Railways Bill (Ninth sitting) Debate

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Department: Department for Transport
Jerome Mayhew Portrait Jerome Mayhew
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Thank you, Mrs Barker, for chairing the debate. It is great to see everyone back in the room.

Clause 25 requires the Secretary of State to designate the railway passenger services for which Great British Railways should be responsible. Designation is the mechanism for assigning responsibility for running passenger train services. The Secretary of State, Scottish Ministers and Welsh Ministers each have designation powers to set out services that GBR or others, including ScotRail, may run for them. Ministers can exempt services from these designations, thereby allowing them to be devolved to other authorities such as Transport for London. Designation also underpins the delineation of relevant powers and requirements in relation to those services, such as the discount fare schemes that we are going to discuss with clause 34.

The clause requires the Secretary of State to designate the railway passenger services for which GBR should be responsible. It excludes Scotland-only and Wales-only services, as well as services exempted under clause 28. Again, there is a reference to Transport for London, among others, being exempted from designation by the Secretary of State. It also clarifies that the Secretary of State is not required to designate services, even if parts of them are already designated by the Scottish or Welsh Ministers.

The explanatory notes state:

“The new Secretary of State designation is expected to be succinct and will not provide route nor timetable-level detail. This will ensure GBR has sufficient flexibility to act as a directing mind and plan best use of the network in the public interest and in accordance with its duties…All designations and changes must be published.”

The Government’s notes on the clause describe GBR as the “directing mind”, yet all its powers are able to be second-guessed by the Secretary of State, including the designation of services. That really prompts the question once again, who is the directing mind? Is it GBR or the Secretary of State?

The seeds of GBR’s failure as a directing mind are already being drafted into the text of the Bill. We have already seen all the Secretary of State’s rights to provide “guidance”, then to “direct” in clauses 7 and 9, as well as the long-term rail strategy in clause 15 and the decision on the provision of funding. This is Department for Transport management of the nationalised railways by the back door, confirming the suspicion that GBR will be, or is at risk of being—I hope it is not—the worst of both worlds. These are costs associated with a stand-alone organisation, coupled with the costs of a DFT shadow organisation that over time will grow again to second-guess GBR as catered for in this Bill. It is not just about the cost; it is about the delay, the obfuscation, the inability to decide whether a decision has actually been made and the second-guessing of decisions. That is death to dynamism in an organisation.

The railways obviously have two functions: passenger services and freight. Amendment 226 will make clear that any designation of passenger services will need to have taken account of freight and demonstrate that freight is not caused unreasonable detriment to capacity or future growth. The amendment is clearly in the interests of the common cause to make freight growth a target for GBR, which the Government agree with. It is impossible to deal with either passenger or freight without having regard to the other. That mutual regard is missing from the Bill, and this amendment supplies the necessary focus, so I shall seek to divide the Committee on it.

I move now to clause 26 and amendment 227. We recognise that, at present, Scotland funds and controls Scotland-only services. Scotland can and does designate cross-border services where it has an operational interest. Scotland must consult with the Secretary of State but, ultimately, has autonomy on Scotland-only designations. Clause 26 requires Scottish Ministers to designate Scotland-only railway passenger services and particular cross-border services—either those that they consider should be provided together with Scotland-only services or existing cross-border services designated to them before the Bill comes into force. It ties into clause 31, where Scottish Ministers can provide the designated services themselves or make direct awards under regulation 17 of the 2023 transport regulations.

In this instance, “Scotland-only services” refers to passenger services that start and end in Scotland and do not make a scheduled call in England or Wales. It provides flexibility for the designation to be made either for specific services or for services of a particular class or description. It also allows Scottish Ministers to designate cross-border services where they consider those services should be provided in conjunction with designated Scotland-only services. It is also worth noting that the clause excludes from designation any services exempt under regulations made under clauses 28 or 29, and requires consultation with the Secretary of State before designation, variation or revocation. It is my understanding that very limited designations are reserved to the UK Government. They lay primarily around open access and freight. Those two areas, I suspect, we will enter into discussions at length later in the Committee.

On cross-border services, it is eminently sensible that the UK and Scottish Governments co-ordinate strongly on this. A later amendment to another clause relates to the allocation of ticket sales on a proportionate basis, to ensure that UK and Scottish Governments—in the fullness of time, we will discuss the Welsh Government too—each get their fair share of funding. Amendment 227 would apply a duty to Scottish Ministers, similar to the one that amendment 226 would place on the Secretary of State, to take account of the rail freight target and the infrastructure capacity plan when considering passenger services. Depending on how the vote goes on amendment 226, I will take a view on whether it is worth proceeding to another Division on amendment 227.

