and the Office of Rail and Road) omit paragraph (1)(d).

LORD ΜOYLAN

Clause 2, page 3, line 32, at end insert — “30D Preliminary Report on Communication with Local Transport Authorities The Secretary of State must, within six months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 is passed, publish a preliminary report outlining the proposed framework for communication between Great British Railways (GBR) and local transport authorities across the United Kingdom."

Clause 2, page 3, line 32, at end insert- “(4) In regulation 17(2) of the Public Service Obligations in Transport Regulations 2023 (S.I. 2023/1369), omit “one year” and insert “three months”.”

Clause 2, page 2, line 23, at end insert-“30ZA Annual report of public operator liabilities (1) The Secretary of State must lay before Parliament, within six months of the day on which this Act comes into force, and on each anniversary of that date thereafter, a report on the public sector financial liabilities arising from the award of public service contracts to public sector companies under subsection 30(1A). (2) The report published under subsection (1) must include details of rolling stock leasing liabilities."

BARONESS RANDERSON

Clause 2, page 2, line 32, at end insert-"(1A) This section also applies where the Secretary of State is satisfied that it is in the best interest of passengers to continue an existing franchise agreement for a further specified period of time, to be no longer than 12 months.”

After Clause 2, insert the following new Clause-"Application of public sector equality duty In Part 1 of Schedule 19 to the Equality Act 2010 (authorities subject to public sector equality duty), at the appropriate place under the heading “Transport", insert - "A public sector company providing services for the carriage of passengers by railway under a public service contract awarded under section 30 of the Railways Act 1993 (public sector provision of services).'”””

14A

Clause 2, page 2, line 21, at end insert—
“(1D) The relevant franchising authority must make an assessment of the steps any public sector company is taking to prepare for driverless trains before making a direct award of a public sector contract to that public sector company under subsection (1A).”

27A

Clause 2, page 2, line 23, at end insert—
“30ZA Report: operators’ duty to participate in discount fare schemes
The Secretary of State must, within one year of the passing of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the impact of public service contracts made under section 30(1A) on the participation of franchise operators in discount fare schemes in accordance with section 28 of the Railways Act 1993 (Fares and approved discount fare schemes).”

27B

Clause 2, page 2, line 23, at end insert—
“30ZA Report: improvement in quality of toilets in Passenger Railway Services
The Secretary of State must, within twelve months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the effect of that Act on the progress made in improving the quality, accessibility, and maintenance of toilets on trains, including but not limited to—
(a) upgrading facilities,
(b) accessibility improvements,
(c) maintenance standards,
(d) baby changing, and
(e) monitoring procedures.”

48A

Clause 4, page 4, leave out line 16 and insert—
“(2) This section comes into force on the day on which this Act is passed.
(2A) Apart from this section, this Act will not come into force until the Secretary of State has produced a report assessing whether the operation of passenger rail services by public sector companies as opposed to private operators will improve the performance of those services.
(2B) The report made under subsection (2A) must consider—
(a) timeliness of services,
(b) likely cancellations of services,
(c) passenger numbers on services, and
(d) the cost of fares.
(2C) If the report made under subsection (2A) finds that passenger services will not be improved, this Act, other than this section, will not come into force.”

This amendment ensures that the content of the Bill cannot come into effect unless a report regarding performance has been created.

A1

Before Clause 1, insert the following new Clause—
“Purpose: improvement of passenger railway services
(1) The purpose of this Act is to improve the performance of passenger railway services in the United Kingdom.
(2) The Secretary of State must, in taking any actions under the provisions of this Act, have regard to this purpose.”

This amendment requires the Secretary of State to have regard to the purpose of improving passenger railway services when taking any actions under the terms of this Act.

47

Clause 2, page 3, line 32, at end insert—
“30D Management of rail services in Greater London
(1) The Secretary of State must make a statement in each House of Parliament on the impact of shared responsibility between Transport for London and public sector companies awarded a contract under section 30(1A) under the management of Shadow Great British Railways, for the provision of railway passenger services in the Greater London area within three months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 is passed.
(2) The statement made under subsection (1) must include an assessment of how the provision of any services procured by Transport for London under section 30(1A) can be managed in a manner that is consistent with the remit of Shadow Great British Railways.”

This amendment requires the Secretary of State to make a statement assessing the impact of shared responsibility for railway passenger services in Greater London following the changes in the Bill.

49

Clause 4, page 4, line 16, leave out “on the day on which it is passed” and insert “on the day on which the Secretary of State has published a report on the circumstances in which the measures in the Strikes (Minimum Service Levels) Act 2023 would be used in relation to contracts awarded under section 30(1A) of the Railways Act 1993”

50

Clause 4, page 4, line 16, leave out “on the day on which it is passed” and insert “on the day regional partnership boards have been established between Shadow Great British Railways (or the Secretary of State acting temporarily in its place) and local and regional authorities in England to give local leaders a greater say in how the railways are run in their area”

This amendment delays the coming into force of the Act until the collaborative relationships between (Shadow) Great British Railways and local and regional authorities in England have been established.

