Railways Bill (Fourth sitting) Debate

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Department: Department for Transport

Railways Bill (Fourth sitting)

Edward Argar Excerpts
Keir Mather Portrait Keir Mather
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I thank the shadow Minister for that clarification. I want only to add, as a further clarification, that in the future GBR will account for about two thirds of passenger services in Britain, and GBR infrastructure will make up 90% of station stops. It is quite important to give that level of context, so that people can better understand the impact that these changes in the railway will have on their lives.

Amendments 3 and 4 would limit GBR’s research, advice and standards development functions to only the railway and services managed by GBR. I reassure the shadow Minister that the vast majority of research and innovation carried out by GBR will relate specifically to the services that it provides and the operation and maintenance of its network.

However, research, development and innovation tend to be general in nature and application. It is critical that GBR’s research, development and innovation should be able to support the wider rail network, not just the elements that GBR manages itself. Collaboration between the independent parts of the sector on learning and innovation is, we argue, crucial for the rail network to operate as an integrated whole, and limiting this function could arbitrarily restrain wider adoption of best practice. Various organisations, including Network Rail and train operating companies, currently publish standards adopted on the railway, so this is not a unique or abnormal practice. However, these amendments could arbitrarily constrain it and might even hinder GBR from supporting research that might bring benefits to parts of the network, or services, not managed by GBR.

Amendment 5 seeks to return responsibility for taking access decisions to the ORR. That is one of the fundamental questions sitting at the heart of our debates on the Bill. The amendment is contrary to the Government’s manifesto commitment to establish GBR as the directing mind for the railways. It would reintroduce the fragmentation and conflicting accountabilities that exist in today’s system. At present, there is no single body in charge of taking a whole-system approach to making access work. That leads to conflicting opinions about what services can fit where and when. Differences in view between Network Rail and the ORR cause delays in producing the timetable, hindering efforts to tackle congestion, disruption, cancellations and overcrowding. The current system is not fit for purpose: it lets passengers down every day, and taxpayers are not getting value for money.

In the current system, the absence of a single directing mind, with a single set of objectives, leaves us with ridiculous situations such as the recent 7 am Manchester service that was set to travel with no passengers on it. I do not understand how hon. Members can think that continuing the current system benefits anyone, least of all passengers.

The Government have been clear that for GBR to have the space and authority to take access decisions consistent with the best use of the network, the ORR’s current role must change. GBR must be the decision maker on access; it must have authority and full accountability for what happens on the tracks. The ORR will play a key role as a robust appeals body that ensures that GBR’s decisions are fair. Without one body in charge of taking access decisions, we cannot deliver the performance improvements that we have promised passengers and the public.

Amendment 6 would remove the delegated power for the Secretary of State to confer further statutory functions on GBR in the future. Although clause 3 has been drafted to cover the breadth of activities that we expect GBR to undertake, it is responsible to legislate with proportionate flexibility. For example, in the future there may be new technologies or other responsibilities relating to the railways that GBR would need to take on. We heard in oral evidence on Tuesday that the advent of artificial intelligence and wi-fi are two examples of that type of change, and that witnesses understood the need for this type of flexibility for GBR.

There is precedent for this type of power in legislation. For example, the National Health Service Act 2006 includes a power to add functions to special health authorities specified in regulations. That power is already limited to adding new functions that relate to the railways; any regulations conferring new functions would be subject to the affirmative procedure, which would ensure suitable transparency and parliamentary scrutiny.

Amendment 241 seeks to require GBR to act

“in a fair and non-discriminatory manner”

when carrying out its statutory function in clause 3 —specifically, when GBR is providing back-of-house functions to facilitate railway services run by operators other than GBR, such as a journey planner. The amendment is not needed, because the duties set out in the Bill will govern GBR’s behaviours when carrying out its statutory functions. I assure the hon. Member for Broadland and Fakenham that the duties will require GBR to act in the interests of the public, taxpayers and passengers. GBR will act fairly and in accordance with its duties, not only when exercising this function but across the full range of its statutory functions.