Finally, I turn to clause 27 and amendment 228. It is a broadly similar approach, but applies to designation of services by Welsh Ministers. Hon. Members can read the explanatory notes if they wish, but I am just going to take that as read. On first reading the clause, it seemed sensible; after all, Welsh Ministers are responsible for services that start and end in Wales. The cited example in the explanatory notes is the Cambrian line, which typically goes from Aberystwyth and Pwllheli to Shrewsbury or Birmingham International. These services will, on occasion, terminate at Machynlleth. The Heart of Wales line goes between Swansea and Shrewsbury, and Holyhead services will typically end in England. The Welsh Government will have only a handful of services exclusively in Wales. That is a substantially different from Scotland. Those services are the Core Valley lines, the dedicated Swansea to Cardiff route and the Blaenau to Llandudno route—only three. All other services that start in Wales will generally run into England, which poses a significant challenge for the allocation of moneys from ticket sales.

The Minister may find it useful to outline the practical management of cross-border rail services, and how the Welsh Government’s operator can operate with a degree of confidence when it must report to both Governments, but exists under only one. That is a genuine tension, which I would be grateful if the Minister could explain the Government’s thoughts on.

Amendment 228 is similar to amendments 226 and 227. I will not repeat my arguments, but there is a qualitative difference between the situation in Scotland and that in Wales. It will have a significant impact on revenue sharing, where 97% of all routes for the Welsh Government contain an English element. I would be grateful if the Minister could consider that.

Keir Mather Portrait The Parliamentary Under-Secretary of State for Transport (Keir Mather)
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Good morning, Mrs Barker, and to everybody—another day in Committee. I thank the hon. Member for Broadland and Fakenham for these amendments, which seek to ensure that the designation of passenger services does not negatively impact rail freight or undermine GBR in network capacity planning activity.

I hope it is helpful if I clarify that clauses 25 to 27, which set out designation powers of the Secretary of State and devolved Ministers for passenger services, only describe a very high-level mechanism for assigning responsibility for passenger services. For example, the designation helps make clear who is responsible for the service. Further clarity is provided by exemption from designation to show where services have been devolved to other authorities, such as to mayoral strategic authorities or Transport for London. Designation is not a detailed service specification, nor does it determine network access or capacity allocation.

Last week, we published a draft of the Secretary of State’s designation letter to help clarify that, and copies are available in the room today. Ministers’ designation powers do not override or conflict with GBR’s role in determining network access. The access decision process requires GBR to balance passenger and freight needs. The safeguards in the Bill, including the statutory duty to promote rail freight or the ORR’s oversight and appeals body to protect fare freight access are also unaffected by designation. The amendment is therefore impractical and unnecessary and would not achieve its intended purpose in practice.

Protecting rail freight, which I fully endorse, is already enshrined within the Bill. For absolute clarity, I must emphasise that the access clauses in the Bill set out the stages through which network access is determined. It is not determined or affected by designation. The access clauses include producing the infrastructure capacity plan, which will set out GBR’s view of how best to use GBR’s infrastructure to accommodate freight, open access and publicly funded passenger services, as well as maintenance and improvement of the network. GBR will take into account its infrastructure capacity plan when allocating capacity. In comparison, designation is simply the method of determining whether a service should be devolved to, for example, a local authority, or maintained by the Secretary of State and run by GBR. I therefore request that the hon. Member withdraw the amendment.

Clause 25 requires the Secretary of State to designate railway passenger services for which GBR should be responsible. Designation is the mechanism by which responsibility for who should run passenger rail services is determined. Clauses 26 and 27 replicate this, but for Scottish and Welsh Ministers respectively. The Secretary of State, Scottish and Welsh Ministers each have designation powers to set out services which GBR or others—including Transport Scotland or Transport for Wales—may run for them. Designation powers will also assist in providing clarity about which Minister has responsibility to provide, or contract for, cross-border services. Ministers can also exempt services from these designations, which is the way that services can be devolved to mayoral strategic authorities. That was the mechanism used to allow Transport for London to run its devolved service. As I have mentioned, the new Secretary of State designation is expected to be succinct and will not include route level or timetable detail. Designation is therefore entirely separate from access or timetabling decisions.

Jerome Mayhew Portrait Jerome Mayhew
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As I intimated previously, I will put the first amendment to a Division and then we will take a view after that.

Question put, That the amendment be made.

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None Portrait The Chair
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With this it will be convenient to discuss clauses 29 and 30 stand part.

