I congratulate you on your election to the Chair, Madam Deputy Speaker. I also congratulate the Secretary of State for Transport and her colleagues on their appointments, and I wish them all the best.
I will start by giving the House a commitment that I will not make any laboured or tedious comments about curly British Rail sandwiches. I welcome the fact that the new Government are giving legislative time to transport at this early stage, given that it is a vital policy area that is often neglected—some might even consider it a Cinderella topic for this House. It is a positive contrast to the previous Conservative Government, who presided over industrial relations chaos, utterly incomprehensible contract extensions for failing train operators such as Avanti
West Coast—which many Members have been plagued by—and CrossCountry, and a lack of any meaningful fares or industry reform.
I am one of few Members of this House to arrive here following a career on the railways. I pay tribute to the hon. Member for Smethwick (Gurinder Josan), and I commend him for his excellent speech praising the diversity of his seat. I have had the privilege of visiting Soho train maintenance depot during my career on the railways in the west midlands. I would like to give some insights from my professional experience working both for state-owned Network Rail and private sector train operating companies.
It is important for everyone in this debate to remember that nearly all the infrastructure and the operation of a third of all daily train services are already publicly owned. The previous Labour Government rightly took action following the safety and financial failures of private sector Railtrack by creating Network Rail in 2002, which was quickly able to tackle safety and performance issues. However, my experience of two stints working at Network Rail for a total of 10 years is that, as a very large, publicly owned organisation, at times, silo working and bureaucracy can be barriers to achieving results.
Some of the issues facing Network Rail either in or near my constituency include infrastructure reliability problems on the great western main line, severely overrunning engineering works affecting the Botley Road and many local residents in Oxford, and a very long construction processing for Reading Green Park station. It is important to note that being in the public sector does not inherently make everything better. In the privatised train operating companies that I worked for, some of the main barriers to progress were the result not so much of them being private sector, but the lack of incentive to invest due to short franchise or contract terms, and micromanagement by the Department for Transport and the Treasury.
In September 2013, I joined London Midland—a train operator that notionally was in the last year of its franchise. That meant that key investment decisions were deferred, such as on-train wi-fi, timetable improvements and car park enhancements. It felt as if I was caught in a “Star Trek”-style temporal paradox, since when I left London Midland in May 2017 it was still in the last year of its franchise, as no decisions had been made about the franchising process. That is an example of how the potential private sector benefit to the railway has often not been realised because of the flawed approach to franchising, rather than the nature of the private sector.
There are examples of positive private sector contributions, perhaps the most significant of which is the benefit of Chiltern Railways’ 20-year franchise, which saw investment in new stations at Warwick Parkway and the Evergreen upgrade of the Chiltern main line, both of which delivered significant passenger benefits and were genuinely heavily funded by the private sector. Had we had more long-term franchises like that, things might be very different today.
The Bill will not tackle the issue of trains being owned privately and leased back, often increasing the whole cost to operators. The current leasing arrangements can also create perverse incentives on rolling stock retention as a result of cliff edges imposed by lease durations and renewal dates. This has created shortages of capacity on a number of parts of the network in recent years,
as short-term financial decisions have been taken to avoid rolling stock lease extensions—for example, on Southern with class 455 trains and Great Northern with class 365 trains.
Government plans to leave freight and open access operators in private hands may indicate inconsistency with the view that the private sector cannot deliver good services. Most seriously, the state versus private sector debate does nothing to tackle the lack of clear vision for what the Government want the railway to achieve or deliver. As other Members have said, fares continue to be complicated and often expensive. There is a lack of integrated timetables within the railway and with other transport modes, and the role of the Office of Rail and Road regulator needs examination.
I am therefore pleased that the new Government have further plans that I hope will address those points. I implore them to move beyond the public versus private debate and focus on what current and prospective rail users need. Doing so will be crucial to achieving a real focus on customer service, which is needed to grow patronage and achieve modal shift, so that the railway can thrive as part of a wider, sustainable and efficient transport system.