3

Clause 2, page 2, line 12, leave out “only”

5

Clause 2, page 2, line 15, at end insert—
“(b) by selecting a person who is to be the franchisee from those who submit tenders in response to an invitation to tender.”

25

Clause 2, page 2, line 23, at end insert—
“30ZA Report: lease payments on rolling stock
The Secretary of State must lay before Parliament, within six months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 comes into force, a report on the effect of lease payments for rolling stock on the public finances as a result of contracts awarded under section 30(1A).”

This amendment requires the Secretary of State to publish a report on the effect on the public finances of the Government assuming lease payments for rolling stock.

26

Clause 2, page 2, line 23, at end insert—
“30ZA Assessment of transferring operators into public ownership
(1) The Secretary of State must lay before Parliament an assessment of the performance of companies to whom public service contracts are made under section 30(1A).
(2) An assessment published under subsection (1) must include details of—
(a) financial performance,
(b) revenue growth,
(c) cost control,
(d) operational performance, and
(e) additional costs associated with transfer.
(3) Assessments under this section must be laid before Parliament within a year of a public sector contract being awarded under section 30(1A).”

This amendment would require the Secretary of State to publish an assessment after the transfer of a franchised passenger operators into public ownership assessing the expected impact on financial and operational performance, alongside costs associated with the transfer of operations.

27

Clause 2, page 2, line 23, at end insert—
“30ZA Impact on non-public operators
The Office of Rail and Road must, within twelve months of the day on which this Act comes into force, and on each anniversary of that date thereafter, publish a study of the impact of the Passenger Railway Services (Public Ownership) Act 2024 on the market for open-access operators to the United Kingdom rail network.”

The Office of Rail and Road will continue to be the independent regulator of fair access to the network. This would require it to undertake regular assessment on the implications of the Act on non-public sector operators, such as open access passenger and rail freight operators.

36

Clause 2, page 3, line 27, at end insert—
“(iv) wholly owned by the Greater London Authority or mayoral combined authorities in England;”

45

Clause 2, page 3, line 32, at end insert—
“30D Impact on performance and efficiency of the United Kingdom rail network
(1) The Secretary of State must, within five years of the day on which the Passenger Railway Services (Public Ownership) Act 2024 comes into force, instruct an independent body to conduct a review of the impact of that Act on the performance and efficiency of the United Kingdom rail network.
(2) A report on the findings of the review must be laid before Parliament.”

This amendment requires the Secretary of State to ensure that an independent body conducts a review of the performance and efficiency of the UK rail network.

46

Clause 2, page 3, line 32, at end insert—
“30D Impact on exemption of passenger services
(1) The Secretary of State must, within twelve months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 comes into force, lay before Parliament a report on the impact of sections 25A and 30 of this Act, as amended by the Passenger Railway Services (Public Ownership) Act 2024, on the exemption of passenger services under section 24.
(2) A report under subsection (1) must include an assessment of whether the coming into force of the Passenger Railway Services (Public Ownership) Act 2024 has made, or is expected to make—
(a) it more or less likely for an application for an exemption to be made to an appropriate designating authority;
(b) it more or less likely for an application for an exemption to be granted by an appropriate designating authority;
(c) any difference to the basis on which decisions as to the granting or refusing of applications for exemptions will be made by the appropriate designating authorities.”

This amendment requires the Secretary of State publish a report on the impact on exemption of passenger services.

48

After Clause 2, insert the following new Clause—
“Termination of Franchises
Nothing in this Act limits or weakens the power of the Secretary of State to terminate immediately existing franchises where performance falls below the standard expected.”

2

Clause 1, page 1, line 12, at end insert—
“25B Report on impact of prohibition on franchise extensions and new franchises
The Secretary of State must lay before Parliament—
(a) within a month of the day on which the Passenger Railway Services (Public Ownership) Act 2024 is passed, a report on the anticipated impact of the prohibition on franchise extensions and new franchises under section 25A, and
(b) after a period of three years has elapsed after the day on which the Passenger Railway Services (Public Ownership) Act 2024 is passed, a report outlining the actual impact of the prohibition on franchise extensions and new franchises under section 25A.”

This amendment requires the Secretary of State to publish a report on the expected impact of the prohibition on franchise extensions for private sector operators within one month of the Passenger Railway Services Act 2024, and a follow-up report three years after the Act comes into force, summarising the impact of these prohibitions.

4

Clause 2, page 2, line 12, leave out from “(1)” to end of line 15 and insert “only by the competitive award of a contract in the form of a concession to a private sector entity.”