Keir Mather Portrait Keir Mather
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Clauses 28 and 29 enable the Secretary of State and Scottish and Welsh Ministers to exempt certain railway passenger services from designation. Exempting a service means that the Secretary of State or devolved Ministers will not be responsible for that service. Instead, responsibility can be devolved to someone else—for example, a mayoral strategic authority—for them to run or contract out the service. That mechanism preserves the existing approach for devolving services to mayoral strategic authorities and their transport agencies, such as Transport for London or Merseytravel, and for light rail networks such as in Greater Manchester. The Secretary of State cannot exempt Scotland-only or Wales-only services, because those fall under the devolved responsibilities of Scottish and Welsh Ministers. Clause 29 allows devolved Governments to determine which services fall outside designation, offering flexibility in managing their respective networks.

These clauses are necessary to ensure that there is still a way to devolve services, where that can bring benefits and is the best outcome for the network. Exemptions must be made by regulations, ensuring that the allocation of responsibility for passenger services is transparent. Clause 30 provides supplementary provisions for exemptions under clauses 28 and 29. It allows exemptions to apply to specific persons, classes of persons, services generally or parts of services. Exemptions may be conditional or time-limited, so that decisions to devolve services can be tailored to the specific circumstances on a case-by-case basis.

Jerome Mayhew Portrait Jerome Mayhew
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You will be surprised to hear that I am going to canter through this, Mrs Barker. Clause 28 concerns the method by which the operation of passenger train services has been devolved. A good example is services operated by Transport for London and Merseyrail. It is clearly a sensible approach. There is only one clarification that I seek from the Minister. Paragraph 103 of the explanatory notes states:

“All existing exemptions from designations…will be retained.”

That, however, is not in the Bill. I would be grateful for the Minister’s clarification on the difference between the explanatory notes and the Bill. I am not looking for an amendment to the Bill, but his assurance on the Government’s intention. Clause 29 is similar, but relates to Scottish and Welsh Ministers. I see no need to change it as drafted. It sits in line with clause 28 and seems not to act in contravention of the devolution settlement.

Clause 30 clarifies that exemptions made under clause 28 by the Secretary of State, or clause 29 by the Scottish or Welsh Ministers, may apply to specific persons, classes of persons or services generally. I have no objection to the clause, but out of interest, I would be grateful if the Minister could explain in what circumstances the clause would be useful.

Keir Mather Portrait Keir Mather
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I can start by confirming that existing exemptions from designation will be retained. I hope that provides an assurance to the shadow Minister. The powers could be used to allow devolved Administrations to determine which services fall outside of designations, and therefore give them flexibility in meeting the needs of passengers relying on services that otherwise could fall through the cracks. I hope that, having provided the shadow Minister with that assurance, he can support these clauses.

Question put and agreed to.

Clause 28 accordingly ordered to stand part of the Bill.

Clauses 29 and 30 ordered to stand part of the Bill.

Clause 31

Provision of railway passenger services

Jerome Mayhew Portrait Jerome Mayhew
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I beg to move amendment 41, in clause 31, page 16, line 30, leave out from “so” to “, in” in line 31 and insert

“by making a direct award of a contract to Great British Railways, a GBR company, or a private business.”

This amendment would allow private sector companies to operate train services on behalf of the Secretary of State.

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Olly Glover Portrait Olly Glover
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Apologies. One recognises one’s status.

We agree with the shadow Minister on the principle that it should not be about ideology between the public and private sectors. We have argued that consistently in the past. If it was so simple that nationalising train operators would lead to transformative performance improvements, Northern would be a globally inspiring example. I realised this morning that this month it reaches its half-decade anniversary of being in the public sector and, certainly for friends of mine in the north, it remains some way from being a globally leading example. That highlights the fact that public and private sector ideology is but one factor needed to give excellent rail services.

I wonder whether some of the shadow Minister’s amendments are perhaps fighting yesterday’s war. Of course we should all continue to advocate for what we believe, but it seems unlikely that—in the near future at least—there will be a change in approach to the core train operating companies’ being franchised out. Perhaps, rather than relitigating that, we need to focus on other aspects of the Bill, as indeed he has done, and on how we can make the new world better—particularly by removing the Secretary of State’s ability to interfere too much. I wonder what the shadow Minister and Government Minister have to say about that.

Keir Mather Portrait Keir Mather
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May I begin by saying that I hope the shadow Minister can forgive my initial sluggishness on this drab Tuesday morning, because he asked a perfectly reasonable question about the application of the clause when we debated it last. I did not give him an adequate answer so, if you do not mind me looking retrospectively for a moment, Mrs Barker, I would like to inform him that all existing designations are unconditional. The clause is not there to be used often. However, it replicates an existing power, with the idea being that if the Secretary of State wanted to exempt a service to a new local authority that had not had an exemption before, she might wish to provide a time limit to check how it was performing before granting a longer-term exemption. I hope that is a sufficiently adequate answer to his perfectly reasonable question.

