Rail Timetabling

Baroness Randerson Excerpts

Monday 4th June 2018 Lords Chamber

[Lord Tunnicliffe (Lab)]

My Lords, the national railway is a public service for two reasons. First, most passengers have no choice and, secondly, a vast amount of its expenses are paid for by the taxpayer. One has to ask: who is responsible for this public service? It is very clear: it is just one person, the Secretary of State. He owns Network Rail, he hires and fires the directors, he determines their pay, he can give them directions, he decides what funding they get. He commissions the train operating companies and the various, appropriately complex, conditions on their contracts. He is personally responsible for the mess.

My colleague in the House of Commons said that the Secretary of State should resign. I would not be nearly so presumptuous, but an apology would be a step in the right direction. There is not a word of apology in the Statement. I share his sorrow, and I wish that he would take personal responsibility for the sorrow that he has caused. He failed fully to understand the operation; he did not assure himself that he had sufficient skilled resources to understand the risk. Furthermore, he carries on trying to make the present structure work. The present franchise system does not work. You need much more skill than the Secretary of State has so far displayed to get a profit-maximising organisation with virtually no real competition to maximise the concept of public service. His favoured solution for getting the railway right is a partnership, as he set out in his east coast Statement, but Northern was managed by a partnership and it failed; GTR had a partnership and it failed. Why did it fail? It failed because a publicly owned Network Rail and a profit-maximising train operator do not make natural partners.

The Secretary of State fails to understand the basic financial pressures on the train operating companies. They go on about increases in passenger numbers, but this is much more dependent on external forces such as the economy than anything that the train operating company can do. Revenue is largely outside their control; the road to shareholder value is by cutting costs.

Finally, the Secretary of State’s plan to get us out of this mess, a programme of incremental introduction, is likely to go as wrong as the current mess. I have run a railway in the public sector. It is a complex system, and any change to any part has an effect on the whole system. Change needs to be modelled and tested by high-quality research staff, which takes time and effort and long lead times to recruit and train staff, particularly drivers. Does the Secretary of State have access to such staff? If he has, are they recommending incremental introduction?

To summarise, does the Secretary of State accept personal responsibility for this mess? Will he apologise, and has he got sufficient skilled resources to manage the situation? Is he still convinced that a partnership really can work? Given the continuous failure of the present franchise structure, does he not agree that the train operating companies should be taken into public ownership?

[Baroness Randerson (LD)]

My Lords, like the noble Lord I am horrified by the tone of this Statement. The passengers, who bear the brunt of all this, have absolutely had enough, and the lack of any shadow of an apology in that Statement from the Secretary of State is going to anger them even further. The Secretary of State lurches from catastrophe to chaos, and I believe that he thinks that he is Teflon man.

I differ from the noble Lord in that I do not believe that nationalisation is the answer. Indeed, when you look at the ability of the Department for Transport to manage things effectively, one shudders to think of what it would do if it was in charge of the whole lot. I do not subscribe to the kneejerk approach to politics that heaps all blame on Ministers; I realise that government is difficult and that Ministers cannot be expected to micromanage. But I have been a Minister in two Governments and I recognise the point where a Minister has to take direct responsibility when something goes wrong. The Secretary of State has reached that point, and he needs to take that responsibility for his part in this debacle. You cannot claim the credit for something if you are not prepared to shoulder the blame when things go wrong. The latter part of this Statement trumpets the wonderful things that are still going to happen in future; the Secretary of State has trumpeted all this in the past and therefore takes responsibility for it.

Why were basic precautions not taken to ensure that a big change like this ran smoothly? It is the coward’s way to blame the staff and managers involved. Transport Focus warned of potential problems with the new timetables last autumn. Why were its warnings not heeded? What meetings took place with Transport Focus, and between it and the train operating companies, to deal with the concerns which it voiced? For how long has this change been planned? Was there any element of speeding it up to get it done by a particular time, which might have been a factor in why it went wrong? Has Network Rail, or the train operating companies involved, ever raised any concerns about either the scale of change or the timescale for it? The Statement says that there were meetings recently and no concerns were raised then. Were they raising concerns some months back? Why were these changes introduced on such a grand scale, involving several train lines? Would a pilot project not have been a good idea? Given the delays to the Bolton electrification project, why go ahead at all with changes on Northern at this time?