7

Clause 2, page 2, line 15, at end insert—
“(1AA) Before making a direct award of a public service contract to a public sector company under subsection (1A), the relevant franchising authority must provide information to the Office of Rail and Road on the public sector company’s ability to become responsible for the provision of the relevant passenger railway services.
(1AB) The information provided under subsection (1AA) must include an overview and analysis of the capacity of the public sector company to provide, maintain and improve the existing level of service.
(1AC) Following the receipt of the information provided under subsection (1AA), the Office of Rail and Road must publish an opinion on whether it is reasonably practicable for the public sector company to provide, or secure the provision of, the relevant passenger railway services.”

This amendment requires that the relevant franchising authority provides information to the ORR on a public sector company’s capability to provide adequate railway services.

8

Clause 2, page 2, line 15, at end insert—
“(1AA) Every contract made in accordance with subsection (1A) must place a duty on the public sector company to publish a plan for investment for innovation across all aspects of its operations, including but not limited to—
(a) operational efficiency;
(b) fares and ticketing;
(c) stations and onboard services;
(d) passenger information; and
(e) digital transformation.”

This amendment requires all public sector companies awarded a contract to publish a plan for investment in every operational aspect of the railways.

9

Clause 2, page 2, line 15, at end insert—
“(1AA) The franchising authority may not award a contract under (1A) with a lower service level without undertaking a public consultation which focuses on passenger interests.”

This amendment prohibits the franchising authority from awarding a contract with a lower service level without conducting a public consultation focused on passenger interests.

10

LORD BERKELEY

Clause 2, page 2, leave out lines 16 to 18

11

Clause 2, page 2, line 21, at end insert—
“(1D) The relevant franchising authority must ensure that any public service contract awarded under subsection (1A) includes provisions to mandate rest day working.”

12

Clause 2, page 2, line 21, at end insert—
“(1D) The relevant franchising authority must consult the Council of the Nations and Regions before making a direct award of a public sector contract to a public sector company for a rail service that serves destinations in two or more of England, Scotland and Wales.”

This amendment requires the relevant franchising authority to consult the Council of the Nations and Regions before making a direct award of a public sector contract to a public sector company for a rail service that serves destinations in two or more of England, Scotland and Wales.

13

Clause 2, page 2, line 21, at end insert—
“(1D) The relevant franchising authority must consult the Prime Minister’s Envoy to the Nations and Regions before making a direct award of a public sector contract to a public sector company for a rail service that serves destinations in two or more of England, Scotland and Wales.”

This amendment requires the relevant franchising authority to consult the Prime Minister’s Envoy to the Nations and Regions before making a direct award of a public sector contract to a public sector company for a rail service that serves destinations in two or more of England, Scotland and Wales.

14

Clause 2, page 2, line 21, at end insert—
“(1D) In this section “concession” means a contract under which the franchising authority specifies rail services to be provided by a private sector entity and retains the risk of fluctuations in the receipt of fares.”

This amendment and another in the name of Lord Moylan removes from the Bill the duty placed on the Secretary of State only to make a direct award of a public service contract to a public service company with a duty only to make competitive awards to private sector companies on the basis of a concession.

15

BARONESS RANDERSON

Clause 2, page 2, line 22, leave out “Public sector” and insert “Concession-based”

18

Clause 2, page 2, line 23, at end insert—
“30ZA Independent body to advise on pay and terms and conditions of employment for employees of public sector companies
(1) The Secretary of State must, within three months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 is passed, establish an independent body with responsibility for—
(a) providing advice to Government on the—
(i) remuneration, and
(ii) terms and conditions of employment,
of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A);
(b) advising the Government on value for money during the negotiation of the terms and conditions of employment of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A); and
(c) laying before Parliament an annual report on the terms and conditions of employment of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A).
(2) Advice provided in accordance with subsections (1)(a) and (b) must be based on annual investigations of working practices conducted by the independent body and consider—
(a) value for money;
(b) affordability;
(c) domestic and international comparators; and
(d) the future of the rail network, including the modernisation of working practices.
(3) Advice provided in accordance with subsection (1)(b) must include whether any conflicts of interest exist between any Government Minister and any union involved in the negotiation of the terms and conditions of employment, and how any such conflicts should be managed.
(4) An annual report published under subsection (1)(c) must include a comparison with the terms and conditions of employment under the franchise which provided the relevant passenger railway services prior to the awarding of a contract in accordance with section 30(1A).
(5) The first annual report under subsection (1)(c) must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).”

This amendment requires the Secretary of State to set up an independent body responsible for pay and terms and conditions of employment for employees of public sector companies.