I will now speak to the amendments tabled in my name. Amendments 170 and 171 enable Welsh Ministers to continue securing rail services in the Wales and borders region on behalf of the Secretary of State. Welsh Ministers will do that by contracting Transport for Wales to run the services. That will ensure that passenger services that cross between England and Wales every day continue to connect communities, contributing to economic growth. Without these amendments, the Secretary of State would be forced to abandon existing agency arrangements and procure all the services that she designates exclusively through Great British Railways, including English sections of the services currently operated by Transport for Wales. That is inefficient, and contrary to the collaborative spirit of devolution. This is about making the system work, not creating barriers where none need exist. The amendments were always intended to be part of the Bill, and we are correcting that now. The amendments strengthen the Bill by preserving today’s devolved responsibilities once GBR is established. That will ensure that Transport for Wales can continue running services into England, maintaining reliability for passengers and ensuring connectivity.

The other amendment tabled in my name, amendment 172, is a minor and technical amendment that removes a redundant provision in the legislation. I am grateful to the hon. Member for Isle of Wight East for his parliamentary question in November 2025 regarding the policy rationale for that drafting, which helpfully drew it to our attention. I am pleased to confirm that it is no longer necessary.

Amendment 41 and new clause 6 are intended to reintroduce private sector companies running passenger services. The Government were elected on a clear manifesto commitment to return franchised passenger services to public ownership. Public ownership, with the whole system working to one clear set of objectives to improve reliability, performance and punctuality for passengers, is the only way to make the railway run better. I think we all agree that the current system simply is not working. However, the amendment and new clause seek to undo all the progress we have made so far. They could cause chaos on the railway and return us to the dark days of franchising, which did not perform for passengers or taxpayers. The Bill is not about re-debating the principles of public versus private; it is about getting on with this generational reform and delivering for passengers, freight users and taxpayers.

Finally, amendment 44 would require the Government and Scottish and Welsh Ministers to publish pre-award details of public service contracts at least a year in advance of entering into the contract. As I am sure the hon. Member for Broadland and Fakenham knows, publishing pre-award information a year in advance would be an unnecessary and impractical administrative burden. The focus for public service operators should be on efficient delivery and clear reporting rather than rigid pre-award timelines. The Government will continue to be required to act transparently by publishing relevant information about the contract, such as contract dates and the parameters of financial compensation, within two months of entering into the contract.

Given those points, I urge the Committee to support the amendments in my name and I hope that the hon. Member for Broadland and Fakenham will withdraw, or not move, his amendments. I also hope that the Committee supports clause 31, which sets out how designated services are to be provided, and clause 32, which sets out supplementary provisions for public service contracts awarded under clause 31.

The Bill makes it clear that the Secretary of State may assign responsibility for running her services only to Great British Railways or a GBR company. She can secure the provision of services by first designating them and then making a direct award of a public service contract to GBR or a GBR company. Public service contracts are a typical arrangement between public authorities and transport operators for providing public transport and are compliant with relevant subsidy control requirements. As clause 32 sets out, contracts may include a range of obligations, including those relating to additional railway assets, operational requirements and financial arrangements—for example, how any payments will be calculated, and performance targets.

Scottish and Welsh Ministers may either provide designated services directly in house or secure them through a direct award to one or more public sector companies, such as ScotRail or Transport for Wales. They also have the option to contract with GBR or a GBR company, which could unlock the integration of track and train in Scotland and Wales. Clause 31 also ensures that GBR’s duties apply to services operated by joint ventures or GBR subsidiaries under contract and gives Scottish and Welsh Ministers powers to handle freight goods where necessary.

Jerome Mayhew Portrait Jerome Mayhew
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The Minister’s response demonstrates an extraordinary lack of confidence by the Government in the efficacy of nationalisation—the very thing that they are seeking to promote in the majority of the Bill. All that amendments 41 to 43 would do is give the Secretary of State flexibility by making them able by law, in certain circumstances, to give a contract for passenger services to the private sector. They would not require it; they are not saying that this is a battle between privatisation and nationalisation. The only ideological battle here is by the Government, who are saying that it is impossible to conceive of any circumstance in which a private business might be able to offer better value for money for the taxpayer and a better service for passengers than a nationalised part of GBR. They are so concerned that a private business might be offered that opportunity, because they are overwhelmingly better, that they are seeking to legislate to tie the hands of every future Secretary of State.

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Edward Morello Portrait Edward Morello (West Dorset) (LD)
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It is an honour to serve under your chairship, Mrs Barker.

