High Speed 2

Lord McLoughlin Excerpts

Tuesday 19th September 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I am not able to give an update on the physical work that is going on. My understanding is that the position at Euston has not changed. Again, that will be in the regular six-monthly update.

[Lord McLoughlin (Con)]

My Lords, I declare my interest as chairman of Transport for the North. Yesterday, in the Commons, the Minister said:

“The benefits of HS2 for Birmingham are already being realised”.—[Official Report, Commons, 18/9/23; col. 1107.]


He is correct. The simple fact is that this is a huge project—a project not about speed but about capacity. If we are to see more people and more freight using our railways, capacity is desperately needed. This project was started 14 years so. We should see it finished and serving the nation.

[Baroness Vere of Norbiton (Con)]

I am grateful to my noble friend for pointing out the enormous benefits that Birmingham is currently seeing. All across the route of phase 1, there are shovels in the ground, with 350 active construction sites and 29,500 workers. The focus is on delivering high-speed rail services between London and Birmingham.

Great British Railways

Lord McLoughlin Excerpts

Wednesday 28th June 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I think the noble Baroness is reading a little too much into those comments. The Secretary of State is completely right that the current financial situation is unsustainable, but at no time did he say that plans to set up GB Railways had been abandoned. He also set out all the different steps that we can take without legislation—for example, contactless payments, simplifying fares, looking at the existing national rail contracts and entering into local partnerships. All those things are being done.

[Lord McLoughlin (Con)]

My Lords, I declare my interest as chairman of Transport for the North. I agree with my noble friend the Minister about the remarkable transformation we have seen in the railways since privatisation and the huge increase in passenger take-up, from 700 million journeys to 1.8 billion in the year prior to the pandemic. Does my noble friend agree that there is a malaise at the moment within the industry as to what the future direction should be? Too much at the moment is being controlled by the Department for Transport, which is, of course, controlled by the Treasury. That is not the best way to run a very successful industry. That is why we need GBR as soon as possible.

[Baroness Vere of Norbiton (Con)]

I point my noble friend back to the long-term strategy for rail, which will help the industry to understand what the medium-term future for the railways looks like. As to what we have been doing to increase revenues and free up the train operating companies, we are looking at the current railway contracts and at ways to put in stronger revenue-incentive mechanisms and allow train operating companies to put resources into increasing revenues.

Railways: Trans-Pennine Express

Lord McLoughlin Excerpts

Tuesday 23rd May 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, I hope to take a trip to Japan soon to go and see those fantastic railways. Of course, they are incredible, but they were not built quite at the time that our railways were built. The Government are very focused: reliability is the Secretary of State’s number one priority, aside from safety. That is why we are investing £44.1 billion in our railways in the next control period. Network Rail published its strategic business plans a few days ago, and they are now with the independent regulator, the Office of Rail and Road, for further scrutiny.

[Lord McLoughlin (Con)]

My Lords, I draw attention to my interest in the register as chairman of Transport for the North. While I welcome what the Secretary of State has brought forward, which takes effect next Monday—the operator of TPE being the operator of last resort from next week—does my noble friend agree that it will not necessarily be a silver bullet? Until industrial relations are brought back to reality and a good working relationship with train drivers is accepted, we will still have disrupted services—and the huge amount of money that is presently being spent on the trans-Pennine upgrade.

[Baroness Vere of Norbiton (Con)]

I absolutely agree with my noble friend. The railways are in a very poor financial place at the moment, with revenues between £50 million and £130 million less than they were before. That is why we must see reform of the railways if they are to have a viable future. That reform can happen only if we get the co-operation of the unions, which I am sure want to ensure a long-term future for their workers. I am grateful for all the work that my noble friend does in the north. The Secretary of State has asked officials to review services across the north to look for performance improvements and delivery certainty, and is looking to work with northern mayors and other stakeholders to make those improvements.

Network Rail: Funding and Reliability

Lord McLoughlin Excerpts

Wednesday 26th April 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, once again we shall address the notion of dividend payments, because it is really important that we are clear about it. The dividend payments declared during the financial year 2022 related to periods far preceding that 2022 period, and therefore were earned by the train operating companies under contracts that were in existence at that time. One cannot retrospectively go back and take away money without completely tearing up the contracts and starting again. Maybe a Labour Government would do that, but we will not. We will stick to the contract and work with the industry, and we will get improvements to our rail system that way.

[Lord McLoughlin (Con)]

Can my noble friend reassure the House of the vast importance that the Government attach to the whole rail industry, and the fact that it is incredibly important to our economy? To get that investment, we also need to see levels of service, which is the responsibility of the train operators but the rail unions too. To make the case for investment, we have to have good services.