19

Clause 2, page 2, line 23, at end insert—
“30ZA Independent financial monitoring of public sector companies
(1) The Secretary of State must, within three months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 comes into force, instruct an independent body to conduct monitoring of the financial management of any public sector company with whom a direct award of a public service contract is made under section 30(1A).
(2) For the purposes of subsection (1), “monitoring of the financial management” includes the auditing of accounts, the review of spending efficiency, and the making of recommendations to improve cost-effectiveness.”

This amendment requires that the Secretary of State instructs an independent body to conduct financial monitoring of the public sector companies.

20

Clause 2, page 2, line 23, at end insert—
“30ZA Report on cost of contracts with public sector companies
(1) The Secretary of State must, within three months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 comes into force, instruct an independent body to report on the total cost to the Government of contracts awarded in accordance with section 30(1A).
(2) The first report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A), with subsequent reports to be laid annually.
(3) Any report published under this section must include consideration of any liabilities previously held by franchises which are now public sector liabilities.”

This amendment requires the Secretary of State to ensure an independent body to report on the cost of government contracts awarded to companies.

21

Clause 2, page 2, line 23, at end insert—
“30ZA Annual reporting of performance of publicly owned train operating companies
(1) The Secretary of State must lay before Parliament an annual report on the performance of public sector companies to whom public service contracts are made under section 30(1A).
(2) An annual report published under subsection (1) must include details of a company’s—
(a) financial performance;
(b) revenue growth;
(c) cost control;
(d) innovation;
(e) service quality metrics;
(f) customer satisfaction metrics; and
(g) value for money.
(3) The first annual report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).”

This amendment requires the Secretary of State to produce an annual report on the performance of public sector companies.

22

Clause 2, page 2, line 23, at end insert—
“30ZA Performance-based assessment of publicly-owned train operating companies
(1) Public sector companies with whom public service contracts are made in accordance with section 30(1A) are to be subject to performance-based assessments in relation to their management of the relevant passenger railway services.
(2) Performance-based assessments of public sector companies under subsection (1) are to be conducted by an independent body instructed by the Secretary of State.
(3) In conducting a performance-based assessment the independent body must assess the public sector company against published targets in relation to—
(a) the punctuality of services,
(b) customer satisfaction,
(c) revenue and passenger growth, and
(d) operational efficiency.
(4) Every contract made in accordance with section 30(1A) must place duties on relevant public sector companies—
(a) to prepare performance improvement plans where published targets are assessed under this section as not being met;
(b) to place limitations on the remuneration of senior managers while a performance improvement plan is in force.”

This amendment requires an independent body to conduct performance-based assessment of public sector companies.

23

Clause 2, page 2, line 23, at end insert—
“30ZA Annual report of pension liabilities
(1) The Secretary of State must lay before Parliament, within six months of the day on which this Act comes into force, and on each anniversary of that date thereafter, a report on the financial and other impacts of pensions liabilities (and other liabilities associated with retired railway personnel) arising from the award of public service contracts to public sector companies under subsection 30(1A).
(2) The report published under subsection (1) must include details of—
(a) any cost to the taxpayer associated with those pension schemes,
(b) ongoing expected liabilities arising from those pension schemes,
(c) financial performance of those pension schemes and the sections of those pension schemes associated with each operator, and
(d) the provision of free travel and any other benefits to qualifying active and retired railway personnel.”

This amendment would require the Secretary of State to publish an annual report examining the impact of this Bill on ongoing pension liabilities and their impact to the taxpayer.

24

Clause 2, page 2, line 23, at end insert—
“30ZA Impact on open access operators
The Secretary of State must, within twelve months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 comes into force, and annually thereafter, lay before Parliament a report on the impact of the awarding of public service contracts to public sector companies under subsection 30(1A) on open access operators in the United Kingdom.”

30

Clause 2, page 2, line 29, leave out “reasonably”

35

Clause 2, page 3, line 27, at end insert—
“(iv) a public private partnership that brings additional investment to the railway,
(v) a cooperative venture involving employees and passengers that seeks to improve local services;”

44

Clause 2, page 3, line 32, at end insert—
“30D Review of relationship between provisions of section 30(1A) and the leasing of rolling stock
The Secretary of State must, within twelve months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 comes into force, lay before Parliament a report on the relationship between public sector contracts awarded under section 30(1A) and the leasing of rolling stock to public sector companies.”

This amendment would require the Secretary of State to publish an annual report on the relationship between the provisions of the Bill and the leasing of rolling stock to public sector companies.

43

Clause 2, page 3, line 32, at end insert—
“30D Assessment: devolution of passenger rail services
(1) The Secretary of State must publish an assessment before a public service contract is awarded under section 30 or a franchise is extended under section 30A.
(2) The assessment must include analysis of whether those services or parts of those services could be provided by a body set out in section 24A(4)(a).”

This amendment seeks to place a requirement on the Secretary of State to produce an assessment of whether a rail service could be devolved when it awards a service agreement to a public operator or renews a private franchise.