As the shadow Minister outlined, amendment 148 tabled by my hon. Friend the Member for Didcot and Wantage is not overly dissimilar to Conservative amendment 45 in what it tries to achieve, but I will come at it from a slightly different angle. Clause 33, as drafted, gives the Secretary of State the power to issue binding directions to Great British Railways on the level and structure of fares. We have said many times that the Bill already grants the Secretary of State extensive influence over GBR. Allowing binding directions on fares risks tipping that influence into outright micro-management. It opens the door to the imposition of short-term political decisions, rather than long-term, evidence-based decisions about fares being made by those responsible for actually running the railways. It is a tool that can be misused, particularly in times of fiscal or political pressure.

Even if the current Government assure us that they would not misuse the power, the problem is that once it exists, it exists for all future Governments. I hope the Government will recognise the inherent risk in that and support amendment 148, thereby preventing not only themselves but all future Secretaries of State from being able to abuse the power.

Keir Mather Portrait Keir Mather
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On the role of the Secretary of State in setting parameters for fares, we have had a lot of debate in the Committee about the need to ensure efficiency on behalf of taxpayers, who are also passengers on the railway. It is the Secretary of State who ultimately has the democratic responsibility to do so; therefore, it is right that the power exists to set broad parameters as they relate to fares. However, that process must be undertaken transparently. Parameters will be set through guidance and public service contracts, which will be published and open to scrutiny. The Bill says that the Secretary of State can direct on fares, but not that she will do so regularly. That is important to the point about overreach, and the exceptional circumstances in which direction might be a wise provision to have in the legislation. I will turn to that later.

Edward Argar Portrait Edward Argar (Melton and Syston) (Con)
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Can the Minister give a few examples of the exceptional circumstances that might cause the power to be used?

Keir Mather Portrait Keir Mather
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The right hon. Member is far too eager. I shall turn to that in due course.

Amendment 148 would prevent the Secretary of State and Scottish Ministers from issuing directions to GBR relating to fares, and amendment 45 would do the same for directions and guidance. I remind hon. Members that, as I said when we debated the directions and guidance clauses earlier in the Bill, the strategic parameters and guardrails that the Secretary of State will set for GBR on fares may not ultimately be delivered through directions and guidance by default.

Clause 33 already allows for provisions on fares parameters and guardrails to be included in public service contracts awarded to GBR for operating passenger services. Nevertheless, it is crucial that the Secretary of State retains the powers to direct and give guidance to GBR on fares. It is necessary that the Government and GBR alike can respond to exceptional circumstances, which may necessitate a swift reappraisal of the strategic approach to fares. That is precisely what the Secretary of State’s directions-making power allows for, supplemented by the ability to issue guidance, to ensure a clear and speedy response if there is a crisis or unexpected change in context.

Amendments 148 and 45 would remove those options for the Secretary of State and, in fact, for Scottish Ministers where GBR is operating services that they designate. The Government strongly believe that that is not in the interests of passengers or taxpayers. I agree with Opposition Members that we do not want Ministers interfering with day-to-day fares policy. GBR will have the freedom to define its fares policy within the parameters and guardrails set out, simplifying fares, removing duplication and, in turn, improving value for money. It will therefore be set up to succeed from the outset. Contrary to what Opposition Members believe, the powers in clause 33 do not undermine that.

Edward Morello Portrait Edward Morello
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I know it has probably been overused already in the Committee, but I keep returning to the NHS England example. The Government set up arm’s length bodies and Ministers are then invariably unable to resist the urge to tinker. The Government devolve responsibility out and then realise that having something completely arm’s length, which they have no control over, is very unattractive when they are politically responsible. What starts off being explained as happening only in exceptional circumstances invariably becomes day to day. The amendments are an attempt to protect against a repeat of the mistake with NHS England, which the Government are now having to unpick.

Keir Mather Portrait Keir Mather
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We have repeatedly had this allusion drawn between NHS England and the NHS on the one hand and the Department for Transport and GBR on the other. I do not believe that these examples are analogous. NHS England replicated functions in a way that did not serve the interests of patients or taxpayers who paid into the health service. The entire principle here is to take decision-making power from DFT, which under this broken system remains the only body truly accountable for what happens on the railway, and to give it to GBR, in a way that empowers it to ensure that services run in the public interest and represent value for money. I cannot envisage that Members across the House would not think it reasonable, within very broad parameters, to retain some ability to have political accountability in the fare-setting process in exceptional circumstances, such as during the pandemic. That is wholly sensible in making sure the railway continues to offer value for money for both passengers and taxpayers, who are ultimately one and the same.

Olly Glover Portrait Olly Glover
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I understand what the Minister is saying, but if he means that the ability to give these directions would exist only in very extreme, exceptional cases, such as pandemics or large-scale wars, would he not be open to specifying that in the Bill?

