Rail Infrastructure Investment

Debate between Priti Patel and Andrew Jones

Thursday 17th January 2019 Westminster Hall

[Andrew Jones]

We have had autumn leaves falling since time began, and whichever rail company has been operating—including nationalised ones—they have found them quite difficult to manage. To suggest that it is suddenly a bigger problem is a mistake.

[Priti Patel]

The Minister is incredibly generous in giving way, and I thank him. Delays are the scourge of commuters on the country’s train network, and of course they all get upset when trains are cancelled or delayed. Is there more the Minister can do to hold franchisee companies to account, with respect to how they communicate with customers and give compensation to rail users?

[Andrew Jones]

My right hon. Friend makes a powerful point. She gave a powerful speech, which recognised how transport investment, alongside other investments, can drive an economy. The work that she and colleagues have done on producing a business case has been highly effective. She asked whether I would work with her and of course I will, as I will work with all colleagues, to maximise the benefits of the rail investment we are putting in. As to communication, rail companies can do more. We should be looking at all digital and other means of communicating with customers to keep them informed. There are mechanisms through the franchise agreement for keeping the companies accountable. However, I also regularly meet the Rail Delivery Group, and through those and other regular meetings, with individual operating companies, I have already highlighted the issue of communication with their customers. I will continue to do so, but my right hon. Friend is right that there must be improvement on that.

I was saying a few things about how our network has played a role in the increasing economic growth of the past few years, and how that combination of the public and private sectors, working together, has delivered improvement. That includes private sector skills driving investment for passengers and rail freight. However, that success has also resulted in challenges. We have been open about facing such challenges, including in our programme of infrastructure works in the current investment period, and in the rail structures we inherited. That was very clear and it is why we have taken action and changed our approach. The work of the Select Committee has been very helpful in that respect.

In March 2018 we published our new approach to rail enhancements, called the “Rail Network Enhancements Pipeline: A New Approach for Rail Enhancements”. We have a knack of creating very difficult-to-say acronyms. In September the Secretary of State announced that he had appointed Keith Williams, a respected industry figure. He has expertise in driving customer service excellence, and therefore he is incredibly valuable as we seek to reform the rail industry to become more passenger-focused, and to lead a root and branch review of the railway. The Government’s new approach to enhancements has, as Members will be aware, been a key focus for the Transport Committee. The Williams review is a really exciting moment for our industry. The structures that we have had have helped to turn around decades of decline. We have gone from many years of decline to rapid growth. As many people now use the rail network as did in the 1920s—with all the challenges that come with that, which I shall come on to. The structure has helped to achieve the growth, but it is not clear to me that it will help us take things forward for the next stage. That is what Mr Williams has been asked to consider, and it is an interesting prospect.

The approach being taken learns lessons from CP5, responding to the recommendations of the Bowe review. It is quite profound. We are replacing a once-in-five-years plan with a rolling pipeline of investment, which was a key recommendation of the Committee. I can entirely see why both the review and the Committee made that recommendation. We will be able to respond flexibly to changes in circumstances, and emerging priorities. Unlike in CP5 where certainty—I know we have talked about it—often turned out to be frankly illusory, the supply chain can be confident that once we have made a decision we will stick to it. Those concerned will know exactly how far the commitment extends, for funding and delivery. I completely agree with the principle of transparency to help people plan accordingly. We shall be transparent about the progress of individual schemes as they move through the pipeline, and throughout the control period, but the point is that we are not simply making one announcement at the start of a cycle.

The RNEP has five stages, through which enhancement schemes move from concept to delivery, with increasing levels of detail and development required at each stage. We call them “determine”, “develop”, “design”, “deliver” and “deploy”. A theme runs through them, from “determine”, where the opportunity is identified, to “deliver”, where the solution is provided. Not all projects will progress through all the stages. Each stage is preceded by a decision point, where we will decide whether the scheme is ready to advance to the next stage, whether more work is needed, or whether there is a better way of achieving things. We commit to progress only to the next stage—not all the way to completion.

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[Andrew Jones]

Yes, exactly. What form it will take I do not know, but as schemes progress through, from “determine” to “develop” and so on, we will be transparent about it.

The objective is to secure value for the taxpayer by progressing schemes only when we have an appropriate understanding of how much they will cost, how long they will take, and the benefits that will be delivered. That is in great contrast to CP5, where that did not happen.

[Priti Patel]

As the Minister will know, the Great Eastern main line taskforce is currently working to that very pipeline, for the next business case. Funding will be incredibly important for any project that enters the pipeline. I want to ask the Minister something on which I have previously pressed the Secretary of State. Will there be an opportunity to look at cross-Government funding that covers, for example, money from other budgets, such as local government and the Department for Business, Energy and Industrial Strategy? As the Minister knows, the GEML case made in 2014, which will be made again, looked across at the economic benefits of rail investment, and considered economic growth, too. That effectively means that we must look at new funding mechanisms that go across the Treasury, the Ministry of Housing, Communities and Local Government, the Department for Transport and the Department for Business, Energy and Industrial Strategy, so that we bring the economic benefits that many colleagues have spoken about in the debate.

[Andrew Jones]

My right hon. Friend is as wise as ever. Once a Treasury Minister, always a Treasury Minister, I suspect. The point about bringing things together was, I think, at the heart of such things as the national productivity investment fund, which is about making sure we have, and control, the levers to drive economic productivity—productivity being at the heart of the UK’s future economic success. I see rail working alongside Departments to open up opportunity—commercial, residential, trade and so on. I see that future of collaboration as the way we will take forward some of our projects across the network.