31

Clause 2, page 3, line 23, after the second “Ministers” insert “or an elected public body”

This amendment and others in the name of Baroness Jones of Moulsecoomb would expand the definition of “public sector company” to enable public service contracts to run passenger railway services to be awarded to public sector companies owned by local elected public bodies.

32

Clause 2, page 3, line 25, after “Ministers” insert “or an elected public body”

This amendment and others in the name of Baroness Jones of Moulsecoomb would expand the definition of “public sector company” to enable public service contracts to run passenger railway services to be awarded to public sector companies owned by local elected public bodies.

33

Clause 2, page 3, line 27, after “Ministers” insert “or an elected public body”

This amendment and others in the name of Baroness Jones of Moulsecoomb would expand the definition of “public sector company” to enable public service contracts to run passenger railway services to be awarded to public sector companies owned by local elected public bodies.

37

Clause 2, page 3, line 27, at end insert—
“(ba) “elected public body” means a body which is—
(i) a mayoral combined authority,
(ii) a combined authority, or
(iii) a unitary, county, district or borough council,
or which is composed of more than one of the bodies listed above.”

This amendment and others in the name of Baroness Jones of Moulsecoomb, would expand the definition of “public sector company” to enable public service contracts to run passenger railway services to be awarded to public sector companies owned by local elected public bodies.

17

Clause 2, page 2, line 23, at end insert—
“30ZA Statement of accessibility standards
(1) When making a direct award under section 30(1A) the Secretary of State must lay before Parliament a statement to the effect that they are of the view that such an award will comply with the accessibility standards.
(2) The Secretary of State must prepare a statement of the standards that they propose to apply in assessing, for the purposes of subsection (1), that a public sector company meets the required level of accessibility.
(3) The principles must in particular make provision for the accessibility of—
(a) the service;
(b) accommodation for individual journeys;
(c) booking platforms and other interactive digital services and systems used in connections with journeys on the relevant franchise.
(4) In preparing the statement under subsection (2) the Secretary of State must consult such persons as they consider appropriate, in particular disabled people.”

This amendment places a duty on the Secretary of State to make a statement to Parliament confirming they are of the view that making an award to a public sector company will meet certain accessibility standards.

42

Clause 2, page 3, line 32, at end insert—
“30D Annual report of public operator liabilities
(1) The Secretary of State must lay before Parliament, within six months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 is passed, and annually thereafter, a report on the public sector financial liabilities arising from the award of public service contracts to public sector companies under section 30(1A).
(2) The report published under subsection (1) must include details of—
(a) rolling stock leasing liabilities;
(b) pension scheme liabilities;
(c) property leasing liabilities;
(d) other financial liabilities such as debt.”

This amendment would require the Secretary of State to publish an annual report examining the impact of train company liabilities transferring onto the public sector balance sheet under nationalisation.

1

Clause 1, page 1, line 12, at end insert—
“25B Termination of existing franchise agreements
(1) The Secretary of State must terminate franchise agreements for default in accordance with the terms of the agreement as soon as it is possible to do so.
(2) Subject to subsection (1), the Secretary of State must not terminate a franchise agreement pursuant to a break clause unless—
(a) there are no other franchise agreements which are—
(i) terminable for default or may be terminable in the next three months for default, or
(ii) will come to the end of their term within the next three months, and
(b) the Secretary of State is satisfied that provision of the services by a public sector company will improve existing service provision.
(3) In this section, “break clause” means a contractual provision in a franchise agreement which entitles the Secretary of State to terminate the franchise agreement before the end of the franchise term by notice without reason.”

This amendment would require the Secretary of State to nationalise the worst performing operators first while enabling services that are currently working well to continue.

6

Clause 2, page 2, line 15, at end insert—
“(1AA) Before making a direct award of a public service contract to a public sector company under subsection (1A), the relevant franchising authority must publish a report on—
(a) the possible impact on rail network capacity used by rail freight services,
(b) the possible impact on the meeting of the rail freight growth target for at least 75% growth in freight carried by rail by 2050 on 2019 levels.”

16

Clause 2, page 2, line 23, at end insert—
“30ZA Exemption of passenger services: duty to consult
(1) Before making a direct award of a public service contract to a public sector company under section 30(1A), the relevant franchising authority must consult with relevant persons on their willingness and ability to make an application to the appropriate designating authority for the grant of an exemption from designation under section 23(1) for the purposes of applying for or being awarded a public service contract under section 30(1A).
(2) For the purposes of subsection (1), “relevant persons” include—
(a) the Scottish Ministers,
(b) the Welsh Ministers,
(c) English combined authorities,
(d) the Greater London Authority,
(e) directly elected mayors, and
(f) any other relevant persons or bodies.”