The Statement refers to compensation, but it is not precise. Can we please have exact details about compensation to long-suffering passengers? Finally, the Statement referred to the ORR undertaking an inquiry. Will this be entirely independent? Will it analyse the roles and responsibility of Government, as well as of Network Rail and the train operating companies, so that Government can learn the lessons from this and ensure that it never happens again?

[Baroness Sugg]

My Lords, first I reiterate what was said in the Statement: passengers on these franchises are facing totally unacceptable disruption and we apologise for that. It is our top priority to make sure that the industry restores reliability to acceptable levels as soon as possible, and the department is working around the clock to deliver that. The doubling of passenger numbers that we have seen means that we have needed these expanded routes, extra services and extra seats. That is what the timetable change was supposed to deliver but, instead, it has led to a totally unsatisfactory level of services for passengers who rely on them. We are working closely with Network Rail, Northern and GTR to keep passengers moving and ensure that disruption is minimised. Work has already begun to set up an independently chaired inquiry into the May timetable implementation and deliverability of future timetable changes. This will be fully independent and look at all the issues. In parallel to that, the Department for Transport is looking separately at GTR and Northern.

The first priority is to improve services for passengers as quickly as possible. That is what the Secretary of State, the Rail Minister and officials are prioritising. Although this is not about blame at this stage, it is important to recognise what happened. The industry timetable developed by Network Rail for both GTR’s Thameslink and Great Northern routes was very late to be finalised. On Northern, which is managed jointly by the Department for Transport and Transport for the North, Network Rail did not deliver the key infrastructure changes and upgrades in time, leading plans to be changed at a very late stage. It is also now clear that GTR and Northern were not sufficiently prepared to manage a timetable change of this scale either. The Secretary of State has, indeed, apologised and did so in his Statement. His number one priority is working to resolve this issue.

Privatisation has succeeded in doubling passenger journeys since 1995 and has delivered one of the most improved and safest major railways in Europe. However, of course the system is not perfect, and the changes we announced in the rail strategy last year will ensure that we get the best of both the public and private sector worlds. The new model will keep the benefits of privatisation while, rightly, maintaining vital infrastructure in public hands.

On notice around these issues, the department was aware that agreement on the timetable was running late, and this was industry-wide knowledge. At the beginning of May, GTR informed the department that the delays to the industry timetable process meant that the final timetable would require additional driver diagrams, and therefore more drivers than was expected. GTR put forward a proposal on 10 May, which the department accepted, to amend some late-night, low-patronage services to free up additional drivers, which resulted in 17 services being removed from the timetable until there were enough drivers. However, despite the late timetable, the department was assured that implementation of the new timetable on 20 May could still take place. It was not until two days before the timetable change that GTR informed the department that, following the conclusion of the rostering process, it had identified a significant shortfall in the number of drivers with the required route knowledge. By that point, I am afraid that it was just too late not to progress with the timetable change.

The new timetable had to be implemented as a whole because it was an integral part of the UK-wide rail plan, dovetailing with other train operators’ timetables, as well as future engineering schedules. Across the country, outside the GTR and Northern areas, the timetable is working well.

The special compensation scheme will offer a month’s compensation for Northern season ticket holders who use the services most affected by the disruption. The compensation by the industry will be confirmed shortly for Thameslink and Great Northern season ticket holders. These schemes will reflect the fact that Northern services have been affected since the end of March, and Thameslink and Great Northern services since 20 May. The exact details are being worked out, and the industry will set out more detail of the eligibility requirements and how the season ticket holders can claim.

I reiterate the Secretary of State’s apology for this and reassure noble Lords that, as I said, the number one priority is to resolve this issue.