Keir Mather Portrait Keir Mather
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These direction powers, as drafted, replicate those in many other pieces of legislation, which are fit for purpose in making sure there is democratic accountability for the functioning of institutions, while not being overly onerous and overbearing. We see them with the Oil and Gas Authority, Great British Energy and Great British Nuclear. Only one direction has been given to the Oil and Gas Authority in the 10 years the legislation has existed. In government, the Opposition included the precise same direction power for GBR in their draft Rail Reform Bill, so they clearly believed it was necessary at the time. I therefore believe that it strikes an adequate balance.

Joe Robertson Portrait Joe Robertson (Isle of Wight East) (Con)
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The Minister says Great British Railways, not the Department for Transport, will run the railways. He says that is different from the set-up for the Department of Health and Social Care and NHS England. Was that not exactly the reason NHS England was set up, albeit not by his Government: to run the NHS so that the Department did not have to? I do not see the conceptual difference here at all; what I do is see the inconsistency in the Government getting rid of NHS England because that model does not work and bringing in GBR in the context of transport.

None Portrait The Chair
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Order. Before I bring the Minister back in, I remind colleagues that we are not debating NHS England.

Keir Mather Portrait Keir Mather
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We may have to hash this out in our own time. There is a principle around the replication of functions between organisations. The principle of GBR is that once those decision-making powers are taken out of the Department for Transport—this is the single-mind approach to access decisions, charging and best use of the railway—there is not replication and burdensome inefficiencies in how those functions are designated and actualised by the different organisations. I believe that the difference lies in that point.

To return to my previous remarks, and on the basis of what I have explained, I urge hon. Members not to press their amendments.

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Keir Mather Portrait Keir Mather
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I sincerely thank the hon. Members for Broadland and Fakenham and for Didcot and Wantage for the amendments, which are about discounted travel for members of the UK armed forces, veterans, their families and the police.

On amendments 46 to 55, first and most importantly, the Government fully recognise the enormous contributions made by members of the UK armed forces, UK veterans and their families. I am pleased to confirm that there are absolutely no plans to change the existing range of discount schemes, including the veterans railcard and the armed forces railcard, which also covers family members of serving personnel. Those are valuable discounts for people who have sacrificed in the public interest, and the Government are rightly committed to them.

In our view, however, it is not necessary to reflect that commitment on the face of the Bill,. The Bill gives continued statutory protection to the discount schemes that are already protected by the Railways Act 1993 to ensure consistency for groups for whom cost has historically been a particular barrier to travel, to ensure that our railway continues to be inclusive and to be consistent with previous Acts. That does not mean that other discount schemes are not at the forefront of our mind and will not continue.

Rebecca Smith Portrait Rebecca Smith
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I appreciate what the Minister is saying but, if that is the case, surely we should just remove the whole clause. If the Government do not seek to remove any discount schemes, why do they need three discount schemes, and none of the others, on the face of the Bill? It seems to me that there is a bit of a contradiction there.

Keir Mather Portrait Keir Mather
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As I have just mentioned, we want to carry over those schemes to provide consistency for those groups. We are carrying over the role of the discretionary schemes as set out in legislation. We think that consistency is important but, for reasons that I will come to later, we also believe it is important that GBR is able to move in an agile way and think about evolving needs when it comes to concessionary travel. It is important, in terms of legislative carry-over, to ensure that that remains in place.

Jerome Mayhew Portrait Jerome Mayhew
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The Minister says that he wants GBR to remain agile, but does he foresee a situation in which it is agile by removing the veterans railcard? If he says no, as I suspect he will, why does he not put that on the face of the Bill and support our veterans?

Keir Mather Portrait Keir Mather
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For the reasons I have just outlined. I have already confirmed that there are absolutely no plans to change the existing range of discount schemes, which include the veterans railcard and the armed forces railcard.

Jayne Kirkham Portrait Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
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Perhaps the Minister can confirm that the veterans scheme is incredibly important, that we all agree with it being there, and that there are absolutely no plans to remove it.

Keir Mather Portrait Keir Mather
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Yes, I am very eager to agree with my hon. Friend.

This is a serious point. In my constituency, I see the difficulty that veterans have in attending Selby Abbey to mark the enormous contribution that people in our armed services have made across many conflicts. I would have thought that this is personal to every single member of this Committee, which is why I am pleased to agree with my hon. Friend.

Laurence Turner Portrait Laurence Turner
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Does the Minister agree that there is a comparison with the disabled persons railcard, the criteria for which have been significantly expanded? That change is due to be implemented over the coming months, and that has been possible only because there was not a restrictive statutory definition in primary legislation. Our understanding of disability has changed since the legislation was passed, and we would not want to restrict ourselves unnecessarily for the future.