This amendment requires the Secretary of State to consult appropriately when awarding a public sector contract in order to encourage more services to be operated by devolved authorities like TfL or combined authorities in the future.

38

Clause 2, page 3, line 32, at end insert—
“30D Annual report on ticketing effects of public service contracts
(1) The Secretary of State must lay before Parliament an annual report on the effect of public sector contracts awarded in accordance with section 30(1A) on—
(a) ticket pricing;
(b) tap-in, tap-out options;
(c) single-leg pricing;
(d) digital season tickets;
(e) ticket purchasing options;
(f) compensation for delays and cancellations;
(g) ticketing interoperability with—
(i) other train operators, and
(ii) bus and light rail system operators.
(2) The Secretary of State must consult other franchising authorities before finalising a report under subsection (1).
(3) The first annual report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).
(4) Each subsequent annual report must be laid before Parliament before the end of July in each subsequent calendar year.”

This amendment would require the Secretary of State to publish an annual report on the effect on ticketing of public service contracts.

39

Clause 2, page 3, line 32, at end insert—
“30D Passenger Standards Authority
(1) The Secretary of State must, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, establish an independent body (the Passenger Standards Authority) with responsibility for monitoring the impact of that Act on passenger standards.
(2) In fulfilling its duty under subsection (1), the Passenger Standards Authority must in particular monitor the impact of the Act on—
(a) standards of passenger assistance, having particular regard to the needs of disabled passengers,
(b) standards of passenger information,
(c) the adequacy of accommodation for individual journeys, and
(d) complaints and compensation codes of practice and compliance of public sector companies with such codes.
(3) The Passenger Standards Authority may also provide advice to the Secretary of State on such measures that may be taken to—
(a) improve passenger experience, and
(b) enhance passenger rights.”

This probing amendment would require the Secretary of State to establish an independent body to monitor the impact of the Act on passenger standards.

40

Clause 2, page 3, line 32, at end insert—
“30D Impact on British Transport Police
The Secretary of State must, within twelve months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the impact of the awarding of public service contracts to public sector companies under subsection 30(1A) on the British Transport Police.”

This probing amendment would require the Secretary of State to report to Parliament on the impact of this Act on the British Transport Police.

41

Clause 2, page 3, line 32, at end insert—
“30D Impact on freight
The Secretary of State must, within twelve months of the day on which the Passenger Railway Services (Public Ownership) Act 2024 comes into force, lay before Parliament a report on the impact of the awarding of public service contracts to public sector companies under subsection 30(1A) on freight operators in the UK.”

This probing amendment would require the Secretary of State to report to Parliament on the impact of this Act on freight operators.

34

Clause 2, page 3, line 27, at end insert—
“(iv) owned by a local transport authority;”

This amendment would enable a public service contract for the railways to be awarded by a local transport authority, as well as by Secretaries of State, to promote devolution.

28

Clause 2, page 2, line 24, leave out “Temporary”

This amendment, along with another in the name of Lord Young of Cookham to Clause 2, would allow the Secretary of State to renew an existing franchise or enter into a new contract with a private service operator who is providing a satisfactory service.

29

Clause 2, page 2, line 29, leave out from “that” to end of line 32 and insert “a new contract can be provided by the existing service operator, where that operator is providing a satisfactory service.”

This amendment, along with another in the name of Lord Young of Cookham to Clause 2, would allow the Secretary of State to renew an existing franchise or enter into a new contract with a private service operator who is providing a satisfactory service.

18

Clause 1, page 1, line 12, at end insert—
“25B Report on impact of prohibition on franchise extensions and new franchises
The Secretary of State must lay before Parliament—
(a) within six months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, a report on the anticipated impact of the prohibition on franchise extensions and new franchises under section 25A; and
(b) after a period of five years has elapsed after the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, a report outlining the actual impact of the prohibition on franchise extensions and new franchises under section 25A.”

19

Clause 2, page 2, line 14, at end insert—
“(1AA) Before making a direct award of a public service contract to a public sector company under subsection (1A), the relevant franchising authority must provide information to the Office of Rail and Road on the public sector company’s ability to become responsible for the provision of the relevant passenger railway services.
(1AB) The information provided under subsection (1AA) must include an overview and analysis of the capacity of the public sector company to provide the relevant services while maintaining or improving existing service provision.
(1AC) Following the receipt of the information provided under subsection (1AA), the Office of Rail and Road must publish an opinion on whether it is reasonably practicable for the public sector company to provide, or secure the provision of, the relevant passenger railway services.”

13

Clause 2, page 2, line 17, at end insert—
“(1BA) Every contract made in accordance with subsection (1A) shall place a duty on the public sector company to encourage and invest in innovation across all aspects of its operations, including but not limited to—
(a) operational efficiency;
(b) fares and ticketing;
(c) stations and onboard services;
(d) passenger information; and
(e) digital transformation.”

