Philip Hollobone
Main Page: Philip Hollobone (Conservative - Kettering)Department Debates - View all Philip Hollobone's debates with the Department for Transport
(11 years, 1 month ago)
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Norman Baker
Obviously, nearly all the franchises were let under the previous Government so, in a sense, we inherited the arrangements that apply to the various franchises across the country, and they cannot be unpicked during the period of a franchise. However, we can try to influence future franchises, and the Secretary of State will make a statement to the House in the near future about how we are taking forward the franchising regime.
Inevitably, some lines are profitable and some lines are not, and that is simply down to market forces. A concentrated commuter network or a highly attractive route—say, from London to Manchester—is more likely to be profitable than a route that serves a large number of small stations, such as between Inverness and Wick and Thurso. It is difficult to envisage how that could ever make a profit, because it is a long, straggly line that few people use. Market forces therefore inevitably apply, but our job is to try to ensure that we secure the maximum return from the private sector to enable us to reinvest in the network for the future.
My hon. Friend mentioned Brian Souter’s salary but, on the other hand, his company is now paying a premium to the taxpayer. In a sense, the private sector system seems to be working. Brian Souter has invested heavily. He is taking the rewards for himself, which he is entitled to do, but he is also paying a premium to the taxpayer that enables us to reinvest. The system seems to be working, and we want to get more train companies paying money to the Government. If we can do that, because efficiencies have been driven in and inefficiencies have been driven out, it is all to the good.
I am afraid that I have not been able to say anything about investment, but there are large investment plans for the South West Trains area. I will happily drop my hon. Friend a line to set out what they are, but they include longer platforms and trains, and in due course steps to improve the situation at Waterloo.
Mr Philip Hollobone (in the Chair)
We have arrived at our destination and I am afraid that our journey terminates here.