In addition, competition law will apply in full to GBR. This requires GBR to act in a manner that is fair, non-discriminatory and not anti-competitive. Both the ORR and the Competition and Markets Authority will regulate GBR’s behaviour against its competition law obligations, so I hope that hon. Members will be assured that GBR must always treat all private operators with fairness and in a non-discriminatory manner. Given those safeguards, the addition proposed would be duplicative.

I turn to new clause 15, which seeks to implement a statutory electrification programme. Living near Selby station, I know better than most that rail electrification is important, including to realise the Government’s wider goals of decarbonisation. The hon. Member for Didcot and Wantage ably set out the fact that decarbonisation is not the sole efficiency and aspiration that can be realised through electrification. We fully realise the need to reduce the cost of electrification and accelerate the delivery of committed schemes in comparison with past experiences.

We are currently developing a long-term strategy for rolling stock and associated infrastructure. That will be published in the summer and will consider the future approach to electrification. That being said, a legislative duty to carry out an electrification programme is not the right way to deliver these important upgrades. In the effort towards net zero, electrification may not always be the right solution—although the hon. Member for Didcot and Wantage made a well-reasoned case as to how, in many cases, it is. Other opportunities, such as trains powered by batteries, may be more appropriate. It is also hard to predict the pace at which battery technology and other alternative technologies will progress over the next 20 or 30 years, and what that means for the extent of electrification that will be needed as we move towards net zero.

Edward Argar Portrait Edward Argar (Melton and Syston) (Con)
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I appreciate the Minister’s points. How does he see the drive towards electrification, for all the good reasons he has set out, sitting with building a degree of resilience into the rail network? The hon. Member for Nottingham South, the other Minister, may have experienced the problem that I had last weekend, when, due to attempted overhead cable theft, a load of trains through the east midlands were cancelled. That happened because there is no back-up mechanism to move those trains if the electrical supply is not there. How do we square that circle of making sure that a bit of resilience is built in?

Keir Mather Portrait Keir Mather
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The right hon. Member makes an important point about resilience on the railway; it complements the points made by the hon. Member for West Dorset about the fact that we live in a changing climate. That creates pressing resilience challenges across the breadth of the railway. The right hon. Member makes a good point about not being over-reliant on one technological mode. That being said, I hope that, through an overall transition towards decarbonised rail transport, alongside the other decarbonisation measures that the DFT is taking across the piece, we will be sufficiently resourced, capable and in pursuit of innovative solutions to make sure that electrification can play a prominent part in the future of the railway.

We believe that the way to achieve that is to have something more flexible to future direction and opportunities, such as GBR’s business plan, which is already provided for in the Bill. Of course, the rolling stock and infrastructure strategy might be more appropriate as a way to set out GBR’s plans for electrification rather than their being in the Bill.

We move to new clause 20, which would require GBR to work towards climate change targets. I assure the Committee that the environment will form an important part of GBR’s considerations through various mechanisms already included in the Bill. One of the strategic objectives for the long-term rail strategy will be environmental sustainability. GBR will have a duty to have regard to the Secretary of State’s long-term rail strategy and a general duty to make decisions in the public interest, which includes environmental considerations, when developing its business plan. Finally, it is important to point out that Network Rail is not currently directly obligated to deliver on those targets, but has still published “The Greener Railway Strategy”, which includes targets on net zero, climate adaptation, air quality, biodiversity and other environmental areas.

To conclude, we remain committed to addressing the environmental challenges faced not only by rail, which is already a comparatively green way to travel, but across all transport modes, and GBR will be an important partner in that work. I hope that hon. Members have been reassured and will consider withdrawing their amendments.

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Olly Glover Portrait Olly Glover
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Amendment 130 and new clause 8 constitute a Liberal Democrat proposal to introduce a 21st century update to passenger charters. I shall seek to be concise; in the unlikely event that hon. Members would like to hear more, I should say that I gave a ten-minute rule Bill speech on the subject in the House of Commons yesterday.