Keir Mather Portrait Keir Mather
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My hon. Friend makes an interesting point and is absolutely right to note that we want the concessionary schemes to be able to evolve to reflect the needs and lived experiences of those they are designed to help. I will expand on that point in more detail later.

I will make some progress now. We are of the view that minimising the number of listed discounts on the face of the Bill will enable GBR to develop and adjust discount arrangements over time, reflecting passenger needs and other objectives. For example, in the future it might be desirable to rationalise the existing concessionary offer for current and former military personnel and their families to ensure consistent terms and conditions between the armed forces and veterans. GBR should be able to consider such options but, if we enshrine the schemes in primary legislation, it will become virtually impossible to amend and improve them.

The Government remain fully committed to supporting the armed forces community through travel discounts and other means. For that reason, while I sincerely understand the motivation behind the amendments, the Government do not believe they are necessary and I ask the hon. Member for Broadland and Fakenham to withdraw them.

New clause 51 requires GBR to provide free travel

“to and from events that commemorate Remembrance Sunday.”

As I have said, the Government remain committed to all those who serve, and that includes supporting their attendance at events commemorating Remembrance Sunday. Last year, as in previous years, the Government worked closely with the rail industry to ensure that serving members of the armed forces and veterans were eligible for free travel to and from services of remembrance across the country. Likewise, Poppy Day volunteers and collectors—and their children—travelling to the London Poppy Day events were given complimentary travel to support their fundraising efforts on behalf of the Royal British Legion.

Rebecca Smith Portrait Rebecca Smith
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I appreciate the Minister’s reassurance that there will still be opportunities for people taking part in remembrance events. However, there are additional matters such as the poppy train, which comes up through the south-west with Great Western Railway. While such things may be worked through in conjunction with the Secretary of State, they are put on by a privately owned franchise rail company. Is the Minister effectively saying that it will be down to the individual business units to decide what happens within their railway scope, or will it be in guidance through the licence or something else? There are many things that have been provided by privately owned franchises that the Bill does not confirm will take place once the railways are state owned.

Keir Mather Portrait Keir Mather
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While I do not anticipate provision around the specific instance the hon. Lady described—for example the poppy train being frozen into the licence of GBR—I do expect that GBR will be minded and motivated to continue to ensure that members of the armed forces community, veterans and their families can attend Remembrance Sunday services across the country. In our view, concessionary travel more broadly will improve the ability to do that. It will allow GBR to set provisions in an agile manner through an evolving concessionary fares scheme, rather than freezing them as part of the Bill—and, moreover, to set provisions that are not already locked into legislation and do not therefore need to be carried over, in the interest of consistency for the groups that they affect.

Turning back to my remarks on Poppy Day volunteers travelling to events with their children, I do look forward to that policy continuing in the years to come, although precise arrangements for how that will work will be confirmed closer to the time. All that being the case, we do not see the need for legislative amendments. These are things that the Government and rail industry already strongly support and have been providing for many years. A regulatory framework would only complicate delivery, which is more effectively facilitated at the operational level, so, while we wholeheartedly support the spirit of new clause 51, I urged the hon. Member for Epsom and Ewell to withdraw it.

New clause 59 requires GBR to provide a scheme enabling free rail travel for police officers and police community support officers who are in full uniform or who are travelling for operational purposes. The Government gratefully acknowledge the service of police officers across the country and all that they do to keep us safe. The speed, skill and professionalism of the response by British Transport police and other brave first responders to the horrific train attack in Huntingdon last year is just one example of how police officers and all our emergency services save lives every day across our country.

While I understand the intention of the new clause in supporting that vital work, the Bill is not the correct place to set out the requirements for such a scheme. As the hon. Member for Didcot and Wantage knows, any new staff travel scheme should be the product of negotiations between the relevant organisations. To prescribe a scheme in primary legislation sidelines that process and risks the creation of a scheme that is not fit for purpose, as well as unfunded financial impacts to the railway. Therefore, while I am sympathetic to the intentions of the new clause, the Bill is not the appropriate avenue to establish such a scheme, and I urge the hon. Member not to move it.

Clause 34 ensures that GBR will be able to provide discount schemes, such as those offered today as railcards. First, the clause continues the 1993 Act’s statutory protection for young, senior and disabled passenger discounts. Prices are historically more likely to be a barrier to these groups’ accessing rail travel, and they are covered by the protected characteristics of age and disability. Maintaining these concession schemes in primary legislation supports equal access to employment, education and essential services. It is worth noting that, while other concessionary discounts are not included in the Bill, the Government recognise that they too are important, and there are no plans to withdraw any of the discounted schemes currently being offered.

