Train Operating Company Contracts

Lord Liddle Excerpts

Monday 25th March 2024 Lords Chamber

[Lord Liddle (Lab)]

My Lords, it is almost six years now since the chaotic introduction of changed rail timetables demonstrated that the present system of train operating contracts is completely broken. Since then, we have had the Williams Rail Review, the Williams-Shapps Plan for Rail, and a lecture by the Secretary of State last year backing fully the case for reform. But all there is to show for this is a rather sketchy framework rail reform Bill, which the Government have put out for legislative scrutiny, despite the fact that the legislative programme is so light that the House of Commons is rising at 4 pm. What explains this dither and delay? I suggest to the Minister that the Government introduce this rail reform Bill into this House, where it could have lots of detailed scrutiny from informed people and be improved.

[Lord Davies of Gower (Con)]

As the noble Lord knows, the rail reform Bill is being scrutinised by the Transport Committee. That was an agreement by the usual channels. From May 2021, national rail contracts were introduced to bridge the gap between Covid-19 emergency agreements and future competed contracts. The last two national rail contracts began in October 2023. Under the national rail contracts, the Government cover the operators’ reasonable costs, receive revenues and bear the financial risks. The national rail contracts are flexible by design, allowing service levels to be adjusted as passengers return to the railways.