[Baroness Vere of Norbiton (Con)]

My noble friend is absolutely right. Sometimes it saddens me greatly how some of the unions are potentially undermining the long-term future of our rail sector. ASLEF train drivers withdrew, without warning, their rest-day working agreement. I now understand that a new rest-day working agreement was agreed, which would have vastly improved services on the TransPennine Express. However, within 24 hours, ASLEF then withdrew again on an entirely unconnected matter. Once again, we are left without rest-day working. There is a very easy way to improve services, which is to encourage the unions to reach an agreement with the TOCs, particularly on rest-day working.

Bus Services

Lord McLoughlin Excerpts

Thursday 30th March 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, it is very disappointing that Arriva decided it was no longer willing to take part in those projects. Other bus operators are taking part in projects elsewhere in the country, and indeed Arriva itself is still participating in other separate zero-emission buses projects. Essentially, we very much hope that it will come back to the table once, and if, passenger numbers increase.

The reduction in passenger numbers is related to changes to concessionary travel and to people going to work and working from home. We believe that we have stabilised at this point, and now we look forward to bussing back better.

[Lord McLoughlin (Con)]

My Lords, I draw your Lordships’ attention to my registered interest as chairman of Transport for the North. May I ask my noble friend to give some long-term assurance on the amount of support we are giving to bus companies? What has been done has been very welcome, but there is uncertainty about what will happen after 30 June, and buses are needed as a reliable form of public transport for our country.

[Baroness Vere of Norbiton (Con)]

I absolutely accept what my noble friend is saying. From the Government’s perspective, we have had to see what happens to patronage and where service levels have ended up, given the current levels of support. We are also looking at the impact of the £2 bus fare cap. All these things are going into our analysis of what we may be able to do to support the bus sector after 30 June.

Bus Industry Support

Lord McLoughlin Excerpts

Thursday 16th March 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I am not entirely aware of the strategy that the noble Baroness is talking about. We have a bus strategy and we absolutely stand by that strategy. We think that the elements within it work, but what we are dealing with at the moment—as indeed are many other transport modes—is a significant reduction in patronage. We therefore need to think about how we get the best value for money with the support that we can give, while also encouraging local transport operators to play their part.

[Lord McLoughlin (Con)]

My Lords, I declare my interest as chairman of Transport for the North. Bus usage has not gone back to the level that it was pre-pandemic; I think the figures at the end of March 2022 were 2.8 billion passengers as opposed to 4.1 billion passengers the year before the pandemic. Can my noble friend tell us what progress has been made with the announcement of the capping of bus fares nationally? Has that had an impact on usage? What are the longer-term plans for that cap?

[Baroness Vere of Norbiton (Con)]

My noble friend is absolutely right that the £2 bus fare cap is an important intervention for us to properly understand the relationship between bus fares and patronage. There are 140 operators over 4,700 routes that have taken up this bus fare cap and the Government are investing £135 million in it. We are evaluating it as we go along, and we will of course make public those findings as soon as we can.

Northern Ireland and Great Britain: Regional Connectivity

Lord McLoughlin Excerpts

Monday 13th March 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

As the noble Baroness will be aware, the Government announced a reduction in domestic air passenger duty. That comes into force from April 2023—next month—and will be a 50% cut in domestic air passenger duty. As I explained, we work with many of the regional airlines to consider regional connectivity. We will be looking at what we can do around slots but, as I said, services to Northern Ireland in particular are pretty much back to where they were in 2019.

[Lord McLoughlin (Con)]

My Lords, in drawing attention to my entry in the register of Members’ interests, may I ask my noble friend, when she looks at the case for regional connectivity—be it with Northern Ireland or Scotland—to ensure that the Government have a very strong bias towards protecting those vital slots in some of our larger airports?

[Baroness Vere of Norbiton (Con)]

My noble friend will be well aware that the Government have limited levers when it comes to slots. However, there are some things that we can do. Slots are allocated by an independent slots co-ordinator. We set out in Flightpath to the Future that we would consult on some elements of slots reform. We still intend to that and, in doing so, we will consider very carefully regional connectivity and how we can ensure that slots are available.

Train Services: North of England

Lord McLoughlin Excerpts

Monday 27th February 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, I went to Liverpool the Friday before last; I got there on time and I returned on time. There are journeys across the country, and across the north, that work on time and to a great level of passenger experience. However, it is the case that, where services are not working properly, we need to hold the operators to account and make them better.

[Lord McLoughlin (Con)]

My Lords, I draw attention to my interest as chairman of Transport for the North. There is no doubt that rail passengers in the north have had a torrid time, be it on TPE, Avanti or Northern. What can the Government do to reassure travelling passengers in those areas directly affected that the train companies have now got the right mechanisms in hand to ensure that future services will improve, whether it is industrial relations or other related matters? There is an issue around P-coding, but P-coding does give forward notification and that should be counted in the overall cancellations.