For context, given above-inflation fare increases over many decades, which I alluded to earlier, the modern rail passenger rightly expects more than they often get. On-board amenities are generally not subject to any form of compensation provision should they not be available. Indeed, passenger charters generally make good noises about having such amenities, but they do not get the same guarantees for them as they do for delays.

The issue is not necessarily about moving to this tomorrow; there are many older trains on our network that require either upgrading or replacement with modern amenities, but where the amenities exist they should be provided. It should no longer be considered a luxury to have functioning wi-fi or a mobile phone signal so that people can be productive on the train. Toilets should be reliable, a seat should not be considered a luxury—a standard class ticket does not entitle one to a seat—and there should be adequate space for luggage, pushchairs, bicycles and so on. In so doing, we will make the rail offer more attractive to the travelling public and ensure that people do not have bad experiences, as did my friend Jen from Wallingford who, after a particularly terrible journey between London and Glasgow on Avanti West Coast, has now returned to driving, even though the distance is—off the top of my head—some 350 miles.

Our proposal would require the Secretary of State to lay a passenger charter before Parliament within six months of the Act’s being passed. That updated charter would look at providing value-for-money guarantees not just for delays, but for provision of other amenities, with reasonable waivers such as for journeys under 30 minutes, which can be subject to commuter-heavy loading at peak times.

The whole principle of delay repay should be protected. I keep hearing rumours—I have no idea whether they are true; perhaps the Minister could give us assurances that there will not be any attacks on delay repay. We should be proud of it, as it is a much more generous compensation provision than in any other European country and it should not be diluted or reduced to save costs. Instead, we should focus on preventing delays and managing delays better so that we do not need to pay so much delay repay. That compensation provision should be extended to other onboard amenities, so that there is an incentive to create a 21st century onboard environment that enables us to retain our existing passenger base and attract far more people to our railway.

Edward Argar Portrait Edward Argar
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I have only a few brief remarks to make. Having read both new clause 8 and amendment 130, which is effectively consequential, I say to the hon. Member for Didcot and Wantage that they appear to be perfectly reasonable and sensible proposals that seek to focus, as we should be doing, on the passenger. I have a couple of points consequent to that.

I see the intent behind the provisions; my only query is that I cannot see in the language of the new clause or amendment where the teeth are when it comes to enforceability. I suspect that the hon. Gentleman has in mind exactly how that would operate, but I would be grateful if he clarified how the provisions would be enforced and where the teeth are when it comes to the travelling public. I also associate myself with his question to the Minister, about delay repay.

The focus of all we are doing should be on the passengers—the service users of our railways. The passenger has paid to use that service. Again, I hope the Minister will take the opportunity to confirm on the record that there is no intention to weaken the delay repay scheme once GBR is in operation. The key is for the Government, rather than seeking to weaken delay repay to save money, to actually put their money where their mouths are and be confident that GBR will improve reliability. That way, GBR will not have to pay out so much because the trains will be doing what they are there to do for the travelling public. I hope the Minister can give that assurance as he winds up.

Edward Morello Portrait Edward Morello
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I speak in support of my hon. Friend the Member for Didcot and Wantage’s passenger charter. I recommend that any Member who was otherwise engaged to go and listen to his ten-minute rule Bill, which outlined it in far greater detail than I will today.

Edward Argar Portrait Edward Argar
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I have it here!

Edward Morello Portrait Edward Morello
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It is excellent reading—something for the train on the way home. It lays out why the passenger charter is so key to delivering a better experience for rail users. The Committee will spend a lot of time talking about rail upgrades, shorter journeys, passing loops and all the things that we should discuss—it is easy to understand why we focus so much on shorter passenger journeys—but the passenger experience is also key. When I agreed to sit on the Committee, I said that if I achieved anything from it I hoped it would be the return of the buffet trolley to any train going anywhere near West Dorset.

