Draft Welsh Ministers (Transfer Of Functions) (Railways) Order 2018

Lord Swire Excerpts

Monday 23rd April 2018 General Committees

[Rachael Maskell]

The hon. Gentleman is right to be sceptical about the process. Not only has it been limited to the private sector to bid for these franchises, but, as he has highlighted, only two companies are in place. This Government have directly awarded so many contracts of late, and we are concerned about the way the market is continuing to fail the people who use the service.

[Sir Hugo Swire (East Devon) (Con)]

What is to say that the Labour party in Wales will not run the railways as badly as it currently runs the NHS?

[Rachael Maskell]

The point is irrelevant; not only is the NHS performing incredibly well in Wales—of course, it was founded by Bevan, who was from Wales, and we are incredibly proud of that—but the Welsh Government want to realise the ambition of the people of Wales and to have the opportunity to move the railway system forward as an integrated form of transport. We really look forward to the progress that a Labour Government will make—if this Government do not provide the powers necessary to do so.

I will return to the main issue. Labour would ensure that Transport for Wales is at the heart of rail operations, not just to lead in Wales but to secure its voice at the table when it comes to integration of the rest of the rail network across the UK.

The Welsh Government have already made it clear that those services that can be run directly through a not-for-profit model will be run that way, with many more services, such as ticketing, marketing, station management and car parking, operating in new and innovative ways under that new approach.

Labour has been planning to increase capacity, improve efficiency, upgrade rolling stock and integrate rail with other public transport modes, as well as to change the culture, improve access for disabled people, consider how rail can further the wider economy and invest in the workforce, not least in the area of skills.

In November 2016, bidders for the new franchise submitted their outline solutions, in accordance with criteria set by the Welsh Government. Since January 2017, detailed work has been undertaken with the two bidders to deliver for passengers, and that process continues.

In November 2014, agreement was reached between the Welsh and UK Governments to devolve executive franchising functions to Welsh Ministers, so that they could lead the procurement of the next Wales and Borders franchise, which is due to commence on 14 October 2018. Today’s order will achieve this, and through the affirmative resolution procedure in both Houses, it will result in changes to the Railways Act 1993 and the Railways Act 2005.

While mainly in line with those powers devolved to Scottish Ministers, there are some differences in the scope of cross-border rail operations into England and in the fact that responsibilities in respect of the rail network are not being devolved to Wales. Today’s statutory instrument will enable Welsh Ministers to be the sole designating and franchising authority in respect of Wales-only services, and enable Welsh Ministers to designate and franchise the Welsh component of Welsh services—those parts of cross-border services to and from England within Wales—that are contained within the same franchise as Wales-only services. This scope has been agreed in recognition of the extensive nature of cross-border services, and services wholly within England, provided by the Wales and Borders franchise, and the need for appropriate accountability for rail operators on each side of the border.

Since all the relevant references to the “National Assembly of Wales” are replaced by references to “Welsh Ministers”, on the basis of agency arrangements established under section 83 of the Government of Wales Act 2006, it is possible for Welsh Ministers to act as the agent of the Secretary of State. Thus, they can procure and manage the entirety of the Wales and Borders franchise, which includes services that continue to and from, and that operate within, England.

Given that this order makes it possible for the Welsh Government to lead the procurement and management of cross-border services, in the light of the Great Western, West Coast and Cross Country franchise processes, will the UK Government work with the Welsh Government to consider how they can lead the delivery of more cross-border services, so that they can work for the economy and people of Wales? I look forward to hearing the Minister’s response.

The Welsh Government’s ability to operate additional services to destinations already served by the Wales and Borders franchise, and to additional destinations in England, is being heavily constrained under these arrangements. These restrictions will suppress both the rail service offer and the financial potential of the franchise in Wales, not least by the allocation of rail paths. Will the UK Government work with the Welsh Government to address that issue?

The agency agreement setting out the arrangements under which Welsh Ministers can operate services in England is very restrictive. Scottish Ministers are able to operate services into England without such restrictions. Will the Minister therefore agree to review these arrangements, with a view to relaxing them, so that Welsh Ministers can act more freely as a franchising authority, not least in enabling rail operations to move into public hands?

We have been informed that a co-operation and collaboration agreement with Welsh Ministers is being developed. The agreement will need to set out arrangements for how Welsh Ministers will be actively involved in the procurement and management of the cross-border services that continue to be included in the Secretary of State’s franchise. Will the Minister provide an assurance that Welsh Ministers will be significantly and meaningfully involved?

The Commission on Devolution in Wales recommended devolution of funding for Network Rail, but in the four years that have passed since the publication of the part 2 report, the UK Government have not been prepared to open discussions with the Welsh Government. Will the Minister commit to open discussions, not least in the light of the Government’s ambition to join rail operations with infrastructure, as set out in “Connecting people: a strategic vision for rail”, which was published in November? Not to do so seems contrary to that paper.