[Baroness Vere of Norbiton (Con)]

There are many things that the Government are doing, because not all train operating companies in the north are the same; they all have slightly different challenges and some have been able to address those challenges more quickly than others in certain circumstances. The challenges fall into three areas. The first is absence and sickness, which is higher than it really should be, and that needs to be addressed. The second is rest day working and overtime. Noble Lords will all know about the national industrial action that happens periodically, and there is also other industrial action around rest day working and more localised disputes. Those are having very significant impacts on services. The last, in some circumstances, is driver departure, as some drivers are choosing the leave the industry. As my noble friend points out, those are the sorts of things we have to consider. We have got action plans for each of the train operating companies, but each one will have slightly different challenges to address.

Great British Railways and Rail Services in the North

Lord McLoughlin Excerpts

Monday 5th December 2022 Lords Chamber

[Lord McLoughlin (Con)]

My Lords, I thank the noble Lord, Lord Goddard, for securing this debate and I draw attention to my entry in the register of interests as chairman of Transport for the North. I endorse what the noble Lord said about the importance of the railway industry and the railways right across the north. I think everybody accepts that the service provided at the moment, be it by Avanti, TransPennine Express or Northern Trains, is not the kind of service we need and require. I say “need and require” because if we talk about the importance overall of the northern powerhouse and the service, the most important thing to anybody who relies on public transport is reliability, knowing the train is going to be there. What is being suffered at the moment, with cancellations the day before and on the day, is basically undermining the confidence of commuters and the passenger/traveller right across the region.

I wish my honourable friends and the new Secretary of State, Mark Harper, every success—I met Mark and said that one of my most enjoyable times was as Secretary of State for Transport. The interesting appointment is not just that of the Secretary of State, but that of Huw Merriman as Rail Minister, because he comes with special knowledge, having for the last three years chaired the Transport Select Committee. Indeed, I gave evidence in the early stages of my appointment as chairman of Transport for the North on the integrated rail plan, which was published by the Transport Select Committee around last May. It is a first-class document, it had first-class ownership in the then chairman of the Transport Committee, and I wish him well now in adapting what he said as chairman of the Transport Committee and putting it into action.

There is no doubting the economic impact of the current dispute and the problems across the region. I hope a way forward can be found, because one has to be forthcoming. I accept what the noble Lord, Lord Goddard, said about investment in other parts of the country, but we have seen investment in the railways; we have seen vast investment. Indeed, back in 1992, some 700 million journeys a year were made on our railways. The last year before the pandemic, it was some 1.9 billion, and that has been a revolution—I put it as strongly as that—in what our railways were providing. What we are now going back to is a time when people regard the railways as unreliable, and if they are unreliable, people will not use those particular schemes.

Part of the problem with transport is the long time it takes for big infrastructure changes. That does not mean that we cannot see changes that happen much more quickly, but some of the longer-term issues, such as building HS2, need long-term solutions. We are now well under way as far as that is concerned; it has been planned since 2009, publicly at least, and now one can see that infrastructure taking shape as far as its development is concerned.

But there are other congestion spots on the system that need to be addressed, not least Leeds station, which is now responsible for something like a third of the delays in the country. A long-term commitment is required to address some of the issues as far as Leeds is concerned. There was undoubted disappointment regarding the lack of a new station as far as Bradford is concerned, and I very much hope that, with the things that were in the Transport Select Committee, these issues will be addressed.

In the very few seconds that I have got left I would just like to place on record my great thanks to Liam Robinson, who has been chair of the Rail North Committee since 2015, and has been excellently involved in pushing forward that agenda. He has now taken on a new role; he has become leader of—

[Lord Davies of Gower (Con)]

Can I ask the noble Lord to complete his speech?

[Lord McLoughlin (Con)]

He has now become leader of Liverpool City Council, so, having taken on a fairly controversial job, he now has an even greater challenge. So, those are some of the issues which are faced as far as transport is concerned, and I wish my noble friend well in her challenge ahead.

West Coast Main Line

Lord McLoughlin Excerpts

Wednesday 2nd November 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, the train network is extremely complicated, and it is not a homogenous system. That is why the performance of the train operating companies is subject to independent adjudication, which is really important. The Government will take their performance into consideration when they come to any future decisions.

[Lord McLoughlin (Con)]

My Lords, I draw attention to my registered interest as chairman of Transport for the North. If Avanti’s commitment to 264 services is not met, what does my noble friend imagine the department’s response will be, bearing in mind that it does not have very long to do so?

[Baroness Vere of Norbiton (Con)]

The Government are confident that those services will come on stream, as agreed with Avanti. The services form part of its recovery plan, which we are monitoring as times progress, as are the ORR and Network Rail’s programme management office. I would like Avanti to succeed, and we are giving it all the support to do so. But, if it does not, action will of course have to be taken.