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Keir Mather Portrait Keir Mather
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The hon. Member can intervene again if I have misunderstood his point, but I think there is a lot of utility in the fact that GBR, by being able to direct passenger services as well as having responsibility for long-term infrastructure such as stations, provides a coherent basis on which to tailor the passenger experience across the multitude of ways in which passengers engage with the railway and its infrastructure. From my perspective, it actually removes issues in cases in which competition may not be what is best for the passenger—where there is an offer in the catering car on their service down to London, but also a small business running a café from the station. We will have more of an opportunity to offer a holistic service for the passenger.

It is also important to me that we do not want to fix the passenger offer in statute. We want GBR to be able to adapt to passengers’ needs as they change over time. For example, I cannot imagine that many were thinking about wi-fi when the Railways Act 1993 was passed, but we know how fundamental it is to social and economic connectivity for passengers on the railway today.

To ensure that GBR does a good job of managing the passenger offer, the Bill will also establish the passenger watchdog, which will have strong powers to act in passengers’ interests. The Government and GBR will have to consult the watchdog when developing their policies, strategies and priorities for the railway, including when GBR is developing its business plan and passenger offer, and GBR will be expected to take account of the watchdog’s advice. The watchdog will also set minimum consumer standards, covering areas such as accessibility and passenger information.

The Secretary of State will have the opportunity to prioritise the needs of future passengers through the long-term rail strategy.

Edward Argar Portrait Edward Argar
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The Minister has just said that the watchdog will have strong powers, but then uses words like “consultation” and “taking account of”. I have taken Bills through this place, and there are other words, like “should”, “could” or “must have regard to”—in fact, Bills rarely say, “must”; they normally say, “should pay attention to” or “should heed”. What actual powers will the watchdog have to compel GBR or the Secretary of State to take a particular course of action?

Keir Mather Portrait Keir Mather
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That is a very important point. I thank the right hon. Member for his contribution. The passenger watchdog will have the ability to make sure that GBR is compliant with minimum consumer standards on accessibility and information—this will be an independent power to directly monitor the passenger experience—as well as investigation powers, including to demand information by a deadline. It will be fully established within 12 months of Royal Assent of the Bill, so it will be stood up quickly to provide the oversight that it needs to provide.

The Secretary of State will also have the opportunity to prioritise the needs of future passengers through the long-term rail strategy, as well as her statement of objectives, which must be addressed by GBR in its business plan, which itself must be signed off by the Secretary of State under the new funding process. It would therefore be inefficient and duplicative to create yet another document to achieve the same aims.

Let me turn briefly to delay repay. The passenger watchdog can set standards that relate to delay repay. It is namechecked as an example in clause 46, and delay repay will still be available under GBR. The Opposition spokesperson—

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Edward Argar Portrait Edward Argar
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I regularly find myself agreeing with the hon. Member for West Dorset—possibly to the detriment of us both—on a whole range of things, and I agree with the Liberal Democrat spokesperson again on this occasion.

My hon. Friend the Member for Broadland and Fakenham is right to highlight that amendments 133 and 35 are not dissimilar in their intent and in what they seek to achieve. It is important, notwithstanding what the hon. Member for Birmingham Northfield says, that while we do recognise the desire and the need to drive up an increase in the use of railways for transporting freight, at the moment we risk disproportionately focusing on that to the detriment of traveling passengers. If there was any tension there, I would posit that freight may win out.

Yet in the Bill, it is the traveling passengers who will be not only paying for their tickets but essentially, as taxpayers, paying to subsidise or backfill any additional funding needed for the railways as a nationalised industry. Given that, it is vital that the passenger is front and centre of the thinking behind the Bill and how GBR comes into being. My hon. Friend the Member for Broadland and Fakenham rightly highlighted the importance of the culture of the organisation. It may inherit DNA from predecessor organisations, but GBR will be a new organisation, and that gives the Minister and the Secretary of State an opportunity to help shape that culture.