Nevertheless, the clause also gives GBR the flexibility required to simplify and modernise discount schemes across the network, and to evolve the offer where that is considered desirable to meet passenger needs in the future. Finally, the clause ensures that devolved operators will still be required to offer the core statutory discounts, and that they will have flexibility over whether to participate in the GBR scheme or to create their own.

Jerome Mayhew Portrait Jerome Mayhew
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It is extraordinary that the Government say, on the one hand, that age and disability need to be included in primary legislation, but on the other hand that it is totally unnecessary to have the same security for veterans. We on the Conservative side of the House do not accept that logic and we will be pushing amendments 46 to 55, individually, to votes.

Question put, That the amendment be made.

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Keir Mather Portrait Keir Mather
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I thank the hon. Member for tabling the amendments, which would place a statutory duty on GBR and on Scottish and Welsh Ministers to ensure that discounted rail fare schemes are available for persons aged 26 to 30—I do not know whether I should declare an interest, as a holder of one of those railcards.

The Government have stated that there are no plans to change the existing range of discount schemes, including the 26-30 railcard, but we do not consider it necessary or appropriate to list specific age ranges in the Bill in the way proposed. Listing specific age ranges would be unnecessarily inflexible. The Government are absolutely committed to retaining discount schemes for younger people; however, much of the current discount system is fragmented due to its origin in the franchising system, so GBR may want to rationalise the existing range of discount schemes currently targeting younger people to simplify duplicative and overlapping offers and age ranges between 16 and 30, for example, as part of introducing a modernised, more consistent offer for passengers.

Given that Acts of Parliament are drafted to last a generation or more, placing specific age ranges in the Bill would likely remove those opportunities and potentially limit opportunities for young people. For those reasons, I urge the hon. Member to withdraw the amendment.

Jerome Mayhew Portrait Jerome Mayhew
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The Minister says that he wishes to have flexibility. The whole point is that we are trying to remove flexibility, so that GBR cannot take away discounts for 26 to 30-year-olds in the future. The Minister’s argument actually increases my concern that that is a realistic prospect in the Government’s mind, and I feel even more strongly that we should divide in order to ensure that discounts for 26 to 30-year-olds are protected in the long term.

Question put, That the amendment be made.

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Edward Morello Portrait Edward Morello
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I want to speak in support of new clause 13, tabled by my hon. Friend the Member for Didcot and Wantage. The new clause is our proposal for a rail miles scheme, as he eloquently laid out, but I want to add a couple of things. First, a rail miles scheme would encourage people to return to rail time and again, reward passengers for regular use and provide additional flexibility and discount. As has been outlined, we have seen existing or similar systems in respect of Eurostar, supermarkets and air miles, and, in certain cases, within the UK railway system.

It is worth stressing that, importantly, new clause 13 does not mandate the introduction of a scheme. It would require a report on how a customer loyalty programme could work in practice, boost passenger numbers and be designed to remain affordable and cost-effective for the taxpayer and the Government. All we ask for is an evidence-based review of rail miles as an important step towards a fairer system. As it is not a mandate but simply a request for the Government to look into the idea, the new clause should be relatively easy for the Government to support.

Keir Mather Portrait Keir Mather
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Let me start by reasserting the principle that we do not want Ministers to be micromanaging the railway. However, the point about gin miles was very well made and I shall relay it to GBR.

Rebecca Smith Portrait Rebecca Smith
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It was Plymouth gin!

Keir Mather Portrait Keir Mather
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Well, there we are.

Let me start by responding to what the shadow Minister described as a probing amendment. He asked me to set out a little more detail on how we envisage the use of conditions on discounts, and I want to reflect the intent that he described. We want to ensure that eligibility for concessionary schemes and discounts is kept up to date, is reflective and is rationalised where necessary. A good example could be changing terms and conditions to change the eligibility criteria for the disabled railcard to include non-visible disabilities, which we have committed to in the accessibility road map. The intent to make sure that discounts are reflective of the lived experience of those who rely on them very much lies behind the provisions.

I thank the shadow Minister for tabling amendment 61, which would seek to remove GBR’s ability to set conditions on the use of discounted fare schemes. As drafted, the legislation will enable GBR to develop and adjust discount arrangements, if necessary, to reflect changing circumstances and passenger needs. More generally, it is worth noting again that the future framework on fares introduces clear and enforceable mechanisms that can be used to hold GBR to account, to ensure it delivers value for passengers and sustainable outcomes for taxpayers. Under this model, the Secretary of State will set parameters and guardrails aligned to GBR’s financial settlements. We believe that strikes an effective balance between strategic oversight and operational independence.