14

Clause 2, page 2, line 17, at end insert—
“(1BA) Every contract made in accordance with subsection (1A) shall place a duty on the public sector company to consider the needs of—
(a) passengers;
(b) residents of rural areas;
(c) residents of areas underserved by the rail network; and
(d) the wider rail network
when considering making changes to existing service levels.”

1

Clause 2, page 2, line 22, leave out subsection (3)

6

Clause 2, page 2, line 22, at end insert—
“30ZA Impact on provision of rolling stock
(1) The Secretary of State must, within six months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the impact of the awarding of public service contracts to public sector companies under section 30(1A) on the provision of rolling stock by rolling stock leasing companies.
(2) The Secretary of State must consult with other franchising authorities before finalising a report under subsection (1).”

7

Clause 2, page 2, line 22, at end insert—
“30ZA Impact on procurement
(1) Within six months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, the Secretary of State shall publish details of the Government’s proposed approach to procurement once passenger rail services are provided by public sector companies under public service contracts awarded under section 30(1A) and the impact of the awarding of such contracts to public sector companies on procurement processes.
(2) Any publications relating to the Government’s proposed approach to procurement under subsection (1) should include details of the approach towards—
(a) technological development;
(b) the management of demand and supply;
(c) the supply chain;
(d) future sectoral planning.”

This amendment would require the Secretary of State to publish details of the Government’s proposed approach to procurement and the impact of the Bill on procurement processes.

8

Clause 2, page 2, line 22, at end insert—
“30ZA Independent financial monitoring of public sector companies
(1) The Secretary of State must, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, instruct an independent body to conduct monitoring of the financial management of any public sector company with whom a direct award of a public service contract is made under section 30(1A).
(2) For the purposes of subsection (1), “monitoring of the financial management” includes the auditing of accounts, the review of spending efficiency, and the making of recommendations to improve cost-effectiveness.”

9

Clause 2, page 2, line 22, at end insert—
“30ZB Report on cost of contracts with public sector companies
(1) The Secretary of State must, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, instruct an independent body to report on the total cost to the Government of contracts awarded in accordance with section 30(1A).
(2) The first report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A), with subsequent reports to be laid annually.
(3) Any report published under this section must include consideration of any liabilities previously held by franchises which are now public sector liabilities.”

10

Clause 2, page 2, line 22, at end insert—
“30ZC Annual reporting of performance of publicly-owned train operating companies
(1) The Secretary of State must lay before Parliament an annual report on the performance of public sector companies to whom public service contracts are made under section 30(1A).
(2) An annual report published under subsection (1) shall include details of a company’s—
(a) financial performance;
(b) revenue growth;
(c) cost control;
(d) innovation;
(e) service quality metrics;
(f) customer satisfaction metrics; and
(g) value for money.
(3) The first annual report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).”

11

Clause 2, page 2, line 22, at end insert—
“30ZD Performance-based assessment of publicly-owned train operating companies
(1) Public sector companies with whom public service contracts are made in accordance with section 30(1A) are to be subject to performance-based assessments in relation to their management of the relevant passenger railway services.
(2) Performance-based assessments of public sector companies under subsection (1) are to be conducted by an independent body instructed by the Secretary of State.
(3) In conducting a performance-based assessment the independent body must assess the public sector company against published targets in relation to—
(a) the punctuality of services;
(b) customer satisfaction;
(c) revenue and passenger growth; and
(d) operational efficiency.
(4) Every contract made in accordance with section 30(1A) must place duties on relevant public sector companies—
(a) to prepare performance improvement plans where published targets are assessed under this section as not being met;
(b) to place limitations on the remuneration of senior managers while a performance improvement plan is in force.”

12

Clause 2, page 2, line 22, at end insert—
“30ZE Impact on performance and efficiency of the UK rail network
(1) The Secretary of State must, within five years of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, instruct an independent body to conduct a review of the impact of the Act on the performance and efficiency of the UK rail network.
(2) A report on the findings of the review must be laid before Parliament.”

15

Clause 2, page 2, line 22, at end insert—
“30ZF Impact on open access operators
The Secretary of State must, within twelve months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the impact of the awarding of public service contracts to public sector companies under subsection 30(1A) on open access operators in the UK.”

16

Clause 2, page 2, line 22, at end insert—
“30ZG Impact on exemption of passenger services
(1) The Secretary of State must, within twelve months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, lay before Parliament a report on the impact of sections 25A and 30, as amended by the Passenger Railway Services (Public Ownership) Act 2024, on the exemption of passenger services under section 24.
(2) A report under subsection (1) must include whether the coming into force of the Passenger Railway Services (Public Ownership) Act 2024—
(a) has made, or is expected to make, it more or less likely for an application for an exemption to be made to an appropriate designating authority;
(b) has made, or is expected to make, it more or less likely for an application for an exemption to be granted by an appropriate designating authority;
(c) has made, or is expected to make, any difference to the basis on which decisions as to the granting or refusing of applications for exemptions will be made by the appropriate designating authorities.”