I have a genuine concern that in what is being done, the power of the passenger—of the paying public or the market—is diluted by virtue of creating what is essentially a state monopoly in GBR. What the amendments proposed by both my hon. Friend the Member for Broadland and Fakenham and the hon. Member for Didcot and Wantage seek to do is to put the passenger back into the mix in some way, and require that their voice has to be heard alongside that desire to drive up usage for freight. If there is a target or an obligation on GBR to drive up passenger numbers, it will have to be responsive to what passengers want, what they see and the experiences they have on the railways, which will drive them to use those railways more often.

I take the point made by the hon. Member for Birmingham Northfield, who knows of what he speaks. But at the moment, with the perfectly reasonable desire to increase the use of railways for freight, we risk that being unbalanced to the detriment of the passenger and their voice not being heard. For that reason, I am supportive of both amendments in seeking to make sure that the passenger remains front and centre of how GBR operates.

Keir Mather Portrait Keir Mather
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I genuinely thank the shadow Minister, the Lib Dem spokesperson and Members from across the House for their considered and meaningful contributions on this matter. It shows the strength of feeling that we all have about making sure that the passenger experience sits at the heart of the way that our railways function. On the detail about the length of trains, which I agree is an interesting point that has been teased out in this debate, the rolling stock strategy that the DFT is bringing forward will have specific regard to the issue of train length. That will hopefully assuage some concerns.

The shadow Minister also pointed to the potential deficiencies in Network Rail caused by having an operational focus on the maintenance of infrastructure as opposed to promoting the needs of passengers. I would contrast that with the point that a lot of the issues that come with accessibility on the railway and sufficient provision of passenger services arise as much from the access regime and diffuse accountability as they do from cultural or institutional failings in Network Rail. In the current system, access is ultimately decided by the ORR and timetabling by National Rail, and we can end up with a situation where there is a 7 o’clock train from Manchester Piccadilly to London with no passengers on it. The existing system cannot put passengers at its heart, because its decision making process is too disjointed to be able to look at the railway in a holistic way. That is what the Bill is seeking to change.

As all amendments in the group relate directly to the notion of passenger numbers and increasing the number of passenger journeys, I will respond to them as a whole. As a commercial organisation, we believe that GBR will be naturally incentivised to drive up revenue through growing its passenger base and attracting more people to use the railway. GBR must also have the flexibility to determine how it can deliver on that ambition without adverse incentives, for example to congest the network at the expense of passenger experience, being established.

The Bill already includes a duty for sector bodies, including GBR, to promote the interests of users and potential users. That will require GBR to consider during decision making how to encourage new users on to the railway. That is a natural incentive to grow passenger numbers to enable them to realise the benefits of rail travel. That might include working towards encouraging modal shift, extending the network to areas with poorer connectivity or making informed choices to grow different types of services, such as leisure journeys.

In discharging its full remit of duties, including in particular its public interest and making efficient use of public money duties, GBR should make sensible, rounded decisions on where to target passenger growth across the network. It should do that in a sustainable way, and not to meet a passenger target frozen in aspic that might not be appropriate for the needs of the railway at the time. I urge hon. Members to withdraw the amendments.

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Olly Glover Portrait Olly Glover
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I thank the hon. Lady for her comments. I think that absolutely was our intention. Perhaps the placement of commas, or semicolons or colons, or dashes if one prefers them—I cannot stand them personally, but some people love them—would have made that clear. The key thing that we are getting at, the thing that is critical, is the last five words of our amendment:

“authority with statutory transport responsibilities.”

We listed all the ones before that just because it is all so complicated and convoluted. But that was absolutely the intention. I think it is perfectly possible, if the Minister can offer an assurance that the intention is not to exclude any parts of the country that do not benefit from mayoral strategic authorities and can say a little about how he feels that the gap in clause 5 will be covered, that that will be enough to give us some assurance.

Edward Argar Portrait Edward Argar
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I will speak relatively briefly about a slightly tangential but linked point about co-operation with local authorities. My hon. Friend the Member for Broadland and Fakenham has already made the point about non-mayoral authorities. Whatever the direction of travel by the Government, there will still be a significant number of areas not covered by a mayoral authority when the Bill—should it pass through Committee and the House—comes into effect. I think that the wording of clause 5 risks excluding, even if only for a time, a number of relevant local authorities.

