Transport Secretary: East Coast Franchise

Mike Amesbury Excerpts

Wednesday 23rd May 2018 Commons Chamber

[Alec Shelbrooke]

Railtrack failed due to the vandalism of John Prescott when he was Transport Secretary. He took advantage of the opportunity when British Rail’s failure to keep its system upgraded and safe culminated just three years into privatisation under Railtrack. The track that broke, which caused Railtrack to fail and to be transformed into Network Rail, did not degrade in the three years of privatisation. It broke as a result of a catalogue of rail mismanagement that led up to that point. It is one of the biggest disgraces—

[Mike Amesbury (Weaver Vale) (Lab)]

rose—

[Alec Shelbrooke]

I am sorry, but I have taken two interventions and I will not have any more.

It was a disgrace to use that failure as an opportunity to act according to political ideology. I am very clear on that point. One of the fundamental problems with the railway is that we have got to a point where we are looking back through rose-tinted glasses. I recommend to everyone—perhaps some people have seen it—a programme on Channel Five at the moment called “InterCity 125: The Train That Saved Britain’s Railway”. It is fantastic. I really enjoyed the first episode. What was the first part of that episode? The state of the railways in this country when they were under British Rail, and the lack of investment by Governments of all colours during that time.

We talk about the east coast main line. We are going back to a period when, given the resources that were available at the time, with the overhead powering, the gantries were as far apart as they could possibly be, so of course high winds displaced the wires. These were all failures of trying to deal with a nationalised company that has to compete for its money with the health service, benefits and pensions, education and all the other things the Government have to spend money on. They were also due to the fact that whatever those failures were, staff would still come to work the next day and get paid, because they did not have the responsibilities that they would have had in the private sector.

I am being very critical of Network Rail, and one reason why is that I have had it up to here—up to the top of my head, for the benefit of Hansard—with Network Rail. For several years, this Government—under the then Chancellor of the Exchequer, George Osborne—delivered a grant to Network Rail to put in place a bridge at Dartford station in my constituency under the Access for All scheme. I have constantly been in meetings about that with Network Rail, and I have heard excuse after excuse for why it is not happening. Fundamentally, whatever the reasons, it is getting to a stage where it could not manage its way out of a paper bag. I have had enough—my constituents have had enough—of Network Rail staff’s failure to take responsibility and attempts to pass the buck. There is only one reason why we have problems with electrification: the poor management and poor running of Network Rail. I have kept quiet about my criticisms of Network Rail to this point, but not today, because another failure has led to the contents of a rail franchise bid not being delivered.

Like many Members, I have used the east coast main line regularly, and none of us can deny that the carriages have been upgraded. They were refurbished. The experience in those carriages is more pleasant than it was in the recent past, and that shows that there has been investment.

Every single time we talk about an upgrade, Network Rail puts it back. Now we are looking at December 2018 before the latest set of figures come through. It beggars belief that when we see the failure of such a major company at the heart of our railways, which is charged with delivering the infrastructure for the rail operating companies to work on, nothing ever happens.

The motion states that the Secretary of State’s pay should be cut. In my view, we might instead start thinking about censuring the people who are putting together project plans but not delivering them.

--- Later in debate ---

[Kwasi Kwarteng]

My hon. Friend makes an excellent point that goes to the slight craziness of a lot of our debate. It is clear to me that the partnership with the private sector has put far more investment—billions and billions of pounds of investment—into the network than would have been the case if it had remained under public ownership. We all know the budgetary pressures. We all know the budgetary situation in 2010, when we had a deficit of £160 billion. It does not take a particularly sophisticated mathematician to work out that, if we had had the rail network in public ownership, as well as public ownership of vast swathes of industry, the budgetary position would have been a lot worse than even in 2010.

[Mike Amesbury]

Surely the way forward in this debate is what works. In the past 14 days alone, Northern Rail has cancelled 1,159 trains—full cancellations. It is complete chaos in my constituency. That demonstrates that the current franchise system is not working. We need public ownership and public control.

[Kwasi Kwarteng]

Everyone in this Chamber realises that the franchise system is not perfect, and I freely admit that. However, compared with what was operating before under the nationalised system, we have seen massive improvement in terms of investment and a doubling of passenger journeys since 1995. Under the old system, one of the principal jobs of the Government was, in effect, to manage this huge industry. Half the Secretary of State’s time was spent talking to the unions about the wage bill. There were civil servants running the network who were not rail professionals. The shadow Secretary of State said that we need to get more professionals running the system. His proposed solution to that was to nationalise the entire network. That is essentially giving control to the man or woman in Whitehall, who, despite their qualifications and skills, are simply not rail professionals; everyone can see that. It is extraordinary to say that we need more rail professionals to handle the network and operate the system, and then to say that the Government should nationalise the whole thing. There is an inherent contradiction in that.

When I entered this House, I was very lucky to serve on the Transport Committee for three years. We covered a great deal of ground in that time. We went to the EU—to Brussels—a number of times. It is really disappointing, frankly, to see that the debate has regressed since I served on that Committee, under the chairmanship of the hon. Member for Liverpool, Riverside (Mrs Ellman). All parties in this House were broadly in agreement with the franchise system. The debate was about how we were to manage that system and how the franchises should operate. People have mentioned the Brown recommendations, the majority of which, as I remember, were supported by the Committee. We were moving forward. There was political consensus in this House and across the country.

Now, we are faced with a radical Marxist, or whatever you want to call it, party—[Interruption.] I am sure you would not call it that, Mr Deputy Speaker. We can call it lots of things. We are confronted with a party that is openly suggesting that nationalisation is the answer. [Interruption.] The shadow Secretary of State says, “The public are agreeing with us.” The polls on aviation showed that only 18% of the public believed in privatisation at the time, but we privatised it anyway and it was incredibly effective. The reality of British Rail and a nationalised network is not the fantasy described by Opposition Members.

I want to make some specific remarks about the east coast rail franchise. It is absolutely the case that this has been a very difficult franchise. It has had recurring difficulties in terms of revenue projections, as my hon. Friend the Member for Milton Keynes South (Iain Stewart) said. Those projections would have been difficult under any administrator—any form of ownership. There are serious questions to be asked about the nature of the shareholders’ guarantees and the nature of the public sector liability. However, to suggest that the answer is to nationalise the entire network, which I believe was in Labour’s manifesto, is really, I am afraid, a case of throwing the baby out with the bathwater.