Railways Bill

Grahame Morris Excerpts

Tuesday 9th December 2025 Commons Chamber

[Grahame Morris (Easington) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests and declare an interest as vice-chair of the RMT parliamentary group. I am delighted in particular to follow my hon. Friends the Members for Salford (Rebecca Long Bailey) and for Stourbridge (Cat Eccles). I will make some similar points, which I hope the Minister will address either in his closing speech or perhaps in Committee.

I am delighted that this Labour Government have placed the transformation of our railways, bringing track and train back together, at the forefront of their agenda for change. I will mention four points: workforce; rolling stock leasing companies; rail freight; and track capacity.

On the workforce, as colleagues have said, our railway workers are the backbone of the industry. They drive the trains, maintain the tracks and keep the stations and carriages clean. Some 150,000 rail workers keep the network running smoothly and safely every single day. Will my hon. Friend the Minister provide greater clarity on the intended structure of GBR and shed some light on why the Bill makes no reference to the employment of rail staff? That is causing great uncertainty among the workforce.

I refer to concerns raised by the Public and Commercial Services Union regarding 225 of its members at the Department for Transport, who are due to be transferred to the subsidiary company DFT Operator Ltd by 31 March 2026—coincidentally, the target date for departmental headcount reductions. In addition to the risk of job losses and the consequential loss of experience and expertise, which could hamper delivery of the rail reforms, those staff will lose their civil service status and may well face poorer terms and conditions. The funding arrangements for the new company are still unclear.

The transfer appears to run counter to Labour’s commitment to the biggest wave of insourcing in a generation. Insourcing, ensuring that workers are kept in-house and cutting out private sector profiteering is a great aim, and the Bill is a step towards that. I would like to see the Government look more closely in the Bill at how we can entirely cut out profiteering from the railways and at how we can procure our own rolling stock, making changes to end excessive profiteering by ROSCOs.

It would really be sensible for GBR to establish its own rolling stock company, ordering and owning its own rolling stock, taking advantage of low Government borrowing rates. That is what we should be striving for. In the short term, the RMT is calling for a profits levy on the ROSCOs. A 50% levy on pre-tax profits would raise £116 million a year in funds that could be used for much needed upgrades.

I want to highlight the enormous opportunity in rail freight, which often gets overlooked, particularly in my constituency at the port of Seaham, which is ideally placed to seek efficient, reliable routes to move goods in and out of the region. We have only one freight train a week coming in to Seaham. I therefore welcome that the Bill requires the Secretary of State to set a target for rail freight growth and place duties on GBR, Ministers and the ORR to promote it. A single dedicated rail freight business unit operating within GBR and working with rail freight businesses would, however, be an even more effective driver of long-term growth, integrated with, rather than competing with, the passenger railway. I hope that the Secretary of State will examine the benefits of such an approach.