I have broader concerns about the duty to co-operate—the duty to work together. Rightly, it focuses on the operation of the railways, and that link, I suspect in intention if not in drafting, with transport authorities. However, there is a need—if this is not written in the Bill directly, perhaps the Minister can explain how he envisages it working in practice—for broader co-operation by GBR with local authorities.

To give an example, in Syston in my constituency, we have the very real challenge of flood risk around the brook that runs through the centre of the town. Lots of work has been done by the local flood group and others to reduce that risk and to get the Environment Agency to take steps to clear the brook, which I have also been very active in, but one of the key issues that remains is a pinch point in the brook under a railway bridge, an asset of Network Rail. The problem is a footpath that is built alongside, under that bridge, that takes up a chunk of what could be waterway with a bank. An idea has been advocated to me by members of that group, and especially by Chris—I will not use his full name—who is a very active member. He suggests, “Couldn’t Network Rail be persuaded to remove the footpath and the bank and instead come up with an engineering solution, a metal bridge or metal footpath, that allows water flow underneath?” That sounds like a sensible and practical idea, and I will of course press it with Network Rail, but I use it as an example of an issue that often occurs when railway assets are, quite rightly, very carefully protected by Network Rail because of the impact on passenger trains and safety aspects.

The situation can be incredibly difficult. I have not yet tried my luck with Network Rail—hopefully it is listening and might be receptive—but it can be very difficult to get it to agree to change its assets at the request of the local flood authority or council, for example, and co-operate because it sees that as a significant expense and a potential disruption to the railways. While I hope that I will receive a constructive response in due course, will the Minister address how, if he is not including this in the Bill, he would envisage GBR being obliged to work in a co-operative and constructive fashion with local authorities and other public bodies when their assets are part of the mix of that conversation?

Rebecca Smith Portrait Rebecca Smith
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I will touch briefly on two points that are not necessarily related, but overlap. First, let me build on what my hon. Friend the Member for Broadland and Fakenham said about the word “may” in clause 5(1). Anyone who was at the oral evidence session earlier this week would have heard the Manchester and west midlands mayors talking about wanting a meaningful relationship. They could not pinpoint exactly what meaningful would look like, but the gist was a desire to make sure that the relationship has some “oomph” or a decent foundation to it. I am therefore concerned about the use of the word “may”. Will the Minister define what “may” means and when “may” might happen? Ultimately, that is potentially the biggest get-out clause for not having to act. I know that that is not the intention, but I do not think that the Bill as drafted clearly describes that.

I referred earlier to the general premise of devolution and the Minister tried to reassure me about devolution outside strategic mayoral authorities, but I still do not think that the Bill is clear enough about what is going to happen. Given that the Bill sets up a railway system that the Government hope will last forever, it is not clear how other parts of the country will come into play. The Transport Committee has debated that and heard lots of evidence as well. The question remains. While I appreciate the Minister’s reassurances, they do not go far enough to help me and many others across the country to understand what is in the Bill for them regarding local control and power.

We have debated changing language today and I have already talked about the potential for referring to “local transport authorities”. I am intrigued about why subsection (5)(c) is the end of the line. It refers to a

“Passenger Transport Executive for an integrated transport area.”

Why does this not go further? We know that the Government have huge intentions for devolution and local government re-organisation but, despite their best intentions, that might not come to pass in the way they think.

How can the Bill be changed to reflect areas of the country that do not have a mayor or any of the bodies included in subsection (5)? How will the Government ensure that the whole country benefits from GBR, not just those areas that have great, charismatic mayors—of all colours? They keep being brought in front of the Select Committee as the solution to all of our transport problems, but unless other areas in the country get a mayor, they will not see the benefits of any of it. I know that that is the Government’s intention, but I genuinely do not think that it will be the reality for a number of years.