17

Clause 2, page 2, line 22, at end insert—
“30ZH Independent body to advise on pay and terms and conditions of employment for employees of public sector companies
(1) The Secretary of State must, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, establish an independent body with responsibility for—
(a) providing advice to Government on the—
(i) remuneration, and
(ii) terms and conditions of employment
of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A);
(b) advising the Government on value for money during the negotiation of the terms and conditions of employment of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A); and
(c) preparing an annual report to be laid before Parliament by the Secretary of State on the terms and conditions of employment of employees of the public sector companies providing passenger railway services under a contract awarded in accordance with section 30(1A).
(2) Advice provided in accordance with subsections (1)(a) and (b) shall be based on annual investigations of working practices conducted by the independent body and consider—
(a) value for money;
(b) affordability;
(c) domestic and international comparators;
(d) the future of the rail network, including the modernisation of working practices.
(3) Advice provided in accordance with subsection (1)(b) shall include advice on whether any conflicts of interest exist between any Government Minister and any union involved in the negotiation of the terms and conditions of employment, and how any such conflicts should be managed.
(4) An annual report under subsection (1)(c) shall include a comparison with the terms and conditions of employment under the franchise which provided the relevant passenger railway services prior to the awarding of a contract in accordance with section 30(1A).
(5) The first annual report under subsection (1)(c) must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).”

22

Clause 2, page 2, line 22, at end insert—
“30ZA Review of impact on exemption of passenger services
(1) The Secretary of State must, within one year of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, conduct a review of the impact of that Act on the exemption of passenger services under section 24 of this Act.
(2) A review conducted under subsection (1) must consult—
(a) the Scottish Ministers;
(b) the Welsh Ministers; and
(c) English combined authorities
on their willingness and ability to make an application to the appropriate designating authority for the grant of an exemption from designation under section 23(1) for the purposes of applying for or being awarded a public service contract under section 30(1A).
(3) The Secretary of State must lay a report on the findings of the review before Parliament.”

2

Clause 2, page 3, line 23, after “Scottish Ministers” insert “or an elected public body”

This amendment, and accompanying Amendments 3, 4 and 5, would expand the definition of “public sector company” to enable public service contracts to run passenger railway services to be awarded to public sector companies owned by local elected public bodies.

3

Clause 2, page 3, line 25, after “Ministers” insert “or an elected public body”

See explanatory statement for Amendment 2.

4

Clause 2, page 3, line 27, after “Ministers” insert “or an elected public body”

See explanatory statement for Amendment 2.

5

Clause 2, page 3, line 27, at end insert—
“(ba) “elected public body” means a body which is—
(i) a mayoral combined authority;
(ii) a combined authority; or
(iii) a unitary, county, district or borough council
or which is composed of more than one of the bodies listed above.”

This amendment in consequential on Amendments 2, 3 and 4.

20

Clause 2, page 3, line 32, at end insert—
“30D Independent body to provide advice on proposed contracts
(1) The Secretary of State shall, within three months of the coming into force of the Passenger Railway Services (Public Ownership) Act 2024, establish an independent body with responsibility for advising the Secretary of State on contracts proposed to be made in accordance with section 30(1A).
(2) The independent body must provide advice to the Secretary of State, including recommendations as to how or whether to proceed with the agreeing of the contract, within three months of a request for such advice being made by the Secretary of State.
(3) Should the Secretary of State wish to proceed with the agreeing of a contract—
(a) having received advice against proceeding with the agreeing of the contract from the independent body; or
(b) without taking such steps as were recommended by the independent body,
the Secretary of State must make a statement in Parliament of the reasons for doing so.
(4) The Secretary of State shall consult other franchising authorities before finalising proposals for the establishment of the independent body under subsection (1).”

21

Clause 2, page 3, line 32, at end insert—
“30D Annual report on ticketing effects of public service contracts
(1) The Secretary of State shall lay before Parliament an annual report on the effect of public sector contracts awarded in accordance with section 30(1A) on—
(a) ticket pricing,
(b) tap-in, tap-out options,
(c) single-leg pricing,
(d) digital season tickets,
(e) compensation for delays and cancellations,
(f) ticketing interoperability with—
(i) other train operators, and
(ii) bus and light rail system operators.
(2) The Secretary of State shall consult other franchising authorities before finalising a report under subsection (1).
(3) The first annual report under this section must be laid before Parliament within twelve months of the first award of a public sector contract in accordance with section 30(1A).
(4) Each subsequent annual report must be laid before Parliament before the end of July in each subsequent calendar year.”