Network Rail’s annual reports and accounts illustrate that, since its Wales route was established in 2011, just over 1% of spending on enhancement schemes across England and Wales has been directed to the area, yet the Wales route contains 11% of England and Wales’ rail network. A firm commitment to provide a fair level of investment is urgently needed to improve access to employment opportunities and to enable Wales to compete as a location for inward investment in a post-HS2 era. Will the Minister give a commitment to ensure that the options provided for by a new Crewe hub allow for full and unimpaired access to the north Wales main line?

Town and Village Plans

Lord Swire Excerpts

Tuesday 30th January 2018 Westminster Hall

[George Freeman]

I am grateful to my venerable and right hon. Friend for putting that so robustly. I would not be here if I did not share that view. We all understand that we need houses built, and we all know that we need developers to do it, but there is a contract. When we provide developers with the powers and the balance of probability on the sustainable development framework, and we say that there is a presumption in favour of sustainable development, we mean sustainable development. We do not mean that as an excuse for them to dump a housing estate on our villages and towns and then sugar off. They have an obligation, as local builders and local landowners understand.

For that reason, I recently called a rural housing summit with Hastoe Housing Association—I see the Minister nodding—which is a leading, if not the leading, rural housing specialist. All around the country it has put together schemes with the support of local communities. It is doing more than anyone in rural housing to defeat nimbyism, because the quality of its developments is so high. At this rural housing summit we showcased best practice from all round the country: people putting together affordable housing schemes, shared equity schemes, covenanted land, parish councils. There is a wonderful cornucopia of good rural housing models, but we are not seeing it in Norfolk because our councils have both hands tied behind their backs.

When I say to my councillors, “Why aren’t you using the design codes that we gave you? Why aren’t you using the powers that we have given you in these Acts?” the answer comes back, “We are desperate to get our five-year land supply in order. We are terrified of legal challenge. We are trying to keep our council tax down. We are bearing the brunt of very necessary public spending constraints, and frankly every penny we make goes back into the deficit.” Our councils have their hands tied behind their backs, and are therefore unable to implement the spirit of the Localism Act.

[Sir Hugo Swire (East Devon) (Con)]

Is my hon. Friend not concerned that the whole thrust, which is understandable from the local councillor’s point of view, is towards economic growth, as otherwise they do not get the funding? So they are all being encouraged to go at a speed that perhaps they would do well not to go at.

[George Freeman]

My right hon. Friend makes the perfect point. He is absolutely right, and that is happening in my patch as well as in his.

I am conscious that others want to speak. I want to give them a chance to do so and the Minister a chance to respond. To sum up my opening speech, we all know that we need to build houses, but as with so many problems that is a challenge in London. I have been a Minister pulling the ministerial levers, and I know that there is a big problem to be solved in the corridors of Whitehall.

However, in our constituencies, the problem is smaller, more manageable and easier to deal with. In Mid Norfolk, I see the answer to a problem that is very big in the Minister’s in-tray. If we can revisit the spirit of localism, re-empower local communities and re-incentivise councils to retain and harness the benefits of growth and put them into local infrastructure, we will restore faith in the planning system and deliver more growth, not less.

--- Later in debate ---

[Sir Hugo Swire (East Devon) (Con)]

The Minister is a man on the rise—one can only be amazed at his great trajectory—and he will want to make his mark on the Department before he moves on to higher office. In the nicest and most collegiate way, I suggest that he listens carefully to what hon. Members say. I echo every word uttered by my hon. Friend the Member for Mid Norfolk (George Freeman), who instigated this timely debate.

I urge one note of caution to my hon. Friend, who wants a new town. Just as he said, I wanted Cranbrook to be an exemplar of towns around the world, but soon the developers moved in. I am afraid that the council is now having to move in to put in the town centre because the developers are behaving in a shameful way; they say that not enough people live there to put it in. It is a classic example of big developers gaming the system.

It is not brain surgery. My hon. Friend made the point that if someone builds good housing, which we all need, in the vernacular to enhance local communities, they will be amazed by the silence that follows—by the congratulations that follow in the pub. People want their communities to be enhanced. They want to support the village school, the post office and other local services. They do not want huge blocks of developments.

The big developers have worked out how to make profit down to the square inch, so they do not care if they are not nodding to the local vernacular or if a house looks the same in the north of England, the middle of England and Wales. They just want to make a profit. I hope that the Minister will be as good as the Government’s word and tell us how we can encourage local house builders, who often produce a far better product than larger house builders.

I draw the Minister’s attention to what other hon. Members have said about neighbourhood plans. Budleigh Salterton and East Budleigh with Bicton have produced wonderful neighbourhood plans, which can be expensive and time-consuming. Lympstone also produced one. The Minister’s predecessor received a letter from me in October about a constituent who said that, despite Lympstone identifying the type and design of housing that the community wished to see, it had singularly failed to achieve them in the two years since the plan was made. That letter also singularly failed to be acknowledged, although I prompted the Minister on 15 January. I ask him to look at that.

The neighbourhood plan is a contract with our constituents. We persuaded them that if they were going to be more local, they would have a say. At the moment, they feel that they have wasted their time and they are being ignored.